New Service Development - TTR
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Transcript of New Service Development - TTR
8/3/2019 New Service Development - TTR
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New Service Development
Thirumal Reddy
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• Both husband and wife are employees, and
they are staying in a nuclear family, they need
different services like ?
•
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• At night 11pm you suddenly need a medicine
and what kind of service you look for?
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• The distance from home to office are
increasing you need difference services to
reach there office quicker and safer?
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5
Origin of new services
• Human needs – stimulus for new services
• Need for survival and growth in the private
sector• Social needs not adequately covered by
private sector – stimulus for public sector
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Challenges for Service Innovation
• Ability to protect intellectual and property
technologies.
• Incremental nature of innovation.
• Degree of integration required.
• Ability to build prototypes or conduct tests
in a controlled environment.
4-6
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Figure 9.1
Risks of Relying on Words Alone to Describe Services
Oversimplification
Incompleteness
Subjectivity
Biased
Interpretation
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8
Life cycle of a service
• Infancy: many risks; high mortality rate; slow growth of demand
• Growth: acceptance by customer
– Pressures for additional capacity
– More efficient service
– Adjustments in managerial style
• Maturity: demand reaches saturation level (long duration forservices that meet genuine need)
• Decline: changes in economy, new improved services, changes in
technologyWhen to introduce new services?
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9
Steps in service design
• Idea generation
• Selection: compatibility with organization’sgoals and resources
– Private sector, drop the idea if:• Not much profit
• Deteriorates company image
• Incompatible with skills, facilities
– Public sector
• Goals less easily definable (public welfare)• Little attention to operational issues
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10
Steps in service design
• Preliminary design: little product testing.
Marketing present
– Specify key attributes of service package
• Final design: specify service level
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11
New Service Development Cycle
People
Technology Systems
Product
Full Launch Development
Design Analysis
Tools
Enablers
• Formulation
of new servicesobjective / strategy
• Idea generation
and screening
• Concept
development and
testing
•Business analysis
• Project authorization
• Full-scale launch
• Post-launch review
• Service design
and testing
• Process and system
design and testing
• Marketing program
design and testing
• Personnel training
• Service testing and
pilot run
• Test marketing
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Types of New Services
• major or radical innovations
• start-up businesses
• new services for the currently served market
• service line extensions
• service improvements
• style changes
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Figure 9.2
New Service Development Process
Sources : Booz-Allen & Hamilton, 1982;Bowers, 1985; Cooper, 1993; Khurana &Rosenthal 1997.
Business strategy development or review
New service strategy development
Idea generation
Concept development and evaluation
Business analysis
Service development and testing
Postintroduction evaluation
Commercialization
Market testing
Screen ideas against new service strategy
Test concept with customers and employees
Test for profitability and feasibility
Conduct service prototype test
Test service and other marketing-mix elements
Front-endPlanning
Implementation
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Figure 9.3
New Service Strategy Matrix for Identifying Growth Opportunities
Markets
Offerings
ExistingServices
NewServices
Current Customers New Customers
Sharebuilding
Diversification
Marketdevelopment
Servicedevelopment
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Figure 9.5 Service Blueprinting
A tool for simultaneously depicting the service process, thepoints of customer contact, and the evidence of service from thecustomer’s point of view.
ServiceBlueprint
Process
Points of contact
Evidence
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Service Blueprint Components
Customer Actions
line of interaction
“Onstage” Contact Employee Actions
line of visibility
“Backstage” Contact Employee Actions
line of internal interaction
Support Processes
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Figure 9.7
Blueprint for Express Mail Delivery Service
DriverPicks UpPackage
Dispatch
Driver
AirportReceives& Loads
SortPackages
Load onAirplane
Fly toDestination
Unload
&Sort
Load
OnTruck
S U P P O R T P R O
C E S S
C O N T A C T
P E R
S O N
( B a c k S t a g e )
( O
n S t a g e )
C U S T O M E R
P H Y S
I C A L
E V I D E
N C E
CustomerCalls
CustomerGivesPackage
TruckPackaging
FormsHand-held ComputerUniform
ReceivePackage
TruckPackaging
FormsHand-held ComputerUniform
DeliverPackage
CustomerServiceOrder
Fly toSortCenter
Line of interaction
Line of visibility
Line of internal interaction
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Figure 9.8
Blueprint for Overnight Hotel Stay Service
S U P P O R T P R O C
E S S
C O N T A C T P E R S O N
( B a c k S t a g e )
( O n S t a g e )
C U S T O M E R
Hotel ExteriorParking
Cart forBags
DeskRegistrationPapersLobbyKey
ElevatorsHallwaysRoom
Cart forBags
RoomAmenitiesBath
Menu DeliveryTrayFoodAppearance
Food BillDeskLobbyHotel ExteriorParking
ArriveatHotel
Give BagstoBellperson
Check inGo toRoom
ReceiveBags
SleepShower
CallRoomService
ReceiveFood
EatCheck outandLeave
Greet andTakeBags
ProcessRegistration
DeliverBags
DeliverFood
ProcessCheck Out
Take Bagsto Room
TakeFoodOrder
RegistrationSystem
PrepareFood
P H Y S I C A
L
E V I D E N C
E
Line of Interaction
Line of Visibility
Line of Internal Interaction
RegistrationSystem
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Figure 9.9
Building a Service Blueprint
Step 1
Identify theprocess tobe blue-printed
Step 2
Identify thecustomerorcustomersegment
Step 3
Map theprocessfrom thecustomer’s
point ofview
Step 4
Map contactemployeeactions,onstage andback-stage,and/ortechnologyactions
Step 5
Link contactactivities toneededsupportfunctions
Step 6
Addevidence ofservice ateachcustomeraction step