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The Managerial Implications of Real‐Time New Product Development in Financial Services
Author(s) -
Naudé Pete,
Blackman Ian,
Dengler Steve
Publication year - 1998
Publication title -
creativity and innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.148
H-Index - 60
eISSN - 1467-8691
pISSN - 0963-1690
DOI - 10.1111/1467-8691.00089
Subject(s) - financial services , context (archaeology) , new product development , product (mathematics) , the internet , constraint (computer aided design) , set (abstract data type) , process (computing) , service (business) , business , marketing , computer science , process management , finance , world wide web , mechanical engineering , paleontology , geometry , mathematics , engineering , biology , programming language , operating system
A review of the various models of New Product Development (NPD) process shows that although different approaches have been proposed, they are in fact all variants on a linear theme: some may include feedback loops, but they all essentially advocate that certain steps precede, or are preceded by, others. An inevitable consequence on the Internet/World Wide Web (WWW or Web) is that such models are no longer applicable. Based on the lessons learned from the development of a new financial service offered via the Internet, we show how such assumptions of linearity need no longer be a constraint. In addition, innovativeness is not related to firm size. But the fact that the Web allows for the real‐time development of new financial services based on on‐going feedback from potential and current customers raises a new set of managerial issues that have to be tackled. The objective of this paper is to use the context of the recent launch of an innovative financial service product via the Web to explore the managerial changes that are starting to affect the banking industry.