Product development for a service company

A service company is an organization that provides services to its customers rather than 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 meeting the needs of the current market while ignoring the necessary technological advances and the evolution of the service industry and its customers. This is where they fail to have a long-term strategic vision. This is why, in order for these entities to be highly competitive, efficient and satisfy the needs of the market and its customers or users. need the development of specific products and solutions in line with new technological advances, the digitalization of life and user requirements.  These products include software, mobile applications, hardwares, digital tools, artificial intelligence solutions, cloud servicesas well as processes or services that are offered to customers as part of their solutions portfolio. It may also include the improvement of existing processes and services through automation or the creation of tools to improve efficiency.  The purpose of product development in a service company is to improve the efficiency and effectiveness of your solutionsThe user experience (User Experience-UX), as well as user satisfaction and loyalty, can be positively increased.  In turn, the product development for a service company also includes prototyping and the corresponding verifications, selection of components and suppliers. It is important to note that product development 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 technology.  Likewise, competition can be an important factor in a service company's product development decision making. Companies should evaluate their competitors' service products and consider how they can differentiate themselves by offering added value. Motivating examples of product development in service companies we can find them in the American airline Delta Airlineswhich recently implemented a functionality in its mobile application that consists of tracking luggage through technology, so that passengers receive notifications on their cell phones with the real-time location of their luggage, which ensures greater security and confidence among users. We can also find success cases in Uber, Airbnb, and Amazon and hundreds of other service companies that have decided to bet on a innovative business model as a result of technology. 

Importance of product development for a service company

Product development is important for a service company because first and foremost improves the range of services offeredsince, By developing customized products for its customers, the service company can improve its service offering and differentiate itself from the competition. Similarly, it increases customer satisfaction: by offering customized solutions tailored to customers' specific needs, the service company can improve the customer experience and increase customer satisfaction and loyalty. On the other hand, By developing innovative and effective products, the service company can expand its customer base and generate new revenues. It also increases efficiency because the development of specific products and solutions for service companiesIn this way, the entity can improve the efficiency of its processes and services, which in turn can improve the company's profitability and competitiveness. New product innovation will always help a service company stand out from its competitors and, in turn, will help it to offer unique and enhanced services. This will attract new customers and increase the base of existing customers satisfied with the company's quality and efficiency.  While product development for a service company does not in itself guarantee success, it is an important part of how organizations position themselves in the marketplace. 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 involves a strategic planningThe product or service is a reality, the definition of characteristics, benefits, a previous market study, as well as the implementation of the necessary business mechanisms for its development; and finally, when the product or service is a reality, an analysis is necessary for its launching.  Therefore, a design project is needed, which includes from obtaining the initial concepts and ideas to their formalization, verification and development. Its objective is that the design project is suitable for industrialization, using 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 with the identification of problems and needs by means of creative methodologies and the application of user-centered design resources.  We will also define at this stage all the resources we will need for the development of the product. For example, if we are going to create a mobile application for our clients to access the company's services, we will have to count on the labor of the best developersas well as graphic designers and other professionals.  This is why we can say that the development of new products in a service company is something that generates many expectations and enthusiasm in the entity, but it also presents a great challenge, as well as requiring study and a investment processwhich can be costly and does not necessarily guarantee a positive return on investment. Therefore, a service company must consider all these factors when developing new digital products and solutions.