© 2000 The McGraw-Hill Companies Part 3 ALIGNING STRATEGY, SERVICE DESIGN AND STANDARDS McGraw-Hill © 2000 The McGraw-Hill Companies

Provider GAP 2 Customer-Driven Service Designs and Standards COMPANY GAP 2 Company Perceptions of Consumer Expectations Part 3 Opener

© 2000 The McGraw-Hill Companies Chapter 8 SERVICE DEVELOPMENT AND DESIGN McGraw-Hill © 2000 The McGraw-Hill Companies

Figure 8-1 Risks of Relying on Words Alone to Describe Services Oversimplification Incompleteness Subjectivity Biased Interpretation

New Service Development Process Figure 8-2 New Service Development Process Business Strategy Development or Review New Service Strategy Development Front End Planning Idea Generation Screen ideas against new service strategy Concept Development and Evaluation Test concept with customers and employees Business Analysis Test for profitability and feasibility Service Development and Testing Conduct service prototype test Implementation Market Testing Test service and other marketing-mix elements Commercialization Postintroduction Evaluation Source: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.

Figure 8-3 New Service Strategy Matrix for Identifying Growth Opportunities Markets Offerings Current Customers New Customers Existing Services SHARE BUILDING MARKET DEVELOPMENT New Services SERVICE DEVELOPMENT DIVERSIFICATION

The Structure of Service Production Interactive Part customer contact with contact personnel systems physical components --------------------LINE OF VISIBILITY---------------------------- Support Management Support Support Functions Technological/Knowledge Support

Figure 8-4 Service Mapping/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. Process Service Mapping Points of Contact Evidence McGraw-Hill © 2000 The McGraw-Hill Companies

Blueprinting Looks at the basic systems of your organization ---- “a process” Answers the questions: Who does what, to whom, how often, and under what conditions?

Service Blueprint Components CUSTOMER ACTIONS line of interaction “ONSTAGE” CONTACT EMPLOYEE ACTIONS line of visibility “BACKSTAGE” CONTACT EMPLOYEE ACTIONS line of internal interaction SUPPORT PROCESSES (ada yang menggerakkan)

Symbols Used In Blueprinting Rectangles --- process symbol Flow of lines --- how often Boxes with fans --- a range of potential actions which can occur Circles with fans --- a range of potential events that may occur Line of Visibility --- onstage from backstage

Express Mail Delivery Service Truck Packaging Forms Hand-held Computer Uniform Truck Packaging Forms Hand-held Computer Uniform PHYSICAL EVIDENCE Customer Calls Customer Gives Package Receive Package CUSTOMER Driver Picks Up Pkg. (On Stage) Deliver Package CONTACT PERSON (Back Stage) Customer Service Order Airport Receives & Loads Fly to Sort Center Dispatch Driver Unload & Sort Load On Truck Fly to Destination SUPPORT PROCESS Load on Airplane Sort Packages

Overnight Hotel Stay Bill Desk Lobby Hotel Exterior Parking PHYSICAL EVIDENCE Hotel Exterior Parking Cart for Bags Desk Registration Papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath Menu Delivery Tray Food Appearance Food CUSTOMER Arrive at Hotel Give Bags to Bellperson Call Room Service Check out and Leave Go to Room Receive Bags Sleep Shower Receive Food Check in Eat Greet and Take Bags (On Stage) Process Registration Deliver Bags Deliver Food Process Check Out CONTACT PERSON Take Food Order (Back Stage) Take Bags to Room Registration System Prepare Food Registration System SUPPORT PROCESS

Blue Print for the Corner Shoeshine Stand

Flowchart of a Discount Brokerage

Blueprint of a General Practitioner Services

An Auto Dealer’s Service Department

Building a Service Blueprint Figure 8-8 Building a Service Blueprint Step 1 Identify the process to be blue-printed. Step 2 Identify the customer or customer segment. Step 3 Map the process from the customer’s point of view. Step 4 Map contact employee actions, onstage and back-stage. Step 5 Link customer and contact person activities to needed support functions. Step 6 Add evidence of service at each customer action step.

Application of Service Blueprints New Service Development concept development market testing Supporting a “Zero Defects” Culture managing reliability identifying empowerment issues Service Recovery Strategies identifying service problems conducting root cause analysis modifying processes

Blueprints Can Be Used By: Human Resources empowering the human element job descriptions selection criteria appraisal systems System Technology providing necessary tools: system specifications personal preference databases Service Marketers creating realistic customer expectations service system design promotion Operations Management rendering the service as promised managing fail points training systems quality control

Differences Between Manufacturing and Services Intangibility Perishability Inseparability Variability

Benefits of Blueprinting Clarifies elements of the service. Shows the sequence of delivery. Separates onstage from backstage customer contact from support component. Identifies likely fail points. Identifies capacity bottlenecks. Allows management of the whole rather than the pieces.

Using Blueprints For Service Design For internal communication For measurement design