Operations Analytics/

Service Management in Key Sectors

LECTURE 2
Service Design and Development
Service Design Thinking
Service design is a collection of ideas, strategies, and processes for providing services centered on
the client's needs and, as a result, the business's overall performance.

Principles of Service Design Thinking

The principles of service design thinking can be summarized in five key points:

1. User Design: Services should be designed based on

a deep understanding of users' needs.
For example, Flipkart gathers constant feedback to
enhance website and app interfaces, ensuring a
satisfying online shopping experience.

2. Co-creation: Involve users, stakeholders, and

employees in the design process to ensure a more
collaborative and inclusive approach.
For example, Ola actively engages riders and
drivers through surveys, feedback collection, and
pilot programs to co-create an improved service
experience.

3. Holistic Approach: Consider the entire service ecosystem, including touchpoints, processes,
and people, to create a seamless and integrated experience.
For example, the State Bank of India (SBI) enhances banking through user-friendly apps,
improving in-branch services, and streamlining online processes for better customer
experience.

4. Service Prototyping and Iteration: Prototype and test services iteratively to identify and
address issues early in the design process.
For example, Zomato iterates based on user feedback, constantly introducing features and
updates to meet the needs of evolving customers and restaurant partners.

5. Visualization and Communication: Use visual tools and effective communication to convey
complex service concepts and engage stakeholders.
For example, MakeMyTrip simplifies the booking process with clear and intuitive visuals in its
user interfaces, enhancing the overall travel experience.

Service blueprinting visually analyzes and documents service processes, capturing customer-
facing and operational elements for a holistic view.

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Components of a Service Blueprint:

§ Customer Actions: Customers take these steps while interacting with the service. For example,
entering, ordering, waiting, and leaving at Starbucks.

§ Frontstage: Represents the customer-visible elements such as interactions with staff, physical
evidence, and touchpoints. For example, the barista taking the order and preparing the coffee at
Starbucks.

§ Backstage: Encompasses the internal processes, actions, and systems supporting service
delivery but aren't directly visible to the customer. For example, restocking supplies or
coordinating with the kitchen at Starbucks.

§ Support Processes: Include activities that facilitate the smooth functioning of the service. For
example, training baristas or managing inventory at Starbucks.

Customer Journey Mapping is a technique used to visualize and understand a customer's entire
experience with a product or service, from initial awareness through the purchase and beyond.

Components of a Customer Journey Map:

§ Stages: Typically divided into stages such as Awareness, Consideration, Purchase, Usage, and
Advocacy.

§ Touchpoints: Interaction points between the customer and the business (e.g., website, social
media, customer support).

§ Emotions: Captures the customer's emotional state at each journey stage.

§ Channels: The various channels or mediums through which the customer interacts with the
brand.

For example, Amazon’s customer journey map

might include stages such as Product Search, Order
Placement, Shipment Tracking, Product Arrival, and
Post-Purchase Support. Touchpoints could include
the website, mobile app, email notifications, and
customer service. Emotions might range from
anticipation during the search to satisfaction upon
receiving the product.

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Managing Customer Expectations in Service
Design
Managing customer expectations in service design entails understanding, setting, and aligning
customer anticipations with realistic service delivery for a positive experience.

Components of Managing Customer Expectations

1. Clear Communication: Clear communication of offerings, delivery times, and limitations
enhances customer satisfaction by meeting expectations.

2. Setting Realistic Standards: Businesses should refrain from over-promising and under-
delivering. Setting realistic standards helps in avoiding disappointments.

3. Underpromising and Overdelivering: Exceeding expectations often means promising less and
delivering more.

4. Customer Feedback Mechanisms: Actively seeking and listening to customer feedback helps
understand their expectations and adjust services accordingly.

Incorporating Technology and Innovation in

Service Development
Think about a mobile app or a website you use frequently. How has technology improved your
experience as a user, and how can businesses leverage innovation to enhance their services?

For example, Uber revolutionized transportation by connecting riders and drivers seamlessly
through a mobile app.

Components of Incorporating Technology and Innovation

1. Digital Transformation: Businesses can adopt digital tools and technologies to streamline
processes, reduce manual intervention, and enhance service delivery.
For example, the introduction of mobile check-ins by airlines simplifies the boarding process
and enhances convenience for passengers.

2. Data Analytics and Personalization: Analyzing customer data allows businesses to personalize
services, providing a more tailored experience.
For example, streaming services like Netflix use data analytics to recommend content based
on user preferences, enhancing user satisfaction.

3. Automation and AI: Automating repetitive tasks and incorporating AI technologies can improve
efficiency and provide 24/7 customer support.
For example, chatbots on websites use AI to answer customer queries instantly, contributing to
faster and more efficient service.

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4. Internet of Things (IoT): Connecting devices through IoT enables businesses to gather real-time
data and improve service functionality.
For example, smart home devices, such as thermostats and security systems, can be integrated
to provide a seamless and interconnected user experience.

Components of Balancing Customer Experience and Operational

Efficiency

1. Streamlined Processes: Efficient internal processes contribute to quicker service delivery and
improved operational efficiency.
For example, McDonald's streamlined their kitchen processes to deliver quick service while
maintaining food quality.

2. Customer-centric Design: Designing services with the customer in mind ensures that
operational processes align with customer expectations.
For example, Amazon prioritizes user-friendly interfaces and easy navigation to enhance the
customer experience.

3. Employee Training and Empowerment: Well-trained and empowered employees can provide
better service, contributing to a positive customer experience.
For example, Apple Store employees are trained to assist customers effectively, balancing
support with operational efficiency.

4. Technology Integration: Integrate technology to automate routine tasks, reducing manual

efforts and potential errors.
For example, self-service kiosks at airports streamline check-in processes, enhancing
efficiency and providing a convenient option for customers.

Reference:

§ GeeksforGeeks. (2023, November 10). Role of service sector in Indian economy.

https://www.geeksforgeeks.org/role-of-service-sector-in-indian-economy/
§ Haksever, C., & Render, B. (2017). THE IMPORTANT ROLE SERVICES PLAY IN AN ECONOMY. In WORLD SCIENTIFIC
eBooks (pp. 3–21). https://doi.org/10.1142/9789813209459_0001