Summary
1ZM55 Service Innovation Management summary
- Course
- Institution
Summary of the lectures and articles of 1ZM55 Samenvatting
[Show more]
Seller
Follow
studentCSM99
Content preview
1ZM55 - ServiceInnovation Management
8 open-ended questions
- 6 questions of 10 points
- 2 questions of 5 points
- Paper based exam
,Lecture 1: Introduction to Service Innovation Management
Services defined
Service = The application of competences for the benefit of another
- Deeds
- Processes
- Effort (performances)
Tangibility spectrum
From 4 to 7 P’s
Not only product, place, promotion, price but also people, physical evidence and process
IHIP paradigm
These characteristics make services different from products
- Intangibility
- Heterogeneity
- Inseparability
- Perishability
, Characteristics Solutions
Intangibility - Services cannot be inventoried - Focus on tangible cues
- Services cannot be easily patented - Use personal sources
- Services cannot be readily displayed or - Stimulate word-of-mouth
communicated - Create company image
- Pricing is difficult - Communicate after sale
Heterogeneity - Service delivery and customer satisfaction - Industrialise service
depend on employee and customer action - Customise service
- Service quality depends on many
uncontrollable factors
- There is no sure knowledge that the service
delivered, matches what was planned and
promoted
Inseparability - Customer takes part in production process - Training and selection
- Other customers are co-producers - Manage customers
- Problems with mass production - Multi-site strategy
- Not possible to keep in stock (franchising)
Perishability - It is difficult to synchronise supply and - Demand management
demand with services - Supply management
- Services cannot be returned or resold
- Restricted in time and place
Criticism on IHIP paradigm
→ By Lovelock
Physical acts Physical acts to Non physical acts Processing of
to customers’ owned objects to customers’ information (e.g.
bodies (e.g. (e.g. freight minds (e.g. news) internet banking)
health care) transport)
Intangibility Misleading Misleading Yes Yes
(performance is (performance is
ephemeral but ephemeral but
experience may may physically
be highly transform
tanbile) possession in
tangible ways)
Heterogeneity Yes Many exceptions Many exceptions Many exceptions
(can often be (can often be (can often be
standardized) standardized) standardized)
Inseparability Yes No (customer Only when the Many exceptions
usually absent performance is (customers often
during delivered ‘live’ absent during
production) production)
Perishability Yes Yes Many exceptions Many exceptions
(performance can (performance can
often be stored in often be stored in
electronic/printed electronic/printed
form) form)
, The challenges
Challenge 1: Towards an experience economy
Commodities are things that you grow in the ground, raise on the ground or pull out of the
ground (vegetables, animals). Basis of the agrarian economy.
After the industrial revolution, commodities were used as raw material to be able to
manufacture goods. These goods become the predominant economic offering.
Last 50/60 years, goods have become commoditized. Goods are treated like a commodity
(people don’t care who makes them). There is an antidote to commodiation, that is
customisation. Customising a good turns it into a service, because it was done for a
particular person and delivered on demand to that particular person.
The last 20 years services are being commoditized as well (long-distance telephone
service). So what happens when you customize a service?? You turn it into an experience.
We are shifting to an experience economy
Challenge 2: Amazing paradox
3 ways of innovating
“.. modern economies are both service economies and economies of innovation.
Paradoxically, they are not regarded as economies of innovation in services. It is as if
service and innovation were two parallel universes that coexist in blissful ignorance of each
other”
→ In the traditional model, a central challenge is the difficulty to dig out all relevant issues
before entering the real markets. The length of the process and the considerable resources
required are problems, too. In smaller companies, external funding is often the prerequisite
for this model
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller studentCSM99. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.27. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
59063 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now