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Application In service sector

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  • 1. Chapter - 13Application InService Sector
  • 2. IntroductionLearning Objectives: Introduction to service sector Creating a distinctive service Service concept Service process cycle and analysis Customer service design Service management system MIS application in service industry MIS service Industry
  • 3. Introduction Unlike the manufacturing sector, the service sector does not have physical goods to be manufactured for the customer. The data processing applications like payroll, accounting and inventory are required in the service industry too, but they may not be all critical to the service industry
  • 4. Introduction Service is essentially a process of human interaction. Any human interaction is knowledge based, hence information based
  • 5. Introduction Tom peters in ‘The service Edge’ states five principles of a distinctive service.1. Listen, understand, and Respond to the customers.2. Define a superior service and establish a service strategy.3. Set standards and measure and performance.4. Select, train and empower the employees to work for the customers.5. Recognize and reward the accomplishments.
  • 6. Creating a distinctive service  Service VS productService ProductService is not tangible. Product is tangible(real or Definite)Services are offered on Demand Products are offered on paymentService cannot be Demonstrated Product can be demonstratedTo judge quality of service is difficult due It can be possible to judge quality ofto its customers response and behavior product
  • 7. Creating a distinctive service To summaries, the service conscious management would create service focused organization, where:1. The organization listens, understands and responds swiftly to the changing character of the customer wants, needs and expectations.2. The organization develops and maintains a ‘customer- friendly’ service delivery system.3. Organization employs, inspires and develops a customer- oriented frontline personnel. in sort, the service function essentially is a human interaction between the service receiver and the provider.
  • 8. Creating a distinctive servicePurpose Expectation PerceptionAnnual Health Check up Quick service and total Depends on socioeconomic coverage at single location status. with proper guidance and adviseNormal treatment Proper guidance and very Les paper work and less waiting time infrequent visitEmergency Immediate Doctor’s choice and a norm attentintion,necessary of immediate attention resources and services are immediately availableHospitalization Clean and quiet Service with smile surrounding.pleasant,stay and fast recoveryOld patient Faster service with least Good layout cost and help themChild patient care Parents are relevant Interaction reduced parent anxiety
  • 9. Service concept Service is an identifiable, intangible activity or a process designed to fulfill certain expectations of the customer/consumer. Kotler defines it as ‘service is an activity or a benefit that one part can offer to another which is essentially intangible and does not result in the ownership of anything To understand the service better, it is necessary to understand its character or attributes as below
  • 10. Service Concept Service character or attributes as below Intangibility All services are fully intangible i.e they lack ‘physical existence’. They can be seen being delivered and being received by the customer but cannot be displayed. For example, teacher teaches in the class with textbook, notebook, chalk or transparencies are the goods associated with ‘teaching’, a service where customer is a student.
  • 11. Service Concept Inseparability of Receiver & Provider In Service case, receiver and provider must be present. Service process cannot be executed unless both are present at the site of service delivery. Storage Service being intangible cannot be stored like goods, which can be stored in the warehouse and can be used at a later date.
  • 12. Service Concepts Inconsistency( not in agreement) The inconsistency occurs due to different service providers performing at different times. Though service process is the same, service experience varies from incident to incident. Every customer has different service expectations. For example, bank’s ATM service is consistent and is also standard when compared with other banks. However, a service is remembered by its quality
  • 13. Service Concept The quality of service has two dimensions, namely:1. Quality of resources used: service inputs, equipments, facilities, tools, designs and so on.2. Functional quality of the process : empathy, level of responsiveness, and process design quality Note: all services have two components, one basic core and second its features.
  • 14. Service Quality ModelCustomer Service CustomerExpectations Quality perceived standard Added features Functional core Component servicing the Objective objectives Component
  • 15. Service Process cycle and analysis All services are bound by process steps and each step adds value in the service. All the steps can be classified in stages based on the role played in the process. These stages together build a service process cycle The stages in the cycle are:1. Initiation of service2. Transition to service3. Pre-service4. Service5. Post-service
  • 16. Model of service process cycleStage in Service cycle Steps in stage Example of airlines: passenger service1.Inititation of service Enquiry, information Checking for flights, timing seeking, checking and facilities2.Transition of service Steps towards effecting Issue of ticket, boarding service services3.pre-service Document checking, Ticket inspection on guideline etc ground etc4.Service Effecting service delivery Finding seat,softdrink with goods physical service etc assistance5.Post service Providing existence service Arrival guidance,tranport information etc.
