TOM 453 chapter 4 notes

TOM 453 chapter 4 notes - Chapter 4 Chapter New Service...

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Unformatted text preview: Chapter 4 Chapter New Service Development New service development New Radical innovations e.g., internet banking a Incremental innovations e.g., play structure Incremental at fast food restaurant at a New service development cycle New a Planning phase • • a Idea generation Concept development Concept Execution phase • Detailed design • Launch Idea generation Idea Customer feedback a Employees a Competitive benchmarking a Trends e.g., demographic trends (such as Trends child care for two-income families), technological trends e.g., long range flights technological a Service Design Elements Service a Structural a Managerial Structural Elements Structural a Delivery system • Front and back office, automation, customer Front participation participation a Facility design • Size, aesthetics, layout a Location • Customer demographics, single or multiple sites, Customer competition competition a Capacity planning • Queuing models, number of servers, accommodating Queuing average or peak demand average Managerial Elements Managerial a Information • Data collection a Quality • Measurement, monitoring, expectations vs. Measurement, perceptions, service guarantee perceptions, a Service encounter • Culture, motivation, selection and training, employee Culture, empowerment empowerment a Managing capacity and demand • Strategies for altering demand and controlling supply, Strategies queue management queue Example: Service Design Elements Example: a Identify service design elements for a Identify fitness center fitness a Structural elements a Managerial elements Customer value equation Customer a Value = Value results for the customer + process quality results _______________________________________ _______________________________________ price to the customer + cost of acquiring service a Value = benefit / cost Service Blueprinting Service Visual representation Visual a Documents the service delivery system a • Flowchart (map) of all transactions in the Flowchart service delivery process service a Helps in analysis of the process e.g., Helps identifying potential fail-points, opportunities for improvement opportunities Service Blueprint (contd.) Service Determine standard/maximum times for Determine process steps process a Generate plans to prevent/recover from a Generate failure e.g., train personnel to respond to overbooking, lost luggage, bad meal overbooking, a Service Blueprint Service a Physical evidence Physical • What the customer will see and experience e.g., hotel What lobby, room décor lobby, a Line of interaction • Identify points of contact between the customer and the Identify organization e.g., checking in organization a Line of visibility • Shows separation between front-office and back-office; Shows shows level of involvement of the customer in the service delivery process service a Line of internal interaction • Support processes are shown below this line e.g., Support reservation system reservation Service Blueprint Components Service Customer actions Line of interaction _______________________ Onstage contact Line of visibility _______________________ Backstage contact Line of internal interaction _______________________ Support processes Service Blueprint for Luxury Hotel Hotel Strategic positioning through process structure structure a Degree of complexity vs. degree of Degree divergence divergence a Degree of complexity • Number and intricacy of steps in service Number blueprint e.g., clinic less complex than general hospital hospital • Narrow scope e.g., focused specialty stores Narrow selling single product are less complex than broader scope e.g., superstores broader Strategic positioning through process structure (contd.) structure a Degree of divergence • Amount of discretion permitted the server to Amount customize the service • Customized is high divergence, standardized is Customized low divergence e.g., financial planning service is higher divergence than life insurance Generic approaches to service system design system Production line approach a Customer as co-producer a Customer contact approach a Information empowerment a Production line approach Production a For standardized services; focus on consistency For and efficiency e.g., McDonald’s and a Limit discretion of personnel e.g., well-defined Limit tasks tasks Division of labor Division Substitute technology for people e.g., ATM Substitute machines machines Service standardization e.g., limited menu a a a Customer as co-producer Customer a Can result in lower costs, and allow some Can customization customization a Self-service • Substitute customer labor for provider labor – provides Substitute convenience, control, matching supply with demand e.g., fast food, self-serve checkout, airline check-in e.g., a Smooth service demand • Perishable, so encourage reservations/appointments, Perishable, price incentives price a Customer-generated content • E.g., Wikipedia Customer contact approach Customer Degree of customer contact (proportion of Degree time customer is physically in system compared to total service time) influences potential efficiency of service potential a Separate the high and low contact Separate operations operations a • Affects location, layout, scheduling, personnel • Back office operations can be run like a factory Information empowerment Information a Employee empowerment • Access to databases a Customer empowerment • E.g., shipment tracking, travel reservations Case: 100 Yen Sushi House Case: ...
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This note was uploaded on 10/19/2011 for the course TOM 453 taught by Professor Kumar during the Spring '11 term at Cal Poly Pomona.

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