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NSF Workshop on Service Science August 27-29 Philadelphia Enabling the Ser ices Sciences Enabling the Services Sciences via a Unified Services Theory Craig Froehle, Ph.D. University of Cincinnati University of Cincinnati

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Page 1: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Enabling the Ser ices Sciences Enabling the Services Sciences via a Unified Services Theory

Craig Froehle, Ph.D.University of CincinnatiUniversity of Cincinnati

Page 2: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Page 3: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Make-to-Stock Assemble-to-Order

Page 4: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Supplier Production CustomerInputs Outputs

Manufacturing and Extractive (Non-Services)

Supplier Process Customerpu s Outputs

Services

Supplier ProductionProcess CustomerInputs Outputs

What makes a service a service?

Page 5: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Services

Supplier ProductionProcess CustomerInputs Outputs

What makes a service a service?

Page 6: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Services

Supplier ProductionProcess CustomerInputs Outputs

INPUTS• Provided by suppliers

• Provided by customers• Self• Property/goods• Information

What makes a service a service?

Page 7: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Services

Supplier ProductionProcess CustomerInputs Outputs

CUSTOMERS• Those who determine if the producer is

compensated for production

• Customers may require that others – indirect customers – also be satisfied with the service

What makes a service a service?

Page 8: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Services

Supplier Production Process CustomerInputs Outputs

PRODUCTION PROCESS• Productive activities that contribute to throughput or sales

• Processes can be broken down into smaller sets of activities

• Production systems are usually mixtures of service and non-service processes

What makes a service a service?

Page 9: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

The Unified Services Theory“With service processes, the customer

provides significant inputs into the p g pproduction process. With manufacturing

processes, groups of customers may p , g p ycontribute ideas to the design of the

product, but individual customers' only p , yparticipation is to select and consume the output. All managerial themes unique to p g qservices are founded in this distinction.”

Page 10: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Chase’s Customer Contact Theoryy

Potential Efficiency = f(1 - )Customer Contact Time

Service Creation Time

• Focuses on face-to-face contact of the customer with the service system– Pure services , Mixed services, and Quasi-manufacturing– Front-office / back-office decoupling

• Sets of processes with different types and degrees of• Sets of processes with different types and degrees of customer inputs– Self (incl. labor)

– Property (e.g., goods)

– Information

Page 11: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Characteristics of ServicesSymptoms

Characteristics of Services• Customer Involvement

• Heterogeneity / High Output Variability

• Proximity to the Customery

• Simultaneous Production & Consumption

• No Finished-Goods Inventoryy

• Perishability

• IntangibilityIntangibility

Page 12: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Schmenner’s Service Process Matrix

Page 13: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Assemble-to-OrderMake-to-Stock

Page 14: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Roles of Technology in the Service Encounter

Technology

Service Customer

Technology Technology

Service Rep

Service Customer

Service Rep

Service Customer

Service Rep

Modes of“Face-to-Face”

Customer Contact p p p

A. Technology-Free Customer Contact

B. Technology-Assisted Customer

Contact

C. Technology-Facilitated Customer

Contact

Technology

Service Service

Technology

Service Service

Modes of“Face-to-Screen” Customer Contact Service

CustomerService

RepService

CustomerService

Rep

D. Technology-Mediated Customer

E. Technology-Generated Customer Contact

Customer Contact

Contact (Self-Service)

from Froehle & Roth, 2004

Page 15: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Sources of Scalability• Virtual services

– Involve only transfers of information (or data)

• Self-service– The customer serves himself/herself

• Community-based services– Customers serve other customers

No physical/tangible component

Requires no human contact with the customer

“Sh d i ” i ffi i l“Shared capacity” is an efficient way to scale up

Word-of-mouth advertising = cheap marketing

Page 16: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Quality and Customer Inputs

+ = ?

Who is responsible for service failures regarding customer inputs?

Page 17: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Services == Customer Input Management

Management Tool Effect

Reservation systems Restrict arrival of customer inputsReservation systems Restrict arrival of customer inputs

Self-service Customer provides key labor input

Workshift scheduling Match capacity to customer input arrival

Customer education Increase homogeneity of customer inputsC g y p

Customer selection Increase homogeneity of customer inputs

Back-office separation Mitigate customer “self” inputs

Page 18: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Implications for Service Science

Innovation in:Products/services

Innovation in:Products/services

Focus on customer inputs

Products/services

Processes

Business models

Products/services

Processes

Business models

SocietySociety

Page 19: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Page 20: Enabling the Ser ices Sciences Enabling the Services ... · The Unified Services Theory “With service processes, the customer ppgprovides significant inputs into the production

NSF Workshop on Service Science

August 27-29 Philadelphia

Service Supply ChainsTypical “Manufacturing” Supply Chain

Bidirectional Service Supply Chain