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For PhD Admission at UK (Business School)
1) Birmingham Business School
2) University of Manchester
3) University of Southampton
4) Leeds Business School
5) University of Sheffield
6) Nottigham University
7) Lancaster University
8) cardiff university
the initial draft is:
Title:
Study the effects of service development and design on the services operations and industry growth applying on commercial banks in Saudi Arabia
Overview
As from the global edge site economy report, Saudi Arabia?s economy is heavily depending on crude oil. Oil export revenues have accounted for 80-90 percent of total Saudi exports and nearly 75% of the country revenues and above 40 percent of the country’s gross domestic product (GDP).
For Saudi economy to diversify their revenue, the government should have a development strategy for the service market. ?Service is described as a transformation of values and methods by the service provider into product (i.e., Service) that the customer requested.? [Robin Qiu, (2010)]. Therefore, there are many industries falls under service organizations such as consultation, hosting, visual and listening entertainments, and banking and financial services industries.
One of these service industries is the commercial banking. The commercial banks are considered as the leaders in providing services and implementing new technology. According to IISD analysis of the trends in the banking industry, ?supported by the latest technology, banks are working to identify new business niches, to develop customized services, to implement innovative strategies and to capture new market opportunities?. Moreover, based on the interview regarding the analysis of the Global Retail Banking Survey, Wharton finance professor, ?Innovations intended to make banks a more relevant and reliable resource for their customers are being successfully implemented in some markets. One example: real-time, online banking advice from a dedicated financial adviser?. Banks in some of the emerging economies are in the growth phase of their life cycle. They have great potential to expand the range of products and services on offer to both households and businesses. Over the 10 years to 2016, industry valued added is expected to increase 1.0% annually compared to World GDP which is expected to increase 5.5% annually (ibisworld industry report, 2011). The trends in the commercial banking industry, globally and domestically is moving toward implementing of technology in theirs service, and also the encouragement of e-banking services are been marketed strongly.
In order to study any subject, first we should understand their elements and factors. ?Any service is composite of several important factors such as the needs of customer, the abilities of the service supplier, supplies, defined, measurable, and practicable values and methods and flexibility.? , and also ?the development of sustainable service requires a life-cycle-oriented perspective on the relationships between consumers, providers, and suppliers.? [Robin Qiu, (2010)]. There are elements and factors can be categorized into two major groups internal and external. For the commercial bank, the internal are knowledge, resources, methods, processes, technologies, and employees. As for the external, they are community, industry, government, environmental, economic, and social elements aspects
For Saudi commercial banks to start service clients globally, they should develop integrative and evolutionary services in order to compete in the same scale. There are some measurable indictors that can evaluate how well the organizations are doing, such as quality of the products and services, customers? satisfaction, and market share.
Importance of the study:
The research will study services development impact on the Commercial banking industry and its operations and how it can be better enable the corporation to be competitive in its markets on a side and how its implementations affect the customer satisfaction and market share on the other side.
The financial institutions need investors to maintain their business and by applying service development and design in order to attract more customers. Thus, how understanding customers? future and present needs in banks is essential in developing products, and how product development affects the industry growth by creating and sustaining a competitive market; while have complete understanding of market such the economy, politics, regulations and all other stakeholders.
The commercial banks in Saudi Arabia are currently 13 banks:
1- Al Bilad bank
2- Al Rajhi Bank
3- Al inma Bank
4- Al Jazira Bank
5- Arab National Bank
6- National Commercial Bank
7- Saudi Hollandi Bank
8- Saudi French Bank
9- Saudi Investment Bank
10- Riyad Bank
11- Saudi British Bank (SABB)
12- Samba Financial Group
13- United Saudi Bank
In Saudi Arabia, the banking industry is regulated by two main government organizations: the Saudi Arabian Monetary Agency (SAMA) and the Capital Market Authority (CMA). SAMA is considered as the central bank of Saudi Arabia. Recently, in Saudi government trends in the licensing of foreign banks in Saudi Arabia.
Aim of the dissertation
Studying the relationship between Service development and design and the service operations would give us insights into the product development dynamics in Saudi Arabia. The objectives of this research are to provide a framework to determine the importance of service development processes and their relationship with organizational capabilities, to provide an assessment vehicle that helps organizations assess their capabilities and make improvements and to improve predictions of project outcomes as the ultimate goal
Moreover, the study would create a reference document on Service development whereby Saudi Commercial banks can implement to improve efficiency for all products, cut cost, providing wider range of products which could reach more customers and resulting in getting bigger market share.
The study aims to cover the current statues of product development in Saudi Commercial banks in Saudi Arabia and how they might be improved. The author would look at the complex process behind product development and try to answer the following main points:
What are the needs of customers in the Saudi market?
