Service Design and Delivery (eBook)

Foreword 6
About the Editors 8
Acknowledgements 10
Contents 12
Contributors 14
Service Perspectives 16
Chapter 1: Understanding Services and the Customer Response 24
1.1 Products and Services 24
1.2 Scripted vs Customisable Customer Experiences 26
1.3 Why Does This Matter? 28
1.4 How Scripted? How Customisable? 28
1.5 Customer Experience: It’s All About Eliciting Emotions 30
1.5.1 What Is the Ultimate Goal of Any Service or Product? 30
1.5.2 But What Exactly Is a ‘Favourable Customer Experience’? 30
1.6 The Importance of Emotions to ServiceDesign and Delivery 31
1.7 Service Design and Delivery: Putting It All Together 34
References 40
Chapter 2: Goods, Products and Services 42
2.1 Introduction 42
2.2 Goods 42
2.3 Services 43
2.4 Intangible, Heterogeneous, Inseparable & Perishable (IHIP) Characteristics
2.4.1 Intangible 44
2.4.2 Heterogeneous 44
2.4.3 Inseparable 45
2.4.4 Perishable 45
2.5 Experience 46
2.6 Quality 46
2.7 Tradability 47
2.8 A Change of Condition 47
2.9 Goods and Services, or Is It All Service? 48
2.10 What Are Products/Goods and Services? 49
References 51
Chapter 3: The IBM Story 53
3.1 The IBM Story Until 1990 53
3.2 A Crisis of Confidence 1990–1993 55
3.3 Recovery and Restatement 1994–2001 56
3.4 A New Strategy? 56
3.5 Moving into the Twenty-First Century 59
3.6 Looking to the Future 60
3.7 Summary 61
Reference 62
Chapter 4: Rethinking Lean Service 63
4.1 Introduction 63
4.2 From Manufacturing to Operations Management 64
4.3 Industrialised, Standardised Service 64
4.4 The ‘Core Paradigm’ of Current Service Management 65
4.5 The Emergence and Codification of ‘Lean’ 67
4.6 But Is Service the Same as Manufacturing? 68
4.7 ‘Lean’ Arrives in Service Organisations 69
4.8 Back to the Beginning 71
4.9 Understanding Service Organisations 73
4.10 Value and Failure Demand 74
4.11 The Better Alternative 77
4.12 Counter-Intuitive Truths 78
4.13 Change as Emergent, Not Planned 79
4.14 Ohno Said: Do Not Codify Method 80
References 80
Chapter 5: Designing Competitive Service Models 83
5.1 The Story 83
5.1.1 ICI Explosives UK 83
5.1.1.1 The Slurry Era 84
5.1.1.2 The Emulsion Era 85
5.1.1.3 The Blasting Service Era: From Supplying Explosives to Providing Rock on the Ground 86
5.2 The Theory 88
5.2.1 Value Proposition 88
5.2.2 The Value Matrix 89
5.2.3 Transformations Path of the ICI Explosive Business: In Search of New Value Propositions 91
5.2.3.1 The First Change Trigger 91
5.2.3.2 The Second Change Trigger 93
5.2.3.3 The Third Change Trigger 93
5.2.3.4 Mapping the Value Propositions into the Value Matrix 93
From Innovators to Price Minimisers 97
From Price Minimisers to Process Simplifiers 98
From Process Simplifiers to Technological Integrators 98
5.2.4 Value-in-Use 99
5.2.4.1 Understanding Customer Value-in-Use 99
5.2.5 The Strategic Value Creation Road Map 101
5.3 Conclusions 102
References 102
Chapter 6: Shifting from Production to Service to Experience-Based Operations 104
6.1 From Production to Service … 104
6.2 … to Experiences 106
6.3 Implication for Business Models 107
6.4 Implication for Operations and Management 109
6.5 Conclusion 113
References 114
Chapter 7: Complex Deployed Responsive Service 116
