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Unit Iii Service Design and Development

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UNIT III

SERVICE DESIGN AND


DEVELOPMENT

Service Design
Activity of Planning & Organizing People,

Infrastructure, Communication and Material


Components of a Service.
To improve its Quality
Interaction between Service Provider &
Customers.
Gathering Service needs and mapping them
to the requirements.
It helps to create new services or improve the
existing services
It 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.
2.
3.
4.
5.
6.

Cost are very high


Slow sales volume to Start
Little or no Competition
Demand has to be Created
Customers have to be Prompted to try the
Product
Makes no money at this stage.

Growth`
Cost reduced due to economies of scale
Sales volume increase Significantly
Profitability begins to rise
Public Awareness Increase
Competition Begins
Due to Competition price decreases.

Maturity
Cost Low Production Increase
Sales volume Peaks
Market Saturation Reached
Competitor Increases
Brand differentiation and Feature

diversification is maintain
Industrial Profits go down.

Decline
Costs become Optimal
Sales volume decline or Stable
Prices, Profitability Diminish
Profit become more Challenge

New service development


Growing an Enterprise Through a

Number of Marketing Techniques


How

do we Find, Reach and Approach


Customers?
How do we keep these Customers
Satisfied with new possible Services?

Types
Style Change
Service Improvements
Supplementary Service Innovation
Process Line Extensions
Product Line Extensions
Major Process Innovations
Major Service Innovations

Pre- Requisites for New Service


Development
Market Analysis
Business Case Development & Pricing
Service Description
Requirements Definition

New Service Development Process


Concept Generation
Concept Screening
Preliminary Design
Design Evaluation and Improvement
Prototyping & Final Design
Developing 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 role
Onstage / Visible Contact Employee

Actions
Backstage / Invisible Contact Employee
Actions
Support processes

Blueprinting the Restaurant Experience: Act 1

(Fig

8.1)

Timeline

Back

- Stage

Front -

Stage

Service
Standards and
Scripts
Physical
Evidence

Support
Processes

Act 1
Make
Reservation

Valet
Parking

W
Coat Room

Line of
interaction

Accept
reservatio
n
Check
availability,
insert
booking
Maintain
reservatio
n system

Greet
customer,
take car keys

Take car to
parking lot

Maintain
(or rent)
facilities

Greet, take
coat, coat
checks
Hang coat
with visible
check
numbers
Maintain
facilities/
equipment

Contact person
(visible actions)
Line of
visibility
Contact person
(invisible
actions)
Line of
internal
physical
interaction

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 innovations
New services for existing markets
Improvements in offerings

Service Blueprinting for New


Services
Depiction of the Service Process from

the Clients Point of View


Identification of Client Contact Points
Identification of Front and Back End
Integration
Resource 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 communication
Customer needs

GAP MODEL OF SEVICE QUALITY

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