McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Part 4

ALIGNING
SERVICE DESIGN
AND STANDARDS

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 Provider Gap 2

CUSTOMER

COMPANY
Customer-Driven
Service Designs and
Standards

Service Design and

Standards Gap
Company Perceptions
of Consumer
Expectations
Part 4 Opener

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

 Chapter
Service Development and Design 9

 Challenges of Service Design

 New Service Development
 Types of New Services
 Stages in New Service Development
 Service Blueprinting
 Quality Function Deployment
 High-Performance Service Innovations

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 Objectives for Chapter 9:
Service Development and Design
 Describe the challenges inherent in service design.

 Present the stages and unique elements of the new-

service development process.

 Demonstrate the value of service blueprinting and how to

develop and read service blueprints.

 Present lessons learned in choosing and implementing

high-performance service innovations.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

 Figure 9.1

Risks of Relying on Words Alone to

Describe Services

 Oversimplification

 Incompleteness

 Subjectivity

 Biased Interpretation

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 Types of New Services

 major or radical innovations

 start-up businesses

 new services for the currently served market

 service line extensions

 service improvements

 style changes

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 Figure 9.2

New Service Development Process

 Business strategy development or review

 New service strategy development

 Idea generation
Front-end Screen ideas against new service strategy
Planning  Concept development and evaluation
Test concept with customers and employees

 Business analysis
Test for profitability and feasibility

 Service development and testing

Conduct service prototype test
 Market testing
Implementation Test service and other marketing-mix elements
Sources: Booz-Allen & Hamilton, 1982;  Commercialization
Bowers, 1985; Cooper, 1993; Khurana &
Rosenthal 1997.
 Postintroduction evaluation
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 Figure 9.3

New Service Strategy Matrix for

Identifying Growth Opportunities

Markets
Offerings
Current Customers New Customers

Existing Share Market

Services building development

New Service Diversification

Services development

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

 Figure 9.5

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.

Process

Service Points of contact

Blueprint
Evidence

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 Service Blueprint Components

Customer Actions
line of interaction

“Onstage” Contact Employee Actions

line of visibility

“Backstage” Contact Employee Actions

line of internal interaction

Support Processes

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 Figure 9.6

Service Blueprint Components

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 Figure 9.7

Blueprint for Express Mail Delivery Service

Truck Truck
CUSTOMER EVIDENCE
PHYSICAL

Packaging Packaging
Forms Forms
Hand-held Computer Hand-held Computer
Uniform Uniform

Customer Customer Receive

Calls Gives Package
Package

Line of interaction
(On Stage)

Driver
CONTACT PERSON

Picks Up Deliver
Package Package

Line of visibility
(Back Stage)

Customer
Service
Order

Line of internal interaction

SUPPORT PROCESS

Airport Fly to Load

Dispatch Unload
Receives Sort Fly to On
Driver &
& Loads Center Destination Truck
Load on Sort
Airplane

Sort
Packages

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 Figure 9.8

Blueprint for Overnight Hotel Stay Service

EVIDENCE
PHYSICAL

Hotel Exterior Cart for Desk Elevators Cart for Room Menu Delivery Food Bill
Parking Bags Registration Hallways Bags Amenities Tray Desk
Papers Room Bath Food Lobby
Lobby Appearance Hotel Exterior
Key Parking
CUSTOMER

Arrive Give Bags Call Check out

Go to Receive Sleep Receive
at to Check in Room Eat and
Room Bags Shower Food
Hotel Bellperson Service Leave

Line of Interaction
(Back Stage) (On Stage)
SUPPORT PROCESS CONTACT PERSON

Greet and
Process Deliver Deliver Process
Take
Registration Bags Food Check Out
Bags

Line of Visibility
Take
Take Bags Food
to Room Order
Line of Internal Interaction

Registration Prepare Registration

System Food System

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 Figure 9.9

Building a Service Blueprint

Step Step
Step33 Step
Step44 Step
Step66
Step11 Step
Step22 Step
Step55
Map Map contact Add evidence
Identify
Identifythe
the Identify
Identifythe
the Mapthe
the Map contact Link
Linkcontact
contact Add evidence
process employee of service at
process
process tobe
to be customer
customeroror processfrom
from employee activities
activitiestoto of service at
blue-printed customer the actions, onstage needed each customer
blue-printed customer the actions, onstage needed each customer
segment customer’s and back-stage, support action step
segment customer’s and back-stage, support action step
point of view and/or functions
point of view and/or functions
technology
technology
actions
actions

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 Blueprints Can Be Used By:
 Service Marketers  Human Resources Management
 creating realistic customer  empowering the human
expectations: element:
 service system design  job descriptions
 promotion
 selection criteria
 appraisal systems

 Operations Management  System Technology

 rendering the service as
 providing necessary tools:
promised:
 managing fail points  system specifications
 training systems  personal preference databases
 quality control

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