Service Design as an Approach to Implement the Value Cocreation Perspective in New Service Development

Abstract

Although new service development (NSD) studies have contributed to developing systematic approaches to service innovation, their product-oriented and provider-centric perspectives are limited in embracing a value cocreation concept. We investigate how Service Design, as a human-centered and creative approach to service innovation, can reframe NSD processes to implement value cocreation. Multiple case studies on Service Design projects indicate that design-centric approaches can contribute to the whole NSD process in a way that connects organizations' managerial practices to value cocreation, in that (1) contextual and holistic understandings of user experiences can inform value propositions that better fit users' value-in-use, (2) codesign with creative supporting tools can facilitate value cocreation by helping users better apply their own resources, (3) prototyping can optimize firms' resource and process configuration to facilitate users' engagement with the service, (4) aligning system actors to the user experience can organize and mobilize them to better support users' value creation, and (5) user-centered approaches and methods can help organizational staff build long-term capability for supporting users' value creation. Based on the link between Service Design, NSD, and value cocreation, we propose a conceptual NSD model, geared toward value cocreation.

Service design as an innovation approach in technology startups: a longitudinal multiple case study

“…Service design can vary in its scope from a narrower stage in a new service development process (Yu & Sangiorgi, 2018) to an overarching approach to innovation (Holmlid, Wetter‐Edman, & Edvardsson, 2017). Although the generic stages are similar to the generic ones of other (service) innovation approaches, including ideation, development, and implementation (Sundbo, 1997), a service design process follows an iterative and collaborative practice, ensuring value cocreation (Giacomin, 2014; Kurtmollaiev et al, 2018).…”

“…However, service design as an innovation approach has been explored primarily in established service companies with consultancy‐led service design projects and in contexts such as healthcare, public service, or policy‐making (Antons & Breidbach, 2018). These studies bring much‐needed empirical evidence on the impact of service design to service innovation‐related questions (Kurtmollaiev, Fjuk, Pedersen, Clatworthy, & Kvale, 2018; Vink, Edvardsson, Wetter‐Edman, & Tronvoll, 2019; Yu & Sangiorgi, 2018). However, these are also service‐oriented contexts that are more likely to adopt a focus on value cocreation during the innovation process, and that have available organizational resources for embedding service design.…”

“…Understanding the way that service design is embedded in the process of developing innovative value propositions for technology startups enriches the knowledge on how startups can manage their innovation potential through a design‐led innovation process. This knowledge addresses the need to explore service design as an integrative and multidisciplinary innovation approach in contexts where the dominant innovation practices might hinder the potential for value‐driven innovation (Joly, Teixeira, Patrício, & Sangiorgi, 2019; Yu & Sangiorgi, 2018). It also operationalizes the process of designing the value proposition and connects it to innovation outcomes in the context of technology startups, providing additional theoretical support for understanding the role of value propositions in service innovation (Kowalkowski et al, 2012; Skålén et al, 2015).…”

Open Collaboration as Marketing Transformation Strategy in Online Markets: The Case of the Fashion Sector

“…The value co-creation is conceptualised in the literature as a process of exchange between different individuals involved, in value processes of value creation [15,16] between two parties involved for a mutual benefit. Some research shows how important the value concept is as an approach to implement the value in co-creation activities or improvements from innovation perspectives, in the products or services development processes with consumers [17][18][19][20][21][22][23][24][25][26][27][28].…”

Co‐Design for the Development of New Knowledge and Practices in Not‐for‐Profit Organizations

“…Moreover, they could receive valuable help from their users as a direct result of treating them as contributing partners rather than as passive recipients. Additionally, co‐design's human‐centered approach and creative focus could help service providers develop new innovations and improvements to their core mission (Yu and Sangiorgi, ).…”