Important Considerations for Service Innovation

McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Part 4
ALIGNING
SERVICE DESIGN
AND STANDARDS
8-2
Provider Gap 2
CUSTOMER
COMPANY
Customer-driven
service designs and
standards
Company
perceptions of
customer
expectations
Gap 2: The Service
Design and Standards
Gap
8-3
Key Factors Leading to Provider Gap 2
8-4
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
8-5
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.
8-6
Risks of Relying on Words Alone to
Describe Services
 Oversimplification
 Incompleteness
 Subjectivity
 Biased Interpretation
8-7
Important Considerations for Service
Innovation
 Involve customers and employees
 Employ service design thinking and techniques
8-8
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
8-9
Types of Service Offering Innovations
 Major or radical innovations
 Start-up businesses
 New services for the currently served market
 Service line extensions
 Service improvements
 Style changes
8-10
Service Innovation and Development
Process
8-11
New Service Strategy Matrix for Identifying
Growth Opportunities
8-12
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.
8-13
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
8-14
Service Blueprint Components
8-15
Blueprint for Express Mail Delivery Service
8-16
Blueprint for Overnight Hotel Stay Service
8-17
Blueprint for DVD Rental Kiosk
8-18
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.
8-19
Building a Service Blueprint
8-20