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Systematic Approach to A New Service Ideas Conceptualisation:

Quantitative Decision Making

Article  in  Engineering Economics · June 2017

DOI: 10.5755/j01.ee.28.3.14752

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 Inzinerine Ekonomika-Engineering Economics, 2017, 28(3), 323–333

Systematic Approach to A New Service Ideas Conceptualisation: Quantitative

Decision Making

Egle Drejeriene¹, Rolandas Drejeris²

¹Lithuanian University of Health Sciences

A. Mickeviciaus st. 9, LT 44307 Kaunas, Lithuania
E-mail. [email protected]

²Vilnius Gediminas Technical University

Sauletekio av. 11, Vilnius, Lithuania
and
A. Stulginskis University
Studentu st. 11; LT-53361 Academy, Kauno reg., Lithuania
E-mail. [email protected]
http://dx.doi.org/10.5755/j01.ee.28.3.14752

Contradictory opinions about some stages in a new service development cause many uncertainties, especially when
transferring actions of theoretical implementation into practice. Such ambiguities are particularly typical for the process
of conception formation, also evaluation and service system creation. The aim of the paper is to provide a justified model
of new service concept(s) formation, its assessment and service system (new service technology) designing. Because of the
lack of data about service concept formation, reference was also made to the sources of information about product
concept creation. Scientific information on the issues of concept formation was analysed (systematised, structured and
synthesised basing on sparse works of other authors) after being assessed in terms of logic and integrity, availability and
practical appropriateness for service business. Research findings are used to develop a process model. It consists of the
following main components: determining the purposefulness of new service development, concepts designing, concepts
assessment according to two different sets of criteria, decision making about service system designing (new service
technology designing). Application of the proposed model will show a real ways for the formation of new service
concepts. Flexible construction of the model allows reducing time needed for the evaluation and implementation a new
service.

Keywords: New Service, Concept, Process Model, Actions, Designing.

Introduction authors’ scientific positions and arguments in order to

ascertain the need for the new service concept creation stage,
Scientific literature suggests a lot of different and necessity of concepts assessment and also service
methodologies for a new service (NS) implementation, but system designing steps. So, the aim of this paper is to
most of them are quite contradictory in terms of both the provide a reasoned process model of new service concept(s)
suggested sequence of the stages and even their content. formation and service system (new service technology)
Particularly many contradictions are found in the new designing. Due to the lack of data about service concept
service concept development area. Therefore, the object of formation, other kinds of scientific literature on product
this research is the processes of new service ideas concept creation was also reviewed. Scientific information
conceptualization. Some researches in their works even on the issues of concept formation is analysed (systematised
prefer to skip the stages of concept creation and also concept and synthesised in accordance with classical rules) on the
assessment only in order to shorten NS implementation basis of sparse works of various authors and assessed for its
process, without any verification of such choices. On the logic and integrity, availability and practical appropriateness
contrary, other researchers acknowledge the necessity of for service business. The results of the analysis are used to
concepts formation step in the schemes (models) of new create the process model and its suitability is tested in real
product development. However, any appropriate healthcare business conditions.
methodology for the performance of these processes has not In 2015, we were included into a project with some Health
been provided yet. So, the situation remains unclear, whether care organizations and pharmacies of the Republic of
this stage is necessary at all and what actions, if any, are Lithuania for the organisation of a new service
required. (implementation of e-prescriptions). Project participants
The mentioned contradictions, as well as the lack of clear conducted surveys of pharmacy customers, interacted with
systematic decisions constitute a problem, which is relevant IT firms and drew valid conclusions on the basis of the
to science and especially to business. Such circumstances research findings.
caused the requirements for a more detailed analysis of

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 Egle Drejeriene, Rolandas Drejeris. Systematic Approach to A New Service Ideas Conceptualisation: Quantitative…

