SERVICE MARKETINGService Innovation and DesignService Innovation and Design

Stanley S. RodrickStanley S. Rodrick

Challenges of Service Innovation and Design

Because services are largely intangible and process oriented (such as hospital stay, cricket lesson, a football game or a sophisticated information technology consulting service), they are difficult to describe and communicate.Because services are delivered by employees to customers, they are variable. Rarely are two services are alike or experienced in the same way.Because services cannot be touched, examined or easily tried out, people have historically resorted to words in their efforts to describe them.

Risks Involved

Oversimplification: Oversimplification: Words are simply inadequate to describe a whole complex service system.

Incompleteness: Incompleteness: In describing services, people tend to omit details or elements of the service with which they are not familiar.

Subjectivity: Subjectivity: Any one person describing a service in words will be biased by personal experience and degree exposure to the service.

Biased Interpretation: Biased Interpretation: No two people will define responsiveness, quick, or flexible in exactly the same way.

New Service Strategy Development

MarketsMarkets

Markets OfferingsMarkets Offerings

Existing Existing ServicesServices

New ServicesNew Services

Current Current CustomersCustomers

Share Share Building Building

Service Service Development Development

New New CustomersCustomers

Market Market Development Development

Diversification Diversification

Major or Radical InnovationsStart-up BusinessesNew Services for the currently Served

MarketService Line ExtensionsService ImprovementsStyle Changes

Types of Service Innovations

Service BlueprintingA Service Blueprint Service Blueprint is a picture or map that portrays the service system so that the different people involved in providing it can understand and deal with it objectively, regardless of their roles or their individual points of view.

Blueprints are particularly useful at the design stage of service development.

A Service Blueprint visually displays the service by simultaneously depicting the process of service delivery, the points of customer contact, the roles of customers and employees and the visible element of the service.

Service Blueprinting

A technique for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view.

ServiceMappin

g

Process

Points of Contact

Evidence

Basic components of Service Blueprint are:Customer actions“Onstage” contact employee actions“Backstage” contact employee actionsSupport processes

Service Blueprint Components

Service Blueprint Components

Physical Evidence

Customer Actions

Line of Interaction

Line of Visibility

Line of Internal Interaction

Onstage ContactEmployee Actions

Employee Actions (Backstage/ Invisible

Support Processes

Service Blueprint Components

Customer Actions: Customer Actions: it includes steps, choices, activities and interactions that customer performs in the process of purchasing, consuming and evaluating the service.

Onstage Employee Actions: Onstage Employee Actions: steps and activities that the contact employees performs that are visible to the customer.

Backstage Employee Actions: Backstage Employee Actions: steps and activities that occur behind the scene to support onstage activities.

Service Blueprint Components

Support Processes: Support Processes: covers the internal services, steps and interactions that take place to support the contact employees in delivering the service.

Service Blueprint Components

Physical Evidence: above each point of contact the actual physical evidence of the service is listed.

Line of Interaction: direct interactions b/w the customer and organization.

Line of Visibility: this line separates all service activities that are visible to the customers from those that are not visible.

Line of Internal Interaction: separates contact employees activities from those of other service support activities and people.

DriverPicksUp Pkg.

DispatchDriver

AirportReceives& Loads

SortPackages

Load onAirplane

Fly toDestination

Unload&

Sort

LoadOn

Truck

Blueprint Express Mail Blueprint Express Mail Delivery ServiceDelivery Service

CustomerCalls

CustomerGives

Package

Truck, Packaging, Forms, Hand-held Computer Uniform

ReceivePackage

DeliverPackage

CustomerServiceOrder

Fly toSort

CenterSUPPORT PROCESS

Truck, Packaging, Forms, Hand-held

Computer Uniform

(On Stage)

CUSTOMER

PHYSICALEVIDENCE

(Back Stage)

BlueprintBlueprint Overnight Hotel Overnight Hotel StayStay

(Back Stage)

SUPPORT PROCESS

CONTACT PERSON

(On Stage)

CUSTOMER

HotelExteriorParking

Cart for Bags

DeskRegistrationPapersLobbyKey

ElevatorsHallways

Room

Cart for Bags

RoomAmenitiesBath

Menu DeliveryTrayFoodAppearance

FoodBillDeskLobbyHotelExteriorParking

Arriveat

Hotel

Give Bagsto

BellpersonCheck in Go to

RoomReceive

BagsSleep

Shower

CallRoom

Service

ReceiveFood

EatCheck out

andLeave

Greet andTakeBags

ProcessRegistration

DeliverBags

DeliverFood

ProcessCheck Out

Take Bagsto Room

TakeFoodOrder

RegistrationSystem

PrepareFood

RegistrationSystem

PHYSICALEVIDENCE

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