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Unit 8: New Service Development and Process Design

value, and how they are to be satisfied. The “what” focuses on identifying the specific needs of Notes
the target customers; the “how” focuses on establishing the organisation’s competitive priorities
that will allow it to meet those customer requirements in the delivery of the service. The service
concept encompasses four elements:

the service operation – the specific manner in which the service is delivered
the service experience – the customer’s direct experience with the service
the service outcome – the benefits and results for the customer receiving the service

the value of the service – the benefit that customers perceive from the service in comparison
to the cost of that service
In defining the service concept, management must also be attuned to the skills, qualifications
and interests of the workforce. For example, nurse practitioners are able to perform physical
examinations and treat medical problems that in the past could only be done by a physician.
Using nurse practitioners to deliver care achieves two workforce goals: providing good care for
patients and freeing physicians to concentrate on the more complicated cases that may be more
interesting to them and that use their skill set more efficiently. Using nurse practitioners to
provide care formerly provided only by physicians can also reduce the total cost of providing
care.

8.4.3 Service Blueprints

To facilitate maximum satisfaction to the customers, more inputs were added to the service
delivery. Service evolved from very simple steps to complex processes, and there arose a need
for the marketer to get a ‘bird’s eye view’ of the whole process. Blueprinting is flowcharting of
a service operation. This methodology was devised by Lyn Shostack in 1984, to help out new
service firms in mapping the sequences before the beginning of service delivery or any encounter.
This would help the service manager in identifying areas of potential failures, and weak service
delivery points — and identify solutions to overcome them.
This would prevent the manager from learning by costly trial and error. It (blueprinting) also
enables marketing managers to understand the parts of the operating system that are visible to
the consumer and hence parts of the servuction system.

Did u know? Blueprint maps the entire service delivery process.
In the servuction system, it is very difficult to identify components of an individual firm. Worse,
firms underestimate the sensitivity of points of contact.

Example: Many banks, schools, travel agencies fail to understand the importance of the
first enquiry telephone call. If the telephone rings for too long, without any response, the
potential customer has already formed an opinion of an uncaring organisation.
If the first encounter itself is not pleasant, the customer is not going to come back. Service firms
are now starting to realise the importance of the first call and its potential for generating
revenues. They are setting up ’24 × 7 × 365’ call centers to be manned by efficient and alert call
handlers. The providers are adequately enabled by training, and computer facilities for all
enquiry data access and customer and product details. The service providers are trained to pick
up the phone on the first ring.

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