A Methodological Aspect of New Service Discussions with service company clients about the
Conceptualisation ways of presenting concepts may open up some
opportunities to adjust and possibilities to improve the
Lee et al. (2010) have found a lack of comprehensive concepts of new service in order to better adapt them to the
research about processes between idea generation and requirements of some specific segment of the consumers
launch. Service firms in practice mostly use informal (Gomes et al., 2007; Zomerdijk & Voss, 2011).
procedures in the process of NS ideas and concepts
designing and their assessment, because managers often Requirements for the Model of New Services
cannot discover differences between these categories. So,
Concept Formation
what is the essence of a new service concept? According to
Bator and Bator (2010), product concept may be It should be noted that some authors have controversial
considered as detailed version of any new product idea minds about the sequence of the steps for concepts
stated in appropriate forms for clients. development. Several of them even omit the steps of
A need for the new service concept formation is concepts formation and assessment and such situation is as
rationalised by the evidence of Zeithaml et al. (2009). a result of possible failure to reach a real consensus about
Their work has explained that an idea simply may the necessity thereof because of even various explanation
imprecisely describe only new service basic outline, which of the consistency of the following processes.
implementation should be directed to better meet The scheme for new products development is
requirements of specific consumers. Ulrich & Eppinger presented in the Tidd & Bodley (2002) research, in their
(2008) suggest an explanation that a product (or service) model the first component is concept formation, while
concept should be only approximate description of the concepts evaluation actions are offered as the next (or
technology producing, working principles and may define second) stage. It should be stated that such an attitude can
form of the product (or service providing). According to bring some kind of confusion to a harmony of the
Konu et al. (2010), for the service company staff a new processes, because the more equitable and systematically
service concept might mean not only the determination but reasoned approach is that conceptions have to be built on
also a more specific definition of the procedures’ circuit in the basis of created new ideas, while a designing of new
the customers servicing processes. It is a short description ideas is not even remembered by mentioned researchers.
of some service product possibility to satisfy a customer’s But Wood (2003) supports the deeply systematic attitudes
needs. A concept usually can be expressed as even a sketch of implementation of any innovations. According to him it
or as a rough three-dimensional pattern and it is often is better to skip the stages of concepts formation and also
accompanied by brief textual description (Konu et al., assessment, because of a new product is developed on the
2010). Ulrick & Eppinger (2008) state that conception basis of already selected and verified ideas that have been
means ideas purification to the point at which a service already adopted earlier as really appropriate and useful for
blueprint represents the implementation plan. Blueprint the company commercial activity. Incidentally, Wood
designates all the expressions of the relationship between (2003) and some other authors highlights the responsibility
service providers with service users. and importance of an idea assessment (and selection) stage,
Hence, a new service concept can be expressed in because the results of assessment may be as a basis for
many ways. And which of them is the best? One way is to making one of the most important commercial decisions
express it verbally by while showing how the artefact about new product (service) implementation. However, the
would work using gestures and physical objects (Ulrick & concept assessment stage is really necessary, though it
Eppinger, 2008). Other ways can vary depending on the obviously may be simplified in some cases and in different
equipment used, specific place and others attributes. Even situations. We refer to a proposal by Chenet et al. (2010) to
He et al. (2015) argues that different conceptual solutions differentiate valued services before assessment. So, we can
can give different added value for a service company. differentiate new services concepts. Such a proposal even
Some researchers try to discuss this from a particular point better meets Chenet et al. (2010) approach. For example,
of view: how does the concretisation of ideas occur and concepts assessment of technologically and technically
what role does the physical space (Henrich et al., 2015). straightforward (uncomplicated) services even can be
Investigators proposed many models but, in summary, segregated due to some special features of services,
concept might concretise ideas by these characteristics: mentioned by many researches (i.e., inseparability,
 Content of service; intangibility and perishability). Such as a staging new copy
 Type of material used; machine in students hostel is treated as a new
 Devices or equipment used; uncomplicated service. So, if the ideas assessment stage is
 Time for service providing (or particular operations); omitted, it is quite possible situation that prepared concepts
 Time for service preparing; will be formed on the basis of even wrong and therefore
 Service space; inappropriate ideas. Moreover, any a possible and suitable
 Amount of energy used; idea can be also implemented in different ways. In this
 Forces of service provider; respect, the costs of inappropriate concept formation are
 Results (benefit) for the consumers; really worthless. In order to escape any useless outlay,
 Place of providing service; assessment and selection of ideas we suggest at the one of
 Better quality of new service; the initial stages of new service development. In that case
concepts should be formed only on the basis of screened
 Customer involvement.
and evaluated ideas that have been earlier accepted for

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 Inzinerine Ekonomika-Engineering Economics, 2017, 28(3), 323–333

