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Class notes Service Operations

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Detailed summary of all lectures of Service Operations, including important tables and graphs

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  • April 5, 2021
  • 10
  • 2019/2020
  • Class notes
  • Broekhuis
  • All classes
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Introduction 02-09-2019


Service: information, solution, emotion, knowledge, transport, activity.
 Degree of intangibility
 Customer participation
 Simultaneously, intangibility, perishability, etc.
Service characteristics influence the design of any service delivery system  process, use of methods.

Types of services (project):
1. Access-based services: e.g. SwapFiets
2. Financial services
3. Distribution services: transport, wholesale
4. Business services
5. Self-services: supermarket, etc.
6. Infrastructure services
7. Public services
Creating a customer experience becomes more and more important (e.g. Hudsons Bay). Thinking
about the different stages in a process: anticipation, arrival, experience, departure and savouring (e.g.
DisneyLand)  smooth journey.

Servitization: selling services instead of products (e.g. Philips selling light instead of lamps) 
integrated solutions provider: service as thé business.

Service triad: agreement between buyer and supplier, but the supplier delivers directly to the customer
(driehoek), e.g. youth care in the municipality.
 Conditions for outsourcing
 The role of the buyer
These networks can be single directional, bi-directional or even more.

Tutorial: service strategy triad (article 1)
1. Service concept: product bundle
o Explicit service + implicit service = what is delivered
o Facilitating goods + supporting facilities + information = resources needed to deliver.
2. Target market
3. Service encounters: moments where service provider and customer meet and interact
(moments of truth).
o Customer journey: sequence of activities from a customer perspective (primary
process).
o Type of channels for service delivery and interaction (e.g. online/offline).
o Role of customers (e.g. self-service).
o Interaction: level of intensity
 Sequential: one-by-one steps = eenzijdig.
 Reciprocal: wederkerig
o Heterogeneity or personalisation
4. Service delivery system design choices
o Structural: e.g. high tech technology, data analysis.
o Infrastructural: e.g. managing professionals, seamless processes
o Integration: e.g. cooperation with brands.

Gronroos Circle to describe service concept:
1. Inner circle: what to deliver
o Facilitating services: things the organization use to make sure customers can use the
core service (e.g. lecture hall).

, o Supporting services: not the reason why you go to that company, but they increase the
experience of the service.
2. Second circle: how to deliver
o Accessibility of the service: opening hours,
website, etc.
o Customer participation: what the customer role is
in the service process.
o Interaction: communication channels to the
customer (online/offline).
3. How people experience the service is also depended on
local image, word-of-mouth communication, corporate
image, etc.
If the core service is inappropriate, then all the other things cannot
make that up. The rest can only upgrade the service.

Feedback Tutorial 1:
 Describe what is delivered  take the core service at home.


Digital services 09-09-2019


Managerial issues in a digital service world:

1. Omni-channel design of the service encounter  what kind of channels do organizations
adopt to interact and deliver their services?
o Customers prefer to choose their own channel, switch between channels and choose
their own mix of channels.
o Performance of omni-channel experience: seamless, consistent and reliable.
o Logistics performance elements are included in people’s decision making process.
o Offering many channels has high coordination costs, but delivers a great experience to
the customer  challenging.
Organizations have to provide a fully integrated experience! Coordination across channels and
across different customer journey and product flow stages is essential  expensive.

Channel redundancy: different channels can be used in the different process steps
Channel combination: each combination of channel-use is possible, in-process-switching
between channels (allowed/not allowed).

- Afbeelding!

Interaction between channels (marketing perspective)
o Cannibalization: a channel cannibalizes the sales of the concurrent channels.
o Synergy: a higher effectiveness of a channel due to the use of another channel.
o Trends: channel become more blurred in the eyes on customers; more personalization.

Required coordination and maintenance costs of multiple channels (operations perspective)
o More channels: higher maintenance costs.
o More channels: more uncertainty, harder to predict process route, and so more
coordination costs
o More intricacy between process stages: more coordination costs if customers switch.

Choice of design depends on strategy, type of product and customer preferences!

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