SMT_11-12

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Session 11-12

Service Innovation and Design


Important Considerations for Service
Innovation

• Involve customers and employees


• Employ service design thinking and techniques
Principles of Service Design Thinking

• Human-centered
• Focus on the experience and needs of all individuals who are impacted by the service.
• Collaborative
• All stakeholders should be actively engaged in the service design process
• Iterative
• Employ a flexible, experimental approach, continually refining the service through repeated cycles of testing
and improvement.
• Sequential
• A service should be visualized as sequence of interrelated actions
• Real
• Ground the design in practical, real-world needs, using tangible prototypes and solutions to validate ideas.
• Holistic
• Services should sustainably address the needs of all stakeholders
Service
Innovation
and
Developmen
t Process
New Service
Strategy
Matrix for
Identifying
Growth
Opportunities
Service Blueprinting
Step1 Identify the process to be blueprinted

Step 2 Identify the customer or customer segment

Building a Step 3 Map the Process from the customer’s point of


view
Service
Blueprint Step 4 Map contact employee actions and/or
technology actions

Link contact activities to needed support


Step 5 functions

Add evidence of service at each customer


Step 6 action step
Service
Blueprint
Component
s
Overnight
Hotel Stay
Blueprint
Benefits of Service Blueprinting

• Provides platform for innovation


• Recognizes roles and interdependencies among functions, people, and organizations
• Facilitates both strategic and tactical innovations
• Transfers and stores innovation and service knowledge
• Suggests critical points for measurement and feedback in the service process
• Provides understanding of the ideal customer experince
Customer Defined Service Standards

• Operational standards based on pivotal customer requirements identified by


customers.

• These standards are deliberately chosen to match customer expectations and to be


calibrated the way the customer views and expresses them
Types of Customer-Defined Service
Standards

Hard standards and measures


• Things that can be counted, timed, or observed through
audits.

Soft standards and measures


• Opinion-based measures that be directly observed. They must
be collected by talking to customers, employees, or others.
Hard-
Standards
and
Measure
Soft-
Standard
and
Measures
Process of
Setting
Customer-
Defined
Standards
What
Customer
Expects:
Getting to
Actionable
Steps
Criteria for Creating Appropriate Service
Standards

• The standards are based on behaviors and actions that are very important to
customers
• The standards cover performance that needs to be improved or maintained.
• The standards cover behaviors and actions employees have control over and can
improve.
• The standards are understood and accepted by employees.
• The standards are predictive rather than reactive—based on current and future
• customer expectations rather than past complaints.
• The standards are challenging but realistic.
Risk of Relying on Words Alone to
Describe Services

• Oversimplification
• Incompleteness
• Subjectivity
• Biased Interpretation

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