implementation. Accordingly, we can accept Wood’s assessment in more detail, claiming that this process means
(2003) arguments about the strict organizing of screening as an analysis of concepts commercial feasibility.
and also selection procedures and can agree by Commercial feasibility of possible in the future new
systematically approach that not every concepts require to service concepts development has to be analysed in terms
assess, but this can only be valid for ideas, which concepts of their conformity not only to the existing business
require only minor modifications of existing services, and conditions, but even to be compliant to the prospective
for which are widely known to an undertaking managers future business situations. Such analysis is important
and/or consumers or perhaps do not require high costs of enough and responsible. When the results show that some
development. NS concept satisfies the discussed business conditions and
Also, it is worth to state that many researchers are seen future situations, the next logical and systematic question
as quite similar processes of concept assessment and already revolves around the requirement of NS actions
analysis of business conditions and sometimes make no planning. According to systematically approach it is
difference between them. For example, Thirugnanam et al. obvious that next situational task has to be resolved about
(2007) denote that concept assessment and selection stage certain conditions of service system designing (or
indicates a process testing of commercial feasibility in designing technology of new service). Whenever NS
accordance with a current business conditions, i.e., these technology is already designed, it comes term to proceed
both mentioned processes are determined, but are not actions assessing the further NS implementation
distinguished in the their proposed model. Likewise, possibilities, i.e. feasibility of necessary technical actions
Thirugnanam et al. (2007) ensure that commercial (electrical, water and sewage installations), also
feasibility of new service conceptions can be determined attractiveness to the market, etc. The failing points of
by their presenting to a market with describing also the existing services can give good new concepts for better
main features of NS and verification of the possible services and service maps or blueprints of existing services
clients’ reaction (degree of recognition) and their can be used as guidelines for better new service concepts
satisfaction. So, the criteria for concept assessment have (Clayton et. al. 2012). It is therefore quite important that
been connected with economic (commercial) feasibility agreement between new service participants be reached at
and potential profit implications. this step accurately according to the concept of new
Service concepts development process being so closely service, identifying what customers’ needs would be
related to the operational system of the service satisfied (Zeithaml et al., 2009).
organisation, and according to Lee at al. (2010) this As mentioned earlier it is sometimes reasonable to
separated step of NS implementation must involve omit the step of concept assessment during the
preliminary assumptions about the costs of service implementation process of NS. And differentiation of
employees hiring and training, delivery system service concepts by technical-technological complexity is
enhancements, possible facility changes, and any other connected with company technical possibilities, and these
projected operations costs. actions have to be assigned to best internal practical experts.
A new service often occurs based on existing In the absence of the experts it is possible appeal to some
services. In such a situation, a natural starting point for outside experts with a request to differentiate concepts.
concept formation work is to analyse the existing services Determined differences of the concepts may depend of staff
in detail. Customers’ participation in the process of service qualification and also of the type of service activity.
providing also must be analysed, though customers A degree of service customers’ satisfaction and
sometimes feel as sacrifices (Olsen & Sallis, 2006). probability of successful commercialisation of new service
Therefore, all the existing service participants have to be certainly depends on the whole results of concept quality
the objects of this analysis, which results will show a true measuring. A good concept after poor implementation at
picture of customers’ needs. Service providers will get a later stages of development can be successful, whereas a bad
clear picture of customers’ opinions about the existing concept can never be successful even if properly
services and the areas which also need to improve. implemented. Therefore, the main focus of the concept
Improvement is less risky in such cases, comparing formation methodology is on NS concept assessment
with the risk of creating quite new services (Thirugnanam actions.
et al., 2007). When it is obvious that users exactly need
only improved service, a detailed assessment of new Designing the Process Model of New Service
service concepts is not required then. Concept Formation
Methodology for new service concept assessment at
first has to be simple and clear, not requiring much The first stage of this process always must be to
expenditure to understand and high level of education. determine the purposefulness of new service
Nowadays, governments especially encourage implementation in general. It means making a solution
entrepreneurship among individuals and provide a variety about how is necessary to include into the process of new
of privileges for business pioneers, even those who do not service development. Service company may have many
yet have any business experience. Practices show that new service ideas, but the purposefulness thereof must be
development of new services is the most common activity determined in all cases. The current situation of initiating
for business starters. So, every assessment methodology new service development is already examined in detail by
for new service implementation processes must be many researchers. Determining the purposefulness is
appropriate for different segments of the population. relevant for the existing market participants and also for
Thirugnanam et al. (2007) specify definition of concept market newcomers. Gava (2008) suggested methodology

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 Egle Drejeriene, Rolandas Drejeris. Systematic Approach to A New Service Ideas Conceptualisation: Quantitative…

