Identifying New IT-Based Service Concepts Based on the Technological Strength: A Text Mining and Morphology Analysis Approach

Service providers are increasingly offering customer new IT-based services to sustain competitive advantages. However, theory and practice of IT-based service is still in its early stage. Especially, new service development remains one of the least studied and understood topics due to lack of understanding in the relations between technologies and services. The purpose of this paper is to propose a systematic approach to developing new IT-based service concepts based on the firm's technological strength using patent information. First, the technology-service network is suggested to investigate the use and application of different types of technologies in IT-based services with text mining-based patent analysis. Then, based on the generated network, the firm's technological strength is measured and new IT-based service concepts are identified by conducting morphology analysis in the service industry. The proposed approach is expected to help practitioners to formulate technology-based strategy in IT-based service.