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Operations Management

8th edition

Chapter 4

Product and

Service Innovation

In Chapter 4 – Product and service innovation – Slack et al.

identify the following key questions…

 What is product and service innovation?

 What is the strategic role of product and service

innovation?

 What are the stages of product and service innovation?

 What are the benefits of interactive product and service

innovation?

Key questions

Figure 4.2

The relationship between creativity, innovation

and design

Nature and purpose of the design activity

Products, services and the processes which produce

them all have to be designed.

Decisions taken during the design of a product or

service will have an impact on the decisions taken

during the design of the process which produces those

products or services and vice versa.

Figure 4.3

The S-shaped curve of innovation

Innovation in primary healthcare example…

The product and service design innovation activity

as a process

Figure 4.7

The stages of product/service design innovation

Concept generation…

Ideas from customers formally through marketing

activities.

Listening to customers – on a day-to-day basis.

Ideas from competitor activity – For example, reverse

engineering.

Ideas from staff – Especially those who meet

customers every day.

Ideas from research and development.

Uncertainty regarding the final design

Certainty regarding the

final design

T IM

CONCEPT

FINAL DESIGN

SPECIFICATON

Choice and evaluation screens

Large number of

design options

One design

The funnel of development

Preliminary design…

A delay in the ‘time to market’ disproportionally

delays the financial breakeven point

Figure 4.12

Sorting out problems early saves greater disruption later

in the design activity

Figure 4.13

Organizational structures for the design innovation

process