New product or service design

The preferences and desires of consumers, as identified by market research, determine which products are designed and developed.

The second arises from changes and innovations in technology that enable new, appealing products to be made because they use advanced technologies, which give products greater functionality. This is the approach that Apple and Samsung both use.

Example

Apple’s major strength is that it maintains complete control over the design and development of both software and hardware, unlike many other companies that outsource product design to save on cost.

Important considerations when designing and developing a product are quality, supply chain management, capacity management and cost. These factors must be taken into account throughout the design and development process.

These four factors

1. Quality

2. Supply chain management,

3. Capacity management

4. Cost

Should be considered by operations managers while proceeding through all aspects of product design and development.

Services differ from goods in that they are intangible and as they are produced they are also ‘consumed’. Service design, being customised in nature, has always taken the position of the customer or client as the starting point in design. Service design, being customised in nature, has always taken the position of the customer or client as the starting point in design. However, some services do not require interaction with the customer or client (or have very limited interaction) and therefore they tend to be largely standardised in nature. For example, consider the work of a shelf packer in a grocer, a short-order cook in a fast-food outlet and a casual petrol station attendant. Contrast this work with the work of an accountant, lawyer, medical specialist or journalist. Each of the latter professions will customise their work to the needs of a client.

Explicit service is also called the tangible aspect of the service being provided, such as the application of time, expertise, skill and effort.

Implicit service is based on a feeling and is therefore intangible. The implicit aspects of a service are the psychological wellbeing — the feeling of being looked after — that comes with the provision of the service.

Sometimes in the delivery of services, goods may be required.

For example, a surgeon performing knee surgery will require swabs, bandages, sutures, medical equipment, an operating theatre and so on. Similarly, a tutor may need specialised books, access to a networked computer, paper and stationery. These additional aspects must be considered when designing and developing a service. The additional aspects can also assist the delivery of a service.

Technological breakthroughs in equipment can create a range of services that did not previously exist

For example, developments in laser technology have led to the creation of new types of businesses that adopt such technologies. Laser technology is used in eye correction surgery, cosmetic surgery, hair removal and skin treatments.