Product development for a service company
A service company is an organization that provides services to its customers instead of physical products. These services can be of different nature, such as consulting, advice, maintenance, repair, among others, and can be offered to individuals or other companies.
However, companies often seek success by concentrating on covering the needs that the market requires at the present time, and do not take into account the necessary technological advances and the evolution of the services and their customers sector. It is there where they stop having a long-term strategic vision. That is why, in order for these entities to be highly competitive, efficient and meet the needs of the market, its customers or users need the development of specific products and solutions in line with the new technological advances, the digitalization of life and the demands of the users.
These products include softwares, mobile applications, hardware, digital tools, artificial intelligence solutions, cloud services, as well as processes or services offered to customers as part of their solution portfolio. It can also include the improvement of existing processes and services through automation or the creation of tools to improve efficiency.
The objective of product development in a service company is to improve the efficiency and effectiveness of its solutions, positively increase the user experience (User Experience-UX), as well as their satisfaction and loyalty.
In turn, the development of products for a service company also includes the prototyped and the corresponding verifications, the selection of components and suppliers. It is important to note that the development of products in a service company is not limited to the creation of the best existing technology, because there are many other factors that must be considered, such as market demand, competition, cost and use of the technology.
Likewise, competition can be an important factor in making decisions about the development of products in a service company. Companies must evaluate the services of their competitors and consider how they can be differentiated by offering added value.
Motivating examples for the development of products in service companies can be found in the American airline Delta Airlines, which recently implemented a functionality in its mobile application consisting of the tracking of suitcases through technology, in this way their passengers receive in Your cell phone notifications with the real -time location of your luggage, which guarantees greater security and trust among users. We can also find success cases in Uber, Airbnb, and Amazon and hundreds of service companies that have decided to bet on an innovative business model following technology.
Importance of product development for a service company
Product development is important for a service company because first of all improves the offer of services, since, by developing custom products for its customers, the service company can improve its service offer and differentiate themselves from competition. Similarly, customer satisfaction increases: offering personalized solutions and adapted to the specific needs of customers, the service company can improve customer experience and increase their satisfaction and loyalty.
On the other hand, when developing innovative and effective products, the service company can expand its customer base and generate new income. Efficiency also increases because by developing products and specific solutions for service companies, the entity can improve the efficiency of its processes and services, which in turn can improve the profitability and competitiveness of the company.
The innovation of new products will always contribute to a service company standing out above its competitors and in turn offer unique and improved services. All this will attract new customers and increase the basis of existing customers satisfied with the quality and efficiency of the company.
While the development of products for a service company does not guarantee success, it is an important part for organizations to have a good market position. For example, through the creation of unique and differentiated products, a service company can stand out from its competitors and attract a specific target audience.
How is a product development strategy elaborated?
The development of new products or services implies strategic planning, the definition of characteristics, of benefits, of a previous market studio, as well as the implementation of the business mechanisms necessary for its development. And, finally, when the product or service is a reality, an analysis is necessary for its launch.
Therefore, a design project is needed, which includes from obtaining the initial concepts and ideas to its formalization, verification and development. Its objective is that the design project is suitable for industrialization, through the most appropriate materials and technologies for each purpose, and that it can become a new product. This conceptualization is the initial part of the process, which starts from the identification of problems and needs through creative methodologies and the application of user-centered design resources.
We will also define at this stage all the resources we will need for product development. For example, if we are going to create a mobile application for our customers to access the company’s services, we will have to have the workforce of the best programmers, as well as graphic designers and other professionals.
That is why we can say that the development of new products in a service company is something that generates high expectations and entity, but also presents a great challenge, while requiring study and an investment process, which can be expensive and does not necessarily guarantee a positive investment return. Therefore, a service company must consider all these factors when developing new digital products and solutions.
