Service Management Introduction

Transcription

1 Service Management Introduction Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Economics Information and Service Systems (ISS) Saarland University, Saarbrücken, Germany WS 2011/2012 Thursdays, 8 10 a.m. Room HS 024, B4 1

2 Lecture Schedule 1. Introduction 2. Service Strategy 3. New Service Development 4. Service Quality 5. Supporting Facility 6. Forecasting Demand for Services (Part A) 7. Forecasting Demand for Services (Part B) 8. Managing Capacity and Demand 9. Managing Waiting Lines 10. Capacity Planning and Queuing Models 11. Services and Information Systems 12. ITIL Service Design 13. IT Service Infrastructures 14. Guest Lecture 15. Summary and Outlook Slide 2

3 Organisation Vorlesung: Donnerstag, 8 10 Uhr; Raum HS 024, Geb. B4 1 Vorlesungsfolien werden vor dem jeweiligen Termin freigeschalten unter Übung (84 Plätze): Donnerstag, Uhr; Raum HS 024, Geb. B4 1 7 Übungen (2 davon Teil einer Fallstudie) in WS 11/12 (Termine siehe Kalender unter Fallstudie: Kick Off am , Bearbeitungszeit von 3 Wochen, Begehung am Anmeldung bis , 19:00 Uhr per (vollständiger Name, Matrikelnummer) an iss.dienstleistungsmanagement@googl .com 1. Übung am 27. Oktober 2011 Betreuung: Sabine Janzen (sabine.janzen@iss.uni-saarland.de) Slide 3

4 Organisation Prüfungsmodalitäten: Klausur, 120 min, 120 Punkte (davon 20 Punkte aus Übungen) Durch die pünktliche Abgabe und positive Bewertung der Übungen können 20 Punkte erreicht werden Übungen 1-5 werden mit jeweils maximal 2 Punkten bewertet; bei der Fallstudie können maximal 10 Punkte erreicht werden Basisliteratur: Fitzsimmons, J. A. & Fitzsimmons, M. J.: Service Management - Operations, Strategy, Information Technology; McGraw - Hill, Maglio, P. P., Kieliszewski, C. A., Spohrer, J. C. (eds.): Handbook of Service Science (Service Science: Research and Innovations in the Service Economy), Springer, Bryson, J. R.; Daniels, P. W. & Warf, B.: Service Worlds: People, Organizations, Technologies; Routledge, London, Slide 4

5 Services. What`s that? Slide 5

6 Services What`s that? Univ.-Prof. Dr.-Ing. Wolfgang Maass Slide 6

7 Definitions of Services A service is a time-perishable, intangible experience performed for a customer acting in the role of co-producer. (Fitzsimmons & Fitzsimmons, 2011) Services are frequently described as performances by a provider that create and capture economic value for both the provider and client. (Chesbrough & Spohrer, 2006) Service is a process of applying the providerês competence (knowlegde and skills) for the benefit of, and in conjunction with, the customer [ ]. (Chew, 2010) A service is an activity or series of activities of more or less intangible nature that normally, but not necessarily, take place in interactions between customer and service employees and/or physical or goods and/or systems of the service provider, which are provided as solutions to customer problems. (Grönroos, 1990) A service offering is produced using the firmês resources including both tangible (such as goods) and intangible (such as knowledge, competence, relationship) assets. (Arnould, 2008) Slide 7

8 Definitions of Services A service is a time-perishable, intangible experience performed for a customer acting in the role of co-producer. (Fitzsimmons & Fitzsimmons, 2011) A service is an activity or series of activities of more or less intangible nature that normally, but not necessarily, take place in interactions between customer and service employees and/or physical or goods and/or systems of the service provider, which are provided as solutions to customer problems. (Grönroos, 1990) Services are frequently described as performances by a provider that create and capture economic value for both the provider and client. (Chesbrough & Spohrer, 2006) A service offering is produced using the firmês resources including both tangible Service is a process of applying the (such as goods) and intangible (such as providerês competence (knowlegde and knowledge, competence, relationship) skills) for the benefit of, and in conjunction assets. (Arnould, 2008) with, the customer [ ]. (Chew, 2010) Slide 8

