Service Delivery and Process Design

1239 Words Dec 6th, 2012 5 Pages
Charity C. Robin August 1, 2012
The Service System
The service system comprises the service delivery process and all of the supporting processes that are required in the co-creation of value for the customer.
The service system is often the service organization. However, the service system can be expanded to include suppliers to whom part of the service delivery process has been outsourced and who therefore can affect the customer’s experience (this is known as business process outsourcing or BPO). For example, when you make an online airline reservation at Expedia, how quickly and accurately Delta Airlines confirms your reservation and seat assignments significantly
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These include: (a) technology (which are the right ones and how does the customer interact with them?), (b) human resources (how many employees do we need and what are the skill levels required?), (c) inventories (how much inventory do we need and where do we need it?), (d) equipment (what types of equipment are needed and how does the customer interact with it?), (e) facilities (how big should they be and what décor package should they have?), and (f) marketing (who is our target market and how do we create value for them?) Many of these issues are addressed in more detail in the following section.
A firm’s ability to design and introduce new and innovative services is clearly an advantage in today’s highly competitive global environment, and technology is often the catalyst for innovation. While this chapter focused primarily on the service delivery process – the direct interaction with the customer – it is important to note that innovation applies to the entire service system.
Whether you are designing a traditional brick-and-mortar retail service with direct interactions between workers and customers or an online service where there is no human interaction, the basic elements of service delivery process design are the same: focus on the needs and desires of the customer, define the service content and style, and describe all the steps required in the delivery of the
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