Description
various aspetcs services needed
Services Management
New Service Development
Session 4
Research suggests that products that are designed and introduced via the steps in a structured planning framework have a greater likelihood of ultimate success than those not developed within a framework. The fact that services are intangible makes it even more imperative for a new service development system to have four basic characteristics. 1. It must be objective, not subjective 2. It must be precise, not vague 3. It must be fact driven, not opinion driven 4. It must be methodological, not philosophical Although the process of developing new services should be structured and should follow a set of defined stages, it should not become overly rigid or bureaucratized. Such structures taken to an extreme can result in a rigid and plodding approach that could waste time and/or allow competitors to get out in front. Thus, common sense must dictate when flexibility and speed will override the structure. Often new services are introduced on the basis of managers’ and employees’ subjective opinions about what the services should be and whether they will succeed, rather than on objective designs incorporating data about customer perceptions, market needs, and feasibility. A new service design process maybe imprecise in defining the structure of the service concept because the people involved believe either that the intangible processes cannot be defined precisely or that “everyone knows what we mean”. Neither of these explanations or defenses for imprecision are justifiable, as is shown in the model for new service development. Because services are produced and consumed simultaneously and often involve interaction between employees and customers, it is also critical that the new service development process involve both employees and customers. Employees frequently are the service, or at least they perform or deliver the service, and thus their involvement in choosing which new service to develop and how these services should be designed and implemented can be very beneficial. Contact employees are psychologically and physically close to customers and can be very helpful in identifying customer needs for new services. Involving employees in the design and development process also increases the likelihood of new service success because employees can identify the organizational issues that need to be addressed to support the delivery of the services to customers. Because customers often actively participate in service delivery, they too should be involved in the new service development process. Beyond just providing input on their own needs,
customers can help design the service concept and the delivery process, particularly in situations in which the customer personally carries out part of the service process.
Types of New Services
? Major or radical innovations are new services for markets as yet undefined. Past
examples include the first broadcast television services and Federal Express’s introduction of nationwide, overnight small package delivery. Many innovations now and in the future will evolve from information, computer, and Internet-based technologies.
? Start-up businesses consist of new services for a market that is already served by
existing products that meet the same generic need. Service examples include the creation of health maintenance organizations to provide an alternative form of health care delivery, online banking for financial transactions, and door-to-door airport shuttle services that compete with traditional taxi and limousine services.
? New services for the currently served market represent attempts to offer existing
customers of the organization a service not previously available from the company (although it may be available from other companies). Examples include Barnes and Noble offering coffee service, a health club offering nutrition classes, and airlines offering fax, phone, and Internet service during flights.
? Service line extensions represent augmentations of the existing service line, such as a
restaurant adding new menu items, an airline offering new routes, a law firm offering additional legal services, and a university adding new courses or degrees.
? Service improvements represent perhaps the most common type of service innovation.
Changes in features of services that are already offered might involve faster execution of an existing service process, extended hours of service, or augmentations such as added amenities in a hotel room (e.g., the addition of wireless Internet connections).
? Style changes represent the most modest service innovations, although they are often
highly visible and can have significant effects on customer perceptions, emotions, and attitudes. Changing the color scheme of a restaurant, revising the logo for an organization, redesigning a website, or painting aircraft a different color all represent style changes. These innovations do not fundamentally change the service, only its appearance, similar to how packaging changes are used for consumer products.
