The document discusses how organizations can aim for competitive products and satisfied customers during an economic recession. It emphasizes focusing on the essentials like producing high-quality goods and services, creating value for customers, and refining business processes. The recession presents challenges but also opportunities to critically examine practices and courageously learn and innovate new approaches. Quality methods should concentrate on the basics and utilizing systematic practices.
The document discusses different levels of service products that provide benefits to customers. It begins by defining a service as a mix of tangible and intangible elements that aims to satisfy consumers. There are four levels:
1) Core level: The basic benefits that satisfy basic customer needs.
2) Actual level: The tangible aspects like brand name, design and quality that accompany the core service.
3) Augmented level: Intangible aspects like after-sales service and delivery that support the actual product.
4) Potential level: Additional benefits or features that can be added to attract new customers. Each level provides increased value to customers. The document uses examples like tax consultants and catering services to illustrate the different
Walmart has set broad sustainability goals to be 100% supplied by renewable energy, create zero waste, and sell products that sustain people and the environment. It is developing a Sustainability Index to transparently measure and improve the sustainability of products. The Index uses a three-phased approach including standardizing metrics, providing merchants tools/resources, and engaging customers. It measures supplier performance across sustainability dimensions to rank and identify areas for improvement. Walmart aims to embed sustainability into its core business using the Index.
The document is a chapter from a marketing textbook that discusses setting product and brand strategy. It covers defining products, building product lines and mixes, making better brand decisions, and using packaging and labeling as marketing tools. The chapter objectives are to understand product characteristics, product line management, brand management, and how packaging and labeling can be marketing tools.
This document provides an overview of the 5th edition of the textbook "Services Marketing: People, Technology, Strategy" by Christopher Lovelock and Jochen Wirtz. Some key details include:
- Jochen Wirtz is a new co-author and the book has been streamlined from 18 to 15 chapters.
- The book contains 15 classroom-tested case studies, 12 of which are new, to provide real-world examples.
- There are also 8 readings from thought leaders in services marketing to supplement concepts.
- The chapters and cases cover a wide range of service industries and topics within services marketing like pricing, customer relationships, and quality improvement.
- Features
1. The document discusses marketing channels and supply chain management. It covers topics like channel intermediaries, channel structures, supply chain benefits, and logistics components.
2. Key learning objectives include explaining marketing channels, defining channel intermediaries, describing consumer and business-to-business channel structures, and discussing issues that influence channel strategy.
3. Supply chain management is defined as coordinating activities from source to consumption. It focuses on innovative solutions, competitive advantages, and customer value through synchronized product flow.
B2B electronic commerce involves the exchange of goods and services between businesses online. It can take several forms including supplier-oriented marketplaces, buyer-oriented marketplaces, and intermediary-oriented marketplaces. Key aspects of B2B e-commerce discussed in the document include procurement management, supply chain management, EDI, and the role of software agents in facilitating communication between buyers and sellers.
This document discusses several topics related to service management, including perceptions of service, managing service encounters, pricing strategies, and the role of employees and technology in service delivery. It outlines 12 topics to be covered in the course and assigns a group project to develop a service marketing plan. Key concepts around goods and services are defined, and the expanded marketing mix for services is presented, incorporating the 8 Ps of integrated service management.
- The document describes notes from interviews over 5 days exploring a potential probiotic supplement business model.
- Initially focusing on a single market approach, the discussions evolved to consider multiple potential customer segments including consumers, food/beverage companies, and research organizations.
- Key challenges identified included high costs for product development, clinical trials and regulatory compliance needed before partnerships or sales.
The document discusses different levels of service products that provide benefits to customers. It begins by defining a service as a mix of tangible and intangible elements that aims to satisfy consumers. There are four levels:
1) Core level: The basic benefits that satisfy basic customer needs.
2) Actual level: The tangible aspects like brand name, design and quality that accompany the core service.
3) Augmented level: Intangible aspects like after-sales service and delivery that support the actual product.
4) Potential level: Additional benefits or features that can be added to attract new customers. Each level provides increased value to customers. The document uses examples like tax consultants and catering services to illustrate the different
Walmart has set broad sustainability goals to be 100% supplied by renewable energy, create zero waste, and sell products that sustain people and the environment. It is developing a Sustainability Index to transparently measure and improve the sustainability of products. The Index uses a three-phased approach including standardizing metrics, providing merchants tools/resources, and engaging customers. It measures supplier performance across sustainability dimensions to rank and identify areas for improvement. Walmart aims to embed sustainability into its core business using the Index.
