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- 1. Alex Hill andTerry Hill
- 2. Delivering services AlexHill and Terry Hill
- 3. Learning objectives •Recognise the TECHNICAL and BUSINESS requirements to be met when delivering services • Understand the CHARACTERISTICS of service operations • Identify the CATEGORIES of service and TYPES of service delivery system • Explain how to DESIGN service delivery systems • Understand how IT impacts service delivery
- 4. Lecture outline •INTRODUCTION • Factors affecting SERVICE DELIVERY design • DESIGNING the service delivery system • Critical REFLECTIONS • SUMMARY
- 6. Factors affecting servicedelivery system design SERVICE COMPLEXITY • NUMBER OF STEPS - Single - Multiple THE MARKET • TECHNICAL requirements - The service itself • BUSINESS requirements - Volumes - Order-winners & qualifiers
- 7. > KEY IDEA As services differ, so will the DESIGNS of their delivery systems
- 8. Factors affecting servicedelivery system design Characteristics of service operations • MIX of services and products • INTANGIBLE nature • SIMULTANEOUS provision and consumption • TIME-DEPENDENT capacity • CUSTOMERS can help deliver the service • Need to MANAGE CUSTOMERS • No PATENTS
- 9. > KEY IDEA Services are PROVIDED and CONSUMED at the same time. They CANNOT be stored
- 10. CASE 4.1 TIPPINGAS A MEASURE OF CUSTOMER SERVICE 1.What makes up the total SERVICE OFFERING for a customer during an evening meal at a restaurant? 2.How could a HAIRDRESSER use these customer management approaches?
- 11. CASE 4.1 TIPPINGAS A MEASURE OF CUSTOMER SERVICE Question Answer Service offering Hairdresser • EXPLICIT benefits - DINING experience - FOOD - DRINK • IMPLICIT benefits - PERSONALISED service - SPEED of service - GOODWILL gestures • Adopt similar approach to delivering IMPLICIT benefits
- 12. Factors affecting servicedelivery system design Understanding how services differ KEY DIFFERENCES • Level of TECHNOLOGY used • NATURE of service being delivered - Complexity of service - What is being processed • TYPE of service being delivered - Professional, Service shop or Mass service • BUSINESS requirements - Volumes - Order-winners and qualifiers
- 13. Factors affecting servicedelivery system design Understanding how services differ
- 14. Factors affecting servicedelivery system design Understanding how services differ
- 15. Factors affecting servicedelivery system design Understanding how services differ
- 16. > KEY IDEA The delivery system processes CUSTOMERS, CUSTOMER SURROGATES, PRODUCTS, INFORMATION or some COMBINATION of these
- 17. Designing the servicedelivery system Overall design 1. Understand MARKET volumes, order-winners and qualifiers 2.Identify the service ENCOUNTER and EXPERIENCE to be delivered 3.Understand how to RETAIN customers
- 18. Designing the servicedelivery sOyvsetrealml design
- 19. Designing the servicedelivery sOyvsetrealml design
- 20. Designing the servicedelivery system Service delivery CUSTOMER INTERFACE • BACK OFFICE activities • FRONT OFFICE activities
- 21. CASE 4.2 IMPROVINGSERVICE DELIVERY THROUGH FRONT AND BACK OFFICE
- 22. CASE 4.2 IMPROVINGSERVICE DELIVERY THROUGH FRONT AND BACK OFFICE Question Bank Electrical repair Advantages Disadvantag es • Higher EFFICIENCY - More activities in back office - Queues manage high demand • Higher delivery SPEED - Less activities in front office • Higher delivery RELIABILITY - Narrow range of activities in front office • Higher WAIT - Queues manage high demand • Less CUSTOMISATION - Customers receive standard service • Higher CUSTOMISATION - Service tailored to customer requirements • Lower EFFICIENCY - More activities in front office • Lower delivery SPEED - More activities in front office • Lower delivery RELIABILITY - Wider range of activities in front office
- 23. Designing the servicedelivery system BACK OFFICE Service delivery • No CUSTOMER CONTACT • Easier SCHEDULING • Higher processing VOLUMES Line of visibility FRONT OFFICE • FACILITIES represent organisation • Easier to manage QUEUE lengths • Involve CUSTOMERS in delivery •Wider STAFF ROLES
- 24. Designing the servicedelivery system Service delivery CUSTOMER INTERFACE • BACK OFFICE activities • FRONT OFFICE activities DELIVERY SYSTEM • Number of STEPS - Single vs Multiple • TYPE of delivery system - Non-repeat vs Repeat - Low volume vs high volume
- 25. CASE 4.3 SERVICEDELIVERY AT THE MOSCOW SCIENTIFIC INSTITUTE FOR EYE MICROSURGERY 1.What are the ADVANTAGES of this approach? 2.What are the DISADVANTAGES of this approach?
