The Model explained in the book and in class.

2. Service Innovation & Management
The “S” Model
MBA
Fausto García

3. Agenda
1
• About Services
Services vs. Products
Service Concept & Service Package
• Our “S” Model of Services

4. Business Week, May 17, 2004

5. "Our customers increasingly want solutions to their
document problems . . . they want us to bring
together consulting, services, systems, products,
and support to help them be more productive"
Paul Allaire, Chairman
Xerox
(2004)

6. Why this interest in Services?
When products become
commodities…
…Services offer new growth opportunities

7. What is a Service ?
• Deeds, processes and performances
• Almost always supported by facilitating goods
• From which is not easy to make a clear
distinction
(Zeithaml and Bitner, 1996 ; Berry and Parasuman 1991)

8. The Service
Strategy
Performance Priorities
• Treatment of the customer
• Speed and convenience of
service delivery
• Price
• Variety
• Unique skills that
constitute the service
offering
The
Customer
The
Systems
The
People

9. Agenda
1.1
• About Services
Services vs. Products
Service Concept and Service Package
• The “S” Model of Services

10. Services vs. Products
• Intangibility
• Variability
• In Services, Delivery and Production are
contemporary
• Services are perishable

11. What is Service Quality?
Efficient customer satisfaction…
=
-
Satisfaction = Perception – Expectations
The way in which customer perceptions overcome
expectations…

12. Agenda
1.2
• About Services
Services vs. Products
Service Concept and Service Package
• The “S” Model of Services

13. Service Concept
• Defines the how and the what of service design
• Key role in design and development
• Links customer needs and a firm’s strategic intent
• Applies to design planning and recovery design
processes
Susan Meyer Goldstein, Robert Johnston, Joann Duffy, Jay Rao,2002

14. Service Package
• Many times, the Service Concept requires the additional
definition of a group of components (products and services)
Cleaning
Services
check –in
activities
Flight from
A to B
Luggage
Logistic
Information
Personnel relations
towards the client
Comfort
Services during
the flight

15. Technology and Services

16. Agenda
• About Services
Services vs. Products
Service Concept and Service Package
• The “S” Model of Services

17. “S”
Our “S” Model
for
Service Management

18. Customer
Satisfaction
Value for
Customers
Culture &
Leadership
General Model
Customer
Fidelization
Delivery
Value for the
Firm
Model for Service Design and for building Delivery Capabilities
Value
for Employee
Employee
Fidelization
Employee
Satisfaction
Value
Explicitation
Quality and
Conformance
Barriers for
leaving Service

19. General Model
• Profitability
• Positioning
• Growth
Value for the
Firm

20. General Model
High
Retention
(Loyalty)
Low
Hostage
Apostle
Terrorist
Mercenary
Low
Customer
Fidelization
Value for the
Firm
High
Satisfaction
How do we generate
Loyalty ?

21. Customer
Satisfaction
Value for
Customers
General Model
Customer
Fidelization
Value for the
Firm
Base Product + Complementary Services
Cost +
•
•
•
•
•
Response
Flexibility
Reliability
Availability
Variety
Barriers for Access
Management
Decisions
•
•
•
•
•
Access
Contact
Safety
Status / Image
Education

22. Define Strategy and Value for Customers
High
People Focus
Contact time
Customization
Discretion
Front/Back office
Process Focus
People / Equipment
Contact time
Medium
Customization
Discretion
Front/Back office
Process / Product
Equipment Focus
Contact time
Low
Customization
Discretion
Back office
Product focus
Professional Services
Management Consultancy
Field Service
Bank - Corporate
Service Shops
Hotel
Rental Service
Retail
Bank – Retail
Mass Services
Tobacco
News retailer
Transportation
# Customer Processed by a typical unit per day
Tinnila and Vepsalainen (1995)

23. Customer
Satisfaction
Value for
Customers
General Model
Customer
Fidelization
Delivery
Value for the
Firm
Employee
Fidelization

24. General Model
High
Retention
(Loyalty)
Low
Hostage
Apostle
Terrorist
Mercenary
Low
High
Satisfaction
Employee
Fidelization

25. Customer
Satisfaction
Value for
Customers
General Model
Customer
Fidelization
Delivery
• Autonomy
• Selection, Training, Development
• Valuation and Recognition
• Communication Channels
• Level of Commitment (participation)
Employee
Satisfaction
Value for the
Firm
Employee
Fidelization

26. Customer
Satisfaction
Value for
Customers
General Model
Customer
Fidelization
Salary + Professional Development + Ambience + Image
Time + Effort
Delivery
Value
for Employee
Value for the
Firm
Employee
Fidelization
Employee
Satisfaction

27. Customer
Satisfaction
Value for
Customers
Culture &
Leadership
General Model
Customer
Fidelization
Delivery
• Clear and known direction
Value
• Personal commitment
for Employee
• Support and fulfillment
Employee
Satisfaction
Value for the
Firm
Employee
Fidelization