Service Management - A Contrarian Perspective
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The document discusses the differences between products and services and challenges with treating services like products. It notes that services have simultaneous production and consumption, are non-standardized, and have quality that is difficult to define. The document also outlines various continua on which products and services differ, like evaluation, relationships, marketing, delivery, quality, output, pricing, power dynamics, and economies of scale. It discusses attempts in the IT industry to standardize and "productize" services through frameworks, certifications, and maturity models. However, the document questions whether this benefits customers or providers, and if it increases quality gaps between them. It advises that services should be serviced as services rather than buying or selling them as if they
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Service Management - A Contrarian Perspective
- 2. Service Delivery: Why is it Different from Manufacturing?Different from Manufacturing? P d ti d• Production and Consumption happens at the same time • Non Standardised • Metrics for output quality not possible to be definednot possible to be defined accurately © Atanu GhoshMonday, March 16, 2015 2
- 3. Products and Services: Continuum of EvaluationContinuum of Evaluation Most Goods Most Services l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services “Guruji” Search Quality Experience Quality Credence Quality © Atanu GhoshMonday, March 16, 2015 3
- 4. Products and Services: Continuum of RelationshipContinuum of Relationship Most Goods Most Services l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services “Guruji” Contractual Relationship Trust Relationship © Atanu GhoshMonday, March 16, 2015 4
- 5. Products and Services: Continuum of MarketingContinuum of Marketing Most Goods Most Services l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services “Guruji” Outbound Marketing Inbound Marketing © Atanu GhoshMonday, March 16, 2015 5
- 6. Products and Services: Continuum of DeliveryContinuum of Delivery Most Goods Most Services l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services “Guruji” Process Oriented People Oriented © Atanu GhoshMonday, March 16, 2015 6
- 7. Products and Services: Continuum of QualityContinuum of Quality Most Goods Most Services l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services “Guruji” Output Quality Input QualityProcess Quality © Atanu GhoshMonday, March 16, 2015 7
- 8. Products and Services: Continuum of OutputContinuum of Output Most Goods Most Services l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services “Guruji” Standard Customised © Atanu GhoshMonday, March 16, 2015 8
- 9. Products and Services: Continuum of PricingContinuum of Pricing Most Goods Most Services l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services “Guruji” Fixed Price “Time and Material” Price © Atanu GhoshMonday, March 16, 2015 9
- 10. Products and Services: Continuum of Equation of Power and InfluenceContinuum of Equation of Power and Influence Most Goods Most Services l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services “Guruji” Customer is the King Customer is the King, But ... P id i th “G ” © Atanu GhoshMonday, March 16, 2015 10 Provider is the “Guru”
- 11. Products and Services: Continuum of Equation of Power and InfluenceContinuum of Equation of Power and Influence Most Goods Most Services l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services “Guruji” Economy of Scale Diseconomy of Scale? © Atanu GhoshMonday, March 16, 2015 11
- 12. Service Quality Management: Di i f S i Q litDimensions of Service Quality Responsiveness ReliabilityTangibles AssuranceEmpathy © Atanu GhoshMonday, March 16, 2015 12
- 13. Concept of “Perceived Quality”: U i t S i I d tUnique to Service Industry © Atanu GhoshMonday, March 16, 2015 13
- 16. Service Quality Management: L A i M d lLoss Aversion Model © Atanu GhoshMonday, March 16, 2015 16
- 18. Service Delivery Metric: S i L l A t (SLA)Service Level Agreement (SLA) • Wait Time • Response Timep • Resolution TimeResolution Time • Root Ca se Anal sis and Resol tion• Root Cause Analysis and Resolution © Atanu GhoshMonday, March 16, 2015 18
- 19. Attempts to Productise a Servicep Service industry is trying to productise services because consumers insist on buying service the way they would have bought a productbuying service the way they would have bought a product. But does this benefit the customer or the service provider? Or, it is just increasing the service quality gap, making the customer and the service provider engage in a “lose‐lose game”? © Atanu GhoshMonday, March 16, 2015 19
- 20. Productisation of Service in IT: C tifi tiCertifications • ITIL • CMMI • ISO 27000ISO 27000 © Atanu GhoshMonday, March 16, 2015 20
- 21. Service Delivery in IT: Capability Maturity Model Integration (CMMI)Capability Maturity Model Integration (CMMI) © Atanu GhoshMonday, March 16, 2015 21
- 22. Service Delivery in IT: ITIL S i M t F kITIL Service Management Framework © Atanu GhoshMonday, March 16, 2015 22
- 23. Productisation of Service in IT: H It W k d?Has It Worked? IT industry is still struggling to productise something that is purely service, not very successfully, though. Should they continue their effort, or just service a service the way service should be serviced? © Atanu GhoshMonday, March 16, 2015 23