| Date post: | 27-Dec-2015 |
| Category: |
Documents |
| Upload: | donald-ross |
| View: | 223 times |
| Download: | 0 times |
Minder Chen, Ph.D. Associate Professor of MIS
Martin V. Smith School of Business and EconomicsCSU Channel Islands
[email protected]@gmail.com
http://faculty.csuci.edu/minder.chen Slides: http://faculty.csuci.edu/minder.chen/event
Service Sciences and Management
Services - 2 © Minder Chen, 2009
References• James Teboul, Service Is Front Stage: Positioning Services for Value
Advantage, Palgrave McMillan, 2006.
• Christopher H. Lovelock and Jochen Wirtz, Services Marketing, 6/E, Prentice Hall, 2007.
• James A. Fitzsimmons,Mona J. Fitzsimmons, Service Management: Operations, Strategy, and Information Technology, Irwin Professional Publication, 2008.
• Leonard Berry and Kent Seltman, Management Lessons from Mayo Clinic: Inside One of the Worlds Most Admired Service Organizations, McGraw Hill, 2008.
• Bill Hefley and Wendy Murphy (Editors), Service Science, Management and Engineering: Education for the 21st Century (Service Science: Research and Innovations in the Service Economy), Springer, February 1, 2008.
• Michael D. Johnson and Anders Gustafsson, Competing in a Service Economy: How to Create a Competitive Advantage Through Service Development and Innovation, Jossey-Bass, May 23, 2003.
• Robert F. Lusch & Stephen L. Vargo, The Service-Dominant Logic of Marketing: Dialog, Debate, And Directions, M.E. Sharpe, February 28, 2006.
Services - 3 © Minder Chen, 2009
References• Putting the Service-Profit Chain to Work, Heskett, James L.; Jones,
Thomas O.; Loveman, Gary W.; Sasser, Jr., W. Earl; Schlesinger, Leonard A.. Harvard Business Review, Jul-Aug 2008, Vol. 86 Issue 7/8, p118-129.
• How to Sell Services MORE Profitably, Reinartz, Werner; Ulaga, Wolfgang. Harvard Business Review, May 2008, Vol. 86 Issue 5, p90-96.
• The Four Things a Service Business Must Get Right, Frei, Frances X.. Harvard Business Review, April 2008, Vol. 86 Issue 4, p70-80.
• BREAKING THE TRADE-OFF Between Efficiency and Service, Frei, Frances X., Harvard Business Review, Nov. 2006, Vol. 84 Issue 11, p92-101.
• Vargo, Stephen L. and Lusch, Robert F. (2004a) ‘Evolving to a New Dominant Logic for Marketing’, Journal of Marketing 68(1): 1–17.
• Vargo, Stephen L. and Lusch, Robert F. (2004b) ‘The Four Services Marketing Myths: Remnants from a Manufacturing Model’, Journal of Service Research 6(4): 324–35.
• Succeeding through Service Innovation: A Service Perspective for Education, Research, Business and Government, by: IfM and IBM, 2008
Services - 4 © Minder Chen, 2009
Evolution of Works
Services - 5 © Minder Chen, 2009
Human Activities: Sociotechnical System Evolution
0
20
40
60
80
100
120
Services (Info)
Services (Other)
Industry (Goods)
Agriculture
Hunter-Gatherer
Estimations based on Porat, M. (1977) Info Economy: Definitions and Measurement
Estimated world (pre-1800) and then U.S. Labor Percentages by Sector
Services - 6 © Minder Chen, 2009
Nation % WW
Labor
%
A
%
G
%
S
25 yr %
delta S
China 21.0 50 15 35 191
India 17.0 60 17 23 28
U.S. 4.8 3 27 70 21
Indonesia 3.9 45 16 39 35
Brazil 3.0 23 24 53 20
Russia 2.5 12 23 65 38
Japan 2.4 5 25 70 40
Nigeria 2.2 70 10 20 30
Banglad. 2.2 63 11 26 30
Germany 1.4 3 33 64 44
Top Ten Nations by Labor Force Size(about 50% of world labor in just 10 nations)
A = Agriculture, G = Goods, S = Services
2004 2004United States
The largest labor force migrationin human history is underway,
driven by global communications, business and technology growth,urbanization and low cost labor.
(A) Agriculture:Value from
harvesting nature(G) Goods:
Value from making products
(S) Services:Value from enhancing the
capabilities of things (customizing, distributing, etc.) and interactions between things
Because the world is a giant service system.
