“…In order to answer these primary questions, this paper presents a common understanding of established NPD and NSD processes; then it offers a summary of relevant trends of IoT, and closing with implications for emergent approaches towards the IoT. The first stage focused on issues surrounding traditional NPD (Cooper, 1990;Booz, Allen & Hamilton, 1982;Trott, 2012;Takeuchi & Nonaka, 1986;Pennell, Winner, Bertrand, & Slusarczuk, 1989;Crawford, 1997;Baker & Hart, 1999;Cooper, 1994;Smith, 2007), NSD process (Johnson, Menor, Chase, & Roth, 2000) and innovation process identify the common characteristics of existing development processes for products and services. Secondly, it examines the key factors in digital innovation which affect approaches towards the development of hybrid products and services, including six dimensions of digital innovation (Yoo, Lyytinen, Boland & Berente, 2010); three dimensions of big data (McAfee & Brynjolfsson, 2012;Meta Group, 2001); new opportunities in digital age (Henfridsson, Mathiassen & Svahn, 2014) and three traits of innovations (Yoo et al, 2012).…”