education in service management

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Education in Service Management Alastair Nicholson London Business School AIM 2007 Conference

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AIM 2007 Conference. Education in Service Management. Alastair Nicholson London Business School. How does service come to mind?. Relationships: supplier-receiver Shops Answering machines On-time delivery Queues Quality Standards Consistency with promises made - PowerPoint PPT Presentation

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Page 1: Education in Service Management

Education in Service Management

Alastair NicholsonLondon Business School

AIM 2007 Conference

Page 2: Education in Service Management

How does service come to mind?

Relationships: supplier-receiver Shops Answering machines On-time delivery Queues Quality Standards Consistency with promises made Cultural characteristics: USA, UK... Regulation

Page 3: Education in Service Management

Positioning service in education

Business/management education

Graduate/undergraduate

Service courses

Retailing courses

Extension of logistics

Page 4: Education in Service Management

A natural extension of manufacturing operations management?

Technical learning and tooling

Operational organisation - assembly

Work specification

Worker empowerment

Logistics and sales chains

Quality studies

Product life cycle values

Service experience management

Page 5: Education in Service Management

Critical differences from engineering education

Difficult to define boundaries

Less measurable - attributes, impressions

Continuous management of interactions

Much less specifiable

Frameworks for analysis and consideration- not formulæ for application

Page 6: Education in Service Management

Parallels with concurrent engineering

Concurrent engineering

Design

Manufacture

Customer encounter

Make Support

Service management

Page 7: Education in Service Management

Scope and interaction of service experience

Regulatory influence

Provider’soperations

Architectureof content

Employeebehaviour

Profitabilityrequirements

Marketing activities

Impressions/expectations

Cultureexperience

Othercustomers

Customer

Page 8: Education in Service Management

Essential assumptions for service providers

Service is an extension of ‘product’

Need service concept to link marketing and product technology

Customers’ views are private

Difficulties/disappointments not redeemed by reference to specification

Management is spontaneous

Requirements are continuously variable

Commercial value of service unknown

Page 9: Education in Service Management

Approach to analysis

Two parallel streams

Need to attract customers into service delivery system Need service delivery system to be fashioned to

reflect customers characteristicsi.e. ‘overlaps’ of impressions and realities critical

Customer experienceExpectation Satisfaction

Systemdesign

Service delivery systemCosteffectiveness

Page 10: Education in Service Management

Concept of the Gap Model

W ord of m outhcom m unications

Personal needs Past experience

Expected service

Perceived service

Service deliveryExternal

com m unicationsto custom ers

Service qualityspecifications

Managem entperceptions of

custom er expectations

G ap 3

G ap 2

G ap 5

Gap 1

Customer

Provider

G ap 4

Page 11: Education in Service Management

Elements of value experienced in service encounters

‘Stated’‘For you’

‘In brochure’

Delivered,noticedor ‘free’

Unstated,expected inthis context

Taken as‘recommendation’

Tangible Intangible

Explicit

Implicit

Sell on these ‘Winners’

‘Qualifiers’ Retain on these

Page 12: Education in Service Management

Factors available for organising the service delivery system

Participants

Information

Channelling

Technology

Architecture

Employee training

Décor

Points of contact

Lines of visibility

Page 13: Education in Service Management

The context in which service delivery systems operate

The service system works within two trade-offs

Customer service

Barrier of

structure

Productivity

Scope for change

Barrier of

operations

Economies of “standardisation”

Operational trade-off Structural trade-off

Page 14: Education in Service Management

Trade-offs illustrated in McDonalds

Approach to productivity

Validation of service concept QSCV

Achievement of profitability by the focus on throughput, not margin

Page 15: Education in Service Management

Trade-offs illustrated in McDonalds

Page 16: Education in Service Management

Trade-offs illustrated in McDonalds

Page 17: Education in Service Management

Trade-offs illustrated in McDonalds