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Product of Service Design and Development

New product or service design and development can be done through two approaches: the consumer approach, where products are developed based on customer preferences from market research, or through innovation in technology. Apple has achieved continued success through their focus on product design and development, maintaining control over both software and hardware design. Factors to consider in new product development include quality, supply chain management, production capacity, costs, and product utility or value to customers. Service design also considers how explicit or tangible and implicit or intangible aspects are delivered.

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18 views2 pages

Product of Service Design and Development

New product or service design and development can be done through two approaches: the consumer approach, where products are developed based on customer preferences from market research, or through innovation in technology. Apple has achieved continued success through their focus on product design and development, maintaining control over both software and hardware design. Factors to consider in new product development include quality, supply chain management, production capacity, costs, and product utility or value to customers. Service design also considers how explicit or tangible and implicit or intangible aspects are delivered.

Uploaded by

petrebichescu
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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New product of service design and development

Syllabus

Operations Strategies

 performance objectives – quality, speed, dependability, flexibility,


customisation, cost

 new product or service design and development

Development of new products gains a business a competitive edge and allows them
to grow. This can be done through a:

Consumer Approach – Where products are developed by the preferences and desires
of customers based on market research

Change/innovation in technology – Enables new and appealing products to be


developed with greater functionality. This is the approach that Apple and Samsung
both use. Apple’s major strength is that it maintains complete control over the
design and development of both software and hardware.

One of the main reasons for Apple’s continued success is because


they understand the power of product design and development.
Apple has established a reputation as a company that produces ex-
traordinary products that grab the attention, and loyalty, of custom-
ers.
Factors to be considered in the design and development process include:

 Quality - Customers will only buy the product if they see quality for their cash
 Supply Chain Management - New product may extend range of suppliers, or
increase demand for current suppliers

 Capacity - New product may require investment in new tech/machinery


 Cost - How much the development will cost
 Product utility - The usefulness and value a product has from a consumer’s
point of view.
Service design and development

Services are intangible, most are customised (dentists, hairdressers), and some
services have little direct contact with customers, when designing a service it is
important to determine how explicit (tangible aspect of the service - such as the
application of time, expertise, skill and effort) and implicit (intangible aspect - comes
with the provision of the service - the psychological wellbeing) the service will be.

Activity Questions

1. Distinguish between two approaches that can be used for product design and devel-
opment.
2. Why is Apple such a successful business? In your answer refer to some of Apple’s
products and their approach to innovation.
3. Describe the four factors that must be given consideration when undertaking new
product design and development.
4. Why are customers (or clients) important to the design and development of ser-
vices?
5. Contrast explicit service with implicit service.
6. What is the importance of design as a factor that influences the price of goods and
services?

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