Designing a Framework of New Product Development for Digital Banking: A Case study of Bank Mellat

Document Type : Research Paper


1 Ph.D. Candidate, Department of Business Management, Alborz Compus, University of Tehran, Tehran, Iran.

2 Associate Prof., Department of Business Management, Faculty of Management. University of Tehran, Tehran, Iran.

3 Prof., Department of Business Management, Faculty of Management, University of Tehran, Tehran, Iran.

4 Assistant Prof., Department of Business Management, Faculty of Management, University of Tehran, Tehran, Iran.


Objective: The serious competition among businesses has given more attention to new product development. Therefore, the purpose of this study is to design a new product development framework relying on the digital banking approach applied by Mellat Bank.
Methods: This is a qualitative, descriptive, and applied study, conducted based on the grounded theory. Interviews were conducted with 12 managers of different levels of Mellat Bank and university professors with sufficient experience in the field of new digital product development. Data was gathered by purposeful sampling until theoretical saturation with the help of Version 7 of Atlas T software. Strauss and Corbin's method along with the three techniques of open coding, axial coding, and selective coding were used to analyze the data.
Results: A total of 122 final codes were obtained from the 12 conducted interviews. The initial model, including 6 factors for new product development with a digital banking approach, was identified: driving factors (internal and external causes), new digital product development (new product development, planning, and evaluation), strategies (influence on the market, diversification, market development, new and innovative product development), outcomes (customers as well as organizational, market and economic outcomes), intervening factors (environmental, managerial and organizational) and contextual factors (culture, political and legal, process barriers), organizational characteristics and environmental context) were compiled.
Conclusion: Through the new product development model with digital banking approach, the new products can be presented according to the customers’ needs. Also, feasibility and evaluation of the target market, if scientifically reviewed, can lead to the success of new product development, which will bring both customer satisfaction and productivity as well as competitive advantage to the bank.


