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McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
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Learning Objectives
Describe the fundamental characteristics of service innovation.
Describe the four structural and four managerial elements of service
design.
Describe the components of the customer value equation.
Explain and differentiate what is meant by the divergence and the
complexity of a service process.
Describe the sequence of states and the enablers of the new service
development process.
Prepare a blueprint for a service operation.
Explain the difference between direct and indirect customer contact.
Compare and contrast the four approaches to service system design:
production-line, customer as coproducer, and information
empowerment.
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Structural
l
nte na
Co izatio of new services
objective / strategy
People
xt
Te
• Idea generation
Service design
n
am
ga
and screening
and testing
s
Or
• Concept
• Process and system
development and
design and testing Product
• Marketing program
testing
design and testing
• Personnel training Technology Systems
• Service testing and
pilot run
• Test marketing Tools
Design Analysis
• Business analysis
• Project authorization
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Limit to Four Choices Entree (6 choices) Expand to 10 Choices: Add Flaming Dishes;
Bone Fish at Table
Sundae Bar: Self-service Dessert (6 choices) Expand to 12 Choices
Coffee, Tea, Milk only Beverage (6 choices) Add Exotic Coffees; Wine list, Liqueurs
Serve Salad & Entree Together: SERVE ORDERS Separate-courses; Hand Grind Pepper
Bill and Beverage Together
Cash only: Pay when Leaving CASH OR CREDIT CARD Choice of Payment. Including House Accounts:
Serve Mints
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Production-line
• Limit Discretion of Personnel
• Division of Labor
• Substitute Technology for People
• Standardize the Service
Customer as Coproducer
• Self Service
• Smoothing Service Demand
• Customer-Generated Content
Customer Contact
• Degree of Customer Contact
• Separation of High and Low Contact Operations
• Sales Opportunity and Service Delivery Options
Information Empowerment
• Employee
• Customer
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Value
Re sults Pr oduced Pr ocessQuality
Pr ice CostsofAcquiringtheService
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