The document is a chapter from a marketing textbook that discusses setting product and brand strategy. It covers defining products, building product lines and mixes, making better brand decisions, and using packaging and labeling as marketing tools. The chapter objectives are to understand product characteristics, product line management, brand management, and how packaging and labeling can be marketing tools.
This document provides an overview of the 5th edition of the textbook "Services Marketing: People, Technology, Strategy" by Christopher Lovelock and Jochen Wirtz. Some key details include:
- Jochen Wirtz is a new co-author and the book has been streamlined from 18 to 15 chapters.
- The book contains 15 classroom-tested case studies, 12 of which are new, to provide real-world examples.
- There are also 8 readings from thought leaders in services marketing to supplement concepts.
- The chapters and cases cover a wide range of service industries and topics within services marketing like pricing, customer relationships, and quality improvement.
- Features
1. The document discusses marketing channels and supply chain management. It covers topics like channel intermediaries, channel structures, supply chain benefits, and logistics components.
2. Key learning objectives include explaining marketing channels, defining channel intermediaries, describing consumer and business-to-business channel structures, and discussing issues that influence channel strategy.
3. Supply chain management is defined as coordinating activities from source to consumption. It focuses on innovative solutions, competitive advantages, and customer value through synchronized product flow.
B2B electronic commerce involves the exchange of goods and services between businesses online. It can take several forms including supplier-oriented marketplaces, buyer-oriented marketplaces, and intermediary-oriented marketplaces. Key aspects of B2B e-commerce discussed in the document include procurement management, supply chain management, EDI, and the role of software agents in facilitating communication between buyers and sellers.
This document discusses several topics related to service management, including perceptions of service, managing service encounters, pricing strategies, and the role of employees and technology in service delivery. It outlines 12 topics to be covered in the course and assigns a group project to develop a service marketing plan. Key concepts around goods and services are defined, and the expanded marketing mix for services is presented, incorporating the 8 Ps of integrated service management.
- The document describes notes from interviews over 5 days exploring a potential probiotic supplement business model.
- Initially focusing on a single market approach, the discussions evolved to consider multiple potential customer segments including consumers, food/beverage companies, and research organizations.
- Key challenges identified included high costs for product development, clinical trials and regulatory compliance needed before partnerships or sales.
This document discusses concepts related to products, quality, and customer satisfaction. It begins by defining a product as the result of a process and noting that products always include an element of service. The document then explores how customer value is co-created through a product's goods and service elements. It also examines how understanding customer needs, expectations, and the customer experience can help companies develop competitive products and satisfy customers.
Although Product Management, Service Design, and other disciplines tend towards practical specialization, the separation of services and products is an illusion of their vocabularies.
The document discusses different definitions and perspectives of quality. It defines quality as excellence, conforming to specifications, fitness for intended use, and meeting customer expectations. It notes that quality is viewed differently by various business functions like marketing, design, and manufacturing. The key idea is that understanding these different quality perspectives is necessary to create products that truly satisfy customers.
This document provides an overview of services and service marketing presented by a group consisting of Satish, Ashish, Aayush, Sapan, and Chhitiz. It defines services, lists examples, and discusses the contributions of services to the world economy. It also outlines the key characteristics of services, differences between services and goods, elements of the service marketing mix including the traditional and extended "7Ps", and challenges faced by service marketers.
This document discusses strategies for promoting service innovation. It defines key concepts like services, service systems, and innovation. It then examines factors that affect service innovation like the service value chain and service culture. The document outlines three strategic approaches for service innovation: value creation, the 2D innovation model of new service design and delivery, and knowledge management. It argues that education and collaborative business models can promote service innovation by creating a culture of service and involving customers in the innovation process.
This document discusses key concepts in services marketing. It begins by defining services and their components, which include the physical product, service product, service environment, and service delivery.
It then covers characteristics of services such as intangibility, inseparability, and perishability. Various classifications of services are presented, including by type of customer (consumer vs industrial) and nature of the service.
The marketing mix framework is expanded for services to include people, processes, and physical evidence in addition to the traditional 4Ps. Product, price, place, promotion, and their application to services are described. The role of technology in improving service processes is also covered.
The document concludes with a discussion of managing demand and
This document discusses key concepts in services marketing. It begins by defining services and their components, which include the physical product, service product, service environment, and service delivery.