- 26. CASE 4.3 SERVICEDELIVERY AT THE MOSCOW SCIENTIFIC INSTITUTE Question Answer Advantages Disadvantage s • Higher EFFICIENCY - Automated processes - Lower labour skill and cost • Higher delivery VOLUME - More operations can be completed • Less CUSTOMISATION - Customers receive standard service • Less FLEXIBILITY - Delivers standard service - Significant investment required to increase volume
- 28. Designing the servicedelivery sSyesrvtiecem delivery
- 29. Designing the servicedelivery sOythseter mfactors • ENHANCING services • Use of IT in service delivery • CUSTOMER participation in service delivery
- 30. Designing the servicedelivery sOythseter mfactors
- 31. CASE 4.4 SERVICEDELIVERY AT A LOCAL HIGH STREET BANK BRANCH 1.What are the key ADVANTAGES and DISADVANTAGES of the bank’s approach? 2.What are the key ADVANTAGES and DISADVANTAGES of the post office’s approach?
- 32. CASE 4.4 SERVICEDELIVERY AT A LOCAL HIGH STREET BANK BRANCH Question Bank Post office Advantages Disadvantag es • Higher EFFICIENCY - Higher utilisation of staff skills • Higher delivery SPEED - For each individual service • Higher delivery RELIABILITY - Narrow range of activities in each delivery system • Lower delivery SPEED - If want more than one service • Less CUSTOMISATION - Each service delivered separately • Higher delivery SPEED - If want more than one service • Higher CUSTOMISATION - Service tailored to customer requirements • Lower EFFICIENCY - Skill must be more skilled • Lower delivery SPEED - If want more than one service • Lower delivery RELIABILITY - Wider range of activities being delivered
- 33. CASE 4.5 PROVIDING PERSONAL SERVICE ONLINE AT GARDEN ESCAPE 1.What are the ADVANTAGES of shopping online? 2.What are the DISADVANTAGES of shopping online?
- 34. CASE 4.5 PROVIDINGPERSONAL SERVICE ONLINE AT GARDEN ESCAPE Question Answer Advantages Disadvantage s • For CUSTOMERS - Check PURCHASE HISTORY - Check TECHNICAL DETAILS on plants - Get answers to GENERAL QUERIES • For GARDEN CENTRE - Reduces STAFF COSTS - Allows customers to CUSTOMISE the service - Helps build and manage customer RELATIONSHIP • For CUSTOMERS - May get INCORRECT ADVICE if ask wrong question • For GARDEN CENTRE - Customer can easily COMPARE PRICES with competitors - Customers can use services and then BUY ELSEWHERE
- 35. CASE 4.6 SELF-SCANNINGIN SUPERMARKETS 1.Why are supermarkets INTRODUCING self-checkout systems? 2.Why do CUSTOMERS like these systems?
- 36. CASE 4.6 QuestionAnswer SUPERMARKE T advantages CUSTOMER advantages SELF-SCANNING IN SUPERMARKETS • Higher EFFICIENCY - Lower staff costs as need less • Easier to manage CAPACITY - Customers serve themselves • Higher delivery SPEED - Customers don’t have to wait • EASE of use - Simple and easy to use • Higher CUSTOMISATION - Customers serve themselves
- 37. Delivering sDeiffrevriecnet sapproachesto serving customers The Hospital (1971) The Incredibles (2004) Hospital Insurance company
- 38. Delivering sDeiffrevriecnet sapproachesto serving customers Film clip Hospital Film Title Director (year) The Hospital Arthur Hiller (1971) Clip Start Finish 00:23:15 00:26:36 What clip shows How customers are served in a hospital Key learning objective The different skills required in the back office and front office functions The impact of a breakdown in communication between front office and back office
- 39. Delivering sDeiffrevriecnet sapproachesto serving customers Film clip Insurance company Film Title Director (year) The Incredibles Brad Bird (2004) Clip Start Finish 00:11:34 00:13:31 What clip shows How customers are served in an insurance company Key learning objective The different skills required in the back office and front office functions The impact of always putting the customer’s needs first within a business
- 40. Delivering sDeiffrevriecnet sapproachesto serving customers Question Answer SALLY’S approach BOB’S approach POINTS highlighted • BACK OFFICE function - has to come to front office if not getting necessary information • INTERNALLY FOCUSED on processes - blue cross number • NOT customer focused • FRONT OFFICE function • Highly CUSTOMER FOCUSED - almost too much • NOT internally focused • Require DIFFERENT SKILLS in back and front office • Need to BALANCE customer and internal business needs
- 41. Critical reflections •Service DELIVERY SYSTEMS must be: - ALIGNED to its market ORDER-WINNERS and QUALIFIERS - REFLECT its internal BUSINESS requirements - INCORPORATE IT and other DEVELOPMENT opportunities • Customers become MORE PROFITABLE the longer you RETAIN them
