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Module 1: Balancing Demand and Productive Capacity

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Designing and Managing Service Processes - Part 2

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MODULE OVERVIEW

Explain necessity for service process redesign.
Understand how service process redesign can help to improve service quality and productivity.
Understand levels of customer participation in service processes.
Be familiar with concept of service customers as “co-creators” and implications of this perspective.
Understand factors that lead customers to accept or reject new self service technologies (SSTs).
Know how to manage customers’ reluctance to change behaviors in service processes, with respect to the adoption of SSTs.

SERVICE PROCESS DESIGN

Symptoms that Reflect Need for Process Redesigning:
A lot of information exchange is needed as the data available is not useful.
A high ratio of checking or control activities to value-adding activities.
Increased processing of exceptions.
Growing number of customer complaints coy ineffective procedures.

Redesign efforts focus on achieving the following four key objectives:

Reduced number of service failures.
Reduced cycle time from customer initiation of a service process to its completion.
Enhanced productivity.
Increased customer satisfaction.

STEPS IN SERVICE PROCESS REDESIGN
|. Examining the service blueprint with key stakeholders

Eliminating non-value adding steps

lll. Addressing bottlenecks in the process

Shifting to self-service

CUSTOMER PARTICPATION IN SERVICE PROCESSES
Customer participation refers to the actions and resources supplied by customers during service production, including mental, physical and even emotional inputs.
Level of customer participation:

Low Participation level: Employees and system do all the work
Moderate Participation level: Customers’ inputs are required to assist the firm.
High Participation level: Customers work actively with the provider to co-produce the service

SELF-SERVICE TECHNOLOGIES (SSTS)

Ultimate form of involvement in service production — customers undertake an act on their own, using facilities/systems provided by service supplier.
SSTs allow customers to produce a service without direct employee involvement.

CUSTOMER BENE aw ADOPTION OF SSTS

Multiple attitudes drive customer intentions to use a specific SST, such as:
Overall attitudes toward related service technologies,
Attitudes toward the specific service firm and its employees,
The overall perceived benefits, convenience, costs, and ease of use customers see in using SST.

CUSTOMER DISADVANTAGES AND BARRIERS IN ADOPTION OF SSTS

Customer hate SSTs when they fail
Get frustrated by poorly designed technologies
Get frustrated when they themselves make a mistake
Lack of efficient service recovery systems

ASSESSING AND IMPROVING SSTS
Mary Jo Bitner suggests managers to test their SSTs by asking the following:

Does the SST work reliably?

Firms must make sure that SSTs work as promised and the design is user-friendly.


Is the SST better than the interpersonal alternative?

If it doesn’t save time or provide ease of access, cost savings, or some other benefit, then customers will continue to use the familiar interpersonal choice.



MANAGING CUSTOMERS RELUCTANCE TO CHANGE SERVICE
Following ways can be used for addressing customer resistance to change

Develop customer trust
Understand customers habits and expectations
Pre-test new procedures and equipment
Publicise the benefits
Tech customer to use innovations and promote trial methods

CONCLUSION

We started our discussion with the need for service process redesign,symptoms that reflect it’s need and the objectives achieved by carrying it out.
Steps involved were elaborated in detail.
Thereafter we discussed the customer participation in the service processes and different levels of participation.
Concepts like customer as service co-creators, SSTs, its adoption and associated advantages and disadvantages were emphasised upon.
Finally, customer’s reluctance to change and ways to address it, was also covered.