It then covers characteristics of services such as intangibility, inseparability, and perishability. Various classifications of services are presented, including those based on the nature of the service act and scope for customization.
The marketing mix or "7Ps" for services is examined in depth, covering product, price, promotion, place, people, physical evidence, and processes. Other topics include managing demand and supply challenges in services, technology's role in improving service productivity, and blueprinting service processes. Building service aspirations and designing service processes are
The document discusses the concept of defining a product as a "whole product" rather than just the core device or service. A whole product includes all the tangible and intangible factors that create value for customers such as documentation, support, reputation, and future potential. It provides examples of how different factors contribute to customers' perception of products like computers, software, and semiconductor manufacturing equipment as whole solutions. Defining a product as a complete solution tailored for the targeted customer segment is important for competitive advantage.
Libby Bernick, Vice President, TerraChoice, shares best practices in product-focused sustainability metrics. Current practices in developing greener product sourcing frameworks by B2B procurement experts and B2C category managers might not be what you expect. Are they aligned with what customers and consumers want, the products that suppliers make, and the biggest global sustainability challenges sustainability experts see ahead? This presentation explores the results of some recent benchmarking on product metrics and sustainable sourcing, and discusses strategies and challenges for today’s sustainability leaders.
This document discusses managing services for business markets. It begins by outlining the value of systematically monitoring the customer experience and the central role services assume in customer solutions. It then discusses how understanding touchpoints in the customer experience can provide insights and how mapping the customer lifecycle is an important first step. The document advocates shifting from a product-focused to a solution-centered approach that involves understanding customer problems and co-creating value. It also discusses how adding services to product offerings can improve competitiveness by enhancing differentiation, growth opportunities, and customer loyalty. Finally, it covers developing hybrid offerings that combine products and services to deliver greater customer value.
The document discusses various aspects related to products, including their relationship with brands. It defines a product as an offering to meet customer needs or wants. A product's reliability and viability for consumers depends on factors like its chemistry and ability to meet physical or perceived needs. Products need to be stable during their tenure with customers. Branding adds value by representing factors that enhance a product's appeal. While products and brands are conceptually different, for customers they are often linked as a branded product.
This document discusses the process of developing new services. It begins by outlining the key steps: idea generation, screening ideas, concept development and testing, marketing strategy development, business analysis, service development, market testing, and commercialization. It then provides more details on each step, including screening criteria, concept development using service blueprints, and elements included in a service design document. The overall summary is that this document outlines the full process that companies use to develop new service offerings from the initial idea through testing and commercialization.
What Does It Cost? Activity Based Cost Managementalanlund
This document discusses activity-based costing (ABC) and its benefits. ABC assigns overhead costs to products and services based on their consumption of resources rather than traditional methods that allocate costs in proportion to direct costs. The document recommends developing a cost management strategy including mapping processes, reviewing general ledger accounts, and developing an ABC cost model to determine unit costs for products/services by factors like customers and cost centers. ABC provides decision makers profitability information and highlights how efficiently activities are performed and who benefits from activities.
Hidden innovation in the creative industries (NESTA research)Maria Stashenko
The document outlines the key stages in the process of cultural production, from concept development through delivery and user experience. It shows the internal production processes and external interactions with suppliers, marketing, and users. The core stages are the development of cultural concepts, transforming those concepts into cultural products through production and performance processes, delivering the finished product to users, and users interacting with products through interfaces.
This document discusses service innovation and how to promote it. It defines key concepts like services, service systems, and innovation. Services involve collaboration between providers and customers to co-create value. Innovation is the successful exploitation of new ideas that solve customer problems. The document then outlines strategies to promote service innovation, like creating a culture of collaboration, redesigning services based on customer feedback, and developing innovative business models and technologies.
This document discusses strategies for promoting service innovation. It defines key concepts like service, service systems, and innovation. It explores factors that affect service innovation like the service value chain and service culture. It also outlines specific strategies organizations can use to promote service innovation, such as creating a collaborative environment for value co-creation, focusing on new service design and delivery, and managing customer knowledge to enhance innovation capabilities. Education and developing a culture of innovation are also presented as ways to promote service innovation.
The document discusses value chains and supply chains. It defines key terms like value, value chain, supply chain, offshoring, and globalization. It also provides examples of companies' value chains, including Procter & Gamble, Buhrke Industries, Nestle, and Rocky Shoes & Boots. Managing global value chains is more complex due to issues like risk, transportation, purchasing, and legal/regulatory differences between countries.
