MSO 4 - Service Design
MSO 4 - Service Design
MSO 4 - Service Design
Dr Prashant Gupta
Characteristics Of Services
1. Intangible
2. Variable Output
3. High Customer Contact
4. Perishable
5. Service Inseparable from Delivery
6. Decentralized
7. Consumed more often
8. Easily Emulated (imitated)
Service Generalizations
1. Everyone is an expert on services.
• Service Package
• Service Specifications
Service Concept
From …
What the operation wants to do
Perspective
From … The service To …
Customer Perspective
Strategic intent concept Impact on customer
Operations
To …
How the operation can do it
Service Design Process
• Service Concept
• Purpose of a Service
• Target Market / Customer
• Customer Experience
• Service Package
• Physical Items
• Sensual Benefits
• Psychological Benefits
• Service Specifications
• Performance Specifications
• Design Specifications
• Delivery Specifications
Service Triangle
Service
Strategy
Customer
Service Service
Systems People
Service Strategy - Operating Focus
(Performance Priorities)
• Price of the Service
• Quality of tangible goods that are central to or accompany the service
• Speed and Convenience of service delivery
• Variety (Flexibility) of services (one stop shopping philosophy)
• Dependability:
- Treatment of the customer in terms of friendliness and
helpfulness
- Unique skills that constitute the service offering
Structuring the Service Encounter: Service-
System Design Matrix
• Service encounters can be configured in a number of different
ways:
• Mail Contact
• Internet and On-site Technology
• Phone Contact
• Face-to-face with Tight Specifications
• Face-to-face with Loose Specifications
• Face-to-face Total Customization
Low High
High vs. Low Contact Services
Design Decision High-Contact Service Low-Contact Service
Facility Location Convenient to Customer Near Labor or Transportation Source
Facility Layout
Quality Control
Capacity
Worker Skills
Scheduling
Service Process
Service
Package
High vs. Low Contact Services
Design Decision High-Contact Service Low-Contact Service
Facility Location Convenient to Customer Near Labor or Transportation Source
Facility Layout Must look presentable, accommodate customer Designed for efficiency
needs, and facilitate interaction with customer
Quality Control More variable since customer is involved in Measured against established standards
process;
Customer expectations and perceptions of quality Testing and rework possible to correct
may differ; defects
Customer present when defects occur
Capacity Excess capacity required to handle peaks in demand Planned for average demand
Worker Skills Must be able to interact well with customers and use Technical Skills
judgment in decision making
Scheduling Must accommodate customer schedule Customer concerned only with completion
date
Service Process Mostly front-room activities; Mostly back-room activities
Service may change during delivery in response to Planned and executed with minimal
customer
interference
Treatment Tangibles
Poka-yokes (Avoid Mistakes)
Poka-yokes are procedures that prevent mistake from becoming a service
defect.
Classification of Poka-yokes :
- Warning Methods: Fixtures, Electronic Switches, Kitting of Components
of a Product
- Physical or Visual Contact Methods
Three Ts :
Task to be done ( Was the car fixed right ? )
Treatment accorded to customer ( Was the Service Manager courteous ? )
Tangible or Environmental Features ( Was the waiting area clean and
comfortable ? )
Have we Compromised on one of the 3 Ts?
Characteristics of a Well-Designed Service System
1. Each element of the Service System is consistent with the
Operating Focus of the firm. E.g. Speed of Delivery
Organising idea – the essence of the service bought, or used, by the customer
Service concept (summary) – overview of what is to be delivered, to what standards, any key
resources used, relationships involved and service objectives, expressed in clear language that
can be shared
Service provided – the service process and its outputs, which have been designed,
created and enacted by the organisation using its many input resources, including the
customer
Service received
Old concept
New concept
EXPERIENCE
BENEFITS
Learning Enthusiasm for geology
Work support/scholarship Leisure
EMOTIONS
Serious Surprise
Source: Adapted from Clark, G., Johnston, R. and Shulver, M. (2000) ‘Exploring the service concept for service design and development’,
in J. Fitzsimmons and M. Fitzsimmons (eds) New Service Design, Sage publications, Thousand Oaks, California.