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Part 4

Part 4. ALIGNING SERVICE DESIGN AND STANDARDS. 8- 1. Provider Gap 2. CUSTOMER. Customer-driven service designs and standards. COMPANY. Gap 2: The Service Design and Standards Gap. Company perceptions of customer expectations. 8- 2. Key Factors Leading to Provider Gap 2. 8- 3.

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Part 4

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  1. Part 4 ALIGNING SERVICE DESIGN AND STANDARDS 8-1

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

  3. Key Factors Leading to Provider Gap 2 8-3

  4. 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 Chapter 8 Service Innovation and Design 8-4

  5. 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. 8-5

  6. Risks of Relying on Words Alone to Describe Services • Oversimplification • Incompleteness • Subjectivity • Biased Interpretation 8-6

  7. Important Considerations for Service Innovation • Involve customers and employees • Employ service design thinking and techniques • http://www.youtube.com/watch?v=s62DROeCUDU 8-7

  8. Types of Service Offering Innovations • Major or radical innovations • FedEx overnight shipping • Start-up businesses • door-to-door airport shuttle • New services for the currently served market • Retailers offer play area or coffee bar 8-8

  9. Types of Service Offering Innovations • Service line extensions • A restaurant adding new menu • An airline offering a new route • Service improvements • The addition of wireless Internet connection to a hotel room • Style changes • Revising a logo, redesigning a website 8-9

  10. 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 8-10

  11. Service Innovation and Development Process 8-11

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

  13. Example: PetSmart

  14. Example: Tide Dry Cleaners With video

  15. Service Concepts • Examples • Vedia_Finland • Next Gen TV_US • Smart Store _India • Source: • http://www.youtube.com/watch?v=zFbMZb1h9m4 • http://www.youtube.com/watch?v=m5BPX4mEGG8 • http://www.youtube.com/watch?v=m81yIvU3sfc

  16. 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. 8-16

  17. Service Blueprint Components Physical Evidence Customer Actions line of interaction Visible Contact Employee Actions line of visibility Invisible Contact Employee Actions line of internal interaction Support Processes 8-17

  18. Service Blueprint Components 8-18

  19. Blueprint for Express Mail Delivery Service 8-19

  20. Blueprint for Overnight Hotel Stay Service 8-20

  21. Blueprint for DVD Rental Kiosk 8-21

  22. 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. 8-22

  23. Building a Service Blueprint 8-23

  24. Regarding Midterm Exam • What I expect you to know • The differences between good and services • The Gap Model • The service quality • The strategies firms use to build relationship with customers • The strategies firms use to recover from service failure

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