This document provides an overview of quality concepts and definitions. It discusses definitions of quality as fitness for use and conforming to specifications. It describes key quality characteristics like technological, psychological, time-oriented, contractual, and ethical characteristics. It also discusses the quality function and costs of quality, categorizing quality costs into costs of prevention, appraisal, internal failures, and external failures. The document aims to define quality and its important dimensions from different perspectives.
Social Media is often overlooked as a sales channel. This presentation gives some practical ideas on how to approach this channel and develop it for lead generation.
This document discusses products, services, and brands and how they build customer value. It defines products, services, and experiences and discusses the three levels of a product from core benefits to the actual product to augmented product. It also defines consumer and industrial products and how they are classified. The document outlines individual product and service decisions regarding attributes, branding, packaging, and support services. It discusses product line decisions around length and product mix decisions regarding width, length, depth, and consistency.
These slides present aspects for realizing quality management approaches in university environment covering composite activities of education, research and collaboration with other organizations of the society. The aim is at excellence in universities’ performance through applying recognized professional quality management principles and practices that are generally used in all kinds of organizations of the society.
This document discusses concepts related to products, quality, and customer satisfaction. It begins by defining a product as the result of a process and noting that products always include an element of service. The document then explores how customer value is co-created through a product's goods and service elements. It also examines how understanding customer needs, expectations, and the customer experience can help companies develop competitive products and satisfy customers.
Although Product Management, Service Design, and other disciplines tend towards practical specialization, the separation of services and products is an illusion of their vocabularies.
The document discusses different definitions and perspectives of quality. It defines quality as excellence, conforming to specifications, fitness for intended use, and meeting customer expectations. It notes that quality is viewed differently by various business functions like marketing, design, and manufacturing. The key idea is that understanding these different quality perspectives is necessary to create products that truly satisfy customers.
This document provides an overview of services and service marketing presented by a group consisting of Satish, Ashish, Aayush, Sapan, and Chhitiz. It defines services, lists examples, and discusses the contributions of services to the world economy. It also outlines the key characteristics of services, differences between services and goods, elements of the service marketing mix including the traditional and extended "7Ps", and challenges faced by service marketers.
This document discusses strategies for promoting service innovation. It defines key concepts like services, service systems, and innovation. It then examines factors that affect service innovation like the service value chain and service culture. The document outlines three strategic approaches for service innovation: value creation, the 2D innovation model of new service design and delivery, and knowledge management. It argues that education and collaborative business models can promote service innovation by creating a culture of service and involving customers in the innovation process.
This document discusses key concepts in services marketing. It begins by defining services and their components, which include the physical product, service product, service environment, and service delivery.
It then covers characteristics of services such as intangibility, inseparability, and perishability. Various classifications of services are presented, including by type of customer (consumer vs industrial) and nature of the service.
The marketing mix framework is expanded for services to include people, processes, and physical evidence in addition to the traditional 4Ps. Product, price, place, promotion, and their application to services are described. The role of technology in improving service processes is also covered.
The document concludes with a discussion of managing demand and
This document discusses key concepts in services marketing. It begins by defining services and their components, which include the physical product, service product, service environment, and service delivery.
It then covers characteristics of services such as intangibility, inseparability, and perishability. Various classifications of services are presented, including those based on the nature of the service act and scope for customization.
The marketing mix or "7Ps" for services is examined in depth, covering product, price, promotion, place, people, physical evidence, and processes. Other topics include managing demand and supply challenges in services, technology's role in improving service productivity, and blueprinting service processes. Building service aspirations and designing service processes are
The document discusses the concept of defining a product as a "whole product" rather than just the core device or service. A whole product includes all the tangible and intangible factors that create value for customers such as documentation, support, reputation, and future potential. It provides examples of how different factors contribute to customers' perception of products like computers, software, and semiconductor manufacturing equipment as whole solutions. Defining a product as a complete solution tailored for the targeted customer segment is important for competitive advantage.
Libby Bernick, Vice President, TerraChoice, shares best practices in product-focused sustainability metrics. Current practices in developing greener product sourcing frameworks by B2B procurement experts and B2C category managers might not be what you expect. Are they aligned with what customers and consumers want, the products that suppliers make, and the biggest global sustainability challenges sustainability experts see ahead? This presentation explores the results of some recent benchmarking on product metrics and sustainable sourcing, and discusses strategies and challenges for today’s sustainability leaders.
