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ServiceService MManagement: A Contrarian PerspectivePerspective
© Atanu GhoshMonday, March 16, 2015 1
Service Delivery: Why is it Different from Manufacturing?Different from Manufacturing?
P d ti d• Production and Consumption happens at the same time
• Non Standardised
• Metrics for output quality not possible to be definednot possible to be defined accurately
© Atanu GhoshMonday, March 16, 2015 2
Products and Services: Continuum of EvaluationContinuum of Evaluation
Most Goods
Most Services
l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services
“Guruji”
Search Quality Experience Quality Credence Quality
© Atanu GhoshMonday, March 16, 2015 3
Products and Services: Continuum of RelationshipContinuum of Relationship
Most Goods
Most Services
l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services
“Guruji”
Contractual Relationship Trust Relationship
© Atanu GhoshMonday, March 16, 2015 4
Products and Services: Continuum of MarketingContinuum of Marketing
Most Goods
Most Services
l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services
“Guruji”
Outbound Marketing Inbound Marketing
© Atanu GhoshMonday, March 16, 2015 5
Products and Services: Continuum of DeliveryContinuum of Delivery
Most Goods
Most Services
l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services
“Guruji”
Process Oriented People Oriented
© Atanu GhoshMonday, March 16, 2015 6
Products and Services: Continuum of QualityContinuum of Quality
Most Goods
Most Services
l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services
“Guruji”
Output Quality Input QualityProcess Quality
© Atanu GhoshMonday, March 16, 2015 7
Products and Services: Continuum of OutputContinuum of Output
Most Goods
Most Services
l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services
“Guruji”
Standard Customised
© Atanu GhoshMonday, March 16, 2015 8
Products and Services: Continuum of PricingContinuum of Pricing
Most Goods
Most Services
l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services
“Guruji”
Fixed Price “Time and Material” Price
© Atanu GhoshMonday, March 16, 2015 9
Products and Services: Continuum of Equation of Power and InfluenceContinuum of Equation of Power and Influence
Most Goods
Most Services
l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services
“Guruji”
Customer is the King Customer is the King, But ...P id i th “G ”
© Atanu GhoshMonday, March 16, 2015 10
Provider is the “Guru”
Products and Services: Continuum of Equation of Power and InfluenceContinuum of Equation of Power and Influence
Most Goods
Most Services
l h J ll H CClothing Jewellery House Car Restaurant Vacation Haircut Chauffer Medical Services
“Guruji”
Economy of Scale Diseconomy of Scale?
© Atanu GhoshMonday, March 16, 2015 11
Service Quality Management: Di i f S i Q litDimensions of Service Quality
Responsiveness
ReliabilityTangibles
AssuranceEmpathy
© Atanu GhoshMonday, March 16, 2015 12
Concept of “Perceived Quality”: U i t S i I d tUnique to Service Industry
© Atanu GhoshMonday, March 16, 2015 13
Service Quality “Gaps”Q y p
© Atanu GhoshMonday, March 16, 2015 14
Service Quality “Gaps”Q y p
© Atanu GhoshMonday, March 16, 2015 15
Service Quality Management: L A i M d lLoss Aversion Model
© Atanu GhoshMonday, March 16, 2015 16
Service Blueprintingp g
© Atanu GhoshMonday, March 16, 2015 17
Service Delivery Metric: S i L l A t (SLA)Service Level Agreement (SLA)
• Wait Time
• Response Timep
• Resolution TimeResolution Time
• Root Ca se Anal sis and Resol tion• Root Cause Analysis and Resolution
© Atanu GhoshMonday, March 16, 2015 18
Attempts to Productise a Servicep
Service industry is trying to productise services because consumers insist on buying service the way they would have bought a productbuying service the way they would have bought a product.
But does this benefit the customer or the service provider?
Or, it is just increasing the service quality gap, making the customer and the service provider engage in a “lose‐lose game”?
© Atanu GhoshMonday, March 16, 2015 19
Productisation of Service in IT: C tifi tiCertifications
• ITIL
• CMMI
• ISO 27000ISO 27000
© Atanu GhoshMonday, March 16, 2015 20
Service Delivery in IT: Capability Maturity Model Integration (CMMI)Capability Maturity Model Integration (CMMI)
© Atanu GhoshMonday, March 16, 2015 21
Service Delivery in IT: ITIL S i M t F kITIL Service Management Framework
© Atanu GhoshMonday, March 16, 2015 22
Productisation of Service in IT: H It W k d?Has It Worked?
IT industry is still struggling to productise something that is purely service, not very successfully, though.
Should they continue their effort, or just service a service the way service should be serviced?
© Atanu GhoshMonday, March 16, 2015 23
Servicisation of Products
Platform as a Service ( )Software as a
Service (SaaS)(PaaS)
Infrastructure as a Service (IaaS)
© Atanu GhoshMonday, March 16, 2015 24
Be Sure What You are Buying!
Do not buy a service as if you are buying a product and vice versa!
© Atanu GhoshMonday, March 16, 2015 25
y g p
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