measuring integration service quality gap in a service system network
TRANSCRIPT
1
Measuring Integration Service Quality Gapin a Service System Network
Stephen K. KwanLucas Professor of Service ScienceLucas Graduate School of Business
San José State UniversitySan José, CA, USA
Presented atFrontiers in Service Conference
July 9-12, 2015, San José, CA, USA
Draft June 26th 2015
Peter HottumKarlsruhe Service Research Institute
Karlsruhe Institute of TechnologyKarlsruhe, Germany
2
Service providers often have to construct networks of partners to fulfill service obligations (entitlement) to customers. We introduce an integration service quality gap that represents the difference between customer service quality expectation and perceived service quality in his service journey in a service system network. The integration service quality gap is incorporated with traditional service quality gaps to form a more complete treatment of service quality metrics in such an environment. We will also address reduction in service quality due to poor communication between the service provider and partner/subcontractors as well as the role of service standards in constructing value propositions.
Abstract
3
Service System NetworkValue Proposition Types (1)
Customer’sSocial
Network
Customer
ServiceExperience
ServiceProviderFocal
Relationship
Provider PartnerNetwork
VP: Value PropositionVPC
VPS VPP VPP
Kwan, S. K. & Yuan, S. T. ”Customer-Driven Value Co-Creation in Service Networks”, in Demirkan, H., Spohrer, J.C. and Krishna, V. ed., The Science of Service Systems, volume in Service Science: Research and Innovation (SSRI) in the Service Economy series, Springer, 2010.
4
Composition of a Value Proposition (1)
Service Experience
VP = [SE,B,C,P,Q,Sc,R,M,FR]
will do
will do for
+$
will not do
Benefits
Costs
Probabilityof Success
Quality
Schema for DataExchange
Stakeholders’Roles
PerformanceMetrics
FailureRecovery
5
Composition of a Value Proposition (2)
VP = [SE,B,C,P,Q,Sc,R,M,FR]“Our service will provide such and such experience which will result in certain benefits to you. It will cost $. We have a good reputation and will be capable to perform the service successfully and with high quality. We will exchange data about each other in a particular format. We will perform the service based on the agreeable upon criteria and you will also be expected to perform in a certain manner in order to co-create value as intended. You will be able to measure our performance and vice versa. In case of service failure, we will perform certain procedure to restore service.”
66
From Fitzsimmons & Fitzsimmons 6th ed Figure 6.3original by Uttarayan Bagchi.
Traditional Service Quality Gap Model
7
Customer’sAssessment
Inflated ExpectationPromotedExpectation
Service Provider’s Assessment
Management’s Perceived Customer
Expectation
Service Design Specifications
Service Delivered Received
G1
G2
G3
G4
G5 = Service Quality Gap
Conformance
Design
MarketingResearch
Communication
Causes of Gaps
ServiceQuality
Service Quality Gap - VPC
Realistic ExpectationCreated by
Value Proposition
VPC
Service Standard Specifications
8
Service System NetworkValue Proposition Types (2)
Customer’sSocial
Network
Customer
ServiceExperience
ServiceProviderFocal
Relationship
Provider PartnerNetwork
VP: Value PropositionVPC
VPS VPP VPP
9
Customer Service Journeywith Multiple Service Providers over Time (1)
Service Episodes in Sequence
Time
Multiple ProvidersIn a Service Episode
Service Episodes in Parallel
9
★★ ★ ★ ★
Value Propositionsin a Service System Network
Customer(C)
Provider (B) VP
c
Provider (B)
Customer(C)
Se: Service Episodes
Customer Service Journey Delivered by Partners/Subcontractors
SE
S: Service Components
……….
The question is:Do the Service Episodes
add up to the entitled Service Experience?
Se ≈ S?
10
VPDerivativesVPP
Was the Service
Component performed?How well was the
Component performed?
11
VP
VP1 VP2 VP3 …VPK
S1S2…. S2S3…. S1S4….
VP’s to KPartners/
Subcontractors
Service Componentsto be delivered
University
College
Department
Major
Concentration
Course
Offering
Example:
11
Value Proposition Derivations (1)
12
Customer Service Journeywith Multiple Service Providers over Time (2)
Service Episodes in Sequence
Time
CreatedCustomer Expectation
Examples:Healthcare
TravelHospitalityEducation
Financial Services
13
ηij= p(S’j|Si)
SE” = SE η1 η2 η3 η4… ηK
an “Information System”to communicate SE to partners
SS’
1 1 1 1
example ofperfect
information SS’
1 0 1.25 .75
example ofimperfect information,
noise due to“quasi-garbling”
Value Proposition Derivations (2)
Marschak, J. (1968) “Economics of Inquiry, Communicating, Deciding”, American Economics Review. (58): 1-18.Marschak, J., Radner, R. (1972) Economic Theory of Teams, Cowles Foundation Monograph 22, Yale University Press.