This document discusses managing services for business markets. It begins by outlining the value of systematically monitoring the customer experience and the central role services assume in customer solutions. It then discusses how understanding touchpoints in the customer experience can provide insights and how mapping the customer lifecycle is an important first step. The document advocates shifting from a product-focused to a solution-centered approach that involves understanding customer problems and co-creating value. It also discusses how adding services to product offerings can improve competitiveness by enhancing differentiation, growth opportunities, and customer loyalty. Finally, it covers developing hybrid offerings that combine products and services to deliver greater customer value.
The document discusses various aspects related to products, including their relationship with brands. It defines a product as an offering to meet customer needs or wants. A product's reliability and viability for consumers depends on factors like its chemistry and ability to meet physical or perceived needs. Products need to be stable during their tenure with customers. Branding adds value by representing factors that enhance a product's appeal. While products and brands are conceptually different, for customers they are often linked as a branded product.
This document discusses the process of developing new services. It begins by outlining the key steps: idea generation, screening ideas, concept development and testing, marketing strategy development, business analysis, service development, market testing, and commercialization. It then provides more details on each step, including screening criteria, concept development using service blueprints, and elements included in a service design document. The overall summary is that this document outlines the full process that companies use to develop new service offerings from the initial idea through testing and commercialization.
What Does It Cost? Activity Based Cost Managementalanlund
This document discusses activity-based costing (ABC) and its benefits. ABC assigns overhead costs to products and services based on their consumption of resources rather than traditional methods that allocate costs in proportion to direct costs. The document recommends developing a cost management strategy including mapping processes, reviewing general ledger accounts, and developing an ABC cost model to determine unit costs for products/services by factors like customers and cost centers. ABC provides decision makers profitability information and highlights how efficiently activities are performed and who benefits from activities.
Hidden innovation in the creative industries (NESTA research)Maria Stashenko
The document outlines the key stages in the process of cultural production, from concept development through delivery and user experience. It shows the internal production processes and external interactions with suppliers, marketing, and users. The core stages are the development of cultural concepts, transforming those concepts into cultural products through production and performance processes, delivering the finished product to users, and users interacting with products through interfaces.
This document discusses service innovation and how to promote it. It defines key concepts like services, service systems, and innovation. Services involve collaboration between providers and customers to co-create value. Innovation is the successful exploitation of new ideas that solve customer problems. The document then outlines strategies to promote service innovation, like creating a culture of collaboration, redesigning services based on customer feedback, and developing innovative business models and technologies.
This document discusses strategies for promoting service innovation. It defines key concepts like service, service systems, and innovation. It explores factors that affect service innovation like the service value chain and service culture. It also outlines specific strategies organizations can use to promote service innovation, such as creating a collaborative environment for value co-creation, focusing on new service design and delivery, and managing customer knowledge to enhance innovation capabilities. Education and developing a culture of innovation are also presented as ways to promote service innovation.
The document discusses value chains and supply chains. It defines key terms like value, value chain, supply chain, offshoring, and globalization. It also provides examples of companies' value chains, including Procter & Gamble, Buhrke Industries, Nestle, and Rocky Shoes & Boots. Managing global value chains is more complex due to issues like risk, transportation, purchasing, and legal/regulatory differences between countries.
This document provides an overview of quality concepts and definitions. It discusses definitions of quality as fitness for use and conforming to specifications. It describes key quality characteristics like technological, psychological, time-oriented, contractual, and ethical characteristics. It also discusses the quality function and costs of quality, categorizing quality costs into costs of prevention, appraisal, internal failures, and external failures. The document aims to define quality and its important dimensions from different perspectives.
Social Media is often overlooked as a sales channel. This presentation gives some practical ideas on how to approach this channel and develop it for lead generation.
This document discusses products, services, and brands and how they build customer value. It defines products, services, and experiences and discusses the three levels of a product from core benefits to the actual product to augmented product. It also defines consumer and industrial products and how they are classified. The document outlines individual product and service decisions regarding attributes, branding, packaging, and support services. It discusses product line decisions around length and product mix decisions regarding width, length, depth, and consistency.
These slides present aspects for realizing quality management approaches in university environment covering composite activities of education, research and collaboration with other organizations of the society. The aim is at excellence in universities’ performance through applying recognized professional quality management principles and practices that are generally used in all kinds of organizations of the society.