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- 45. Summar y •Services have distinctive CHARACTERISTICS - Intangible and perishable • Service delivery systems must SUPPORT - Technical and business requirements • TECHNICAL requirements - The service specification • BUSINESS requirements - Volumes and market order-winners and qualifiers
- 47. Revision questions 1The service delivery system design will reflect: a) The complexity of the service being delivered b) The business and technical requirements that have to be met c) Both a) and b)
- 48. Revision questions 1The service delivery system design will reflect: a) The complexity of the service being delivered b) The business and technical requirements that have to be met c) Both a) and b)
- 49. Revision questions 2Which of the following are distinctive characteristics of services : a) Produced and consumed separately, so its possible to store them b) Customers do not form part of the delivery system c) Intangible in nature, so customers can’t see, feel, inspect or test them before purchasing them
- 50. Revision questions 2Which of the following are distinctive characteristics of services : a) Produced and consumed separately, so its possible to store them b) Customers do not form part of the delivery system c) Intangible in nature, so customers can’t see, feel, inspect or test them before purchasing them
- 51. Revision questions 3An example of an automated service is: a) Dry-cleaning b) Cash dispensing c) Word processing
- 52. Revision questions 3An example of an automated service is: a) Dry-cleaning b) Cash dispensing c) Word processing
- 53. Revision questions 4The key dimensions that help classify services into professional services, service shops and mass services categories are: a) Volume b) Service variety c) Both a) and b)
- 54. Revision questions 4The key dimensions that help classify services into professional services, service shops and mass services categories are: a) Volume b) Service variety c) Both a) and b)
- 55. Revision questions 5The front office tasks are conducted: a) In the presence of and involving the customer b) Away from and not involving the customer c) Both a) and b)
- 56. Revision questions 5The front office tasks are conducted: a) In the presence of and involving the customer b) Away from and not involving the customer c) Both a) and b)
- 57. Revision questions 6An advantage of completing work in the back office is: a) Processing volumes are lower b) They are easier to schedule c) The customer can process some of the activities
- 58. Revision questions 6An advantage of completing work in the back office is: a) Processing volumes are lower b) They are easier to schedule c) The customer can process some of the activities
- 59. Revision questions 7Which of the following statements is true: a) Retention rates are higher for customers having no problems during service delivery b) Retention rates are higher for customers having problems that are solved during service delivery c) Retention rates are not affected by whether a customer experiences a problem during service delivery
- 60. Revision questions 7Which of the following statements is true: a) Retention rates are higher for customers having no problems during service delivery b) Retention rates are higher for customers having problems that are solved during service delivery c) Retention rates are not affected by whether a customer experiences a problem during service delivery
- 61. BCRAISTIES HFO ARIRTWUTAOYRSI CALLUB WORLD
Editor's Notes
- #7 Case studies: Great Nuclear Fizzle Lloyds Bank McDonald’s Prêt a Manger Film clips: Breakfast at Tiffany’s Five Easy Pieces
- #8 Case studies: Great Nuclear Fizzle Lloyds Bank McDonald’s Prêt a Manger Film clips: Breakfast at Tiffany’s Five Easy Pieces
- #9 Case studies: Great Nuclear Fizzle Lloyds Bank McDonald’s Prêt a Manger Film clips: Breakfast at Tiffany’s Five Easy Pieces
- #10 Case studies: Great Nuclear Fizzle Lloyds Bank McDonald’s Prêt a Manger Film clips: Breakfast at Tiffany’s Five Easy Pieces
- #38 At this point you could use clips from two classic films to demonstrate differences between approaches to serving customers: The Hospital, Arthur Hill (1971) – treating patients in a hospital The Incredibles, Brad Bird (2004) – serving customers at an insurance company
- #41 Pull out points above through discussion…
- #62Â See the lecturer zone for teaching notes and methods to accompany this case.