Service Design

Activity of Planning & Organizing People,

Infrastructure, Communication and Material
Components of a Service.
To improve its Quality
Interaction between Service Provider & Customers.
Gathering Service needs and mapping them to the
requirements.
It helps to create new services or improve the
existing services
It differentiate the company from the competition

Elements of Service Design
Structural
Delivery System
Facility Design
Location
Capacity Planning
Managerial
Service Encounter
Quality
Managing Capacity & Demand


Service Life Cycle
Stages:
Introduction
Growth
Maturity
Decline

Introduction
1. Cost are very high
2. Slow sales volume to Start
3. Little or no Competition
4. Demand has to be Created
5. Customers have to be Prompted to try the Product
6. Makes no money at this stage.
Growth`
Cost reduced due to economies of scale
Sales volume increase Significantly
Profitability begins to rise
Public Awareness Increase
Competition Begins
Due to Competition price decreases.

Maturity
Cost Low Production Increase
Sales volume Peaks
Market Saturation Reached
Competitor Increases
Brand differentiation and Feature diversification is
maintain
Industrial Profits go down.


Decline
Costs become Optimal
Sales volume decline or Stable
Prices, Profitability Diminish
Profit become more Challenge


New service development
Growing an Enterprise Through a
Number of Marketing Techniques
How do we Find, Reach and Approach
Customers?
How do we keep these Customers
Satisfied with new possible Services?
Types
Style Change
Service Improvements
Supplementary Service Innovation
Process Line Extensions
Product Line Extensions
Major Process Innovations
Major Service Innovations
Pre- Requisites for New Service Development
Market Analysis
Business Case Development & Pricing
Service Description
Requirements Definition

New Service Development Process
Concept Generation
Concept Screening
Preliminary Design
Design Evaluation and Improvement
Prototyping & Final Design
Developing the Operations Process
Service Blueprinting
A service blueprint depicts the entire service process on
a map
Shows the various stages of customer interaction with
the service provider, and provides minute details of the
service delivery processes
The tangible evidence of the service
Helps in breaking up the service delivery process into a
series of logical steps
Blueprinting can be used in either designing or
redesigning service products
Elements of Blueprinting
Customer role
Onstage / Visible Contact Employee Actions
Backstage / Invisible Contact Employee Actions
Support processes
Blueprinting the Restaurant Experience: Act 1 (Fig 8.1)
Make
Reservation
Coat Room
Valet
Parking
Accept
reservation
Greet
customer, take
car keys
Greet, take
coat, coat
checks
Check
availability,
insert booking
Take car to
parking lot
Hang coat with
visible check
numbers
Maintain
reservation
system
Maintain (or
rent)
facilities
Maintain
facilities/
equipment
Line of
interaction
Line of visibility
Line of internal
physical
interaction
Contact person
(visible actions)
Contact person
(invisible actions)


F
r
o
n
t


-




S
t
a
g
e



B
a
c
k




-


S
t
a
g
e




Timeline
Act 1
Physical
Evidence
Service Standards
and Scripts
Support
Processes
W
W
W
Developing a Service Blueprint
Identifying processes
Identification of the customer segment
Mapping the customer's view
Mapping the onstage and backstage employee
actions
Identification of support activities
Adding physical evidence wherever possible in the
service process

CATEGORIES FOR NEW SERVICE DEVELOPMENT
Major innovations
New services for existing markets
Improvements in offerings
Service Blueprinting for New Services
Depiction of the Service Process from the
Clients Point of View
Identification of Client Contact Points
Identification of Front and Back End Integration
Resource Definition, Time Standards and
Tolerance


SERVICE QUALITY
Quality means the degree of excellence in service
performance.

Expected Quality vs Experienced Quality
Market communication
Image
Word-of-mouth communication
Customer needs

GAP MODEL OF SEVICE QUALITY