Akyos, M. (2009). Çağdaş yenilikçi yerel yönetimlere…. Bilim Teknoloji İnovasyon Politikaları Tartışma Platformu, 1-17.
Alf, D., Gossy, G., Haider, L., & Messenböck, R. (2018). Four ways banks can radically reduce costs. The Boston Consulting Group.
Ansoff, H. I., & Slevin, D. P. (1968). An appreciation of industrial dynamics. Management science, 14(7), 383-397.
Arslanian, H., & Fischer, F. (2019). The Future of Finance: The Impact of FinTech, AI, and Crypto on Financial Services. Springer.
Asgari, T., Naimi-Sadigh, A., & Abdolshah, M. (2019). Developing new strategies in the banking industry based on digital technologies. Strategy, 28(3), 5-34. (in Persian)
Barclay, I., Dann, Z., & Harold, P. (2000).  New product development. IRWIN Publish.
Becker, S. W., & Whisler, T. L. (1967). The innovative organization: A selective view of current theory and research. The journal of Business, 40(4), 462-469.
Berkhout, F., Verbong, G., Wieczorek, A. J., Raven, R., Lebel, L., & Bai, X. (2010). Sustainability experiments in Asia: innovations shaping alternative development pathways? Environmental science & policy, 13(4), 261-271.
Booz, A. & Hamilton (1991). New Product Management for the 1980s. Booz Allen & Hamilton Inc, New York (NY).
Bunduchi, R. (2009). Implementing best practices to support creativity in NPD cross-functional teams. International Journal of Innovation Management, 13(04), 537-554.
Cano, E. L., García-Camús, J. M., Garzás, J., Moguerza, J. M., & Sánchez, N. N. (2021). A Scrum-based framework for new product development in the non-software industry. Journal of Engineering and Technology Management, 61, 101634.
Cindy, S., Mohammad, B. L., & Teguh, S. I. (2019). Banking and financial technology (fintech) Islamic integration with collaborative models. Russian Journal of Agricultural and Socio-Economic Sciences, 91(7).
Cooper, R. G., & Edgett, S. J. (2008). Maximizing productivity in product innovation. Research-Technology Management, 51(2), 47-58.
Cooper, R. G., & Kleinschmidt, E. J. (2007). Winning businesses in product development: The critical success factors. Research-Technology Management, 50(3), 52-66.
Crawford, C.M. (1997). New Products Management (5th ed.). Irwin series in marketing
McGraw-Hill Series in Marketing.
Davari nikou, K. (2017). Exploring factors affecting on idea generation of new product development, doctoral thesis, Dukuz eylul university, Izmir.
Durmusoglu, S. S., & Kawakami, T. (2021). Information technology tool use frequency in new product development: The effect of stage-specific use frequency on performance. Industrial Marketing Management, 93, 250-258.
Durmusoglu, S. S., & Kawakami, T. (2021). Information technology tool use frequency in new product development: The effect of stage-specific use frequency on performance. Industrial Marketing Management, 93, 250-258.
Ferreira, J., Coelho, A., & Moutinho, L. (2020). The influence of strategic alliances on innovation and new product development through the effects of exploration and exploitation. Management Decision.
Ghorbani, H. and Lodani, N. (2016), Investigating the Impact of Reward System Mechanisms on New Product Development (Case Study: Home Appliance Companies in Isfahan Province). Marketing Management, 11 (30), 58-45. (in Persian)
Gunawan, R., & Rustiadi, S. (2021). Banking Digitally To Micro-Business: Exploring Value Co-Creation Strategy in New Product Development. ASEAN Marketing Journal. https://doi/org/10.21002/amj.v13i1.13186
Haralayya, B. (2021). How Digital Banking has Brought Innovative Products and Services to India. Journal of Advanced Research in Quality Control and Management, 6(1), 16-18.
Hashemi, m. S. M., & Kassaee, m. (2018). A new method for evaluating and selecting portfolio of new product development projects. Industrial Management Studies, 15 (47), 23-43.
(in Persian)
Hatipoglu, Z. (1993). Fundamental Marketing. Beta edition, Istanbul, Turkey.
Helmi, R. L. (2019). Innovation of New Product Development Process: A Case Study of Healthy Drink-Based Product Line in Indonesia’s Company. Innovation, 11(24).
Hendler, S. (2018). Digital-physical product development: a qualitative analysis. European Journal of Innovation Management, 22(2), 315-334.
Johnson, H.T. & Kaplan, R.S. (1987). Relevance lost - the rise and fall of Management Accounting. Harvard Business School Press, Boston.
Kahveci, E., & Wolfs, B. (2018). Digital banking impact on Turkish deposit banks performance. Banks & bank systems, 13(3), 48-57.
Khanboubi, F., Boulmakoul, A. & Tabaa, M. (2019). Impact of digital trends using IoT on banking processes. Procedia Computer Sciene, 151, 77-84
Kilu, E., Milani, F., Scott, E., & Pfahl, D. (2019, January). Agile software process improvement by learning from financial and fintech companies: LHV bank case study. In International Conference on Software Quality (pp. 57-69). Springer, Cham.
Kocer, U. U., & Tamer, S. (2011). Determining the inventory policy for slow-moving items: a case study. In Proceedings of the World Congress on Engineering (Vol. 1, pp. 6-8).
Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2021). Marketing management: an Asian perspective.
Laurinavicius, T. (2019).
Lusch, R., & Nambisan, S. (2015). Service Innovation: A Service-Dominant Logic Perspective. MIS Quarterly, 39(1), 155-176. doi:10.2307/26628345.
Lyytinen, K., Yoo, Y., & Boland Jr, R. J. (2016). Digital product innovation within four classes of innovation networks. Information Systems Journal, 26(1), 47-75.
Ma, Q., Wu, W., & Liu, Y. (2021). The Fit between Technology Management and Technological Capability and Its Impact on New Product Development Performance. Sustainability, 13(19), 10956.
Mandolfo, M., Chen, S., & Noci, G. (2020). Co-creation in new product development: Which drivers of consumer participation?. International Journal of Engineering Business Management, 12, 1847979020913764.
McAfee, A., & Brynjolfsson, E. (2017). Machine, platform, crowd: Harnessing our digital future. WW Norton & Company.
Melander, L. (2017). Achieving sustainable development by collaborating in green product innovation. Business strategy and the environment, 26(8), 1095-1109.
Nguyen, T. P., & Dang, T. L. P. (2018). Digital banking in Vietnam current situation and recommendations. International Journal of Innovation and Research in Educational Sciences, 5(4), 418-420.
Rezaee, R., Safarkhani, M., Imani, A., & Khalilzade, M. (2016). The effect of new product development and international marketing strategies on export performance (Case study: Manufacturing and Export Companies of West Azarbaijan Province). Jounal of Marketing Management, 11(30), 31-44. (in Persian)
Ruan, G., Wu, N., & Peng, K. (2021, February). Impact of Cross-Organization Improvisation on New Product Development From Viewpoint of Network Embedding. In 5th Asia-Pacific Conference on Economic Research and Management Innovation (ERMI 2021) (pp. 110-113). Atlantis Press.
Ruddenklau, A. (2018). Tech giants in financial services. KPMG.
Saeeda Ardakani, S., and Hatami Nasab, S., and Taleifar, R., and Mohammadi, F. (2012). Study and ranking of factors and components affecting the new product development process (study of the views of SMEs managers in the food and beverage industries of Fars province). New Marketing Research, 1 (1), 101-126. (in Persian)
Schon, D. A. (1967). Forecasting and technological forecasting. Daedalus, 759-770.
Schumpeter, J. A. (1934). The theory of economic development: An inquiry in to profits, capital credit, Interest and the business cycle. Cambridge: Harvard Business Press.
Srinivas, V., & Ross, A. (2018). Accelerating digital transformation in banking. Deloitte. 2018. October, 09. URL: https://www2. deloitte. com/us/en/insights/industry/financial-services/digital-transformation-in-banking-globalcustomer-survey.
Stock, G. N., Tsai, J. C. A., Jiang, J. J., & Klein, G. (2021). Coping with uncertainty: Knowledge sharing in new product development projects. International Journal of Project Management, 39(1), 59-70.
Strauss, A.L., & Corbin, J. (1998). Basics of qualitative research: Grounded theory: Procedures and Technique. (2nd Edition); Sage, Newbury Park, London.
Trott, P. (2021). Innovation management and new product development (7th ed.). Harlow, England: Pearson (E-book).