Samenvatting

Extended Summary: Service Innovation Management / Servitization and Customer Experience (1ZM11)

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Vak
Service Innovation Management (1ZM55)

Instelling
Technische Universiteit Eindhoven (TUE)

This is an extended summary of all lectures for the course Service Innovation Management (1ZM55). The new name of this course is Servitization and Customer Experience. This 55-page document summarizes the essence of all topics covered in the course (as far as I could imagine when writing it). It in...

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Geupload op 27 oktober 2024
Aantal pagina's 55
Geschreven in 2022/2023
Type Samenvatting

servitization
new service development
service blueprinting
customer satisfaction
service recovery
access based services
servicescape
designing service robots
innovation in
frontline employee behavior

Instelling
Technische Universiteit Eindhoven (TUE)
Studie
Innovation Management
Vak
Service Innovation Management (1ZM55)

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1ZM55 - course summary

Introduction (lecture 1)
Service: the application of specialized competences (knowledge & skills) through detailed processes and
performances for the benefit of another entity or the entity itself.

The tangibility spectrum.

The IHIP paradigm
Intangibility
→ Services cannot be experienced/consumed until the purchase is made.

Characteristics: Solutions:

Cannot be inventoried Focus on tangible cues

Cannot be easily patented Use personal sources

Cannot be readily displayed/communicated Stimulate word-of-mouth

Pricing is difficult Create company image

Communicate after-sale

1ZM55 - course summary 1

, Criticisms:

Physical acts on customers’ bodies: the experience may be tangible → physical changes

Physical acts to owned objects: physically transformed objects are tangible

Heterogeneity
→ Service quality depends on a variety of factors thus a consistent product cannot be provided.

Characteristics: Solutions:

Service delivery & customer satisfaction Industrialize service (develop on a wide
depend on employee and customer actions scale)

Service quality depends on many Customize service
uncontrollable factors

No knowledge if the delivered service
matches the planned/promoted service

Criticisms:

Physical acts to owned objects: can often be standardized

Non-physical acts to customers’ minds: can often be standardized

Processing of information: can often be standardized

Inseparability
→ Services are usually provided and consumed at the same time in the same place.

Characteristics: Solutions:

The customer participates in the production Training and selection
process → customers are co-producers
Manage customers
Problems with mass production
Multi-site strategy (franchising)
Not possible to keep in stock

Criticisms:

Physical acts to owned objects: the customer is usually absent during production

Non-physical acts to customers’ minds: only when the performance is live

Processing of information: the customer is usually absent during production

Perishability
→ Unused service capacity cannot be stored after service production.

Characteristics: Solutions:

Difficult to synchronize supply and demand Demand management

services cannot be returned or resold Supply management

Restricted in time and place

Criticisms:

1ZM55 - course summary 2

, Non-physical acts to customers’ minds: performance can be stored in electronic/printed form

Processing of information: performance can be stored in electronic/printed form

From 4 to 7 p’s
Product: Place: Promotion: Price:

Features Channel Advertising Level

Quality Transportation Web strategy Differentiation

Branding Storage Salespeople Discounts

+ People: + Physical evidence: + Process:

Employees (e.g. training Facility design Flow of activities
& rewards)
Signage Number of steps
Customers (e.g.
Employee dress Customer involvement
education)

Towards an experience economy

Goods are 'platforms' for services, and services are 'platforms' for experiences.

Different processes to innovation
Traditional R&D model → in R&D units

Challenges:

The difficulty of finding all relevant issues before entering real markets

1ZM55 - course summary 3

, Process length → slow response

Required resources

Rapid application model → in project teams

Challenges:

Required resources

Balancing resources between development and service provision

Practice-driven model → in customer relationships

Challenges:

Finding the core of novelty → make tacit ideas more explicit earlier

Service-Dominant Logic (SDL)
FP1: the application of specialized skills and knowledge is the fundamental unit of exchange

Previously, value was embedded in an object, and value can be added by embedding e.g.
knowledge and skills

FP2: indirect exchange masks the fundamental unit of exchange

The service for service exchange is hidden; it is compensated through money, which hides the
knowledge and skills that have been embedded in the offering

FP3: goods are distribution mechanisms for service provision

FP4: knowledge is the fundamental source of competitive advantage

The greatest value is created by focusing on process management (people, knowledge, skills,
etc.) → operant resources

FP5: all economies are service economies

FP6: the customer is always a co-producer of value

Previously, value was created in the production process (efficiency), but this does not necessarily
translate to value for the customer

FP7: the enterprise can only make value propositions

Objects do not inherently contain value → we can only offer something that has potential value for
the customer

FP8: a service-centered view is customer-oriented and relational

Operant & operand resources

1ZM55 - course summary 4

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