What causes the “quasi-garbling” phenomenon?•Miscommunication – oversight, language, etc.
•Omission/Obfuscation - Information (part of the VP) was
not passed on or made unclear deliberately – pricing, IP, etc.
• Opaqueness- There are multiple partners/subcontractors and
they are not made visible to each other
• Low Cost Substitutes - Practice of “flipping”
• Information Loss - Practice of derivatives – unable to
reconstruct original VP and identify responsibility
Value Proposition Derivations (3)
14
15
Customer’sAssessment
Inflated Expectation
Service Provider’s Assessment
G1
G2
G3
G4
G5 = Service Quality Gap
Conformance
Design
MarketingResearch
Communication
Causes of Gaps
ServiceQuality
Integration Service Quality Gap
Realistic ExpectationCreated by
Value Proposition
VPC
G0 IntegrationGap caused by
“quasi-garbling”
VPP
Service Delivered Received
Gap caused bynon conformance
to Service Standards
OperationalGaps
16
Customer Service Journeywith Multiple Service Providers over Time (3)
Service Episodes in Sequence
Time
CreatedCustomer Expectation
17
Composition of a Value Proposition (3)
Benefits
Costs
Probabilityof Success
Quality
Schema for DataExchange
Stakeholders’Roles
PerformanceMetrics
Service Experience
VP = [SE,B,C,P,Q,Sc,R,M,FR]
FailureRecovery
Essential Elements of a Service Standard
Service Standards (1)
A standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose.
-----------------------------------------------------------------------------
A Service Standard is performance-based – not design-based, is non-prescriptive and a reference implementation could be used for conformance measurement, benchmarking, and interoperability assessment.
International Standards Organization (ISO) Definition:
Only 700 out of 19,000 ISO Standards are service related!
Examples of Different Types of Standards:• Industry (Segment) Standards• National Standards• International Standards• Private Standards (e.g., SLA’s)• Company Standards• Industry Standards
Service Standards (2)
Importance of Service Standards
• There is an increasing need for Service Standards as countries begin to develop their service sector and face market-based forces within the sector as well as import/export of service in the global economy. In this case Service Standards can be viewed as a surrogate level of market requirements (i.e., the bar set by the industry).
• The use of relevant Service Standards could be a mechanism to connect VPs across the service network in order to ensure the customer enjoys a level of service consistent with the expectation set by the original VP offered by service provider (reduce G0). Service Standards are important elements of setting customer expectations.
• Service Standards provide specifications for interoperability, performance measurement, and conformance assessment guidelines. High potentials in reducing G3.
2121
Future Research on these Approaches:
1. More research on Service Standards, Standardization, and Conformance Assessment.
2. Measure the quality of the customer service experience based on individual service episodes, service components, partner/subcontractors, as well as the whole experience. Would it be possible to measure the “Integration Service Quality Gap – G0”: Se ≈ S caused by multiple service providers in the experience?
Future Research Directions
22
Kwan, SK, Hottum, P (2014) The Integration Quality Gap in Service System Networks. Presentation at INFORMS Annual Meeting, San Francisco, November 9-12.
Kwan, SK, Hottum, P (2014) Maintaining Consistent Customer Experience in Service System Networks, Service Science, Vol. 6, No. 2, pp. 1-12. (Presented at 2013 Naples Forum)
Kwan SK, Hottum P, Kieliszewski CA (2012) Moving from B2X to B2X2Y value propositions in service system networks. Presentation at the 1st International Conference on the Human Side of Service Engineering, July 24, San Francisco.
Kwan SK, Muller-Gorchs M (2011) Constructing effective value propositions for stakeholders in service system networks. Sprouts: Working Papers Inform. Systems 11:Article 160.
Freund L, Kwan SK (2010) Co-production process quality management for service systems. Presentation at the 19th Frontiers in ServicesConference, June 10–13, Karlstad, Sweden.
Previous Work
23
Measuring Integration Service Quality Gapin a Service System Network
Stephen K. KwanLucas Professor of Service ScienceLucas Graduate School of Business
San José State UniversitySan José, CA, USA
Peter HottumKarlsruhe Service Research Institute
Karlsruhe Institute of TechnologyKarlsruhe, Germany
End
Presented atFrontiers in Service Conference
July 9-12, 2015, San José, CA, USA
Draft June 26th 2015