1. Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Part 4 ALIGNING SERVICE DESIGN AND STANDARDS 8-2

3. CUSTOMER COMPANY Gap 2: The Service Design and Standards Gap Customer-driven service designs and standards Company perceptions of customer expectations Provider Gap 2 8-3

4. Key Factors Leading to Provider Gap 2 8-4

5. Service Innovation and Design  Challenges of Service Innovation and Design  Important Considerations for Service Innovation  Types of Service Innovations  Stages in Service Innovation and Development  Service Blueprinting: A Technique for Service Innovation and Design Chapter8 8-5

6. Objectives for Chapter 8: Service Innovation and Design  Describe the challenges inherent in service innovation and design.  Present an array of different types of service innovations, including service offering innovation, innovating around customer roles, and innovation through service solutions.  Discuss the importance of engaging customers and employees and employing service design thinking in service innovation.  Present the stages and unique elements of the service innovation and development process.  Demonstrate the value of service blueprinting and how to develop and read service blueprints. 8-6

7. Risks of Relying on Words Alone to Describe Services  Oversimplification  Incompleteness  Subjectivity  Biased Interpretation 8-7

8. Important Considerations for Service Innovation  Involve customers and employees  Employ service design thinking and techniques 8-8

9. Important Considerations for Service Innovation  The five principles of service design thinking:  User-centered: Services should be experienced and designed through the customers eyes  Cocreative: All stakeholders should be included in the service design process  Sequencing: A service should be visualized as a sequence of interrelated actions  Evidencing: Intangible services should be visualized in terms of physical artifacts  Holistic: The entre environment of a service should be considered 8-9

10. Types of Service Offering Innovations  Major or radical innovations  Start-up businesses  New services for the currently served market  Service line extensions  Service improvements  Style changes 8-10

11. Service Innovation and Development Process 8-11

12. New Service Strategy Matrix for Identifying Growth Opportunities 8-12

13. Service Blueprinting  A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view. 8-13

14. Service Blueprint Components Customer Actions line of interaction Visible Contact Employee Actions line of visibility Invisible Contact Employee Actions line of internal interaction Support Processes Physical Evidence 8-14

15. Service Blueprint Components 8-15

16. Blueprint for Express Mail Delivery Service 8-16

17. Blueprint for Overnight Hotel Stay Service 8-17

18. Blueprint for DVD Rental Kiosk 8-18

19. Benefits of Service Blueprinting  Provides a 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.  Designs moments of truth from the customer’s point of view.  Suggests critical points for measurement and feedback in the service process.  Clarifies competitive positioning.  Provides understanding of the ideal customer experience. 8-19

20. Building a Service Blueprint 8-20