Why recommendations should be given to Saudi commercial banks to improve their service development services to their customers?
What are best tools of service development to be implemented in Saudi commercial Banks?
What is the relation between four concepts of product and service quality, customer satisfaction and loyalty in Saudi commercial bank industry?
Bank Customers IT or R&D
Service Development Do Saudi commercial banks apply new product development or simply buy the new product once it is in the market?
What are the practiced processes that Saudi banks apply? And is there a gap between the theory and the practice?
What recommendation could be applied to decrease the gap?
How long approximately is the product life cycle in the banking industry?
Do commercial banks in Saudi Arabia need development team or it is more efficient if it was outsourced? What are the customers or consumers? expectations and what are their needs?
Are customers included in the development process?
What are the factors that should be considered when developing their products or technology?
Technological- people- money cost, competitor, market, political, economical
What are the limitations of developing new product or technology?
Are employees included in the development process?
Do the sales and operation teams participate in the development process or not?
Who are the people included in the process?
What are the tools and analytical tools are used in the process?
How do bank decide which needs are more important than the other?
Quality Do bank have a quality control strategy?
How do bank measure and manage their quality? What are their expectations in quality?
What are the factors that make them choose a bank of the other?
What are significant or the value of the factors in their decision?
Is quality a factor?
What is the value of quality to them?
Why you are doing this topic:
The author have worked for two years in trade finance as a product sales manager involved in the sales and the development of trade finance services where he found some gaps between the theory and what is practiced. Also the author worked for two months in National Commercial Bank (NCB) main office as trainee under marketing division, new product development team, which he was exposed to some of the working projects and experienced the process and the stages of new product development.
The author has great interest in service operations and one of major areas that should be developed in Saudi Market. From the Saudi economic reports, the Saudi economic is relying heavily on the oil which is diminishing source, where the service industry still has room for development, and the author believes that the services development will be a major factor to reach that goal.
The author believes that Saudi banks should improve their services development to understand their customers’ needs in relation to the services provided and its quality, to reach better customers satisfaction and loyalty.
Literature Review
According to Menor, the development of new services includes four benefits:
1- Increasing the profitability of existing services
2- Attracting new clients
3- Improving customers loyalty
4- Opening markets of opportunity (Storey and Easingwood, 1999).
Then Menor also further explained the new services development classifications into six categories:
The first category is radical innovations, and he describe it of major innovation new services for markets as yet undefined; in innovations usually driven by information and computer-based technologies. The second is start-up business, which are new services in a market that is already served by existing services. The third is new services for the market presently served, new service offerings to existing customers of an organization (although the service may be available from other companies). The fourth is incremental innovations, and it is service line extensions Augmentation of the existing service line such as adding new menu item, new routes, and new courses. The fifth is service improvements, which is changes in features of services that currently are being offered. The sixth is style changes this category is Modest forms of visible changes that have an impact on customer perceptions, emotions, and attitudes, with style changes that do not change the service fundamentally, only its appearance.
The characteristics of a product development project are historically its quality and profitability, where quality represents how well the product satisfies the customer needs, and profitability represents how much profit it can generate with limitation of budget, and schedule.
The widely used measurements are drawn from three perspectives: consumer-based, financial and technical or process-based success:
1- Consumer-based: customer loyalty, and market share
2- Financial-based: Cost and Expense, can the organization make money?
3- Technical or process-based: TTM (Time-to-Market), quality
10 performance measures of a company?s new product development:
Success rate, Percentage of sales, profitability relative to spending, technical success rating, sale impact, profit (Bing Liu, 2003)
Table
Measures of NSD outcome and process performance
NSD outcomes NSD process
Financial measures
Achieving higher overall profitability
Substantially lowering costs for the firm
Performing below expected costs
Achieving important cost efficiencies for the firm Criterion cost
Average development cost per service product
Development cost of individual service product
Percentage of turnover spent on developing
new services, products and processes
Competitiveness measures
Exceeding market share objectives
Exceeding sales/customer use level objectives
Exceeding sales/customer growth objectives
Achieving high relative market share
Having a strong positive impact on company image/reputation
Giving the company important competitive advantage
Enhanced sales/customer use of other products or services Effectiveness
How many new services developed annually
objectives Percentage new services that are successful
Quality measures
Resulting in service ?outcome? superior to competitors
Resulting in service ?experience? superior to competitors
Having unique benefits perceived as superior to competitors
Great reliability
More user friendly
Speed
Concept to service launch time
Concept to prototype time
Prototype to launch time
Time to adopt new concept from outside the firm
(Menor, 2002), Adapted from Voss et al. (1992).