9 Industrialization of Information Processes Trend to information economy (Machlup, 1962; Porat & Rubin, 1977) Major economies in the world dominated by services growth of information intensive services (Karmarkar, 2010) Industrialization of information processes (similar to industrialization of manufacturing in 18 th and 19 th centuries) Driving factors for both industrializations: Application of sources of power (e.g., information technology) Mechanization and automation of processes to leverage human ability (e.g., computers) Increases in efficiency of logistics (e.g., telecommunications) Process of standardization concerning products (e.g., data bases, websites), processes (e.g., programmable machines, software) Slide 9

10 Consequences of Industrialization of Information Processes Increase of productivity Growth in employment, often followed by shrinking Lower levels of resource usage - Reduction of employment Creation of new, well-defined jobs More capital and equipment inputs De-integration of information chains Modularization of processes enables automation, process engineering, outsourcing, relocation Convergence on service design; dominant designs begin to emerge E.g., retail web sites tend to look similar and to have similar functionality Slide into commoditization: differentiation across services is reduced, many suppliers are able to provide the same service Helps to develop mass markets, but intensifies competition with emphasis on competing with low costs Loss of localization and local monopolies Intensification of competition (Karmarkar, 2010) Slide 10

11 Restructuring of Industry Sectors Digital Convergence Digitization of all types of information, i.e. blurring of boundaries of distinct activities and sectors Convergence in form and presentation ( digital ) in logistics and process methods, i.e. software and hardware assets used in different sectors in equipment and appliances extends to the user and the consumption of information on supply side, i.e. same companies play same role across sectors in user behavior, i.e. formerly distinct use patterns start to overlap, e.g., consumption of different streams of information at home (Karmarkar, 2010) Slide 11

12 Restructuring of Industry Sectors Vertical De-Integration Chain for delivery of information in form of products and services At each stage one or more companies / entities involved - no single big player covering all stages Exceptions: examples of new forms of vertical integration Apple: ipod and itunes (appliance and server based service) Creation and capture Processing Assembly (incl. aggregation) Storage Distribution Server based B2B services Server based B2C services Local distribution and access Consumption enablers (appliances and software) (Karmarkar, 2010) Slide 12

13 Restructuring of Industry Sectors Economics change Industrialization of manufacturing Large economies of scale High employment Expensive equipment High fixed costs Entry difficult Industrialization of information services Low scale economics High scope economies caused by high convergence Information processing not scale dependent Reduced fixed costs Equipment can be used convergent Entry simpler (Karmarkar, 2010) Slide 13

14 Classification of Services Services are described in terms of four major characteristics Co-Production: both provider and client participate in the act Heterogeneity: Clients tend to have heterogeneous requirements Intangibility: Many services = experiences Perishability: Many services cannot be inventoried (Lovelock et al., 2006; Banavar et al., 2010) Slide 14

15 Classification of Services Service Process Matrix (Schmenner, 1986) Degree of Interaction and Customization Low High Degree of labor inte ensity Low High Service factory: Airlines, trucking, hotels, resorts and recreation Mass service: Retailing, wholesaling, schools, retail aspects of commercial banking Service shop: Hospitals, auto repair, other repair services Professional service: Doctors, lawyers, accountants, architects (Schmenner, 1986; Fitzsimmons & Fitzsimmons, 2011) Slide 15

16 Classification of Services Nature of serv vice act Classification of services by Lovelock (1983) Nature of service act Tangible actions Intangible actions People Services aimed at people s physical body, e.g., healthcare and transportation Services aimed at people s minds, e.g., education and entertainment Direct recipient of service Property Services aimed at material items, e.g., shipping and cleaning Services aimed at information, e.g., banking and legal (Lovelock, 1983; Fitzsimmons & Fitzsimmons, 2011) Slide 16

17 Classification of Services Relationship with customers Type of relationship between service organization and its customers Nature of service del livery Membership relationship No formal relationship Continuous Insurance Radio station delivery Telephone subscription Police protection Banking Search Engine Social Networks Public highway Discrete transactions Transit pass Theater series tickets Airline frequent flyer Toll highway Car rental Cinema Restaurant (Lovelock, 1983; Fitzsimmons & Fitzsimmons, 2011) Slide 17

18 Classification of Services (Example) Examples: relationship with customers Type of relationship between service organization and its customers Nature of service del livery Continuous delivery Discrete transactions Membership relationship No formal relationship (Lovelock, 1983; Fitzsimmons & Fitzsimmons, 2011) Slide 18

