New Service Development

Transcription

1 New Service Development Shin Ming Guo NKFUST Service Innovation Service Blueprinting Service System Design Case Questions What are order qualifiers and order winners of custom made wedding cakes? What are key issues in developing such services? 1

2 I. Innovation in Services Idea Generation: Customers, Employees, Competitors, Technology Basic Research: Pursue a planned search for new knowledge regardless of possible application. (number theory) Applied Research: Apply existing knowledge to problems in creation of new service. (security coding) Development: Apply knowledge to problems to improve a current service. (on line shopping) 3 Technology-Driven Service Innovations Source of Service Example Service Industry Impact Technology Power/energy Jet aircraft International flight is feasible Facility design Materials Methods Information Hotel atrium Enclosed stadium Photochromic glass Synthetic engine oil Just in time (JIT) Six Sigma e commerce Internet Feeling of grandeur/spaciousness Year around use Energy conservation Fewer oil changes Reduce supply chain inventories Institutionalize quality effort Increase market to world wide Video on demand 4 2

3 Process Innovation Change where the process occurs relative to where the customer is. Electronic commerce: Holds inventory in a warehouse far from customers and ship the inventory to customers upon order Long tail effect: allows more variety items with little demand for a local store can be profitably carried in an order fulfillment center Customers order from home but have to wait and shipping costs must be incurred. 5 Case Study: Car Sharing Best suited to urban locations where there was a dense base of potential users, parking was expensive, and the need to drive was limited. 2xJOo5LIs Big hole in the rental market: short term, on demand private car access. 3

4 Building Service Platform Mobile technology enables vehicle reservation and usage. Wireless transmission authorizes users, read odometer, mileages, and time stamps. Challenges for Service Innovation Limited ability to protect intellectual properties. Definition of the intangibles. Incremental nature of innovations. Limited ability to build prototypes or conduct tests 8 4

5 II. Service Design Customer Participation Simultaneity Perishability Intangibility Heterogeneity location, interior design service blueprint, service recovery revenue management service encounter capacity planning, waiting line management Supporting Facility Facilitating Goods Information Explicit Services Implicit Services Service Design Elements Design Elements Structural Delivery system Facility design Location Capacity planning Managerial Information Quality Service encounter Managing capacity & demand Topics Process structure, service blueprint, strategic positioning Servicescapes, architecture, process flows, layout Geographic demand, site selection, location strategy Strategic role, queuing models, planning criteria Technology, scalability, use of Internet Measurement, design quality, recovery, tools, six sigma Encounter triad, culture, supply relationships, outsourcing Strategies, yield management, queue management 10 5

6 Customer Value Equation Qualit Cost Process quality Results produced Cost of acquiring the service Price to the customer Shouldice Hospital: Hernia Repair 6

7 Strategic Positioning via Process Structure Degree of Complexity: Measured by the number of steps in the service blueprint, e.g., a clinic is less complex than a general hospital Degree of Divergence: Amount of discretion permitted the server to customize the service, e.g., the activities of an attorney contrasted with those of a paralegal 13 Structural Alternatives for a Restaurant 14 7

8 Structural Alternatives for a Restaurant 15 Service Process Matrix: Divergence 16 8

9 Service Blueprinting: Complexity 17 Failsafing (pokayokes) Service failures are often caused by interruptions or negligence. Task to be done Treatment accorded to the customer Tangible features of the service Service Encounter = moments of truth Every customer contact is an opportunity to satisfy the customer. To improve customers perception of service quality. 18 9

10 Generic Approaches to Service Design Production line Low Divergence Service Flow Cost and Consistent Quality Customer as Co Producer Low Complexity, High Divergence Substitute Technology for People Cost and Convenience Customer Contact High Complexity, High Divergence Service Encounter, Service Guarantee High Performance Quality, Dependability 19 Service Design Example 1 Production Line Treat the service as a manufacturing process Focus on tangibles, not people Standardization uniform quality Low contact high efficiency Technology fool proofing equipment and process 20 10

11 Service Design Example 2 Customer as Co Producer having customers taking a greater role enhances the service Self service cost, speed, convenience, customization 24 7 service availability Appointments and reservations Customers generated content Wiki, e markets 21 Service Design Example 3 Customer Contact how to achieve efficiency with customer participation Separation of high and low contact operations Employee empowerment + Keep track of customers preferences total customization of service Sales opportunities via personal relationship 22 11

12 Guidelines for Successful Service Design 1. Define the service package in detail 2. Focus on customer s perspective (expectation and perception) 3. Recognize that designer s perspective is different from the customer s perspective 4. Define quality for tangible and intangibles elements 5. Make sure that recruitment, training, and rewards are consistent with service expectations 6. Establish procedures to handle exceptions 7. Establish systems to monitor service 23 Conclusion The process is the product. Service system matrix product process matrix Service blueprint process flow chart Inventory and scheduling are often not available to service operations. Expect and manage variability of service encounter Parts of the service packages are defined by the training and treatment the workers receive

13 Homework 1 Study the operation of zipcar. Describe its strategic service vision and service package. Due 12:00 noon, 3/20 smguo@nkfust.edu.tw 13