New Service

Development
 Service innovation can be radical or gradual and
often arises from it technology advances. The
development stage of a new service, new ideas
are screened, and winning concepts are
Introduction developed and tested for feasibility. Ideas for new
service innovations can originate from many
sources.
• Customers can offer suggestions (e.g., menu
additions at a restaurant).
• Frontline employees can be trained to listen to
customers’ concerns (i.e., listening posts).
• Customer databases can be mined for possible
service extensions (e.g., additional financial
services).
• Trends in customer demographics can suggest
new services (e.g., long-term health care) and
new advances in technology.
The fundamental
characteristics of service
innovation
Innovation is viewed both as the process of creating something new and
also as the actual product or outcome. For services the outcome need not be
a new service product but rather some degree of modification to an existing
service.
The unique challenges for service innovation include:
1. Ability to protect intellectual and property technologies: The
transparency of service systems makes imitation simpler, and
patents are difficult to obtain.
2. Incremental nature of innovation: Because customers participate
in service systems, innovation tends to be evolutionary rather than
radical to allow for acceptance.
3. Degree of integration required: Service innovation requires
interactions among people, products, and technology and thus
requires systems integration.
4. Ability to build prototypes or conduct tests in a controlled
environment: Services cannot be tested realistically in an isolated
laboratory, so they run the risk of failure or poor performance upon
launch.
The structural and managerial elements of
service design
The service design elements become a template that communicates to customers and employees alike
what service they should expect to give and to receive.
Structural
Delivery system : Process structure, service blueprint, strategic positioning
Facility design : Servicescapes, architecture, process flows, layout
Location : Geographic demand, site selection, location strategy
Capacity planning : Strategic role, queuing models, planning criteria
Managerial
Information : Technology, scalability, use of Internet
Quality : Measurement, design quality, recovery, tools, six-sigma
Service encounter: Encounter triad, culture, supply relationships, outsourcing
Managing capacity and
demand :Strategies, yield management, queue management
Setiap keluhan maupun pengaduan yang masuk ke
HaloBCA wajib diselesaikan sesuai service level
agreement (SLA) dengan waktu penyelesaian yang
berbeda-beda untuk setiap permasalahan. BCA
telah menetapkan batas waktu penyelesaian
permasalahan, yang bervariasi dari 1 (satu)
sampai 45 (empat puluh lima) hari kerja, sesuai
dengan jenis permasalahan yang dilaporkan. Saat
ini 99,3% permasalahan yang disampaikan melalui
Halo BCA telah diselesaikan sesuai dengan SLA
Service
Blueprint
Developing a new service based on the
subjective ideas contained in the service
concept can lead to costly trial-and-error
efforts to translate the concept into
reality. When a building is developed,
the design is captured on architectural
drawings called blueprints.
The components
of the customer
value equation
To ensure acceptance of a new service innovation, the
design process should take a customer-centric view of
what is important.
• Results Produced for the Customer: Customers
do not seek out a service any more than buy a
product for no reason. The purchase of the service
must result in addressing a need.
• Process Quality: The way a service is delivered is
often as important as the results produced for the
customer.
• Price to the Customer: There is no reason to
believe a trade-off exists between cost and quality
• Cost of Acquiring the Service: Often service firms
make the mistake of thinking that customers are
interested only in price when the cost of acquiring
the service may be of equal importance.
The divergence and the
complexity of a service
process

Service processes can be classified

using the concept of divergence, the
object toward which the service
activity is directed, and the degree of
customer contact.
The stages of the new service
development process
• Production-Line Approach  the production-line approach to
service system design attempts to translate a successful manufacturing
concept into the service sector, and several features contribute to its
success.
• Customer as Coproducer  involving the customer in the service
process can support a competitive strategy of cost leadership with
some customization if it is focused on customers who are interested in
serving themselves (self-service)
• Customer Contact Approach  this approach depends on the
required amount of customer contact in the creation of the service
• Information Empowerment  no service today could survive
without use of IT
How intellectual property rights
protect a service brand?
A service firm’s reputation and brand are protected by defending the intellectual property
rights that define the service that customers expect to receive.
1. industrial properties are inventions (e.g., artificial heart) for commercial purpose
and protected by patents granted for a certain period of time to prevent others from
using the invention without license;
2. a trademark (e.g., McDonald’s golden arches) is a distinctive sign which is used to
prevent confusion among products in the marketplace;
3. industrial design rights (e.g., Starbucks store ambience) protect the appearance,
style, or design from infringement
4. trade secret (e.g., KFC recipe for fried chicken batter) is information concerning the
practices or proprietary knowledge of a business