Integrated strategy of product and service

Abstract

There are two activities with which firms can survive and grow. The first one is to secure competitiveness in the existing market via differentiation of products, and the second one is to secure power of growth via entering into a new field of business. Developing idea and technology into products and services is a conception of innovation process, requiring creativity as a capability. In order to attain successful commercialization after entering into a new field of business, meanwhile, successful commercialization of products and services in the market is a stage of implementation in the innovation process, requiring marketing capability and organizational capability as capabilities for successful implementation. These two themes have been basically analyzed in terms of innovation process under the premise of commercialization

it is a process of entrepreneurial process in which opportunities are perceived, materialized, and commercialized in the market. Innovation and entrepreneurship are theoretically overlapped and have aspects differentiated each other based on what are underlined, but both can be integrated when commercialization is included. The author in this study divided the two activities into four researches. Firstly, the differentiation of products and services in the existing market contained two studies on the mobile communication industry. Our research included variables related to product innovation and service innovation in our model to draw an integrated strategy. The first study as product planning and development in devices was on tablet devices, and clustering technique and structural equation modeling were used. In selecting the dependent variable, we supposed that the use of a tablet device is limited to using the mobile Internet. We also included variables related to service in the product innovation study. In the mobile Internet study as the second subject, a mixed method including qualitative and quantitative methods was used. This research includes the consumer attitude toward mobile phone, a device related variable, to the mobile service research. By doing so, we emphasize the necessity of considering the device that will be using the particular service in the process of service innovation research. Both studies used theories and methods from the existing literature basically, but variables and methodologies were carefully selected in order to induce managerial implications that can be practically applied to the field. In order to actualize product innovation, we must consider variables related to the service that will be used with the corresponding product. In addition, to realize service innovation, variables related to the necessary product using the corresponding service must be included. The third study was a case study on a case of technology and service convergence on near field communication, serving service innovation and industry convergence. In this study, technology including devices, service, and comprehensive relations between technology/service and end users should be considered. This study contained consideration of partnership strategies in order to secure resources, with technology and end user needs for successful commercialization. Lastly, the study on diversification is to expand business to a new field. In this study, innovation type and innovation implementation theory were used to analyze capabilities needed for diversification, and clustering, the ANOVA, and T-test were used as methodologies. In addition, this study had a comparative research on manufacturing firms within and mobile communication industry and the whole manufacturing industry. In our third and fourth research we specified what competencies are needed to expand a business from a device-oriented field to a service-oriented industry through convergence and diversification. Moreover, we suggested that companies can succeed in the product innovation in their original field and the service innovation in their new field through such competences. Each study induces significant implication that can be practically applied. First, the end users in the tablet device analysis perceived relative advantage that were divided into contents and hardware (especially in terms of display), and the end users were identified to be divided into three segments based on five variables, including relative advantage related contents, relative advantage related display, compatibility, image, and company’s reputation. Image and company’s reputation played a role of mediator in intention to use tablet device for the mobile Internet via different routes, respectively. Second, the comparative study on the mobile Internet identified that the mixed method was a useful methodology to draw practical implication and that there were differences in consumers’ responses on the mobile Internet service among four European nations from analysis based on consumer preference and consumer attitude toward mobile phone. From the results, an implication was drawn: the speed and the pattern of the mobile Internet diffusion were different. Meanwhile, the complementary study additionally conducted in 2010 indicated that, unlike the investigation in 2007, differences were shown in service preference as social network services such as Facebook were popular. Third, it was suggested that it is needed to understand the dynamic relation among technology, service, and end user needs in order to understand and respond to service convergence causing industry fusion, and that partnership between competitors for expansion of resources may be needed in order to achieve service innovation and successful commercialization, via consideration and analysis of the near field communication (NFC) as conver-gence service. Lastly, we selected firms with possibility of successful commercialization out of manufacturing firms via diversification by using innovation framework. For successful diversification, firms should have marketing ca-pability and organizational capability. In this study, it was evidenced that the firms that could do marketing innovation activities and organizational innovation activities and be recognized of the outcome had the above-mentioned capabilities and thus might attain successful diversification. By industries, meanwhile, the petrochemical manufacturing, the manufacturing of electronic components, computer, radio, television and communication equipment and apparatuses were related with marketing and organizational innovation firms. The studies analyzed and presented above provide significant implications and practical methodologies that managers in industries should practically consider when they plan and develop products and services. In particular, the last study might be expected to function as a desirable guideline with which firms perform self-checking as they enter into a new business field.