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Service Design and Development: Challenges, Strategies, and Standards

This chapter explores the challenges of service design, the steps in the new service development process, the value of service blueprinting and quality function deployment in service design and improvement, and the lessons learned in implementing high-performance service innovations.

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Service Design and Development: Challenges, Strategies, and Standards

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  1. Part 3 ALIGNING STRATEGY, SERVICE DESIGN, AND STANDARDS

  2. Provider GAP 2 CUSTOMER Customer-Driven Service Designs and Standards COMPANY GAP 2 Company Perceptions of Consumer Expectations Part 3 Opener

  3. Chapter Service Development and Design 8 • Challenges of Service Design • New Service Development • Types of New Services • Service Redesign • Stages in New Service Development • Service Blueprinting • Quality Function Deployment • High-Performance Service

  4. Objectives for Chapter 8:Service Development and Design • Describe the challenges inherent in service design. • Present steps in the new service development process. • Show the value of service blueprinting and quality function deployment (QFD) in new service design and service improvement. • Present lessons learned in choosing and implementing high-performance service innovations.

  5. Figure 8.1Risks of Relying on Words Alone to Describe Services

  6. Figure 8.2 New Service Development Process • Business Strategy Development or Review • New Service Strategy Development Front End Planning • Idea Generation Screen ideas against new service strategy • Concept Development and Evaluation Test concept with customers and employees • Business Analysis Test for profitability and feasibility • Service Development and Testing Conduct service prototype test • Market Testing Implementation Test service and other marketing-mix elements • Commercialization • Postintroduction Evaluation Source: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.

  7. Figure 8.3New Service Strategy Matrix for Identifying Growth Opportunities Markets Offerings Current Customers New Customers Existing Services SHARE BUILDING MARKETDEVELOPMENT New Services SERVICEDEVELOPMENT DIVERSIFICATION

  8. Figure 8.5Service Mapping/Blueprinting • A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view. Process Service Mapping Points of Contact Evidence

  9. Service Blueprint Components CUSTOMER ACTIONS line of interaction “ONSTAGE” CONTACT EMPLOYEE ACTIONS line of visibility “BACKSTAGE” CONTACT EMPLOYEE ACTIONS line of internal interaction SUPPORT PROCESSES

  10. Figure 8.6Service Blueprint Components

  11. Express Mail Delivery Service Truck Packaging Forms Hand-held Computer Uniform Truck Packaging Forms Hand-held Computer Uniform PHYSICAL EVIDENCE Customer Calls Customer Gives Package Receive Package CUSTOMER Driver Picks Up Pkg. (On Stage) Deliver Package CONTACT PERSON (Back Stage) Customer Service Order Airport Receives & Loads Fly to Sort Center Load On Truck Dispatch Driver Unload & Sort Fly to Destination SUPPORT PROCESS Load on Airplane Sort Packages

  12. Figure 8.8Overnight Hotel Stay Bill Desk Lobby Hotel Exterior Parking Hotel Exterior Parking Cart for Bags Desk Registration Papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath Menu Delivery Tray Food Appearance Food PHYSICAL EVIDENCE Arrive at Hotel Give Bags to Bellperson Call Room Service Check out and Leave Receive Bags Sleep Shower Go to Room Receive Food CUSTOMER Eat Check in Greet and Take Bags Deliver Bags Deliver Food Process Registration Process Check Out (On Stage) CONTACT PERSON Take Food Order (Back Stage) Take Bags to Room Registration System Registration System Prepare Food SUPPORT PROCESS

  13. Figure 8.9 Building a Service Blueprint Step 6 Add evidence of service at each customer action step. Step 4 Map contact employee actions, onstage and back-stage. Step 3 Map the process from the customer’s point of view. Step 1 Identify the process to be blue-printed. Step 2 Identify the customer or customer segment. Step 5 Link customer and contact person activities to needed support functions.

  14. Application of Service Blueprints • New Service Development • concept development • market testing • Supporting a “Zero Defects” Culture • managing reliability • identifying empowerment issues • Service Recovery Strategies • identifying service problems • conducting root cause analysis • modifying processes

  15. Service Marketers creating realistic customer expectations service system design promotion Operations Management rendering the service as promised managing fail points training systems quality control Human Resources empowering the human element job descriptions selection criteria appraisal systems System Technology providing necessary tools: system specifications personal preference databases Blueprints Can Be Used By:

  16. Figure 8.10House of Quality for Village Volvo

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