involving comparison of two processes for the developing would be the most useful, particularly concept
determination of purposefulness of any of them. The selection also, since this influences even the results of
decision about the purposefulness of new service has to be developing (Lee et al., 2010).
made as early as possible, whereas it is necessary to Idea generation is a relatively inexpensive activity, but
prevent unproductive expenditure, when the situation of real concept formation can be much more expensive. In the
environment is still inadequate. Appropriate solutions, development of new tangible products, the concept
according to the results of the suggested analysis, can creation and testing stage involves construction of product
increase the objectivity of subsequent assessment and the prototypes, their forms with drawing pictures and testing
probability of successful new services. In this article we for consumer acceptance.
will we focus only on the actions of concept drafting. Again, because services are intangible and
If the results of investigation show that new service simultaneously produced, consumed, and frequently
development is basically expedient, the next step is the concerted, this step presents unique challenges because of
need for new service concepts formation. If the result is difficulties to accomplish them. This stage of service
that the new service is not purposeful, the process is development should involve all persons who have a stake
terminated. Edvardsson et al. (2005) and Lee et al. (2010) in the new service: customers, employees as well as
also offer to investigate contemporary research outcomes functional representatives from marketing, operations, and
and they provide ways of a concept elaboration process. other human resources. As mentioned above, drawing
Edvardsson et al. (2005) argue that a new service concept pictures and describing intangible service in concrete terms
helps to express in more detail the service provider’s idea is quite difficult, particularly when the service is not
of what consumers’ problems new service intends to standardised and may be concreted in real time with
suspend and how it would does. It means that consumers’ customers. Edvardsson et al. (2010) advice that customers
problems have to be determined exactly and analysed in cannot experience the real service in isolation from use or
detail. So, what are the main indications of new service consumption, a “pre-service” of some description is
concepts, which can describe their building process? necessary required for providing of customers with some
According Edvardsson et al. (2005) concept main experiences that enable them to evaluate the potential
description should reflect the attitude of a service value-in-use of the real service.
enterprise in respect of the some key characteristics of a For any assessment requires determination of appropriate
new service, which feature: criteria. Each assessment of new service concepts may be
1) Determined main nature of practice; different; it depends on their complexity. Methodology for
2) A possible nature of relationships between concepts assessment has to be uncomplicated and
providers of service and its users; and understandable for many possible service providers. Poetz
3) A grade of problems solved for consumers’. and Schreier (2012) suggest that concept formation and
These characteristics do not oppose the opinion of assessment actions should confer on experts.
Patricio et al. (2011) that new service concept shows new Rahman (2003) suggested methodologies for
value for the customers. Ulrick & Eppinger (2008) suggest evaluation suitability of business conditions and presents a
some tools for creating concepts of new products. They model for selection an international market even based on
mentioned making analogies, stimulating wish and assessment-grouped quantitative criteria, which comprise
wonders, also using related stimuli, using unrelated the sufficiency of market size and the suitability of market
stimuli, setting quantitative goals and using the gallery structure. Unfortunately, the most of criteria mainly of the
method. They emphasise importance of the stage, which mentioned in Rahman’s (2003) works are appropriate for
predicts the process analysis of how new service would assessing opportunities for development activity only in
solve some consumers’ problems. Thirugnanam at al. some international markets. And only some criteria are
(2007) similarly explained the concept formation process versatile, so some are suitable for evaluating and also
also. We quite agree for their suggestion that in order to screening the best concept in terms of new service
recognize the ability of a NS to satisfy consumers’ feasibility not only for the international market, but for
requirements, it is purposeful to select certain quantitative local also and they can be included into the model.
features of new concept as early as it possible even at the It should be also noted that it is reasonable to reject
step of concept formation and only then foresee the range new service concepts even before the stage of assessing
of their possible values change according to a commercial their commercial feasibility if obviously further concepts
situation and a business conditions. implementation does not guarantee the achievement of a
According to the systemic approach, the next stage company objectives, i.e., business future conditions may be
should be towards the selection of the best concept, i.e. the determined as unsuitable for implementing some selected
stage of concept assessment. New service concept concept of new service.
assessment is the most responsible stage, because its Owens (2007) and Salavou (2004) also approve the
execution largely determines the success of new services. necessity of business conditions analysis in the process of
In accordance with Zeihaml & Bitner (2003) practical new product (or service) development especially from the
testing of new service concepts is a quite complicated task perspective of all assessed concepts abilities. Mentioned
for any service business because of special features of authors in their research state that the probability of
services. The service implementation processes are commercial success of a new product (or service) increases
comprised of a lot of responsible decisions, and one of the in the most of cases if such an investigation indicates that a
most important and complicated decisions in the all service selected concept(s) corresponds to a relevant market
development processes is identification what services requirements. It is quite reasonable to accept the Owens

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 Inzinerine Ekonomika-Engineering Economics, 2017, 28(3), 323–333

