Chapter 8-1

Part 4
ALIGNING SERVICE DESIGN
AND STANDARDS

Chapter - 8
Services Innovation and
Design

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 Chapter 8-2

Provider Gap 2
CUSTOMER

COMPANY Customer-driven
service designs and
standards
Gap 2: The Service
Design and Standards
Company
perceptions of Gap
customer
expectations

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 Chapter 8-3

Key Factors Leading to Provider Gap 2

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 Chapter
Chapter 8-4

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
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 Chapter 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.
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 Chapter 8-6

Risks of Relying on Words Alone to

Describe Services

 Oversimplification

 Incompleteness

 Subjectivity

 Biased Interpretation

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 Chapter 8-7

Important Considerations for Service

Innovation
 Involve customers and employees
 Employ service design thinking and
techniques

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 Chapter 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
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 Chapter 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
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 Chapter 8-11

New Service Strategy Matrix for Identifying

Growth Opportunities (Figure 8.2)

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 Chapter 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.

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 Chapter 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
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 Chapter 8-14

Service Blueprint Components

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 Chapter 8-15

Blueprint for Express Mail Delivery

Service

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 Chapter 8-16

Blueprint for Overnight Hotel Stay

Service

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 Chapter 8-17

Blueprint for DVD Rental Kiosk

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 Chapter 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.

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 Chapter 8-19

Building a Service Blueprint

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