SSME (Service Sciences, Management, & Engineering)
Services - 7 © Minder Chen, 2009
Classification of Services
• Extractive (agriculture, mining)
• Transformative (construction, food, manufacturing): Second sector
• Producer services (Business services and marketed services)
• Personal services (domestic, hotel, repair, dry-cleaning, entertainment, etc.)
• Distributive services (logistics, communication, wholesale and retail trade)
• Non-marketed services (Health, welfare, government, legal serices, education services, etc.)
Industry sector: Mining, Construction, & Manufacturing
Source: Front Stage
Services - 8 © Minder Chen, 2009
Four Categories of Services
Information processing
(services directed at intangible assets):
Accounting
Banking
Nature of the Service Act People Possessions
Tangible Actions People processing
(services directed at people’s bodies):
Barbers
Health care
Who or What Is the Direct Recipient of the Service?
Possession processing
(services directed at physical possessions):
Refueling
Disposal/recycling
Mental stimulus processing
(services directed at people’s minds):
Education
Advertising/PR
Intangible Actions
Services - 9 © Minder Chen, 2009
Service classification – Proximity to final customers
• Business-to-business services
• Consumer services
• “self-services”
More T-shaped Peopleto work in, study, and innovate
service systems
Social Science (People)
Management (Business)
Engineering (Technology)
Slide by Jean Paul Jacob
Services - 11 © Minder Chen, 2009
Service Characteristics
• A service is a deed, a performance, a process, an effort.
• What is being bought is intangible.
• Services are produced and consumed almost simultaneously.
• Services in principle cannot be inventories.
• Customers are involved in the production of the services.
• Manufacturing firms also have a service component of their own.
• Instant delivery and custom design are both services.
Services - 12 © Minder Chen, 2009
Services Definition
• A service is a provider/client interaction that creates and captures value.
• The provider and client coordinate their work (co-production) and in the process, both create and capture value (transformation).
• Services typically require assessment, during which provider and client come to understand one another's capabilities and goals.
• A time-perishable, intangible experience performed for a customer acting in the role of co-producer (Fitzsimmons, 2001)
Services - 13 © Minder Chen, 2009
Distinguishing services from goods
Inseparability Services are created and consumed at the same time Services cannot be inventoried Demand fluctuations cannot be solved by inventory processes Quality control cannot be achieved before consumptionConsideration: Does the ability to tailor and customize goods to the customers’
demands and preferences mean that these goods also have an inseparability characteristic?
Heterogeneity From the client’s perspective, there is typically a wide variation in service
offerings Personalization of services increases their heterogeneous nature Perceived quality-of-service varies from one client to the nextConsideration: Can a homogeneous perception of quality due to customer
preference idiosyncrasies (or due to customization) also benefit the goods manufacturer?
Services - 14 © Minder Chen, 2009
Distinguishing services from goods
Intangibility Services are ideas and concepts that are part of a process The client typically relies on the service providers’ reputation and the trust they
have with them to help predict quality-of-service and make service choices Regulations and governance are means to assuring some acceptable level of
quality-of-serviceConsideration: Do most services processes involve some goods?
Perishability (No inventory) Any service capacity that goes unused is perished Services cannot be stored so that when not used to maximum capacity the
service provider is losing opportunities Service capability estimation and planning are key aspects for service
managementConsideration: Do clients who participate in some service process acquire
knowledge which represents part of the stored service’s value? What might the impact be?
Co-produced
Services - 15 © Minder Chen, 2009
Service Layering
• Pure service: Legal service, barber shop
• IT-enabled Service: Google for information search, eBay for online auction services, WebMD for online health information
• IT Services: IT outsourcing service provider (IBM Global Service), on-demand data center (EDS), on-demand computing (IBM)
• Service-wrapped IT products: iTune and iPod; GM OnStar (Emergency service + remote diagnosis & sensing + GPS & Navigation)
• Manufacturing services: IC design houses, TSMC foundry service
• Pure manufacturing: Manufacturing of commodity products
Source: Minder Chen, 2007
Services - 16 © Minder Chen, 2009
Products vs. Services
• Products can be seen as the physical embodiment of the service provided.
– Cars provide comfortable transportation services
– Televisions deliver entertainment
– Cosmetics offer beatification services
– Cameras provides services for wonderful memory
Services - 17 © Minder Chen, 2009
OnStar Service from GM
OnStar By GM | OnStar.com, Car Safety Device and Vehicle Security Systemhttp://www.onstar.com/us_english/jsp/index.jspScreen clipping taken: 2007/3/6, 上午 07:56
Services - 18 © Minder Chen, 2009
iPod and iTune
Apple - iPod + iTunes, http://www.apple.com/itunes/, Screen clipping taken: 2007/3/6, 08:02
Services - 19 © Minder Chen, 2009
Service-Oriented Model & Architecture
The service target may be the service client itself.