(2007) research findings that market analysis is important several solutions of technological enforcement, so according
and even necessary at the most stages of new product (or to systematically thinking technical assessment is really
service) development. Trot (2001) research also confirms more reasonable after making a decision about the final
the significance of proper market analysis results concept selection.
interpretation for the success of new product. Mentioned Schnetzler’s (2005) also suggested some criteria for
position maintains categorical Rahman’s (2003) opinion commercial evaluation of concepts. A questionnaire of 12
that appropriate option of a market segment even simple but significance questions for the concepts evaluation
determines the volume of sales and influences a possible was offered and she states also that received answers will
profit. Trot (2001) investigated some business situations allow identifying the best concept of new product ideas.
and determined that existing business analysis results This methodology with some small improvements is
sometimes can show that a new product is quite suggested by Drejeris & Zinkeviciute (2009) study. They
unmarketable, although after some time it can experience offer to select the concepts which would receive more
even sensational success. So, according to the same Trot positive answers in according to the mentioned
(2001), it is always rational to confirm market accessibility questionnaire. So, the 12 mentioned questions for
for adoption of a new product. assessment are (Drejeris & Zinkeviciute, 2009):
Very important results according to analysed theme 1. Do the NS concepts under analysis reflect some
are in the Olsen & Sallis (2006) research. They have clients’ needs, or special requests?
shown that it is not appropriate always to carry out market 2. Are clients’ requests adequately expressed in the
research according the same level of detail. Olsen & Sallis technical and commercial characteristics of NS concepts?
(2006) segregate two levels of particularity analysis: 3. * Do NS concepts consider some problems of any
“narrow scanning” and “broad scanning” (Olsen & Sallis, existing service?
2006, p. 467). They offered performing narrow scanning 4. Is the NS concept more advantageous compared with
(less detailed assessment) in these cases when conceptions suggested by existing competitors?
of services are created according to ideas which emerge at 5. * Is the concepts of NS environment more clients-
the initiative of the same service users. Argument of this is favourable compared to the existing services or provided by
that the development of such services is requisite for competitors?
service consumers. Such an attitude is grounded on the 6. Does the concept according to NS foresee some
approach that consumer’s proposals as to the necessity of a possibilities to meet some other future market requirements?
new product (service) eliminate the need to test a NS 7. Is the NS based on the new concept more accessible
probability in the market from the perspective of to clients and also providers?
consumers’ satisfaction. It is important in this case that 8. Can the service according to a new concept improve
market preparedness to adopt a new product (service) is any actions of the existing service?
considered sufficient and emphasis is placed on the 9. * Are the concepts of new service more attractive
evaluation of only technical feasibility of a new product (or than existing services to any current and prospective clients?
service). Choice of new service technology has to be 10. * Is a new service implementation according to the
determined by a consumer-based approach. Olsen & Sallis concept in line with the all requirements of external
(2006) also mentioned and broad scanning (more detailed environment?
assessment), which should cover not only assessment of 11. * Are technical also organisational possibilities real
clients satisfaction, but as well as evaluation of adequacy for implementation of a new service according to the new
to always strict ecological requirements, competitiveness concepts?
also and other environmental determinations. 12. * Is the providing of new service dangerous for
Poetz & Schreier (2012) suggest a model for analysis customers and employees of service company?
of business conditions, which also is based on expert But use of the questionnaire is really acceptable in terms
evaluation. Suggested model as well as is suitable for of its substance and importance (significance), but it would
technical and commercial feasibility assessment of concept be systematically purposeful to add some commercial
development. Poetz & Schreier (2012) offered also a set of questions (criteria) relating to the external environment of
criteria for technical and commercial evaluation of a the company. It is also reasonable to support Poetz &
concept and even a real scale for determining importance Schreier (2012) opinion for concept evaluation using the
(significance) of the mentioned criteria. It is quite useful to experts’ method. Also, their methodology uses almost the
accept this differentiation of technical and commercial same indicators in the accepted set of criteria as proposed
criteria. But in area of technical assessment is more earlier. Lee et al. (2010) suggested 21 criteria, which are
reasonable and logical to follow Drejer’s (2000) approach, divided into 5 groups: strategy, technology, market,
which states that assessment of concept’s technical implementation, operation. The division of the criteria into
feasibility is more purposeful from the perspective of groups should be welcomed; some of those omitted in the
suitability exactly of NS technology. According Longman our mentioned list are obviously important (Lee et al.,
dictionary technology means “new machines, equipment, 2010). Questions “Does the NS development meet the
and ways of doing things that are based on modern company's strategic goals” and “Does expected potential
knowledge”. Aguileira (2009) suggests characterisation of growth of the market after implementing NS” are
technology: it is a tool of human, materials and information particularly important for every business company and can
resources and their conversion into products. So, original in be accepted. But not all of the criteria may reflect the
this case Drejer’s (2000) suggestion can be substantiated by quality of NS concepts in the list offered by Lee et al.
an undisputed provision that every concept really has even (2010). As each NS concept may have several technological

