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