Service Development

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Service Development

  1. 1. Part 3 ALIGNING STRATEGY, SERVICE DESIGN, AND STANDARDS
  2. 2. Provider GAP 2 CUSTOMER COMPANY GAP 2 Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations
  3. 3. Service Development and Design
  4. 4. Today’s Objectives <ul><li>Describe the challenges inherent in service design. </li></ul><ul><li>Present steps in the new service development process. </li></ul><ul><li>Show the value of service blueprinting in new service design and service improvement. </li></ul>
  5. 5. Types of new Services <ul><li>Major innovation </li></ul><ul><li>Start-up business </li></ul><ul><li>New services for currently served market </li></ul><ul><li>Service line extension </li></ul><ul><li>Service improvements </li></ul><ul><li>Style changes </li></ul>
  6. 6. New Service Development Process Source : Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997. <ul><li>Business Strategy Development or Review </li></ul><ul><li>New Service Strategy Development </li></ul><ul><li>Idea Generation </li></ul><ul><li>Concept Development and Evaluation </li></ul><ul><li>Business Analysis </li></ul><ul><li>Service Development and Testing </li></ul><ul><li>Postintroduction Evaluation </li></ul><ul><li>Commercialization </li></ul><ul><li>Market Testing </li></ul>Screen ideas against new service strategy Test concept with customers and employees Test for profitability and feasibility Conduct service prototype test Test service and other marketing-mix elements Front End Planning Implementation
  7. 7. New Service Strategy Matrix for Identifying Growth Opportunities Markets Offerings Existing Services New Services Current Customers New Customers SHARE BUILDING DIVERSIFICATION MARKET DEVELOPMENT SERVICE DEVELOPMENT Back
  8. 8. Service Mapping/Blueprinting <ul><li>A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view. </li></ul>Service Mapping Process Points of Contact Evidence
  9. 9. Service Blueprint Components CUSTOMER ACTIONS line of interaction “ ONSTAGE” CONTACT EMPLOYEE ACTIONS line of visibility “ BACKSTAGE” CONTACT EMPLOYEE ACTIONS line of internal interaction SUPPORT PROCESSES
  10. 10. Service Blueprint Components
  11. 11. Express Mail Delivery Service Driver Picks Up Pkg. Dispatch Driver Airport Receives & Loads Sort Packages Load on Airplane Fly to Destination Unload & Sort Load On Truck SUPPORT PROCESS CONTACT PERSON (Back Stage) (On Stage) CUSTOMER PHYSICAL EVIDENCE Customer Calls Customer Gives Package Truck Packaging Forms Hand-held Computer Uniform Receive Package Truck Packaging Forms Hand-held Computer Uniform Deliver Package Customer Service Order Fly to Sort Center
  12. 12. Overnight Hotel Stay SUPPORT PROCESS CONTACT PERSON (Back Stage) (On Stage) CUSTOMER Hotel Exterior Parking Cart for Bags Desk Registration Papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath Menu Delivery Tray Food Appearance Food Bill Desk Lobby Hotel Exterior Parking Arrive at Hotel Give Bags to Bellperson Check in Go to Room Receive Bags Sleep Shower Call Room Service Receive Food Eat Check out and Leave Greet and Take Bags Process Registration Deliver Bags Deliver Food Process Check Out Take Bags to Room Take Food Order Registration System Prepare Food Registration System PHYSICAL EVIDENCE
  13. 13. Building a Service Blueprint Step 1 Identify the process to be blue-printed. Step 2 Identify the customer or customer segment. Step 3 Map the process from the customer’s point of view. Step 4 Map contact employee actions, onstage and back-stage. Step 5 Link customer and contact person activities to needed support functions. Step 6 Add evidence of service at each customer action step.

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