Understanding service processes strangers include non

Understanding Service Processes
Strangers
Include non-standardized processes
Occur least frequently as one off projects
Difficult to demand forecast and identify resource requirements
•
Processes consist of a number of sub-processes and activities
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Important to identify the parts of the processes which lead to value
addition
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For example, for a hotel customer the frontline processes of luxury
lounges, hospitality etc would be the most value creating processes
2. Value Addition in Processes


What kind of task should be performed front-
end Vs backend?

Strategic Position and Service Process
•
Every firm has to make a conscious strategic decision
regarding its operational strategy to deliver customer
satisfying service
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Unlike goods, where product ingredients or components are in
sync with product positioning, it is very difficult to have a
service process in line with the service positioning
•
Structure for positioning service

Strategic Position and Service Process
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The service process can be classified on the basis of these
dimensions, and the position of the firm can be found on these
two axes
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Common examples: Tire replacement less complex than engine
replacement. Hotels, customer service less divergent than other
services

Consequences of Changes in
Divergence and Complexity
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Effect of change in divergence
Divergence is the degree of variability in the process.
Reduction in divergence and a more uniform process leads
to inward benefits like cost reduction by efficiency
improvement and higher volume operations
•
Effect of change in Complexity