MD254: e-Service Operations Management

1. MD254: e-Service Operations Management Aligning the e-Service Product with the e-Service Process:

2. Overview Background Real-Time Marketing & Customerization A Framework for Positioning e-Service Products A Framework for Positioning e-Service Process in B2C Operations Aligning the e-Service Product to the e-Service Process Conclusion

3. Background

4. Background The Problem with Positioning and Marketing of Traditional Services “Service professionals traditionally think about a new service product as something that a centralized marketing department creates for its customers on the basis of understanding a new customer need.” The success of this new service development approach depends upon … Accuracy of understanding customer needs Ability to create or customize the service to meet specific needs of customers Competitive speed at which the new service is delivered

5. Background The Problem with Positioning and Marketing Traditional Services The traditional approach may take too long (i.e., many months to many years) Traditional approach cannot adapt quickly to changing needs of customers

6. Real-Time Marketing & Customerization

7. Real-Time Marketing & Customerization

8. Real-Time Marketing & Customerization

9. Real-Time Marketing & Customerization Real-Time Marketing Extends relationship marketing into customized marketing Combines customized marketing with mass customization production Customerization Extends relationship marketing into customized marketing Combines customized marketing with mass customization production

10. Real-Time Marketing & Customerization Real-Time Service Product An individually customized service product that Tracks changing customer needs continuously Updates itself to meet the customer’s personal needs through interaction with the customer and the environment The updating often occurs without conscious or overt action on the customer’s part Provides customers with unique benefits Service products are customized to customers’ needs at their first points of requirement Service products interact continuously with individual customers and cater to their post-purchase product and service requirements, usually without the need for reference to or contact with the original producer

11. Real-Time Marketing & Customerization Real-Time Service Product “Technological advances in a number of fields, however, make it possible to develop new service products in real-time, that is, at the customers point of requirement (i.e. the customer’s place and time). Real-time products and services meet the needs of individual customers at the first time of use and also as those needs change over time.” The approach is known as real time because it involves adapting the service product dynamically to both The specific customer segment (i.e., customer space) The constantly evolving needs of the customer (i.e., customer time)

12. Real-Time Marketing & Customerization Benefits of Real-Time Marketing Blurs the lines between goods and services Meets customers’ needs at first time of use Meets customers’ evolving needs Plays a powerful role in acquiring and keeping customers

13. Real-Time Marketing & Customerization Real-Time Goods Video camcorder – shaky hands adjustment Vacuum cleaner – suction power adjustment Cars – adjusts braking function based on driving habits Software agents embedded in physical products that provide personal services Real-Time Services Phone service that involves a cellular phone that can remember names and voice commands … adapting as needed

14. Real-Time Marketing & Customerization Developing real-time service products involves … Individualizing the service product Vesting the service product with the power to adapt itself to changing customer needs

15. Real-Time Marketing & Customerization The Challenge … Real-Time Marketing Integrates and extends mass customization and relationship marketing The different and evolving needs and preferences of individual customers are satisfied over time Relationships with customers are managed at the customer level (instead of at the marketing department level) and are often contained within the good or service itself Decentralized intelligence is deployed … capable of anticipating or reacting to customer needs, either overtly or covertly, or to environmental changes

16. Real-Time Marketing & Customerization 4 C’s of e-Service Marketing Communication A continual series of dialogues or conversations with customers Customization Tailoring individual offerings (goods, services and digital content) based on understanding the customer’s particular needs and behaviors, to build the perception that the firm sees him/her as an individual Collaboration Engaging the customer in the actual design and delivery of a product offering Clairvoyance “Reading the customer’s mind” or anticipating his/her needs regarding the firm’s products, and proactively offering those products

17. Real-Time Marketing & Customerization Real-Time Service Product is designed by Intelligent Creation Technologies Radical new ways in which services are designed, developed, produced, distributed, and sold Ex: CAD, rapid prototyping They open new capabilities in the process of service conceptualization and design Facilitate Modular design Focus on both product outcome (end result of the transaction) and process outcome (the venue in which the product outcome is delivered)

18. Real-Time Marketing & Customerization Implications Real-time marketing responsible for real-time service product Real-time marketing becomes part of the service process Real-time marketing dynamically reengineers the service product and the service process Therefore, service designers must incorporate data collection and data analysis into the design of an e-Service … at least for dynamic (Real-Time) e-Services

19. A Framework for Positioning e-Service Products

20. A Framework for Positioning e-Service Products How to Classify e-Service Products? Not Real-Time ? ? ? Real-Time ? ? ?

21. A Framework for Positioning e-Service Products To target e-Service customers, one must have … Segmentation of market into customer segments of interest Same as with traditional marketing Understanding of relevant classes of service products How ??? A means to link customers and customer segments to the appropriate service product

22. A Framework for Positioning …Electronic Service-Product Categories How is a conceptual framework useful? A segmentation model based on e-Service product content (the service product) Linkable to business models Linkable to customer segments Linkable to service process capabilities Helps managers understand better the differences between classes of e-Service products

24. A Framework for Positioning …Electronic Service-Product Categories

25. A Framework for Positioning …Electronic Service-Product Categories

26. A Framework for Positioning …Electronic Service-Product Categories

27. A Framework for Positioning e-Service Processes

28. A Framework for Positioning e-Service Processes

29. Aligning the e-Service Product and the e-Service Process

30. Aligning the e-Service Product and the e-Service Process Can we make the two individual frameworks more useful? Guide analysis of different implemented service-products Match service-product to an appropriate service-process

33. Summary Prepare your organizations for real-time service products Understand the different types of e-service products Understand the different types of e-service processes When designing e-Service, make sure to align your service product and service process