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Summary Managing Service Innovation

- Flikkema
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A snapshot of the summary - Managing Service Innovation Author: Flikkema

  • 1 Shostack: Designing Services That Deliver

  • Even though services fail because of human incompetence, it's not the true underlying cause. What is this cause according to Shostack?
    The lack of systematic method for design and control. 
  • According to Shostack, there are several reasons for the lack of analytical service systems designs. Name and explain 3:
    1 People confuse services with products and with good manners
    2 Outstanding service companies instill (bijbrengen) in their managers a fanatical attachment to the original service idea (but good and lasting service management requires much more: better service design provides the key to market success and growth)
    3 The operation side of service management procedures (f.e. time-motion engineering), provide managers a way to visualize a process and to define/manipulate it. They miss the consumer's relationship to, and interactions with, services. 
  • What does a service blueprint do for a company according to Shostack?
    It allows a company to explore all issues inherent in creating or managing a service.
  • What is meant with the first (of four) issue of designing a blue print? (Shostack)
    Identifying processes = creating a blueprint is mapping the processes that constitute the service. It is important to watch out for parts of the service that the consumer does not see (f.e. purchasing supplies). Though invisable, these processes are important because changing them may alter the way consumers perceive the service.
  • What is meant with the second (of four) issue of designing a blue print? (Shostack)
    Isolating fail point = having diagrammed the processes invovled, the designer can now see where the system might go awry (scheef). So the designer must build in a subprocess to correct this possible error. When designers and managers think through potential problems together in advance, the quality of service execution is invariably higher.
  • What is meant with the third (of four) issue of designing a blue print? (Shostack)
    Establishing time frame. After building in fail-safe measures, the designers must consider the execution. Since all services depend on time, which is usually the major cost determinant, the designer should establish a standard execution time. 
  • What is meant with the fourth (of four) issue of designing a blue print? (Shostack)
    Analyzing profitability. Whatever its source, a delay can affect profits dramatically. A service designer must establish a time-of-service-execution standard that precludes (uitsluiten) unprofitable business and maintains productivity.
  • What does a blueprint facilitate and how can a blueprint help according to Shostack?
    1 A blueprint facilitates the analysis of cost-benefit trade-offs and can be used to test the appeal (aantrekkingskracht) of different designs to prospective customers.
    2 A blueprint can help the service developer with other problems (f.e. a thorough cost analysis or for promotion tangible evidence it can manage and control)
  • To maintain credibility the service must select and manage products with care. How is this possible according to Shostack?
    The design of service should therefore incorporate the orchestration of tangible evidence - everything the consumers uses to verify the service's effectiveness. 
  • What should the developer do at the design stage? (Shostack)
    The developer must plan and consider every encounter between consumer and provider. The good manners and attentiveness customers associate with good personal service must be made part of hiring, training, and performance standards of the company. Indifferent or surly (onverschillig) execution can devalue the service. 
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