Service Innovation & Management
The “S” Model
MBA
Fausto García
Agenda
1

• About Services
Services vs. Products
Service Concept & Service Package
• Our “S” Model of Services
Business Week, May 17, 2004
"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)
Why this interest in Services?

When products become
commodities…

…Services offer new growth opportunities
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)
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
Agenda
1.1

• About Services
Services vs. Products
Service Concept and Service Package
• The “S” Model of Services
Services vs. Products
• Intangibility
• Variability
• In Services, Delivery and Production are
contemporary
• Services are perishable
What is Service Quality?
Efficient customer satisfaction…

=

-

Satisfaction = Perception – Expectations
The way in which customer perceptions overcome
expectations…
Agenda
1.2

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

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

Our “S” Model
for
Service Management
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
General Model

• Profitability
•  Positioning
•  Growth

Value for the
Firm
General Model

High

Retention
(Loyalty)
Low

Hostage

Apostle

Terrorist

Mercenary

Low

Customer
Fidelization

Value for the
Firm

High

Satisfaction

How do we generate
Loyalty ?
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
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)
Customer
Satisfaction

Value for
Customers

General Model

Customer
Fidelization

Delivery

Value for the
Firm

Employee
Fidelization
General Model

High

Retention
(Loyalty)
Low

Hostage

Apostle

Terrorist

Mercenary

Low

High

Satisfaction
Employee
Fidelization
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
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
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

MBA 2013 introduction to the s model