Stages in New Service Development
New Service Development
? B usiness strateg developm y ent
? N service strateg developm ew y
Front-end Planning
Front-End Planning Business Strategy Development or Review New Service Strategy development Idea generation Service Concept development and Evaluation Business Analysis Implementation Service Development and Testing Market Testing Commercialization 1993; Khurana & Rosenthal 1997. 1985; C ooper, Post-introduction Evaluation
S ources: Booz-Allen & Hamilton, 1982; Bowers,
? Ideag eneration
Screen ideas against new serv
? Concept developm and evalu ent
T concept with customers est
?B usiness analysis
T for profitability and feas est
?S ervice developm and testin ent ? Mark testing et ? Com ercialization m ? Postintroductionevaluation
Conduct service prototype tes
Implementation
T service and other market est
Service Blueprinting
A stumbling block in developing new services (and in improving existing services) is the difficulty of describing and depicting the service at the concept development, service development, and market test stages. One of the keys to matching service specifications to customer expectations is the ability to describe critical service process characteristics objectively and to depict them so that employees, customers, and managers alike know what the service is, can see their role in its delivery, and understand all the steps and flows involved in the service process. What is a Service Blueprint A service blueprint is a picture or a map that accurately portrays the service system so that the different people involved in providing it can understand and deal with it objectively regardless of their roles or their individual points of view. Blueprint Components The key components of service blueprints are customer actions, “onstage”contact employee actions, “backstage” contact employee actions, and support services.
Building a Service Blueprint
Building a Service Blue
S 1 tep
Identify the process to be blueprinted
S 2 tep
Identify the customer or customer segment
S 3 tep
Map the process fromthe customer’s point of view
S 4 tep
Map contact employee actions, onstage and back-stage, and/or technology actions
S tep
Link co activit neede suppo functio
Express Mail Delivery Servic
Truck Packaging Forms Hand-held Computer Uniform Customer Calls Customer Gives Package
R E M O T S U C
L A C I S Y H P C N D I V E
Driver Picks Up Pkg.
) e g a t S n O (
Customer
Overnight Hotel Stay
Hotel Exterior Parking
L A C I S Y H P C N D I V E
Cart for Bags
Desk Elevators Cart for Registration Hallways Bags Papers Room Lobby Key
Room Amenities Bath
Menu
D T F A
R E M O T S U C
Arrive at Hotel
Give Bags to Bellperson
Check in
Go to Room
Receive Bags
Sleep Shower
Call Room Service
14
Insurance Service
) e g a t S n O (
-Parking Lot * -Office Building
Greet and Take Bags
Process Registration
Deliver Bags Physical Evidence
-Money
-Telephone
-Meeting Room
S R E P A T N O C
Take Bags Customer to Room
-Receipt
Take Policy Food Order
-Insuran
) e g t S k c a B (
Visit Office
T R O P U S S E C O R P
Line of Interaction
Phone Calls System to Office
Registration
Face to Face * Meetings
Payment for * Documents
Prepare Retrieval Food
Documen
Contact Person
(Onstage)
Line of Visibility
Employees Answer Questions
Agent & Policy Writers
Employee Takes Payment
(Backstage)
Information Preparation
Contact Insurance Co.
Copy of Policy Fil
15
Reserving a Ticket at the BGSU Theatre
•ticket order form •parking •University Hall •ticket envelope w/ name •box office window •ticket envelope w/ name •ticket envelope w/ name •ticket •cash/check/bursar/ theatre pass
l a c i s y h P c n e d i v E
Call in reservation
Arrive at theatre at A
r e m o t s u C
Go to will-call window
Check in w/ name
Pay for tickets
LINE OF CUSTOMER INTERACTION
Bottleneck #1
Greet at window
Find name
Take Payment
16
s r e P c a t n o C
) e g a t s n o (
Reservation taken
Blueprint for Ordering a Personalized Ticket stub marked DQ Ice Cream Cake
LINE OF VISABILITY
) e g t s k c a b ( l a c i s y h P c n e d i v E
system
• Store LINE OF INTERNAL INTERACTION • Employee • Display • Cake Book • Order • Rec Appearance Freezer Uniforms • Design Cards Form • Pre-Made • Store Verify name in Name envelope Double check Stub and Cash Cakes Appearance theatre pass filed into day and system into audit system
time
Come into Store
Look at Display Freezer
Stand #2 Bottleneck in Line
Look Through Cake Book
Fill Out Order Form
s e c P t r o p u S
Pre-
Line of Interaction Freezer
) e g a t S n O (
Line of Visibility Fills Display
Greet, Take Order, Get Money
s r e P c a t n o C
M
doc_339636459.doc
various aspetcs services needed
Services Management
New Service Development
Session 4
