Documente Academic
Documente Profesional
Documente Cultură
4-2
Principles of Service Design
1. Know your customers 7. Design backroom operations
8. Incorporate data collection in
2. Determine which customer process design
need will be fulfilled 9. Determine extent of customer
3. Develop service strategy, contact and participation
position the service 10.Build flexibility and robustness in
the system
4. Design the service, HR 11.Design employee and customer
requirements and tangibles loyalty program in the system
5. Design the process from 12.Continuous monitoring &
users perspective improvement
6. Minimize hand-offs
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Issues in Designing a Service
System
1. Location
2. Facility design, layout for effective customer
& employee workflow
3. Processes & job definitions for the provided
services
4. Key performance indices , quality measures
5. Extent of customer involvement
6. Adequate service capacity
7. Equipment selection
8. Trade-off between cost & quality of service
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New Service Development -
Innovation
Radical Innovations
• Major Innovation: new service driven by information
and computer based technology
• Start-up Business: new service for existing market
• New Services for the Market Presently Served: new
services to customers of an organization
Incremental Innovations
• Service Line Extensions: augmentation of existing
service line (e.g. new menu items)
• Service Improvements: changes in features of
currently offered service
• Style Changes: modest visible changes in appearances
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Technology Driven Service
Innovation
Technological advances often are the basis for radical
service innovation.
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Service Design Elements
• Structural
- Delivery system
- Facility design
- Location
- Capacity planning
• Managerial
- Service encounter
- Quality
- Managing capacity and demand
- Information
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New Service Development
Cycle
• Full-scale launch
• Post-launch
review
Full Launch Enablers Development
• Formulation
l
nte na
• Service design Co izatio of new services
and testing xt People objective / strategy
Te
• Process and system • Idea generation
am
n
ga
s
design and testing and screening
Or
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Service Blueprint of Luxury
Hotel
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Service System Design
Tools
Service Blueprint for Espresso and Coffee Shop
Seen by customer
Materials
Fail
Poi (Coffee, flavors,
nt milk, cups, etc.)
Line of Visibility
Prepare Order
Mixes Supplies
Complexity -
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Low
Structural Alternatives for a
Restaurant
LOWER COMPLEXITY/DIVERGENCE CURRENT PROCESS HIGHER COMPLEXITY/DIVERGENCE
Limit to Four Choices Entree (15 choices) Expand to 20 Choices: Add Flaming Dishes;
Bone Fish at Table; Prepare Sauces at Table
Sundae Bar: Self-service Dessert (6 choices) Expand to 12 Choices
Coffee, Tea, Milk only Beverage (6 choices) Add Exotic Coffees; Sherbet between
Serve Salad & Entree Together: SERVE ORDERS Courses; Hand Grind Pepper
Bill and Beverage Together
Cash only: Pay when Leaving COLLECT PAYMENT Choice of Payment. Including House Accounts:
Serve Mints
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Taxonomy of Service
Processes
No
Generic Approaches to Service
Design
• Production-line
• Limit Discretion of Personnel
• Division of Labor
• Substitute Technology for People
• Standardize the Service
• Customer as Coproducer
• Self Service
• Smoothing Service Demand
• Customer Contact
• Degree of Customer Contact
• Separation of High and Low Contact Operations
• Information Empowerment
• Employee
• Customer
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Customer Value Equation
Value =
( Re sults Pr oduced ) + ( Pr ocessQuality )
( Pr ice ) + ( CostsofAcquiringtheService)
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Questions?
CONVEYOR
BELT
CONVERSATION AREA
TAKE-OUT
POSITION
ENTRANCE = CHEF
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Commuter Cleaning - New Venture
Proposal
1. Prepare a service blueprint for Commuter
Cleaning.
2. What generic approach to service design is
illustrated by Commuter Cleaning, and what
competitive advantage does this offer?
3. Using the data in Table 4.6 calculate a break-even
price per shirt if monthly demand is expected to
be 20,000 shirts and the contract with a cleaning
plant stipulates a charge of $0.50 per shirt.
4. Critique the business concept, and make
recommendations for improvement.
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Golfsmith
1. Prepare a service blueprint for
Golfsmith.
2. What generic approach to service
design does Golfsmith illustrate and
what competitive advantages does
this design offer?
3. Why is Golfsmith a good candidate for
Internet sales?
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INTERACTIVE CLASS EXERCISE
The class breaks into small groups and
prepares a service blueprint for Village Volvo.
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