Part 4 ALIGNING SERVICE DESIGN AND STANDARDS 8-1

Part 4

ALIGNING SERVICE DESIGN AND STANDARDS

ALIGNING SERVICE DESIGN AND STANDARDS

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CUSTOMER

COMPANY

Gap 2: The Service Design and Standards Gap

Customer-drivenservice designs and standards

Company perceptions of customer expectations

Provider Gap 2

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Key Factors Leading to Provider Gap 2

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Service Innovation and Design

Challenges of Service Innovation and Design Important Considerations for Service InnovationTypes of Service InnovationsStages in Service Innovation and DevelopmentService Blueprinting: A Technique for Service

Innovation and Design

Chapter

8

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Objectives for Chapter 8:Service Innovation and Design Describe the challenges inherent in service innovation and

design. Present an array of different types of service innovations,

including service offering innovation, innovating around customer roles, and innovation through service solutions.

Discuss the importance of engaging customers and employees and employing service design thinking in service innovation.

Present the stages and unique elements of the service innovation and development process.

Demonstrate the value of service blueprinting and how to develop and read service blueprints.

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Risks of Relying on Words Alone to Describe Services

Oversimplification

Incompleteness

Subjectivity

Biased Interpretation

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Important Considerations for Service Innovation

Involve customers and employeesEmploy service design thinking and techniqueshttp://www.youtube.com/watch?v=s62DROeCU

DU

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Types of Service Offering Innovations

Major or radical innovations FedEx overnight shipping

Start-up businesses door-to-door airport shuttle

New services for the currently served market Retailers offer play area or coffee bar

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Types of Service Offering Innovations

Service line extensions A restaurant adding new menu An airline offering a new route

Service improvements The addition of wireless Internet connection to a hotel room

Style changes Revising a logo, redesigning a website

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Important Considerations for Service Innovation

The five principles of service design thinking: User-centered: Services should be experienced and designed

through the customers eyes Cocreative: All stakeholders should be included in the service

design process Sequencing: A service should be visualized as a sequence of

interrelated actions Evidencing: Intangible services should be visualized in terms

of physical artifacts Holistic: The entre environment of a service should be

considered

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Service Innovation and Development Process

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New Service Strategy Matrix for Identifying Growth Opportunities

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KFC in Africa

PetSmart Tide Dry Cleaners

Example: PetSmart

Example: Tide Dry Cleaners

With video

Service Concepts Examples Vedia_Finland

Next Gen TV_US

Smart Store _India

Source: http://www.youtube.com/watch?v=zFbMZb1h9m4 http://www.youtube.com/watch?v=m5BPX4mEGG8 http://www.youtube.com/watch?v=m81yIvU3sfc

Service 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.

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Service Blueprint Components

Customer Actions

line of interaction

Visible Contact Employee Actions

line of visibility

Invisible Contact Employee Actions

line of internal interaction

Support Processes

Physical Evidence

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Service Blueprint Components

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Blueprint for Express Mail Delivery Service

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Blueprint for Overnight Hotel Stay Service

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Blueprint for DVD Rental Kiosk

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Benefits of Service Blueprinting Provides a platform for innovation. Recognizes roles and interdependencies among functions,

people, and organizations. Facilitates both strategic and tactical innovations. Transfers and stores innovation and service knowledge. Designs moments of truth from the customer’s point of

view. Suggests critical points for measurement and feedback in

the service process. Clarifies competitive positioning. Provides understanding of the ideal customer experience.

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Building a Service Blueprint

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Regarding Midterm Exam

What I expect you to know The differences between good and services The Gap Model The service quality The strategies firms use to build relationship with

customers The strategies firms use to recover from service

failure