Research suggests that products that are designed and introduced via the steps in a structured planning framework have a greater likelihood of ultimate success than those not developed within a framework. The fact that services are intangible makes it even more imperative for a new service development system to have four basic characteristics. 1. It must be objective, not subjective 2. It must be precise, not vague 3. It must be fact driven, not opinion driven 4. It must be methodological, not philosophical Although the process of developing new services should be structured and should follow a set of defined stages, it should not become overly rigid or bureaucratized. Such structures taken to an extreme can result in a rigid and plodding approach that could waste time and/or allow competitors to get out in front. Thus, common sense must dictate when flexibility and speed will override the structure. Often new services are introduced on the basis of managers’ and employees’ subjective opinions about what the services should be and whether they will succeed, rather than on objective designs incorporating data about customer perceptions, market needs, and feasibility. A new service design process maybe imprecise in defining the structure of the service concept because the people involved believe either that the intangible processes cannot be defined precisely or that “everyone knows what we mean”. Neither of these explanations or defenses for imprecision are justifiable, as is shown in the model for new service development. Because services are produced and consumed simultaneously and often involve interaction between employees and customers, it is also critical that the new service development process involve both employees and customers. Employees frequently are the service, or at least they perform or deliver the service, and thus their involvement in choosing which new service to develop and how these services should be designed and implemented can be very beneficial. Contact employees are psychologically and physically close to customers and can be very helpful in identifying customer needs for new services. Involving employees in the design and development process also increases the likelihood of new service success because employees can identify the organizational issues that need to be addressed to support the delivery of the services to customers. Because customers often actively participate in service delivery, they too should be involved in the new service development process. Beyond just providing input on their own needs,
customers can help design the service concept and the delivery process, particularly in situations in which the customer personally carries out part of the service process.
Types of New Services
? Major or radical innovations are new services for markets as yet undefined. Past
examples include the first broadcast television services and Federal Express’s introduction of nationwide, overnight small package delivery. Many innovations now and in the future will evolve from information, computer, and Internet-based technologies.
? Start-up businesses consist of new services for a market that is already served by
existing products that meet the same generic need. Service examples include the creation of health maintenance organizations to provide an alternative form of health care delivery, online banking for financial transactions, and door-to-door airport shuttle services that compete with traditional taxi and limousine services.
? New services for the currently served market represent attempts to offer existing
customers of the organization a service not previously available from the company (although it may be available from other companies). Examples include Barnes and Noble offering coffee service, a health club offering nutrition classes, and airlines offering fax, phone, and Internet service during flights.
? Service line extensions represent augmentations of the existing service line, such as a
restaurant adding new menu items, an airline offering new routes, a law firm offering additional legal services, and a university adding new courses or degrees.
? Service improvements represent perhaps the most common type of service innovation.
Changes in features of services that are already offered might involve faster execution of an existing service process, extended hours of service, or augmentations such as added amenities in a hotel room (e.g., the addition of wireless Internet connections).
? Style changes represent the most modest service innovations, although they are often
highly visible and can have significant effects on customer perceptions, emotions, and attitudes. Changing the color scheme of a restaurant, revising the logo for an organization, redesigning a website, or painting aircraft a different color all represent style changes. These innovations do not fundamentally change the service, only its appearance, similar to how packaging changes are used for consumer products.
