UNIT III SERVICE DESIGN AND

DEVELOPMENT

Service Design

Activity of Planning & Organizing People, Infrastructure, Communication and Material Components of a Service.

To improve its QualityInteraction between Service Provider &

Customers.Gathering Service needs and mapping them

to the requirements. It helps to create new services or improve the

existing servicesIt differentiate the company from the

competition

Elements of Service Design

Structural Delivery System Facility Design Location Capacity Planning

Managerial Service Encounter Quality Managing Capacity & Demand

Service Life Cycle

Stages: Introduction Growth Maturity Decline

Introduction

1. Cost are very high2. Slow sales volume to Start3. Little or no Competition4. Demand has to be Created5. Customers have to be Prompted to try the

Product6. Makes no money at this stage.

Growth`

Cost reduced due to economies of scaleSales volume increase SignificantlyProfitability begins to risePublic Awareness IncreaseCompetition BeginsDue to Competition price decreases.

Maturity

Cost Low Production IncreaseSales volume PeaksMarket Saturation ReachedCompetitor IncreasesBrand differentiation and Feature

diversification is maintain Industrial Profits go down.

Decline

Costs become OptimalSales volume decline or Stable Prices, Profitability DiminishProfit become more Challenge

New service development

Growing an Enterprise Through a Number of Marketing TechniquesHow do we Find, Reach and Approach

Customers?How do we keep these Customers

Satisfied with new possible Services?

Types

Style ChangeService ImprovementsSupplementary – Service InnovationProcess Line ExtensionsProduct Line ExtensionsMajor Process InnovationsMajor Service Innovations

Pre- Requisites for New Service Development

Market AnalysisBusiness Case Development & PricingService DescriptionRequirements Definition

New Service Development Process

Concept GenerationConcept ScreeningPreliminary DesignDesign Evaluation and ImprovementPrototyping & Final DesignDeveloping the Operations Process

Service Blueprinting

A service blueprint depicts the entire service process on a map Shows the various stages of customer interaction with the

service provider, and provides minute details of the service delivery processes

The tangible evidence of the service Helps in breaking up the service delivery process into a series

of logical steps Blueprinting can be used in either designing or redesigning

service products

Elements of Blueprinting

Customer roleOnstage / Visible Contact Employee

ActionsBackstage / Invisible Contact Employee

ActionsSupport processes

Blueprinting the Restaurant Experience: Act 1 (Fig 8.1)

Make Reservation Coat RoomValet

Parking

Accept reservation

Greet customer, take car keys

Greet, take coat, coat checks

Check availability, insert booking

Take car to parking lot

Hang coat with visible check numbers

Maintain reservation system

Maintain (or rent) facilities

Maintain facilities/ equipment

Line of interaction

Line of visibility

Line of internal physical interaction

Contact person (visible actions)

Contact person (invisible actions)

Fro

nt -

S

tage

Ba

ck

- S

tage

…Timeline Act 1

Physical Evidence

Service Standards and Scripts

Support Processes

W W W

Developing a Service Blueprint

Identifying processes Identification of the customer segment Mapping the customer's view Mapping the onstage and backstage employee actions Identification of support activities Adding physical evidence wherever possible in the

service process

CATEGORIES FOR NEW SERVICE DEVELOPMENT

Major innovationsNew services for existing marketsImprovements in offerings

Service Blueprinting for New Services

Depiction of the Service Process from the Client’s Point of View

Identification of Client Contact Points Identification of Front and Back – End

IntegrationResource Definition, Time Standards and

Tolerance

SERVICE QUALITY

Quality means the degree of excellence in service performance.

Expected Quality vs Experienced Quality

Market communication Image Word-of-mouth communicationCustomer needs

GAP MODEL OF SEVICE QUALITY