Research Design and Methodology
Examines the process of the implantation of services development and design in the commercial banking industry in Saudi Arabia in order to highlight the gap between the theory and practice, and provide more contingent approach to development of activities. Also this research will study the variables of service development process, customers? participation in the process and operation team involvement in the context of how is their relationship to service operations. Customer satisfaction and loyalty are the most important factors that affect the customer service can be considered as an innate element of industrial products.
The research will study whither the industry dose actually implements NSD or focus on and the effects of service development on the service industry growth, and analysis the relationship between service development, quality, customers? satisfaction and loyalty
Therefore, the author will use both qualitative and quantitative approach. Qualitative approach will define customers’ perspective about product quality and how much information they have. It will examine their opinions, feelings, values etc. hunt (n.d) stated that qualitative research is an inductive approach, and its goal is in gaining a deeper understanding of a person’s or group’s experience. It will define whether the customers are satisfied with current products or not and what their fears are. It will also help formalizing steps required to improve customers’ knowledge about online trade and encouraging them to use it. The first approach is qualitative research will conduct interviews with key customers. The interviews will also include bank staffs that are from products development, sales and operation teams in the banks to understand constrains that the market has
Qualitative research is an inductive approach, and its goal is to gain a deeper understanding of a person’s or group’s experience. Qualitative research is naturalistic (Royse,1999) so that field researchers know what to ask and can change their line of questioning depending on the participant and his/ her response. Qualitative research has alternative research methods and date collection methods. Examples of qualitative research methods are action research, case study, grounded theory, historical methods, and ethnography. Some examples of data collection methods are interviews, field of observations, diaries, and letters.
The second part of the study will be quantitative approach. McMillan and Weyers (2007) state that quantitative approach is used to obtain measurements, estimate errors, and compare information and opinions and testing hypotheses. The approach will help in knowing systems both service provides and customers are using, the number of service providers offering such service, approximate volume of trade transactions executed through online system, the time taken to process transactions online and compare them with those received manually through the banks’ counters.
Quantitative research is about prediction, generalizing a sample to a larger group of subjects, and using numbers to prove or disprove a hypothesis. The researchers are interested in generating data from a large sample of study subjects so they can generalize the conclusion to others (York, 1998). Quantitative research uses data that are structured in the form of numbers or that can be immediately transported into numbers (Ross, 1999). Examples of quantitative methods include survey methods, laboratory experiments, formal methods, and numerical methods.
There are three primary types of quantitative research designs, experimental, quasi-experimental, descriptive, and correlational. Experimental and quasi-experimental studies are designed to examine cause and effect. They study the effects of treatments by using tests or scales. Descriptive and correlational studies examine variables in their natural environments and do not include researcher imposed treatments (Ross, 1999). They examine the relationship between two variables using tests or scales.
The quantitative research will be in the form of questionnaires. The survey of the customers will measure their involvement and quality and services expectations and needs. The questionnaires will be hand delivered and then collected. The author believes that this is the safest way to ensure maximum responses. The author will then see how the information could be used to improve delivery and usage of online trade services.
Reference:
1. Robin Qiu, (2010) Service Science, volume 2 number 4, A Journal for Worldwide Service Science Community, chapter1, page12-14
2. http://globaledge.msu.edu/Countries/Saudi-Arabia/economy
3. Global Commercial Banks Market Research Repot, May 20011, accessible through: http://www.ibisworld.com/industry/global/global-commercial-banks.html
4. Hunt A. Cynthia (n.d). Qualitative and quantitative concept in proposal writing: similarities differences and controversy [online]. Available from: http://www.und.nodak.edu/instruct/wstevens/PROPOSALCLASS/Huntpaper.htm
5. http://www.state.gov/r/pa/ei/bgn/3584.htm, December 30, 2011
6. The International Institute for Sustainable Development (IISD) a Canadian-based, public policy research institute, accessible through: http://www.iisd.org/business/banking/sus_trends.aspx
7. Analysis of the Global Retail Banking Survey, Wharton finance professor Franklin Allen and Pierre Pilorge, Ernst & Young?s customer services advisory leader, published on August 16, 2011. Accessible through:
8. http://kw.wharton.upenn.edu/ey-global-banking/category/video4/?utm_source=google&utm_medium=cpc&utm_campaign=EY_KW
9. Journal of Operations Management 20 (2002) 135?157, New service development: areas for exploitation and exploration, Larry J. Menora,∗, Mohan V. Tatikonda b,1, Scott E. Sampsonc
10. Philips, E. and Pugh, D. (2005): How to get a PhD: A Handbook for Students and their Supervisors, (Open University Press, Milton Keynes).
11. Product development processes and their importance to organizational capabilities by Bing Liu, M.S Electrical Engineering 1994 Chinese academy of sciences, Master of science in Engineering and management at the Massachusetts Institute of Technology, June 2003
12. Library and Learning Resources, Birmingham City University, http://library.bcu.ac.uk, 2010 (rev 2011)
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