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Education in Service Management

AIM 2007 Conference. Education in Service Management. Alastair Nicholson London Business School. How does service come to mind?. Relationships: supplier-receiver Shops Answering machines On-time delivery Queues Quality Standards Consistency with promises made

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Education in Service Management

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  1. AIM 2007 Conference Education in Service Management Alastair Nicholson London Business School

  2. How does service come to mind? • Relationships: supplier-receiver • Shops • Answering machines • On-time delivery • Queues • Quality • Standards • Consistency with promises made • Cultural characteristics: USA, UK... • Regulation

  3. Positioning service in education • Business/management education • Graduate/undergraduate • Service courses • Retailing courses • Extension of logistics

  4. A natural extension of manufacturing operations management? • Technical learning and tooling • Operational organisation - assembly • Work specification • Worker empowerment • Logistics and sales chains • Quality studies • Product life cycle values • Service experience management

  5. Critical differences from engineering education • Difficult to define boundaries • Less measurable - attributes, impressions • Continuous management of interactions • Much less specifiable • Frameworks for analysis and consideration- not formulæ for application

  6. Service management Customer encounter Make Support Parallels with concurrent engineering Concurrent engineering Design Manufacture

  7. Marketing activities Profitabilityrequirements Impressions/expectations Regulatory influence Cultureexperience Customer Provider’soperations Othercustomers Employeebehaviour Architectureof content Scope and interaction of service experience

  8. Essential assumptions for service providers • Service is an extension of ‘product’ • Need service concept to link marketing and product technology • Customers’ views are private • Difficulties/disappointments not redeemed by reference to specification • Management is spontaneous • Requirements are continuously variable • Commercial value of service unknown

  9. Customer experience Expectation Satisfaction Service delivery system Systemdesign Costeffectiveness Approach to analysis • Two parallel streams • Need to attract customers into service delivery system • Need service delivery system to be fashioned to reflect customers characteristics i.e. ‘overlaps’ of impressions and realities critical

  10. Concept of the Gap Model

  11. Tangible Intangible ‘Stated’‘For you’‘In brochure’ Delivered,noticedor ‘free’ Sell on these ‘Winners’ Explicit Unstated, expected inthis context Taken as‘recommendation’ Implicit ‘Qualifiers’ Retain on these Elements of value experienced in service encounters

  12. Factors available for organising the service delivery system • Participants • Information • Channelling • Technology • Architecture • Employee training • Décor • Points of contact • Lines of visibility

  13. Productivity Economies of “standardisation” Barrier of operations Barrier of structure Customer service Scope for change The context in which service delivery systems operate • The service system works within two trade-offs Operational trade-off Structural trade-off

  14. Trade-offs illustrated in McDonalds • Approach to productivity • Validation of service concept QSCV • Achievement of profitability by the focus on throughput, not margin

  15. Trade-offs illustrated in McDonalds

  16. Trade-offs illustrated in McDonalds

  17. Trade-offs illustrated in McDonalds

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