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The

                                    Service Manager
                          as a strategic leader of the company
                       From a smile to an international solution business



                                                    Madrid, 31st January 2012
                                                      Michael René Weber

                                  ISS International Business School of Service Management
                                     University for Management and Corporate Development
                                                 Hans-Henny-Jahnn-Weg 9 • 22085 Hamburg
                                         Phone: +49 (0)40-536 991-55 • Fax: +49 (0)40-536 991-40
                                         E-Mail: contact@iss-hamburg.de • Net: www.iss-hamburg.de
© 2012 International Business School of Service Management                                          1
Definition of Services

  Brand creates the expectations




                              “Services are
                      client/provider interactions
                    that create and capture value“
                                                             Source: International Business School of Service Management




   Service fulfills the brand promise


© 2012 International Business School of Service Management                                                                 2
The ISS ServiceCompass




© 2012 International Business School of Service Management   3
The focus on business in service changes




              technical
              competence
                                                                                       customer
                                                                                        loyalty
                                                                         value-added
                                                                           services

                                                         profit center


                                 instrument for                           customer and
                                 differentiation
             extended                                              business competence
            work bench

            1950                      1970                   1990            2000         2010+
           Consequence: new qualification and role for the service manager!

© 2012 International Business School of Service Management                                        4
The Service Manager as a Ferment

tasks
                                                             enabler
                                   driver                                leader

           innovator                                                                   awakener
                                                       strategic
           customer                                                                    service level
                        general
                                                                                 law
                        management
                                                                   information
                                                activities
knowledge /                                                        technology
skills
© 2012 International Business School of Service Management                                             5
The Ritz Carlton slogan



           „Anticipating the customer‘s unexpressed needs“ and

           „Leadership by example“

           are the key success factors to be cutting edge.


                                                             (Ritz Carlton)




© 2012 International Business School of Service Management                6
Trend in patent applications




                                                             Source: WIPO Statistics Database, October 2011




    Rising importance of methodological and theoretical background to be
     a member of the process by creating and implementing innovations


© 2012 International Business School of Service Management                                               7
Service initiated changes of Business Models (1)




                                                Don’t buy the copier, but the copies




         Don’t buy the wind turbine, but a guaranteed amount of power 




                                               Rolls-Royce: Power by the hour!
                                                Don’t buy the engines, but the flight hours



© 2012 International Business School of Service Management                                     8
Service initiated changes of Business Models (2)




                                   Customize and enhance your mobile phone (iTunes)




                                              Enjoy the perfect coffee experience




     New solutions through innovations in:
       value proposition, partner networks, revenue models,
       distribution channels, software, hardware, systems…

© 2012 International Business School of Service Management                             9
The changing scope of technical Service …

       Today, Service goes fare beyond the simple support of the physical product.
       There is a range of different possibilities to offer more to the customers!




                   Product                   Supply of        Active   Effective
                    design                    parts &        Product   Business
                   & quality                information      Support   Support




                                  The Business focus in Services is
                                             changing!
© 2012 International Business School of Service Management                           10
Resulting main tasks


 The resulting tasks from the current development are


          1. Lead people to future markets

          2. Create your own business Marketing, Sales and Relationship

          3. Manage Operations successfully




© 2012 International Business School of Service Management                11
Task 1: Leadership


                                                             Customer




                                Strategy                                  Process
                                                             Leadership




               Marketing                                       Culture          Operations




© 2012 International Business School of Service Management                                   12
Task 2: Marketing, Sales and Relationship Management


                                                              Marketing




                            Brand Promise                                       Business Models
                                                              Customer




           Sales Channels                                    Brand Fulfilment               Service




© 2012 International Business School of Service Management                                            13
Task 3: Service and Operations Management


                                                             Business




                                 People                                   Analytics
                                                             Operations




               Employee                                          IT               Customer




© 2012 International Business School of Service Management                                   14
Growth Drivers in Services

                                                                 Packaged/standardized product-related
                                                                services and solution bundles (86%, 2010)


                                                                   Integrated solution offerings that bundle
                                                                      products and services (79%, 2010)
           Top
      growth drivers
                                                                Transformation from a reactive service
                                                             business into proactive and systematic selling
                                                                and marketing of services (71%, 2010)

      Participation in the study:
      (among others)                                              Consistent alignment of services with the
      BMW, EADS, Hewlett-Packard,                                 value-creation processes of the customer
      IBM, Miele, Nokia, Siemens,                                                (71%, 2010)
      Wincor Nixdorf ……

Source: AFSMi Germany/ISS Delphi-Study (N=16); Percent value: % of study panelists expecting very high impact; Year value: year of estimated strongest effect)

© 2012 International Business School of Service Management                                                                                                       15
Let’s follow the tasks
             Service takes the lead for
              corporate development!
                                                    Madrid, 31st January 2012
                                                      Michael René Weber

