Improving a model for new service development

The new service development (NSD) process has become vital to survive in highly competitive service sectors. This research suggests a methodology for the New Service Development process, aiming at the correct systematic approach of Quality Function Deployment (QFD) and target-costing in cost management. QFD and target-costing are complementary processes, because while one allows the identification of where cost reduction could be achieved, the other shows the target to be achieved to guarantee the long-term profitability plan of a company. In order to do that, Factors considering server´s aspect of action are defined in a group of five as Service Package, and the outputs understood by customers are grouped as Customer-Desired Performance (CDP). The final aim of this model is to reconcile these two aspects having in mind the importance of voice of customer and firm´s benefit which are respectively interpreted as worth and value.