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 • Important to identify the parts of the processes which lead to value addition • 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 • 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 • 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 • Common examples: Tire replacement less complex than engine replacement. Hotels, customer service less divergent than other services
Consequences of Changes in Divergence and Complexity • 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
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- Summer '17
- Rusha Das