                                  ISS International Business School of Service Management
                                     University for Management and Corporate Development
                                                 Hans-Henny-Jahnn-Weg 9 • 22085 Hamburg
                                         Phone: +49 (0)40-536 991-55 • Fax: +49 (0)40-536 991-40
                                         E-Mail: contact@iss-hamburg.de • Net: www.iss-hamburg.de
© 2012 International Business School of Service Management                                          16

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The Service Manager as a strategic leader of the company

  • 1. The Service Manager as a strategic leader of the company From a smile to an international solution business Madrid, 31st January 2012 Michael René Weber ISS International Business School of Service Management University for Management and Corporate Development Hans-Henny-Jahnn-Weg 9 • 22085 Hamburg Phone: +49 (0)40-536 991-55 • Fax: +49 (0)40-536 991-40 E-Mail: contact@iss-hamburg.de • Net: www.iss-hamburg.de © 2012 International Business School of Service Management 1
  • 2. Definition of Services Brand creates the expectations “Services are client/provider interactions that create and capture value“ Source: International Business School of Service Management Service fulfills the brand promise © 2012 International Business School of Service Management 2
  • 3. The ISS ServiceCompass © 2012 International Business School of Service Management 3
  • 4. The focus on business in service changes technical competence customer loyalty value-added services profit center instrument for customer and differentiation extended business competence work bench 1950 1970 1990 2000 2010+ Consequence: new qualification and role for the service manager! © 2012 International Business School of Service Management 4
  • 5. The Service Manager as a Ferment tasks enabler driver leader innovator awakener strategic customer service level general law management information activities knowledge / technology skills © 2012 International Business School of Service Management 5
  • 6. The Ritz Carlton slogan „Anticipating the customer‘s unexpressed needs“ and „Leadership by example“ are the key success factors to be cutting edge. (Ritz Carlton) © 2012 International Business School of Service Management 6
  • 7. Trend in patent applications Source: WIPO Statistics Database, October 2011 Rising importance of methodological and theoretical background to be a member of the process by creating and implementing innovations © 2012 International Business School of Service Management 7
  • 8. Service initiated changes of Business Models (1)  Don’t buy the copier, but the copies Don’t buy the wind turbine, but a guaranteed amount of power  Rolls-Royce: Power by the hour!  Don’t buy the engines, but the flight hours © 2012 International Business School of Service Management 8
  • 9. Service initiated changes of Business Models (2)  Customize and enhance your mobile phone (iTunes) Enjoy the perfect coffee experience New solutions through innovations in: value proposition, partner networks, revenue models, distribution channels, software, hardware, systems… © 2012 International Business School of Service Management 9
  • 10. The changing scope of technical Service … Today, Service goes fare beyond the simple support of the physical product. There is a range of different possibilities to offer more to the customers! Product Supply of Active Effective design parts & Product Business & quality information Support Support The Business focus in Services is changing! © 2012 International Business School of Service Management 10
  • 11. Resulting main tasks The resulting tasks from the current development are 1. Lead people to future markets 2. Create your own business Marketing, Sales and Relationship 3. Manage Operations successfully © 2012 International Business School of Service Management 11
  • 12. Task 1: Leadership Customer Strategy Process Leadership Marketing Culture Operations © 2012 International Business School of Service Management 12
  • 13. Task 2: Marketing, Sales and Relationship Management Marketing Brand Promise Business Models Customer Sales Channels Brand Fulfilment Service © 2012 International Business School of Service Management 13
  • 14. Task 3: Service and Operations Management Business People Analytics Operations Employee IT Customer © 2012 International Business School of Service Management 14
  • 15. Growth Drivers in Services Packaged/standardized product-related services and solution bundles (86%, 2010) Integrated solution offerings that bundle products and services (79%, 2010) Top growth drivers Transformation from a reactive service business into proactive and systematic selling and marketing of services (71%, 2010) Participation in the study: (among others) Consistent alignment of services with the BMW, EADS, Hewlett-Packard, value-creation processes of the customer IBM, Miele, Nokia, Siemens, (71%, 2010) Wincor Nixdorf …… Source: AFSMi Germany/ISS Delphi-Study (N=16); Percent value: % of study panelists expecting very high impact; Year value: year of estimated strongest effect) © 2012 International Business School of Service Management 15
  • 16. Let’s follow the tasks Service takes the lead for corporate development! Madrid, 31st January 2012 Michael René Weber ISS International Business School of Service Management University for Management and Corporate Development Hans-Henny-Jahnn-Weg 9 • 22085 Hamburg Phone: +49 (0)40-536 991-55 • Fax: +49 (0)40-536 991-40 E-Mail: contact@iss-hamburg.de • Net: www.iss-hamburg.de © 2012 International Business School of Service Management 16