The document discusses issues with the ISO 9001:2015 quality management standard. It notes that while the standard structure and risk-based thinking were improved, the standard did not fulfill its design specification of providing new perspectives for increasingly complex business environments. Key issues included a lack of clarity in requirements and definitions, and vagueness that impacts auditability. The weaknesses stem from inherent issues in the international standardization process. Organizations still need to supplement standards based on their own knowledge and situations.
This document discusses lifelong teaching and learning and its impact on societal quality. It covers several topics related to teaching, learning, and quality including:
1. Teaching and learning as phenomena and how quality relates to both.
2. The needs and expectations of learning for individuals, organizations, and society. Learning domains are identified for each.
3. The interaction between individuals, organizations, and society in the learning process and how each learns over time.
4. The variety of approaches to education that exist in societies and the challenges of quality across different environments and needs.
1) The document discusses the concept of quality as it relates to societies and regions. It defines society as people living together in a community and region as an area with definable characteristics.
2) Societies are scale-free networks of individuals and institutions that are independent but interactive. Achieving a high quality society requires the collaborative evolution of all members through activities, interactions, and quality management practices.
3) There are no well-established practices for evaluating the overall quality of a society, but some research looks at aspects like education, employment, and well-being. International examples show that long-term commitment, collaboration, and applying theories of networking can help improve regional and societal quality.
This document discusses various topics related to achieving competitive products and delighting customers, including:
1. It discusses examining customer needs, satisfaction, and product characteristics to develop products that meet expectations.
2. It also covers linking product development to business processes using quality methods like QFD, and addressing technological challenges.
3. Maintaining consistent and attractive corporate and product brands is also discussed to positively influence customer perception.
This document discusses the needs and expectations for revising the ISO 9001 standard in 2015. It provides background on the history of the ISO 9000 standards and outlines the requirements and design specifications for the 2015 revision, including making risk management more explicit, adopting a common high-level structure, and revising the quality management principles. It also examines some pros and cons of the international standardization process.
The document announces Pakistan's 13th International Convention on Quality Improvement to be held on November 17-18, 2014 in Lahore, Pakistan. The convention will focus on quality leadership, reforms, and practices, and bring together key stakeholders from government, education, corporate, and other sectors to share knowledge and promote world-class quality. It encourages executives, professionals, and academics to attend and present papers on topics related to quality leadership strategies, quality reforms in various sectors, and established quality practices. The convention aims to evaluate the current state of organizations and generate knowledge to achieve excellence.
The document discusses business-integrated quality management, which aims to seamlessly coordinate quality activities within an organization's normal business operations and management processes. It cannot be distinguished from normal business management. Key aspects include understanding the organization, management, quality, and quality management from the perspective of the specific organization. Popular quality management methodologies like Lean, Six Sigma, ISO standards, and performance excellence models can be embedded within an organization's overall business system and strategic and operational direction. The challenge is applying these concepts flexibly based on each organization's unique business needs and processes.
The document discusses quality, quality management, and quality assurance in education. It defines quality as the degree to which education fulfills the needs and expectations of stakeholders like students. Quality management coordinates activities to direct and control an educational organization regarding quality. Quality assurance provides confidence that quality requirements will be met. The document outlines a common structure for a systematic quality management approach in education organizations, following universal quality management principles like customer focus, leadership, and continual improvement.
1. The document discusses the relationship between quality and innovation and argues that they should be integrated at the organizational level. It notes that while the disciplines of quality and innovation have traditionally evolved separately, bringing them together can benefit organizations and society.
2. The document explores how innovation has long been a part of quality management through concepts like continual improvement. However, it asserts that more innovation is still needed in quality methods and practices to address changes in business environments.
3. Various types of innovations are examined, including innovations in technology, products, and quality management. The document also discusses forces driving innovation and quality globally and how standards can be applied creatively to encourage innovative quality practices in organizations.
This document discusses the importance of considering people aspects in business process management. It argues that while people's roles have historically been an integral part of business processes, modern approaches like Taylorism have deemphasized the human element. The document advocates for an integrated view of people and processes at both the strategic and operational levels. It also presents frameworks for measuring and improving people performance within an organization's business processes. The conclusion is that high quality results depend on consistently managing both people and processes together across all levels of the organization.
