Category Archives: New Product and Service Development and Process Selection

Process Selection in Services

Process Selection in Services Types of Service Organizations Service management issues exist in three broad organizational contexts: management issues exist in three broad organizational contexts  Service businesses are organizations whose primary business requires interaction with the-customer to produce the service. Familiar examples of service businesses include bank  airlines hospitals law firms retail sto

The Personal Attention Approach

The Personal Attention Approach The personal attention approach is basically the concept of mass-customization applied to services. With this approach each customer is treated as an individual with the service firm often maintaining a database of each customer’s likes and dislikes. This data can be collected manually in personal books as noted below at Angstrom’s  or more formally by  electronic m

The Customer Involvement Approach

The Customer Involvement Approach In contrast to the production line approach C. H. Lovelock and R. F. Young propose that the service process can be enhanced by having the customer take a greater participatory role in the production of the service.f Automatic teller machines (ATMs) self-service gas stations salad bars and in-room coffee-making equipment in hotels are good examples of where the burden of providin

The Production Line Approach

The Production Line Approach The production line approach pioneered by McDonald’s refers to more than just the step required to assemble a Big Mac. Rather, as Theodore Levitt notes, it is treating the delivery of fast food as a manufacturing process rather than a service process.’ The value of this philosophy is that it overcomes many of the problems inherent in the concept of service itself. That is

Process Selection in Services

Process Selection in Services Types of Service Organizations Service management issues exist in three broad organizational contexts: Service businesses are organizations whose primary business requires interaction with the-customer to produce the service. Familiar examples of service businesses include banks airlines hospitals law firms retail stores restaurants and so on. Within this category we can make a fur

Designing the Customer Service Encounter

Designing the Customer Service Encounter Karl Brecht and Ron Zeke's Service America! gets to the heart of the issue of managing service operations when they state "every time a customer comes into contact with any aspect of the company it is a moment of truth   and it can create either a positive or a negative impression about the company  How well these moments of truth or encounters are managed depends on a

Designing a New Service Organization

Designing a New Service Organization Designing a service organization entails the execution of four elements of what James Diskette refers to as the “Service Vision.T’ The first element is identification of the target market Who is our customer  the second is the service concept  How do we differentiate our service in the market  the third is the service strategy What is our service package and t

The Customer Contact Approach to Designing Service Processes

The Customer Contact Approach to Designing Service Processes Service systems are generally classified -along industry lines (financial services health services transportation services  and so on). These groupings though useful in presenting aggregate economic data are not particularly appropriate for OM purposes because they tell us little about the process. In manufacturing  by contrast  there are  as we ha

The New Service Development (NSD) Process

The New Service Development (NSD) Process The new service development (1 SO) process i very similar to the NPD produce with one major difference. When developing a service you are inherently deigning both the product and the process at the same time because the product is typically inherent in the process  Since services are intangible: rather than something you can drop on your foot it is nearly impossible to

Channel Development Services

Channel Development Services New services that fall in the lower right quadrant of Exhibit  are those in which the service that is provided is the same as that currently offered by the firm  but it i delivered differently through another channel which is often entirely new. The automated teller machine  ATM) provides a good example of services in this category. Traditional brick and mortar retailers that sell t