19 Classification of Services Method of service delivery Availability of service outlets Nature of servic ce delivery Customer travels to service firm Single site Theater Bus service Fast-food chain Multiple sites Service firm delivers Taxi Mail delivery Online retail service Transaction at armês length - Telephone company (phone box) Credit card company (Lovelock, 1983; Fitzsimmons & Fitzsimmons, 2011) Slide 19

20 Brainteaser 10 Minutes YouÂve used diverse services within the past 3 days. Which was the most important one? Classify this service according to the classification of services by Lovelock (1983): (a) nature of service act, (b) relationship with customers and (c) method of service delivery. Explain it to your neighbour! Slide 20

21 Service Systems A service system (Chesbrough & Spohrer, 2006; Spohrer et al., 2008) has been defined as a network of providers and clients co-producing value through service performances. (Banavar et al., 2010) Broadly, a service system (Spohrer et al., 2007) or service world (Bryson et al., 2004) is a complex adaptive system of people, and technologies working together to create value for its constituents. (Chew, 2010) Service systems, which form a growing proportion of the world economy, are dynamic configurations of people, technologies, organisations and shared information, creating and delivering value to customers, providers and other stakeholders (Spohrer et al., 2007). (Spohrer et al., 2010) Slide 21

22 The Logic Behind Service-dominant logic (S-D logic) (Vargo & Lusch, 2004) = service-centered alternative to traditional goods-centered paradigm (Goods-Dominant Logic) for describing economic exchange and value creation (Fitzsimmons & Fitzsimmons, 2011; Grönroos, 1990) Pre-1900 Goods-Centered Model of Exchange (Concepts: tangibles, statics, discrete transactions, and operand resources) (Smith, 1904) Twenty-first Century Service-Centered Model of Exchange (Concepts: intangibles, competences, dynamics, exchange processes and relationships, and operant resources) S-D logic bases on premise that services i.e. the application of competences for the benefit of another are the fundamental basis of exchange (Vargo et al., 2010) Operand resources are static in nature whereas operant resources can be rejuvenated, replenished, and newly created, thus dynamic in nature. Operand and operant resources do not have ıvalue per se - value is co-created created with customers when resources are used (Edvardsson et al., 2010) S-D logic considers service as a process, rather than a unit of output (good) (Vargo & Lusch, 2008) Slide 22

23 Service-Dominant Logic 10 foundational premises (Vargo & Akaka, 2009; Fitzsimmons & Fitzsimmons, 2011) (1) Service is the fundamental basis of exchange - application of operant resources (knowledge and skills) = ıservice is basis for all exchange. (2) Indirect exchange masks the fundamental basis of exchange, i.e., goods, money etc. mask the service-for-service nature of exchange. (3) Goods are distribution mechanisms for service provision, i.e., goods derive their value through use - the service they provide. (4) Operant resources are the fundamental source of competitive advantage. (5) All economies are service economies. Slide 23

24 Service-Dominant Logic (6) The customer is always a co-creator creator of value, i.e., value creation is interactional. (7) The enterprise cannot deliver value (alone alone), but only offer value propositions. (8) A service-centered centered view is inherently customer-oriented oriented and relational, because service is customer-determined and co-created. (9) All economic and social actors are resource integrators, i.e. value creation based on networks of networks. (10) Value is always uniquely and phenomenologically determined by the beneficiary, i.e., each customer determined the value of a service based on personal needs at a specific time in a context as an experience. Slide 24

25 Value to Customers To win the service game the value proposition must consistently meet the customer expectations and behavioral needs (Schneider & Bowen, 1995). (Chew, 2010) Customer experience is a combined result of what is offered (i.e. function and outcome of the product or service) and how it is offered (i.e. process of usage, context of use, and emotional components of interaction; Patricio et al., 2008). (Chew, 2010) Value to Customers = (Results + Quality of the Customer Experience) (Price + Access Costs) (Heskett & Sasser, 2010) People (customers, employees, and managers) = prominent key to success in service - promoting service excellence and innovation requires an understanding of the co-creation of value by and for people (Schneider & Bowen, 2010) Slide 25

26 Value to Customers Unique view of service organizations based on 3 tiers: customer tier, boundary tier, and coordination tier (Schneider & Bowen, 1995) 1. Customer tier = expectations for quality and needs; emphasis on customer needs for security, esteem and justice a. Meeting customer expectations b. Respecting customer needs c. Utilizing customer talents 2. Boundary tier = interface between customers and a service delivery firm including people, equipment/technology, physical space a. Managing personal contact through hiring and training b. Managing personal contact through reward systems c. Managing nonpersonal contact with a personal touch 3. Coordination tier = weaving together the various parties and elements of service, not controlling or managing them, per se a. Designing a customer-focused service system b. Creating a service culture Slide 26