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 Egle Drejeriene, Rolandas Drejeris. Systematic Approach to A New Service Ideas Conceptualisation: Quantitative…

solutions, what is the purpose of assessing the concept increase objectivity of assessment also requires providing a
from the technological point of view? Parida and quantitative expression.
Chattopadhyay (2207) suggested multi-criteria When a company already has a real NS concept, which
methodology for new service technology assessment. The is intended to be developed, the next step is to create a plan
operation criteria mentioned by Lee et al. (2010) are more for its implementation and a system for NS delivering. The
purposeful to include into the set of NS technology service system incorporates “the resources available to the
assessment criteria. process for realizing the service concept” (Edvardsson et
Therefore, mentioned earlier Rahman (2003) in his al. 2005). Smith et al. (2007) identify a range of resources
model aimed at selecting more specific criteria for that are encompassed within the service system. They
assessing concepts of products for international market. It include:
should be pointed out that other authors have no objection 1) human resources (skills and knowledge, staff needs
distribution of criteria. So, it is purposeful to add and views on new services);
mentioned set of 12 criteria by another mentioned by other 2) customers (understanding their wishes and
authors: expectations, identifying appropriate levels of customer
* Do any real possibilities exist for a proper handling knowledge, effectively designing customer interfaces (their
of environmental, disposal and other environmental telephone, automated conversation or face to face);
problems after implementing NS according to the 3) physical/technical (buildings, location and
concepts? communication systems);
* Are the processes taken according to new service 4) organisation and control (structures and hierarchies,
concepts not in conflict with occupational safety supply chain processes and customer relationship
requirements? management).
Will new service according to the concepts improve Magio et al. (2009) define a service system as a
reputation, image of the service company? dynamic configuration of value-cocreation, including
Do the NS concepts encourage the use of technical- resources, people, organisations, shared information
technological progress? (language, laws, measures, methods), all connected
* Do the NS concepts development meet the internally and externally propositions of other service
company's strategic goals? systems. It is important that Thirugnanam (2007) agrees in
Is potential growth of the market expected after general that service system has to be designed on the basis
implementing the NS according to the new concepts? of selected new service conception.
In total we found 18 criteria (questions) for NS concept Thus, according to the presented arguments, the real
assessment, which would be divided into 3 groups: 1) model of new service concept(s) formation is prepared
Company requirements, 2) Satisfaction of clients’ (figure 1). The proposed model is flexible in construction,
requirements, 3) Implementation options. as it provides steps for different potential solutions that are
But usually, the simple summing of positive answers dependent on the business situation and are also influenced
will not produce objective results of assessment because of by environmental conditions analysis results. And it is
different importance (significance) of the questions. So, it appropriate even to accept Sujin Choi’s (2011) findings
is need to give some value of importance for every that the proper use of the market analysis results, execution
criterion or for groups of criteria. Then the importance of of well-planned and coordinated actions allows newcomers
each group of criteria for results and process of new to penetrate the market and successfully develop the
service development should be discussed. And in order to service business.

Actions of concepts assessment

NO
YES NO
YE Are Are
Is it the concepts the concepts
purposeful
S based on for technically,
existing technologically Are
in general to develop Concepts complicated the concepts
any NS? service(s)?
designing NS? suggested by
consumers?

NO N YES
YE
O
S Less detailed More detailed
Stop process of concepts formation; Assessment is not
refuse intellectual, technical, material assessment assessment
reasonable
expenditure

Development of the service system (technology) according to selected NS concept(s)

Figure 1. Model of New Service Concept(s) Formation. Source: developed by autors

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 Inzinerine Ekonomika-Engineering Economics, 2017, 28(3), 323–333

