potential innovation, strategically select those ideas that the organization will commit resources to, implement the innovation, and finally reflect on the previous phases to achieve organizational learning. An issue also commonly addressed in NSD is "design for delivery" (Bullinger et al., 2003). As many services are highly labor intensive (e.g., hospitality services) the motivation to optimize new services for efficient delivery is high. As electronic services follow a reversed cost structure, these approaches are not suitable for e-service development. Another common distinction in service development is that between a "front-office" and "back-office" (e.g., Metters and Vargas, 2000). Yet, sole focus on Service Innovation for Electronic Services Full-scale launch Post-launch review Enablers Formulation of new Full launch Design services objectives/ strategy Idea generation and screening People Concept development and testing Product Service design and testing Technology System Process and system design and testing Personnel training Tools Service testing and pilot run Development Analysis Test marketing Business analysis Project authorization Figure 7.1 NSD process cycle. (Adapted from Johnson, S. et al. 2000. New Service Development: Creating Memorable Experiences. Fitzsimmons, J. and Fitzsimmons, M. (Eds), pp. 1-32. Thousand Oaks, CA: Sage Publications.) "back-office" operational efficiency is not enough and has been neglected with many e-services. As argued by Riedl et al. (2008), perceived quality measures have to be taken into account to address satisfaction issues commonly addressed in "front-of- fice" design. Moreover, Johnson et al. (2000) note that different NSD processes are necessary for different types of innovation. In particular, they identify incremental service innovations, radical service innovations, and technology-driven services as key differences that should be used to choose the appropriate NSD process and pro- pose this as an avenue for future research. With regard to the perpetual beta 