Designing Service Organizations

The certain facts about the nature of services

 Services cannot be stored as we cannot inventory services, so we create

services as the demand arises.
 The capacity to create and provide the services becomes the dominant issue
in the case of service design.
 The services capacity should be optimum. There should be neither loss of
customer nor excessive cost due to excess capacity.
 Assistance and consultation of marketing is always advisable to decide about
the service capacity.

The four elements to be emphasized in designing service organization.

a) Identification of target market

b) Service concept
c) Service strategy
d) Service delivery system

Issues in Designing Services

The certain facts and considerations to be taken care of while designing the services.

1. Process and production must be developed simultaneously. In fact, in

services, the process itself is the production.
2. Although equipment and software supporting a service can be protected by
patents and copyrights, service operations itself lacks the legal protection
from duplication and imitation.
3. It is only a service package, not the definable goods.
4. Training individuals is part of the service package.
5. Many service organization can bring in their services with higher degree of
flexibility.

CHALLENGES IN PRODUCT AND SERVICE DESIGN

The concerns of environment and ethical and legal issues are major challenges in
designing the product and service. The governmental rules and regulations with
respect to environment, ecology, pollution and safety of consumer and operator
provide the bigger challenges for the design engineers.