In general, it can be noted that the created service Thus, the concepts of services, which are already known
system even has to be used as an approach to reach for the consumers and are really recognised as eligible for
sustainability of company activity (Manzini et al., 2001) or some customer segment, do not require a very detailed
new health service may be embedded within new health assessment.
care philosophies (Smith et al., 2007). As emphasised by Edvardsson et al. (2005), a degree
The following sections of the paper discuss the of consumer problem solving may be regarded as an
components of the proposed model with explanation of its element of NS concept creation. We find it similar (or even
using and continued focus on the concept assessment stage. identical) to the degree of customer satisfaction which can
In order to test the model, a survey of medicines buyers in be regarded as a criterion for NS concept assessment.
12 pharmacies was carried out. They suggest methodology where under a problem
has to be divided into subproblems using a classification
Determining the Purposefulness of New Service tree and a real example of methodology for new concept
Development generation is presented.
Summarized the information, can be stated that the
The purposefulness of NS development can be general process of NS concept designing consist of these
determined with a focus on parallel consideration of the main parts:
purposefulness to develop two possible alternatives of 1) determination the nature of service activities (this
service business: creation and implementation of NS or characterization might also be in the content of new service
increasing volume of existing services through application ideas); and
of service sales promotion tools. Such methodology would 2) more detailed specification of a NS idea traits by
help to answer the question: whether it is worth for the identifying though several qualitative or quantitative
company to engage into the process of NS development in characteristics of some specific NS procedures.
general. With regard to concept creation for new services, in some
So, the first step, i.e. the determination of the cases can really be reasonable to use promotion of some
purposefulness of a new service is necessary, although it is internal or external skilled experts, who can help in process
often missed by some other authors. Such methodology of decision making by interpretation of a market needs
should be based on assessing the consumers’ need for existing assessments results, also for identifying the required
services and assessment of company’s capacity to develop above-mentioned new service characteristics. In this case
new ones. Even financial potential is important in this case. external experts asking means invitation business
Processes of the purposefulness assessment in the consultancy companies, which are capable performing of
scheme of new service development must have a cyclical such listed actions.
form. It indicates that the consumer needs have to be As mentioned above, at the stage of concept formation
regularly tested in order to grasp a thread showing a for new services, implementers need to find as many as
decrease in consumers’ satisfaction and start considering possible different adjusted expressions of the selected idea.
introduction of a new service (or modification of those Ideas can be concretised by several characteristics listed
already provided earlier). above. The higher is the number of appreciated objects
The determination of the purposefulness of health care (alternatives) the more objective is the decision.
services and the results of the analysis were fully proved For the implementation of the mentioned e-
and demonstrated suitability of this stage of the model for prescriptions project, few concepts were created suggested
real business conditions. Implementation of the e- by customers. They differed by the quantity of information
prescriptions project would be in compliance with current about pharmacies customers and by possibilities to access
policies of the Ministry of Health. Therefore, the next step the system.
is NS concept design.
New Service Concept(S) Assessment
New Service Concepts Designing
As it is mentioned above, every idea can be expressed by
In some cases, designing of a new service concept may several concepts, but their further development may be
not be different with ideas creating processes when they uneven. So the purpose of such assessment is to ascertain
determine the mentioned date, which form can depend not which one (or more) concept(s) can be the best for a
only on the nature of services, but also on the companies’ company under the current or future conditions in the
creative possibilities. In addition it is offered that the first analysed market. Accordingly, when NS concepts are built
of the mentioned characteristics is the nature of activity the next frequent step is concepts assessment.
and it can be also incorporated even in the description of a Objective assessment and selection of the best NS concept
new service idea. is an important and responsible process for proper services
Then during the designing NS concepts, next can be system designing. So, the main goal of this chapter is to
reasonable action is finding solutions for the relationships determine which criteria must be included
between consumers and service providers. And existing into the set of assessment instruments and to find the best
services also can be delivered in different ways, e.g. even way for the most objective solution.
small improvements in service providing with high As mentioned above in order to impart a quantitative
visibility can modify customers’ experiences and challenge form for the mentioned assessments, it is purposeful to apply
changing of some service concept. indexes of importance (weight)  for every mentioned

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 Egle Drejeriene, Rolandas Drejeris. Systematic Approach to A New Service Ideas Conceptualisation: Quantitative…

criterion (or for groups of criteria) and to calculate according Assessment results will be more precise if all the
to the results of survey in the following way: concepts are assessed using more detailed assessment
18
scheme. If only concepts which satisfy at least one of the
Pi   K ij j (1); conditions (concept is based on existing service(s), it is not
j 1
for technically, technologically complicated NS or it is
Where: P i − total value of concept i; K ij − the value suggested by customers) have to be compared, they can be
of concept i assessment according to criterion j;  j − the assessed using less detailed assessment scheme.
importance (significance) of criterion j; 18 − the number of However, according to the above mentioned authors,
criteria. concepts assessments still have to focus on the consumers
needs. Therefore, it is appropriate to assess 12 criteria
The values of cumulative criterion T i allows ranking
offered by Schnetzler (2005) and Drejeris & Zinkeviciute
of the concepts. Such assessment based on the results of (2009), group them (satisfaction of customers’
customers and employees’ survey will help to make the requirements, implementation options, company
most objective decision. requirements) and supplement with the criteria proposed by
For determination the relative importance (significance) earlier mentioned Lee et al. (2010) and the suggested by
of the criteria the best and the simplest method is experts’ other authors.
method. Experts’ method is not the most objective method. So, NS concepts could be assessed by a total 18 criteria
Therefore, in order to increase objectivity, it is appropriate Most of the criteria have to be from the “customers’
to use quantitative calculations. satisfaction” group. All criteria are formulated in a form of
Taking into account the specifics of the evaluation, in questions. But how to compare concepts of different groups
particular the importance of consumer services, it is which are assessed using less and more detailed assessment
purposeful to include consumers into the experts' groups. schemes? This question can be answered by experts who
Further assessment should be: have to determine the different relative weightings and, thus,
m
W j  W ju ; j=1,k, (2); different their importance (significance).
u 1 It should be noted that the evaluation of a new service
Where: W j - the sum of all expert estimates concepts, as suggested by Drejeris & Zinkeviciute (2009)
and modified by the authors of this paper, essentially
according to all criteria; j-th criterion u expert's
satisfies the needs for broad scanning (more detailed
estimation; m - the number of experts.
assessment), mentioned by Olsen & Sallis (2006). By the
The relative importance (significance)  of the
way, it is quite possible to choose some necessary criteria
criteria determined by the formula (3): for less detailed assessment from the list of supposed
W criteria. So, needful criteria of less detailed assessment
 j  k j ; j=1,k, (3);
really have to correlate with evaluations of technical
W j possibilities for NS concept development. Therefore, it is
j 1
purposeful to create a new set of some criteria (3, 5, 7, 8,
The concept given the maximum quantity of points is 11, 13, 14, and 17 from earlier mentioned list) and
considered to be the best. purposeful to apply them to less detailed assessment of the
It should be noted that the comparison of results is concepts.
right only if concepts were evaluated by using the same So, according to suggested methodology if any
criteria. It means that concepts which were assessed by less concept does not satisfy at least one criteria of the less
detailed assessment scheme can be compared only with detailed assessment, its further selecting really can be
each other; the same situation is with concepts which are suspended and such concept has to be eliminated as quite
assessed by more detailed assessment scheme. inappropriate. Results of the concept assessment are
presented in an appropriate form in table 1.
Table 1
Results of Concepts Assessment