1. Aiming at competitive products and delighted
customers in the time of recession
Juhani Anttila Kari Jussila
International Academy for Quality (IAQ) Aalto University, School of Science
Helsinki, Finland Espoo, Finland
juhani.anttila@telecon.fi , kari.jussila@aalto.fi
ww.QualityIntegration.biz
1 March 21, 2013 These pages are licensed
under the Creative Commons 3.0 License
http://creativecommons.org/licenses/by/3.0
(Mention the origin)
2. Aiming at competitive products and delighted
customers in the time of recession
Main themes of the paper:
1. Extended product concept
2. Product characteristics and quality, and customer satisfaction
3. Processes and technologies
4. Product and corporate brands
5. Challenges at the time of recession
2
xxxx/20.6.2012/jan
3. Processes and product in a Business Connection
Organizations in business connection:
Customer (Product recipient)
Supplier (Product producer)
Product
(Goods + Service)
Supplier’s business processes
Customer’s business processes
Business interface
(business interactions)
Partner
Process is activity and product its result.
3 Product use and perception reveal value and satisfaction.
2499/15.2.2013/jan
4. Understanding the concept “product”
Product:
”result of a process”
Normally many processes are involved in producing a product,
and processes may be in different organizations.
A product includes always service, and may also include goods.
Service
”result of processes performed at the interface between the supplier and the customer”
Service is the essential part of all products, or factually all products are composite
products consisting of goods and services.
There is no justification to use a phraseology ”products and services” or ”products
or services” that factually means “goods and services”.
Value of goods may only be achieved through using the goods. Hence, also goods
may be seen as service providers.
The value of a product is co-created by both the supplier and the customer.
4
4023/12.2.2013/jan (Ref.: ISO 9000)
5. A product consists of goods and services
Product = Result of processes Pure goods
= Goods + Services 100% 0%
Value provided for the customer is based on
both goods and services. The role of service
is dominant, and especially today increasing.
Goods Service
The goods value may be achieved only by using value value
the goods. Hence, also goods may be seen as a to customer To customer
type of service provider.
0% 100%
Pure service
5
2321/15.2.2013/jan
6. Three elements of a composite product
producing value to the customer
The product is composed of three elements that create value to the customer (“Value
adding channels”):
- G: Goods service: Value from using the goods element
- H: Human service: Value from human services
- A: Automatic service: Value from automatic or mechanical services
G
Each point within the The composite product and its
triangle represents elements co-create added-value P
a particular product. to the user with his/her process(es):
P = uH + vA + wG
v u, v, and w are contributory portions of
different product elements to the value
P u
Tendency
w
6
H A
1628/3.2.2013/jan
7. What is the product,
and what are the processes involved?
Essential questions:
1. What is the product, incl.
a) The service, and
b) The goods?
2. How the customer value is
being created, through
a) The value creating
processes, and
b) The structures
supporting the
processes?
7
4024/12.2.2013/jan
8. Service is result of processes, Examples
• Tourist service • Health care service
– Memorable experience – Health, well-being
• Restaurant service • Telecom service
– Well-nourished, fullness – Completed phone call
• Entertainment service • Transport service
– Emotional response – Material, people transported
• Design service • Maintenance service
– Product specifications, prototype – Equipment repaired
• Training /education service • Lawyer service
– Skills, competence – Trial supported
• Financial service • Consulting service
– Loan – Development supported
8
0817/13.2.2013/jan
9. General systematic grouping of inherent characteristics
of any product (7E+3S)
Effective- Ergo- Serve- Social per-
ness & nomics ability(*) Security Esthetic Ethics formance Ecology Economy
Efficiency
Quantitative
sufficiency
Environmental
compatibility
Dependability The product performance
characteristics may be
Reliability designed systematically and
performance objectively by the product
Maintainability developer but they are always
performance perceived comprehensively
All product characteristics
Maintenance support and subjectively by the
are interlinked with each others
performance product user.
9
0375/3.2.2013/jan (*) accessibility + retainability
10. Quality Grade (of a product)
quality (of a product)
- degree to which a set of inherent characteristics (of the product) fulfils requirements
grade (of requirements)
- category or rank given to the different requirements for the products having the same
functional use
Note:
- requirement (generated by an interested party): need or expectation that is
stated, generally implied or obligatory
- interested party: person or group having an interest in the performance or
success of an organization (a product)
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11. Customer perception
Low High
Satisfaction
Indifference
Dissatisfaction
High Low
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12. How can I understand whether
a customer is satisfied or not?
