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Unit 8: New Service Development and Process Design




            They are:                                                                             Notes

                 Identify the process to be blueprinted
                     Basic Business Concept

                     A service (with in a family of services
                     A specific service component
                 Map the process from the customer point of view

                 Draw the line of interaction
                 Draw the line of visibility

                 Map the process from the customer contract person’s point of view distinguishing
                 on-stage from backstage actions.
                 Draw the line of internal interaction

                 Link customer and contract person activities to need support functions
                 Add evidence of service at each customer action step
            The new service concept thus developed would be tested by conducting a study of views and
            opinion of the customers as well as employees on understandability, suitability, convenience
            and comfort and a feeling of satisfaction to both the parties.

            8.1.4 Marketing Strategy Development

            The development of marketing strategy involves decision making on such issues like market
            segmentation, identification and prioritization of target segments, market positioning and the
            decisions relating to marketing mix elements.

            8.1.5 Business Analysis

            This step of new service development process involves demand analysis, cost involvement,
            revenue estimates, projected profit and loss account, payback period and the expected life of the
            new service.

            8.1.6 Service Development

            As per the service blueprint, the service environment will be designed with infrastructure,
            facilities, contact employees, systems and tangibles. This step is an action oriented which involves
            high expenditure. It is a clear shift from more or less desk work to practical execution of the
            concept. The success of this step represents the efficiency of the management in transforming a
            theoretical design into a practical reality.

            8.1.7 Market Testing


            Now the services are ready for sale. To know, how the service offer really could provide
            satisfactory experiences, it is necessary to test it among different groups of customers. Based on
            the early feedback appropriate changes can be made to make the offer more qualitative. The
            service firms, generally, invite employees’ families and selected customers to know their
            responses on the service. A careful evaluation of the logical process of operational functions is
            very important at this stage.




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