Criteria j1 j2 jj 18 Ranking
 K ij j of each
K ej  j
j 1
Relative K ij j Relative K ij j Relative importance concept

importance 1

importance 2
j
Concepts
i1 Value of concept Value of concept Value of concept Total value of
i1 according to i1 according to i1 according to concept i1

criterion 1
j j j
criterion 2 criterion j
i2 Value of concept Value of concept Value of concept Total value of
i 2 according to i 2 according to i 2 according to concept i 2
criterion
j1 j2 jj
criterion criterion
in Value of concept Value of concept Value of concept Total value of
i n according to i n according to i n according to concept i n
j
criterion 1 j2 jj
criterion criterion

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 Inzinerine Ekonomika-Engineering Economics, 2017, 28(3), 323–333

Using the proposed methodology for assessment Conclusions

allows ranking of all NS concepts and facilitates finding
the best quantitative solution, which would be the most Comprehensive studies have showed that the
objective in current business situation. investigators attitudes about the soundness of new service
During the assessment of concepts for the e- concepts designing and their evaluation are quite
prescriptions project, it was determined that each of the contradictory. Furthermore, service activity has not
concepts is for technically and technologically appropriate methodology for concepts formation and
complicated NS, but all of them are suggested by assessment that would be applied directly to the service
consumers. According to the suggested model, it means activity.
that less detailed assessment is sufficient. The reasonability of forming a new service concept has
And according to the selected conception, it is purposeful been validated and the model for appropriate concepts
to work further towards a new service system design. designing has been suggested. Submitted model consists
of the following main components: determining NS
Service System Design purposefulness, concepts designing, concepts assessment
according to two separated sets of criteria (for less detailed
A lot of scientific works highlight that one of the most assessment and for more detailed assessment), and service
important condition for a successful NS implementation system designing.
and further provision is a designing of appropriative Criteria for concept assessment were determined and
service system (or reasoned technology for new service they grouped for narrow scanning and broad scanning.
providing).. Situations were identified when concept assessment is not
Therefore, it can be stated that planning of a new reasonable.
service system encompasses determination procedures, Presented methodology offers differentiating concepts
processes and other elements, and conformation of their according to the technical-technological complexity of
sequence. possible new service and even the sources of ideas. The
Designing a service system was the most difficult suggested methodology also makes it possible in
task in the e-prescriptions project because of potentially determined situations to skip some stages of assessments.
low use of IT skills by physicians, who were determined Such situations are connected with concept assessments,
as the main participants of the service system. The new proposed by clients.
service technology involves the following actions: Use of suggested methodology allows reducing
physicians record the patient's diagnosis and the assessment cost and reducing the time needed for
medicines in the information system; this information evaluating. It is appropriate and beneficial to use for
reaches any pharmacy; the patient can receive the service companies seeking to implement new services.
necessary medicines after showing his/her personal The practical suitability of the suggested model was
identification documents to the pharmacist. Suitability of proved in the implementation of the e-prescriptions
the actions suggested in the model is fully proven and the projects, i.e. the model was found useful when applied in
results showed that the model is available for use under real business situations.
realistic conditions. Currently, the e-prescriptions project Testing of the model took too much time, as the survey of
is under implementation in Lithuania. pharmacies was carried out in form of verbal interviews.
In the future, it would be reasonable to carry out
consumer surveys online to shorten survey time and
reduce other costs. The suggested model will be also
tested in other service sectors in the future.

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The article has been reviewed.

Received in April, 2016; accepted in June, 2017.

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