F944e05 Classification Of Services

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F944e05 Classification Of Services

  1. 1. Amity Business School MBA Class of 2010, Semester III Classification of Services Prof. P K Bansal
  2. 2. Service Process A Strategic Insight <ul><li>A service is essentially a process and not a physical product. </li></ul><ul><li>Process is directed at different ends depending upon the nature of service. </li></ul><ul><li>Some services process people and some may process objects. </li></ul><ul><li>Service process can be manual or mechanised or involve both. </li></ul><ul><li>Part of the service organisation that has direct control and responsibility of the service processes is called service operation system, involving interplay of people and equipments. </li></ul><ul><li>A customer because of his physical presence in the system or factory, is more concerned with operations happening in front of him unless when services fail to conform to expectations. </li></ul>
  3. 3. <ul><li>Visible portion of overall service depends on the nature of service process . It also decides, the importance of the duration a customer’s physical presence is required in a service system. </li></ul><ul><li>This leads to an important classification on the basis of two important dimensions: </li></ul><ul><ul><ul><li>What is processed? Object or a Person </li></ul></ul></ul><ul><ul><ul><li>How is it processed? What is the Nature of Process? Tangible or Intangible actions </li></ul></ul></ul>
  4. 4. Strategic Classification
  5. 5. People Processing <ul><li>Customers must physically enter the system. </li></ul><ul><li>Sometimes, service provider goes to customer with necessary tools. </li></ul><ul><li>People must be prepared to spend time actively cooperating with the service operation. </li></ul><ul><li>Level of involvement can vary. </li></ul><ul><li>Managers must think about processes / outputs in terms of what happens to customers or what benefits are created. </li></ul><ul><li>Identify non-financial costs, time, mental and physical effort, fear, and pain etc. </li></ul>
  6. 6. Possession Processing <ul><li>Working to tight deadlines to restore customer’s possessions to good working order. </li></ul><ul><li>People are less physically involved and usually, no real need for them to enter the service; often limited to requesting the service; explaining the problem or paying the bill only. </li></ul><ul><li>The output in each instance, whether, installing software or repairing car etc. should be a satisfactory solution to a stated problem. </li></ul>
  7. 7. Mental Stimulus Processing <ul><li>Services that interact with people’s mind . </li></ul><ul><li>Anything touching people’s mind has power to shape attitudes and influence behaviour . </li></ul><ul><li>Customers are in a position of dependency, and a potential for manipulations . Hence, strong ethical standards and careful oversight are required. </li></ul><ul><li>Recipients should spend time but not necessarily be physically present in a service factory; just mentally in communication with information being presented. </li></ul><ul><li>Information based content can be converted to digital bits , recorded or transformed into manufactured products viz. CD’s, Video’s , which can be packed and sold like any physical product. </li></ul>
  8. 8. Information Processing <ul><li>Most intangible form of service output. </li></ul><ul><li>Customer involvement determined more by tradition or personal desire to meet face to face and not by the needs of the operational process. </li></ul><ul><li>Customer / Supplier learn each other’s needs, capabilities and personalities by personal meetings, however this relationship can also be build / sustained on trust or telephonic contact. </li></ul>

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