Stages in New Service Development
New Service Development
? B usiness strateg developm y ent
? N service strateg developm ew y
Front-end Planning
Front-End Planning Business Strategy Development or Review New Service Strategy development Idea generation Service Concept development and Evaluation Business Analysis Implementation Service Development and Testing Market Testing Commercialization 1993; Khurana & Rosenthal 1997. 1985; C ooper, Post-introduction Evaluation
S ources: Booz-Allen & Hamilton, 1982; Bowers,
? Ideag eneration
Screen ideas against new serv
? Concept developm and evalu ent
T concept with customers est
?B usiness analysis
T for profitability and feas est
?S ervice developm and testin ent ? Mark testing et ? Com ercialization m ? Postintroductionevaluation
Conduct service prototype tes
Implementation
T service and other market est
Service Blueprinting
A stumbling block in developing new services (and in improving existing services) is the difficulty of describing and depicting the service at the concept development, service development, and market test stages. One of the keys to matching service specifications to customer expectations is the ability to describe critical service process characteristics objectively and to depict them so that employees, customers, and managers alike know what the service is, can see their role in its delivery, and understand all the steps and flows involved in the service process. What is a Service Blueprint A service blueprint is a picture or a map that accurately portrays the service system so that the different people involved in providing it can understand and deal with it objectively regardless of their roles or their individual points of view. Blueprint Components The key components of service blueprints are customer actions, “onstage”contact employee actions, “backstage” contact employee actions, and support services.
Building a Service Blueprint
Building a Service Blue
S 1 tep
Identify the process to be blueprinted
S 2 tep
Identify the customer or customer segment
S 3 tep
Map the process fromthe customer’s point of view
S 4 tep
Map contact employee actions, onstage and back-stage, and/or technology actions
S tep
Link co activit neede suppo functio
Express Mail Delivery Servic
Truck Packaging Forms Hand-held Computer Uniform Customer Calls Customer Gives Package
R E M O T S U C
L A C I S Y H P C N D I V E
Driver Picks Up Pkg.
) e g a t S n O (
Customer
Overnight Hotel Stay
Hotel Exterior Parking
L A C I S Y H P C N D I V E
Cart for Bags
Desk Elevators Cart for Registration Hallways Bags Papers Room Lobby Key
Room Amenities Bath
Menu
D T F A
R E M O T S U C
Arrive at Hotel
Give Bags to Bellperson
Check in
Go to Room
Receive Bags
Sleep Shower
Call Room Service
14
Insurance Service
) e g a t S n O (
-Parking Lot * -Office Building
Greet and Take Bags
Process Registration
Deliver Bags Physical Evidence
-Money
-Telephone
-Meeting Room
S R E P A T N O C
Take Bags Customer to Room
-Receipt
Take Policy Food Order
-Insuran
) e g t S k c a B (
Visit Office
T R O P U S S E C O R P
Line of Interaction
Phone Calls System to Office
Registration
Face to Face * Meetings
Payment for * Documents
Prepare Retrieval Food
Documen
Contact Person
(Onstage)
Line of Visibility
Employees Answer Questions
Agent & Policy Writers
Employee Takes Payment
(Backstage)
Information Preparation
Contact Insurance Co.
Copy of Policy Fil
15
Reserving a Ticket at the BGSU Theatre
•ticket order form •parking •University Hall •ticket envelope w/ name •box office window •ticket envelope w/ name •ticket envelope w/ name •ticket •cash/check/bursar/ theatre pass
l a c i s y h P c n e d i v E
Call in reservation
Arrive at theatre at A
r e m o t s u C
Go to will-call window
Check in w/ name
Pay for tickets
LINE OF CUSTOMER INTERACTION
Bottleneck #1
Greet at window
Find name
Take Payment
16
s r e P c a t n o C
) e g a t s n o (
Reservation taken
Blueprint for Ordering a Personalized Ticket stub marked DQ Ice Cream Cake
LINE OF VISABILITY
) e g t s k c a b ( l a c i s y h P c n e d i v E
system
• Store LINE OF INTERNAL INTERACTION • Employee • Display • Cake Book • Order • Rec Appearance Freezer Uniforms • Design Cards Form • Pre-Made • Store Verify name in Name envelope Double check Stub and Cash Cakes Appearance theatre pass filed into day and system into audit system
time
Come into Store
Look at Display Freezer
Stand #2 Bottleneck in Line
Look Through Cake Book
Fill Out Order Form
s e c P t r o p u S
Pre-
Line of Interaction Freezer
) e g a t S n O (
Line of Visibility Fills Display
Greet, Take Order, Get Money
s r e P c a t n o C
M
doc_339636459.doc