  • 17. Service process cycle and analysis kind of service in All service stages are applicable in every every environment. The customer satisfaction is best achieved completing these steps in the most effective and efficient manner. The Responsiveness of the service would increase with: Faster data capture and processing in every interaction. Access to various databases and services. Error free transaction processing and updating. And application processing at each stage of service cycle.
  • 18. Customer service Design The customer, who initiates the service trigger to avail the service, is influenced by: Assessment of service, scope, quality Assessment of price of offer and willingness to pay that price. Perception of service standard. Extend to knowledge about the service. Impact of promotion campaign.
  • 19. Customer Service Design The Service process designer designs the ‘customer service based on the assessment and analysis of customer’s choices, preferences, quality expectations, willingness to pay the price and so on. Following factors influences the customer service design. Promotion Product Price Place Processes People(process drivers)
  • 20. Customer Service Design Product PricePromotion Customer Service design Place People Customer Service Design
  • 21. Customer Service Design The Service will be decided based on the capacity and capability of people and also by the layout of place and facilities. Customer service design addresses primarily the ‘service product formulation’ which states: Who is customer? What is the service scope? How it is delivered? What is the quality level? What additional features to provide? What should be the price of service? Where it should be offered and what facilities to provide? Who would drive the service process? What kind of promotion would enthuse customers to avail the Service? Any finally, what process design would deliver the scope? Customer service design is crucial for customer satisfaction.
  • 22. Service Management System(SMS) Service Management System(SMS)Initiation of Transition Pre consumption Consumption Post ServiceService To Service Of service of Service consumption Scope Pre service Stage byEnquiry DB Of Service Processing stageProcess processingData capture Transaction Pre servicing Of service Input processing Feedback Service DocumentImitation Resource Pre service processingFor service allocation Integration
  • 23. Service Management System(SMS) Scope and objective in SMS Initiation for service(front End) Scope: answer queries, standard and non-standard. Record the query details and seek for agreement to avail the service. Capture the data in standard format to initiate service action. Ascertain the service requirement. Create a bill of service offer. Give a service job number. Put the service job in queue. •Objective : win the customer for availing the service.
  • 24. Service Management System(SMS) Transition to service(front End) Scope: check, asses, validate the service requirement. Ascertain commercial and technical viability, and operational feasibility. Check for submission of any document, or goods, which may be mandatory for service. Obtain formal acceptance for beginning the service. Issue acknowledgement, acceptance card, voucher, and so on. Objective : establish technical, commercial feasibility and obtain customer acceptance.
  • 25. Service Management System(SMS) Pre-service (back End) Scope: inspect all submissions from all points of view. In doubt, clarify and ascertain. Issue service job identity for record, communication, and for reference at a later date. Update customer database with this service job identity. objective : enlist the service offer with identity.
  • 26. Service Management System(SMS) Service(back End) Scope: conducting the customer and/or the goods for service after execution. Execute all necessary transactions, which are part of service process. Collect transaction results and update the records for reporting. Produce and/or display documents. Collect relevant data for computing cost of service. Close the service process and obtain acknowledgement of service completion. Objective : complete the service execution process efficiently and effectively to the satisfaction of the customer
  • 27. Service Management System(SMS) Post-Service(front End) Scope: collect feedback on service experience, suggestions if any. Bill the customer for services availed. Process payment as per terms of services. Up-date customer record, job record, and other information databases. Generate a report for examination to close the service offer Objective : collect data and information about service for decision- making and improvement.
  • 28. Mis application In Service Industry Airlines 1. Passenger information 2. Information on the Aviation industry Hotels 1. Keep track of the customer profile 2. Monitoring occupancy Level 3. Project future needs 4. Monitor the level of expectations 5. Monitor the communication needs 6. Customer database
  • 29. Mis application In Service Industry Hospital (Front end applications) 1. Patient database 2. Medical server database 3. Resource planning and control 4. Medical case history database Hospital (Front end applications) 1. Core applications 2. Critical control applications
  • 30. Mis application In Service Industry Banking 1. Customer database 2. Service to the account holders 3. Service for business promotions 4. The index monitoring system 5. Human resource upgrade Insurance 1. Information for new products 2. The settlement of claims 3. Management of the policies
  • 31. Mis application In Service Industry Utilities Data gathering Data entry Data validation Data processing for billing Total amount Verification Data analysis collection
  • 32. Mis application In Service Industry Finance: Statement for each amount and scheme Analysis of investment Statement of cash Statements of refunds etc Balance sheet and other legal documents Statement of brockage.commosion etc Query report processing
  • 33. MIS: service industry MIS focus on the key factors Factors: People Process technology