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Service Development anddesign

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• For a good service idea to succeed, it is

important to focus on development, designand specification of service.

• To develop or launch a new service, thefollowing characteristics need to be

studied in detail:

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(a) Service characteristics:-meeting the need of the customer -advantage over the competitors in the

market.-technological edge.

(b) Strategy characteristics:-dedicated workforce who believe in the

new service-dedicated R&D focus on the new service

initiative.

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(c) Process characteristics:

-marketing-predevelopment-technological and launch proficiencies

(d) Marketplace characteristics:-relates to the market potential of the new

service

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CHALLENGES

• It is difficult to describe services verballydue to the in tangib le and heterogeneous characteristics of services.

The risks involved are(1) oversimplification(2) incompleteness

(3) subjectivity(4)biased interpretation

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NEW SERVICE DEVELOPMENT

• New services should be developed in asystematic step by step framework, which

-must be objective, not subjective.-must be precise, not ambiguous.-must be based on facts, not on opinions.

-must be methodological, not philosophical

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TYPES OF NEW SERVICES

-major innovations

-startup business

-new services for the currently served market

-service line extensions

-service improvements

-style changes

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STAGES IN NEW SERVICEDEVELOPMENT

(1)FRONT END PLANNING:-business strategy development: review the

overall strategic vision and mission of theorganisation.

-new service strategy development: In termsof markets, types of services, profitcriteria, time frame etc.

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Continued… - Idea generation:

(a) Screen ideas against new servicestrategy.(b) brainstorming, inviting ideas fromemployees and customers, lead user research and studying the competitors’offerings.

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-Concept development and evaluation: Testthe concept with customers andemployees.

-Business analysis: Test for profitability andfeasibility.

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(2) IMPLEMENTATION

-Service development and testing:(a) A service blueprint that represents the

implementation plan has to be prepared.(b) Conduct service prototype test

-Market testing:(a) Test the service and other marketing mix

elements.(b) Pilot run the service.(c) Study the responses

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-Commercialisation:

(a) Train and monitor the service deliveryemployees for service quality.

(b) Monitor costs and operating effiency.

-Post introduction evaluation

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SERVICE BLUEPRINTING

• It is a pictorial representation thataccurately portrays the service system sothat it can be easily understood.

• It visually displays the service by depictingthe various processes involved in theservice delivery, points of customer contact, the roles of customer andemployees etc.

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• Components of service blueprint:In the diagramatic representation the

components could be are the:--customer actions area-onstage contact employee action area-backstage contact employee action area-support process

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• Building a Blueprint:(a) Identify the process to be blueprinted

(b) Identify the customer or customer segment.(c) Map the process from the customer’s

point of view.(d) Map contact employee actions, onstage

backstage and technological actions.(e) Link contact activities to needed support

functions.(f) Add evidence of service at each customer

action step.