Customer Participation in Nsd

Customer Participation in two different NSD Models

Abstract

The aim of this paper is to identify the value of customer participation in new service development (NSD) efforts by identifying the elements of two NSD models from the field of new service development literature. The two models identified are the stage-gate mode for NSD of Alam and Perry (2002) and the Learning model for NSD of Stevens and Dimitriadis (2005). The difference between the models, the advantaged and disadvantages, and the incorporation of customers within these models is explained. How to incorporate the customers and in what stages of the NSD is also developed for both models.

The selected models do not share many similarities. The stage gate model can be easily modified to implement customer involvement, and the learning model can be hardly adjusted due to the fact it is founded on organizational learning. The differences affect the degree and the method to which customers can be involved, in extremis a stage gate model could be adjusted in such a way that customers will have great power in the different stages of the NSD process; contrary the learning focuses on the organization and customers are seen as an external factor. This makes the learning model less suitable for customer involvement in NSD because this model focuses on the learning organization. The extent to which customers are involved shall always be in line with the extent to which the existing processes, routines and culture of the organization allow this kind of NSD involvement.

Therefore, it is concluded that the applicability of the stage gate model is better with respect to involving the customers in the NSD process. The main reason for the better applicability is because of the model can be more easily adjusted to the needs for each different NSD project. The customer involvement is therefore better to implement and asks less form the customer with respect to the learning model, in which the customer will need...