7.1 Introduction 116
7.1.1 The RAC 116
7.1.1.1 The Business 117
7.1.1.2 Providing Geographic Coverage 117
7.1.1.3 Responding to Customers 118
7.1.1.4 Customer Demand 119
7.1.1.5 Meeting Customer Demand 119
7.1.2 NHS: Ambulance Service 120
7.1.2.1 The Service 120
7.1.2.2 Providing Geographic Coverage 121
7.1.2.3 Responding to Customers 122
7.1.2.4 Customer Demand 123
7.1.2.5 Meeting Customer Demand 124
7.1.3 Dowty Propellers Field Service Support 125
7.1.3.1 The Field Service Repair Business 126
7.1.3.2 Providing Geographic Coverage 126
7.1.3.3 Responding to Customers 127
7.1.3.4 Customer Demand 128
7.1.3.5 Meeting Customer Demand 128
7.1.3.6 Service Management 129
7.1.3.7 Managing Geographic Coverage 129
7.1.3.8 Managing Customer Contact 130
7.1.3.9 Managing Variable Demand 131
7.2 Theoretical Perspectives 131
7.2.1 Social and Mechanical Repair 131
7.2.2 Implications of Flexible Capacity 132
7.2.3 Complexity 134
References 137
Chapter 8: A Multi-organisational Approach to Service Delivery 139
8.1 Introduction 139
8.2 Key Drivers for Multi-organisational Service Enterprises 139
8.2.1 Multi-organisational Solutions for Service Delivery 141
8.3 Moving Beyond Single ‘Service Provider’ Boundaries 142
8.4 Beyond Provider Organisations to Greater ‘Customer Involvement’ in Service Delivery 145
8.5 Case Study: A Complex Multi-organisational Service Enterprise in Action 148
ATTAC: Supporting Tornado Availability 148
8.6 What Are the Challenges in a Multi-organisational Approach to Service Delivery? 150
8.6.1 Risks Encountered 150
8.6.2 Potential Obstacles 150
8.6.3 The Need for Enterprise Level Management 151
8.6.4 Managing Multiple Values and Communication 151
8.7 Conclusions 152
References 152
Chapter 9: Through Life Costing 155
9.1 Introduction 155
9.1.1 Example: How to Provide an Armoured Vehicle for Soldiers 156
9.2 Industrial Context: Defence and Aerospace 158
9.3 Definition and Terminology of Through Life Costing 159
9.4 Cost Modelling Research and Commercial Tools 160
9.4.1 Research on Cost Modelling 161
9.4.2 Commercial Cost Estimation Systems 162
9.5 Acquisition Cycle: Low Volume, Long-life, High Value Products 164
9.6 CADMID 167
9.7 How Do You Model This Uncertainty? 169
9.8 Conclusions 169
References 169
Chapter 10: The Practitioner View 172
10.1 Creating the Message 172
10.2 Leadership During Service Transformation 174
10.2.1 Provide the Vision 174
10.2.2 Make Sure You Are Visible 175
10.2.3 Focus on the Priorities 175
10.2.4 Communicate 175
10.2.5 Empower 176
10.3 The Essential Tools for Transformation 176
10.4 Engaging Teams for a Transition 177
10.4.1 Team Composition 178
10.4.2 Clarity of Purpose 178
10.4.3 Creating the Environment for Change 179
10.4.4 It’s About the Process Not the People 179
10.4.5 Create the Desire for Change 179
10.4.6 Applying a Structured Approach 180
10.5 Project Management and Delivery for Service Industries 181
10.5.1 Specifying Requirements 181
10.5.2 Definition of Design and Delivery Method 182
10.5.3 Business Process 182
10.5.4 Organisation 182
10.5.5 Constraints Planning 183
10.5.6 Risk Identification and Planning 183
10.5.7 Action and Implementation 184
Chapter 11: Are You Being Served? 186