The application of operations management to the production of services has coincided with a dramatic growth in the number and diversity of service organizations. In 1900, only 28 percent of American workers were employed in service organizations. By 1950 this figure had grown to 40 percent and, by the end of 1995, it reached 79 percent. By any yardstick, service firms have become a dominant part of our economy. Research and Development.
Basic research consists of activities aimed at uncovering new knowledge.
Applied research consists of activities geared to discovering new knowledge that has some potential use. Development and implementation are research activities undertaken to put new or existing knowledge to use in producing goods and services. Product Extension and Refinement . When a new product is first marketed, its sales are zero and slowly increase. If the product is successful, annual sales increase more and more rapidly until they reach some peak.