• When asked, the reply is ”Yes”
• Says he is even not asked
• Tells this to his friends
• Buys more of what he is satisfied
• Buys something else, too
Situation consists of a complex mixture of rational, non-rational (emotional)
and irrational human phenomena:
– satisfaction, dissatisfaction, indifference
– confidence, trust
– goodwill / badwill balance
– to buy or not to buy
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13. Linking product characteristics with customer
preference and satisfaction
Recognized professional approaches:
Kano model
A theory of customer satisfaction and product development that identifies product
qualities based on how they affect the customer's perception of the product (Noriaki
Kano 1980)
QFD (Quality Function deployment)
A method to transform user demands into design quality, to deploy the functions
forming quality, and to deploy methods for achieving the design quality into
subsystems and component parts, and ultimately to specific elements of the
manufacturing process (Yoji Akao 1966)
Kansei engineering
A method that aims the development or improvement of products and services by
translating customer's psychological feelings and needs into product's design
parameters (Mitsuo Nagamachi in the early 1970’s)
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14. Linking customer’s perception with business processes
Different business situations:
Products from a single organization:
- Gaps in the organization‘s business processes impact on the customer‘s perception.
The phenomenon is described by the ServQual model that was developed in the mid-
1980s by Zeithaml, Parasuraman & Berry. We have modified the model for the extended
product and process concepts.
Products from business networks and ecosystems:
- Product (and in particular service) is not produced only by one organization’s
processes but by many organizations’ processes operating in a business network or
an ecosystem. Different networks and ecosystems compete with each other. However,
one organization has the commercial relationship with the customer.
Products from a networked community:
- A customer is an independent and collaborating member of a network. He or she and
also all the other network members produce something to and get something from the
other network members. A network product is a cumulative result from network
member’s value creating interactions with all other members. Network members also
get value from the whole network through the general recognition or privileges of the
network.
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15. Linking product quality with the supplier’s business
success, Customer satisfaction index (CSI)
Perceived
(+) Complaints
quality
(+) (-)
(+) Customer
Perceived (+/-)
(+) satisfaction
value Index, CSI
(+) (+)
Loyalty
Expectations (+)
Drivers Results
CONSEQUENCES: Business success
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0503/23.2.2013/jan (Ref. A. Westlund 1996)
16. Technology challenges
New technologies have essential impacts on We have been involved with the following
product characteristics and the effectiveness examples of the ICT (information and
and efficiency of the related processes. These Communication technology):
technologies include: Radio frequency identification
Information technology (RFID)
Biotechnology Ubiquitous information technology
Nano- and microtechnology Internet internet of things (IoT) and
Optical technology machine-to-machine applications
Energy technology Mobile payment technology
Social technology Cloud services
Etc. Mashup products.
Traditional technological progress in products took place due to the sustaining technology,
but today disruptive technology innovations present greater challenges.
In addition to the impact on quality of products, the new technologies also have challenging
influence e.g. on environmental, social, safety and security performance, including:
Environmental protection
Information security
16 Health risks
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17. Product brand and its consistency with corporate brand
in market communication
• Brand value:
The overall value statement to the user
• Brand authority:
Excellence aspects
• Brand personality:
Rational brand characteristics Corporate brand
Emotional brand characteristics
• Brand benefits: Consistency
Concrete value features in use
• Brand service:
Service provision to the user Product brand
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18. Attractiveness and consistency
of the corporate and product brands
Nokia Apple Samsung
Lumia 920 iPhone 5 Galaxy S III 4 G
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19. Conclusion: Aiming at competitive products and
delighted customers at the time of recession
The time of recession causes problems and Challenges for the time of recession in
troubles in organizations: organizations:
Business competition becomes tougher More competitiveness through flexibility,
Uncertainty and difficulty increase in effectiveness and efficiency, and related
getting new capital managerial skills are required.
People and organizations decrease Organizations need to address themselves
spending money on consumer and into essential issues and strive for lean
investment products solutions.
Revenue of firms declines Quality approaches should be concentrated
Organizations encounter difficulties in on the basics, and systematic practices are
not only to grow but to maintain beneficial.
profitability • Producing competitive goods and
Self-sustaining negative attitude drives services
to giving in to the business challenges • Creating overpowering customer value
and satisfaction
• Refining business process
performance
The recession is always a threat and an opportunity. Recession is the time of
considering critically the old and courageously learning and innovating the new.
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