1. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Part 4 ALIGNING SERVICE DESIGN AND STANDARDS

2. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin CUSTOMER COMPANY Service Design and Standards Gap Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations Provider Gap 2 Part 4 Opener

3. 9 Chapter Service Development and Design  Challenges of Service Design  New Service Development  Types of New Services  Stages in New Service Development  Service Blueprinting  Quality Function Deployment  High-Performance Service Innovations

4. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Types of New Services  major or radical innovations  start-up businesses  new services for the currently served market  service line extensions  service improvements  style changes

5. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Figure 9.2 New Service Development Process Sources: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.  Business strategy development or review  New service strategy development  Idea generation  Concept development and evaluation  Business analysis  Service development and testing  Postintroduction evaluation  Commercialization  Market testing Screen ideas against new service strategy Test concept with customers and employees Test for profitability and feasibility Conduct service prototype test Test service and other marketing-mix elements Front-end Planning Implementation

6. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Figure 9.3 New Service Strategy Matrix for Identifying Growth Opportunities Markets Offerings Existing Services New Services Current CustomersNew Customers Share building Diversification Market development Service development

7. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Figure 9.1 Risks of Relying on Words Alone to Describe Services  Oversimplification  Incompleteness  Subjectivity  Biased Interpretation

8. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Figure 9.5 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. Service Blueprint Process Points of contact Evidence

9. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin 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

10. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Figure 9.6 Service Blueprint Components

11. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Figure 9.7 Blueprint for Express Mail Delivery Service Driver Picks Up Package Dispatch Driver Airport Receives & Loads Sort Packages Load on Airplane Fly to Destination Unload & Sort Load On Truck SUPPORT PROCESS CONTACT PERSON (Back Stage) (On Stage) CUSTOMER PHYSICAL EVIDENCE Customer Calls Customer Gives Package Truck Packaging Forms Hand-held Computer Uniform Receive Package Truck Packaging Forms Hand-held Computer Uniform Deliver Package Customer Service Order Fly to Sort Center Line of interaction Line of visibility Line of internal interaction

12. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Figure 9.8 Blueprint for Overnight Hotel Stay Service SUPPORT PROCESS CONTACT PERSON (Back Stage) (On Stage) CUSTOMER Hotel Exterior Parking Cart for Bags Desk Registration Papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath MenuDelivery Tray Food Appearance Food Bill Desk Lobby Hotel Exterior Parking Arrive at Hotel Give Bags to Bellperson Check in Go to Room Receive Bags Sleep Shower Call Room Service Receive Food Eat Check out and Leave Greet and Take Bags Process Registration Deliver Bags Deliver Food Process Check Out Take Bags to Room Take Food Order Registration System Prepare Food PHYSICAL EVIDENCE Line of Interaction Line of Visibility Line of Internal Interaction Registration System

13. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Step 1 Identify the process to be blue- printed Step 1 Identify the process to be blue- printed Step 2 Identify the customer or customer segment Step 2 Identify the customer or customer segment Step 3 Map the process from the customer’s point of view Step 3 Map the process from the customer’s point of view Step 4 Map contact employee actions, onstage and back-stage, and/or technology actions Step 4 Map contact employee actions, onstage and back-stage, and/or technology actions Step 5 Link contact activities to needed support functions Step 5 Link contact activities to needed support functions Step 6 Add evidence of service at each customer action step Step 6 Add evidence of service at each customer action step Figure 9.9 Building a Service Blueprint

14. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin 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

15. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Blueprints Can Be Used By:  Service Marketers  creating realistic customer expectations:  service system design  promotion  Operations Management  rendering the service as promised:  managing fail points  training systems  quality control  Human Resources Management  empowering the human element:  job descriptions  selection criteria  appraisal systems  System Technology  providing necessary tools:  system specifications  personal preference databases

16. © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Figure 9.10 House of Service Quality for Village Volvo Source: J. A. Fitzsimmons and M. J. Fitzsimmons, Service Management, 3rd ed. (New York: Irwin McGraw-Hill, 2000), p. 58.