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Service Design and Development

The document discusses service design and the process of new service development. It covers topics like idea generation, concept development and evaluation, implementation stages including service development and testing, market testing, and commercialization. The key aspects of achieving success in new service development are also summarized.

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neha ugyal
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174 views28 pages

Service Design and Development

The document discusses service design and the process of new service development. It covers topics like idea generation, concept development and evaluation, implementation stages including service development and testing, market testing, and commercialization. The key aspects of achieving success in new service development are also summarized.

Uploaded by

neha ugyal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SERVICE DESIGN

AND
DEVELOPMENT
Service Design
Service design is the activity of planning and
arranging people, infrastructure,
communication and material components of a
service in order to improve its quality, and the
interaction between the service provider and
its users.
Service design may function as a way to
inform changes to an existing service or create
a new service entirely.
Service Design Definition

Service delivery
• The combination system • Something that is
of goods and • The facilities, done to, or for, a
services provided processes, and customer
to a customer skills needed to
provide a service
Product Bundle Service
Challenges Of Service Design

Oversimplification

Challenges of Incompleteness
Interpretation service design

Subjectivity
Types of New Services
Major Innovations

Start-up Businesses

Types of New Services


New service for the
currently served market

Service line extensions

Service improvements

Style changes
Types of New Services
Major Innovation
 New service driven by information and computer based
technology. E.g first broadcast television services.
Start-up Business
 New service for existing market. E.g online banking for
financial transactions.
New service for the currently served
market
 New services for the customers of an organisation not
previously available. E.g airline offering internet, fax and
phone services during flights.
Types of New Services
Service line extensions
 Extension of existing service line, such as adding new
menu items, new routes. E.g a new university course,
mobile and online banking.
Service improvement
 Changes in features of currently offered service
Style Changes
 Modest visible changes in appearances. E.g website
redesign or painting aircraft.
• Self Service
• Direct Service
• Pre Service
Service • Bundled
Redesign Service
• Physical
Service
New Service Development Process
Business Strategy Development Or
Review
Review mission & vision
Orientation towards growth
Primary strategic orientations
Prospectors seek to be innovative, searching
out new opportunities and taking on risk.
Prospectors seek to be innovative, searching
out new opportunities and taking on risk.
Analyzers maintain stability
Reactors seldom make adjustments
Cost leadership strategy
New Service Strategy Development
By Defining a new service strategy, the
organization will be in a better position to
begin generating specific ideas
One way to begin is to use the framework
The other one is to use the matrix
Idea Generation
Ideas generated at this phase can be passed
through the new service strategy screen.
many methods and avenues are available for
searching out new service ideas.

Methods:
Interacting with others
Creativity techniques
Concept Development And
Evaluation
Who is the target market and who is the decision
maker in the purchasing process.
What features must the product incorporate.
What benefits will the service provide to the
customer and to the organization.
How will client react to the service.
How the service can be delivered most cost
effectively.
What will be the cost to deliver the service.
Evaluation by employees and customers on

whether they understand the idea of the


proposed service,
whether they are favorable to the concept,
and whether they feel it satisfies an unmet
need.
Business Analysis

Marketing Financial Business


Assessment Assessment analysis
Marketing Assessment

o Target market
o Forecasting of sales volume
o Indication of product positioning
o Competitor reaction
o Specification of new product
development
Financial Assessment

o Sales volume and value


o Variable cost of production
o Incremental fixed cost
o Contribution and profitability of the new
service
IMPLEMENTATION

“The Beauty of Every Idea Lies in How


We Implement it…”
Implementation Stages
Once the new service concept has passed all
the front-end planning hurdles, it is ready for
the implementation stage process.

Service Development & Testing


Market Testing
Commercialization
Post-Introduction Evaluation
Service Development & Testing
The intangibility presents unique
challenges.
The stage should involve all who have a
stake in the new service.
The concepts are refined to the point at
which a detailed service blueprint can be
constructed.
Service Blueprint
Picture or map that accurately portrays the
service system.
Helps different people involved to
understand and deal with it objectively.
Displays the service by simultaneously
depicting the process of delivery, the points
of customer contact, the roles of customers
and employees, and the visible elements of
service.
The final step is to transform the blueprint
into specific implementation plans for its
part of service delivery process.
All parties involved in any aspect of the
new service need to work together to
delineate the details of the new service.
Market Testing
Difficult to test in isolated markets.
e.g. Hospital has only one point of delivery.
The new service may be offered to the employees
and their families for assessing responses.
An alternate is to test variations in pricing and
promotions in a less realistic context by presenting
customers with hypothetical mixes and getting their
responses in terms of intentions to try the service
under different conditions.
It is also important to do a pilot run of the service
to check the smoothness in the functioning of
operations.
Commercialization
Service goes live & is introduced at the
market space.
The stage has 2 objectives
Built & maintain acceptance of new service
among large number of service delivery
personnel responsible for service quality.
Monitor all aspects of service during
introduction and through the complete service
cycle. Every detail of the service is assessed.
Operating efficiency and costs are tracked.
Post-Introduction Evaluation
The information gathered during
commercialization of service is reviewed and
changes are made in
Delivery process
Staffing
Service mix
No service will stay same. Services are exposed
to deliberate or unplanned changes.
This calls for formalizing the review process to
enhance quality and understand customer
perceptions.
Achieving Success In New Service
Development

Unlike in the development of a product,


in developing a service, the product core
is of only secondary importance.
Quality of the total service offering & of
the marketing support that goes with it.
Three factors contributing most to success are,

Market synergy
Organizational factors
Market research factors
New Service Development
Four basic characteristics for new service
development are:

It must be objective, not subjective.


It must be precise, not vague.
It must be driven, not opinion driven.
It must be methodological, not
philosophical.

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