27 Books: Literature Bryson, J. R., Daniels, P. W. and Warf, B. Service Worlds: People, Organizations, Technologies, Routledge, London, Fitzsimmons, J. A. and Fitzsimmons, M. J. Service Management - Operations, Strategy, Information Technology, McGraw - Hill, Grönroos, C. Service Management and Marketing, John Wiley & Sons, Ltd, Lovelock, C., Writz, J. and Chatterjee, J. Services Marketing: People, Technology, Strategy, Pearson Education Ltd., New Jersey, Machlup, F. The Production and Distribution of Knowledge in the United States, Princeton University Press, Porat, M. U. and Rubin, M. R. The information economy, Office of Telecommunications Special Publication 77-12, Papers: Arnould, E. J. "Service-dominant logic and resource theory," Journal of the Academy of Marketing Science (36:1), 2008, pp Banavar, G., Hartman, A. and Ramaswamy, L. "A Formal Model of Service Delivery"'Handbook of Service Science', Maglio, Paul P. and Kieliszewski, Cheryl A. and Spohrer, James C., Chesbrough, H. and Spohrer, J. "A research manifesto for services science," Commun. ACM (49), 2006, pp Chew, E. K. "A Reflection From Telecommunications Service Perspective"'Handbook of Service Science', Maglio, Paul P. and Kieliszewski, Cheryl A. and Spohrer, James C., Edvardsson, B., Gustafsson, A., Kristensson, P. and Witell, L. "Service Innovation and Customer Co- Development"'Handbook of Service Science', Maglio, Paul P. and Kieliszewski, Cheryl A. and Spohrer, James C., Slide 27

28 Literature Heskett, J. L. and W. Earl Sasser, J. "The Service Profit Chain - From Satisfaction to Ownership"'Handbook of Service Science', Maglio, Paul P. and Kieliszewski, Cheryl A. and Spohrer, James C., Karmarkar, U. S. "The Industrialization of Information Services"'Handbook of Service Science', Maglio, Paul P. and Kieliszewski, Cheryl A. and Spohrer, James C., Lovelock, C. H. "Classifying Services to Gain Strategic Marketing Insights," The Journal of Marketing (47:3), 1983, pp Patrício, L., Fisk, R. P. and e Cunha, J. F. "Designing Multi-Interface Service Experiences - The Service Experience Blueprint," Journal of Service Research (10), 2008, pp Schmenner, R. W. "How Can Service Businesses Survive and Prosper?," Sloan Management Review (27:3), Schneider, B. and Bowen, D. E. "Winning the Service Game"'Handbook of Service Science', Maglio, Paul P. and Kieliszewski, Cheryl A. and Spohrer, James C., Spohrer, J., Maglio, P. P., Bailey, J. and Gruhl, D. "Steps Toward a Science of Service Systems," Computer (40), 2007, pp Spohrer, J., Vargo, S. L., Caswell, N. and Maglio, P. P. "The Service System is the Basic Abstraction of Service Science"'Proceedings of the Hawaiian international conference on systems science (HICSS-2008)', Spohrer, J. C., Gregory, M. and Ren, G. "The Cambridge-IBM SSME White Paper Revisited" 'Handbook of Service Science', Maglio, Paul P. and Kieliszewski, Cheryl A. and Spohrer, James C., Vargo, S. L. and Akaka, M. A. "Service-Dominant Logic as a Foundation for Service Science: Clarifications," Service Science (1:1), 2009, pp Vargo, S. L. and Lusch, R. F. "From goods to service(s): Divergences and convergences of logics," Industrial Marketing Management (37:3), 2008, pp Vargo, S. L. and Lusch, R. F. "Evolving to a New Dominant Logic for Marketing," Journal of Marketing (68:1), 2004, pp Vargo, S. L., Lusch, R. F. and Akaka, M. A. "Advancing Service Science with Service-Dominant Logic - Clarifications and Conceptual Development" 'Handbook of Service Science', Maglio, Paul P. and Kieliszewski, Cheryl A. and Spohrer, James C., Slide 28

29 Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Information and Service Systems Saarland University, Germany Univ.-Prof. Dr.-Ing. Wolfgang Maass