A structured product development perspective for service operations

In this paper we review the literature on product development from a services perspective. We identify similarities in the creation and evolution of products and services, and discuss three types of knowledge that are commonly required in a development process: the sequence of steps or procedural plan that must be followed; the understanding of what components integrate the design and how they interact (architectural knowledge); and the principles and models that describe physical or human behavior in the system that is being designed. For each step of a generic development process we review the methods and tools that are widely used in product development and may be successfully applied to service development. To illustrate the notion of architectural knowledge in the service context, we introduce an example of a service operation structure and discuss important aspects of its components. Finally we explain the role of models in the development of products and services and argue how they can help design intangible elements. We conclude the paper by identifying gaps in the literature and suggesting directions for future research.