Services - 20 © Minder Chen, 2009
Service Systems
• Service systems are value-creation networks composed of people, technology, and organizations.
• Interventions taken to transform state and coproduce value constitute services.
• Example in IT outsourcing– A service provider operates the computing infrastructure for a
service client.
– The provider augments the client’s capabilities, taking on responsibility for monthly service-level agreements and year-over-year productivity improvements.
• Service system complexity is a function of the number and variety of people, technologies, and organizations linked in the value creation networks, ranging in scale from professional reputation systems of a single kind of knowledge worker or profession, to work systems composed of multiple type of knowledge workers, to enterprise systems, to industrial systems, etc.
Services - 21 © Minder Chen, 2009
Services: The front-stage experience
manufacturing
Services - 22 © Minder Chen, 2009
Recruiting People with Certain Attitutes
Services - 23 © Minder Chen, 2009
Employees and Customers
“You don’t get happy guests with unhappy employees.”
J. W. Marriot
Services - 24 © Minder Chen, 2009
Service Profit Chain
Services - 25 © Minder Chen, 2009
Customer Loyalty
Services - 26 © Minder Chen, 2009
Lifetime Value of a Customer
Services - 27 © Minder Chen, 2009
The Service Triangle
WOM: Words of Mouth
Services - 28 © Minder Chen, 2009
Customer Relationship Management (CRM)
The measures an organization takes to – identify,
– select,
– acquire,
– work with, and
– retain
its customers
Services - 29 © Minder Chen, 2009
Objectives of CRM
• The right offer (products or services)
• To the right person (target marketing)
• At the right time (spacing outbound calls)
• Through the right channel (direct vs. channel)
• Via appropriate media (phone, email, Web)
Services - 30 © Minder Chen, 2009
Customer Life Cycle
Welcom
e
Awareness
GettingTo Know
Win
back
Targeting
Account
Management
Intensive
Care
Pre-Divorce/Divorce
Translate Failure into Success!The Proof!
"Moments of Truth"
Cross-Selling,Profit Opportunities
Delivery, Welcoming service andContinuous Contact Processes
Sales Processes (Including Business Partners)
Market and Customer Research and analysis
Services - 31 © Minder Chen, 2009
MOT Analysis Example: A Credit Card Company
• Pri to MOT – Recognition
– Information gathering
– Comparison
• MOT – Applying for Credit Card
– Receiving Credit Card
– Using Credit Card
– Providing Information
– Changing and Upgrading
– Gifts giving
– Emergency Assisting
• After MOT– No usage follow-up
– Stop membership follow-up
Services - 32 © Minder Chen, 2009
A Framework for Developing Effective Services
Understanding Customer Needs, Decision Making, and Behavior in Service Encounters
Building the Service Model
Managing the Customer Interface
Implementing Profitable Service Strategies
Source: Christopher Lovelock and Jochen Wirtz, Services Marketing, 6/E, Prentice Hall, 2007.
Services - 33 © Minder Chen, 2009 33
Service blueprint components
Physical evidence
Customer actions
OnstageEmployee actions
BackstageEmployee actions
Support processes
Line of interaction
Line of internal interaction
Line of visibility
Desktop PC and applications, ticket, records
IT request, problem call to help desk, etc
Takes call, opens ticket, visit to employee desk side
Refers to manuals, asks for help from team
Time recording, payroll, training, etc
Services - 34 © Minder Chen, 2009
Service Blueprinting
Services - 35 © Minder Chen, 2009
Think from the Customer Back
The CustomerThe Customer
Management
Organization
Functions/Processes
Activities/Tasks
DefineOutcomes
RedesignOutputs
DetermineActivities
DefineJob Responsibilities
DevelopOrganization Structure
* Adapted from The Price Waterhouse Change Integration Team, Better Change, Irwin, 1995, p. 163.
Services - 36 © Minder Chen, 2009
Service Strategy
Services - 37 © Minder Chen, 2009
The Service Portfolio
Services - 38 © Minder Chen, 2009
Service Catalog (Continued)
Services - 39 © Minder Chen, 2009
Service Support Model
Services - 40 © Minder Chen, 2009
The Service Delivery Process Model
Services - 41 © Minder Chen, 2009
SERVQUAL Model
Listening Gap
Performance Gap
Service Design and standards gap
Communicationgap
Customergap
