Part 4
ALIGNING
SERVICE DESIGN
AND STANDARDS
8-1
Provider Gap 2
CUSTOMER
COMPANY
Customer-driven
service designs and
standards
Company
perceptions of
customer
expectations
Gap 2: The Service
Design and Standards
Gap
8-2
Key Factors Leading to Provider Gap 2
8-3
Chapter
Service Innovation and Design
8
 Challenges of Service Innovation and Design
 Important Considerations for Service Innovation
 Types of Service Innovations
 Stages in Service Innovation and Development
 Service Blueprinting: A Technique for Service
Innovation and Design
8-4
Objectives for Chapter 8:
Service Innovation and Design
 Describe the challenges inherent in service innovation and
design.
 Present an array of different types of service innovations,
including service offering innovation, innovating around
customer roles, and innovation through service solutions.
 Discuss the importance of engaging customers and employees
and employing service design thinking in service innovation.
 Present the stages and unique elements of the service
innovation and development process.
 Demonstrate the value of service blueprinting and how to
develop and read service blueprints.
8-5
Risks of Relying on Words Alone to
Describe Services
 Oversimplification
 Incompleteness
 Subjectivity
 Biased Interpretation
8-6
Important Considerations for Service
Innovation
 Involve customers and employees
 Employ service design thinking and techniques
 http://www.youtube.com/watch?v=s62DROeCU
DU
8-7
Types of Service Offering Innovations
 Major or radical innovations
 FedEx overnight shipping
 Start-up businesses
 door-to-door airport shuttle
 New services for the currently served market
 Retailers offer play area or coffee bar
8-8
Types of Service Offering Innovations
 Service line extensions
 A restaurant adding new menu
 An airline offering a new route
 Service improvements
 The addition of wireless Internet connection to a hotel room
 Style changes
 Revising a logo, redesigning a website
8-9
Important Considerations for Service
Innovation
 The five principles of service design thinking:
 User-centered: Services should be experienced and designed
through the customers eyes
 Cocreative: All stakeholders should be included in the service
design process
 Sequencing: A service should be visualized as a sequence of
interrelated actions
 Evidencing: Intangible services should be visualized in terms
of physical artifacts
 Holistic: The entre environment of a service should be
considered
8-10
Service Innovation and Development Process
8-11
New Service Strategy Matrix
for Identifying Growth Opportunities
KFC in Africa
PetSmart
Tide Dry Cleaners
8-12
Example: PetSmart
Example: Tide Dry Cleaners
With video
Service Concepts
 Examples
 Vedia_Finland
 Next Gen TV_US
 Smart Store _India
 Source:
 http://www.youtube.com/watch?v=zFbMZb1h9m4
 http://www.youtube.com/watch?v=m5BPX4mEGG8
 http://www.youtube.com/watch?v=m81yIvU3sfc
Service Blueprinting
 A tool for simultaneously depicting the service
process, the points of customer contact, and the
evidence of service from the customer’s point of
view.
8-16
Service Blueprint Components
Physical Evidence
Customer Actions
line of interaction
Visible Contact Employee Actions
line of visibility
Invisible Contact Employee Actions
line of internal interaction
Support Processes
8-17
Service Blueprint Components
8-18
Blueprint for Express Mail Delivery Service
8-19
Blueprint for Overnight Hotel Stay Service
8-20
Blueprint for DVD Rental Kiosk
8-21
Benefits of Service Blueprinting
 Provides a platform for innovation.
 Recognizes roles and interdependencies among functions,
people, and organizations.
 Facilitates both strategic and tactical innovations.
 Transfers and stores innovation and service knowledge.
 Designs moments of truth from the customer’s point of
view.
 Suggests critical points for measurement and feedback in
the service process.
 Clarifies competitive positioning.
 Provides understanding of the ideal customer experience.
8-22
Building a Service Blueprint
8-23
Regarding Midterm Exam
 What I expect you to know
 The differences between good and services
 The Gap Model
 The service quality
 The strategies firms use to build relationship with
customers
 The strategies firms use to recover from service
failure