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Part 4. ALIGNING SERVICE DESIGN AND STANDARDS. 8- 1. Provider Gap 2. CUSTOMER. Customer-driven service designs and standards. COMPANY. Gap 2: The Service Design and Standards Gap. Company perceptions of customer expectations. 8- 2. Key Factors Leading to Provider Gap 2. 8- 3.

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Part 4



provider gap 2
Provider Gap 2



service designs and standards


Gap 2: The Service Design and Standards Gap

Company perceptions of customer expectations


service innovation and design
Challenges of Service Innovation and Design

Important Considerations for Service Innovation

Types of Service Innovations

Stages in Service Innovation and Development

Service Blueprinting: A Technique for Service Innovation and Design



Service Innovation and Design


objectives for chapter 8 service innovation and design
Objectives for Chapter 8:Service Innovation and Design
  • Describe the challenges inherent in service innovation and design.
  • Present an array of different types of service innovations, including service offering innovation, innovating around customer roles, and innovation through service solutions.
  • Discuss the importance of engaging customers and employees and employing service design thinking in service innovation.
  • Present the stages and unique elements of the service innovation and development process.
  • Demonstrate the value of service blueprinting and how to develop and read service blueprints.


risks of relying on words alone to describe services
Risks of Relying on Words Alone to Describe Services
  • Oversimplification
  • Incompleteness
  • Subjectivity
  • Biased Interpretation


important considerations for service innovation
Important Considerations for Service Innovation
  • Involve customers and employees
  • Employ service design thinking and techniques


types of service offering innovations
Types of Service Offering Innovations
  • Major or radical innovations
    • FedEx overnight shipping
  • Start-up businesses
    • door-to-door airport shuttle
  • New services for the currently served market
    • Retailers offer play area or coffee bar


types of service offering innovations1
Types of Service Offering Innovations
  • Service line extensions
    • A restaurant adding new menu
    • An airline offering a new route
  • Service improvements
    • The addition of wireless Internet connection to a hotel room
  • Style changes
    • Revising a logo, redesigning a website


important considerations for service innovation1
Important Considerations for Service Innovation
  • The five principles of service design thinking:
    • User-centered: Services should be experienced and designed through the customers eyes
    • Cocreative: All stakeholders should be included in the service design process
    • Sequencing: A service should be visualized as a sequence of interrelated actions
    • Evidencing: Intangible services should be visualized in terms of physical artifacts
    • Holistic: The entre environment of a service should be considered


service concepts
Service Concepts
  • Examples
  • Vedia_Finland
  • Next Gen TV_US
  • Smart Store _India
  • Source:
service blueprinting
Service Blueprinting
  • A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view.


service blueprint components
Service Blueprint Components

Physical Evidence

Customer Actions

line of interaction

Visible Contact Employee Actions

line of visibility

Invisible Contact Employee Actions

line of internal interaction

Support Processes


benefits of service blueprinting
Benefits of Service Blueprinting
  • Provides a platform for innovation.
  • Recognizes roles and interdependencies among functions, people, and organizations.
  • Facilitates both strategic and tactical innovations.
  • Transfers and stores innovation and service knowledge.
  • Designs moments of truth from the customer’s point of view.
  • Suggests critical points for measurement and feedback in the service process.
  • Clarifies competitive positioning.
  • Provides understanding of the ideal customer experience.


regarding midterm exam
Regarding Midterm Exam
  • What I expect you to know
    • The differences between good and services
    • The Gap Model
    • The service quality
    • The strategies firms use to build relationship with customers
    • The strategies firms use to recover from service failure