BUSINESS MODELS AND SERVICES
CHAPTER 1
SERVICE = poor service is the failure to deploy the principles of service operation management.
Resources of the company not used efficiently. 4 characteristics:
1. Intangibility – not physical items. The resources that carry the service can be tangible but not
the service proved.
2. Heterogeneity – difficult to standardize. Each time is different because is not controllable.
3. Inseparability – production and consumption simultaneous.
4. Perishability – cannot be stored. Very short shelf time. Effect can be long (doctor)
OPERATIONS MANAGEMENT =
transforming a set of inputs into outputs.
Resources are organized into a network of
related processes that they go trough.
Resources and processes impact each other.
An operation’s resources will constrain what
its processes are capable of doing, and therefore these terms are equivalent. Operations improve
capabilities over time.
General op. man. = the transformed inputs are classed as some combination of materials, information
and customers. Ex/ multinational.
Service op. man. = customer is the central input to the transformation process. Transform their
consumers directly. Ex/ small restaurant.
THE OPERATION PERSPECTIVE =
Inputs – resources, materials, staff, technology, customers..
Outcomes – products, benefit, emotions, judgment,
intentions.
CHAPTER 2
Services operations = everyday s. that we buy, personal s. we provide, s. organization provide each
other, public s., non-profit s. etc. Services are 80% of GDP in developed countries, provide employment.
B2B – (consulting, outsourcing) long-term relationship, usually complex.
B2C – largest classes of services. challenge is providing wide variety and make people come back.
CLARK MODEL = 3 activities (agriculture, industry,
services). When a country develop the employment in these
activities is different (more services). Quaternary activities
are service related to intellectual and knowledge-base
activities (consultancy, tech..).
Why shift to services?
, - Hierarchy of needs. Manufactured good is satisfy more than agricultural output, so service
even more.
- The production of physical goods has become increasingly mechanised. Services are more
difficult to mechanize.
- Because of the relative productivity growth between secondary and tertiary sectors.
EXPERIENCE ECONOMY = idea that people are increasingly spending money on experience
instead of things.
- Servitisation: any approach that aims to transform how product functionality is offered to its
markets.
- Service-dominant logistic: way of thinking about nature of business and role of service.
Mindset of putting the nature of the service at the centre of all economic activities.
- Service science: study of services, service delivery systems and service-based tech.
o Service provide = input
o Service received = output
o Characteristic processes = IHIP
o Service outcomes = product, emotions, benefit, judgement, intentions
o Customer processes = steps a costumer goes trough to interact with an organization
▪ Awareness, engagement, evaluation, purchase, product / support experience.
CHAPTER 4
SERVICE CONCEPT = A service concept is a shared understanding of
the essential nature of the service provided and received. The role of
service managers is reconciling the needs of customers with the need for
stability and efficiency inside the operation. Some kind of 'linking
mechanism' that helps to bridge this gap would be useful. The thing that
links all these aspects of a service is the service concept. A service
concept is a "translation" process that aims to bring together possibly
opposing viewpoints and perspectives. It has the power to bring together
clients and workers while promoting competitive advantage.
STRUCTURE OF SERVICE CONCEPT:
- The org responsible for the service
- The org idea – the essence of the service bought/used by consumers.
- Service concept – an overview of what is to be delivered, to what standards, key resources used.
- Service provided
- Service received by consumers.
SERVICE VALUE = the cost of service to costumer is the combination of the financial price and the
cost (sacrifice). The task for operations is to find a balance between maximizing the value for customers
and minimizing the cost to the organization. The service concept is a tool that can communicate the set
of benefit to the costumer to show the potential value of the service.
Service designers and operations managers must understand which emotions are likely to be evoked.
Service concept can be used to define and communicate the nature of the business to all stakeholders,
and to create organizational alignment.
CHAPTER 1
SERVICE = poor service is the failure to deploy the principles of service operation management.
Resources of the company not used efficiently. 4 characteristics:
1. Intangibility – not physical items. The resources that carry the service can be tangible but not
the service proved.
2. Heterogeneity – difficult to standardize. Each time is different because is not controllable.
3. Inseparability – production and consumption simultaneous.
4. Perishability – cannot be stored. Very short shelf time. Effect can be long (doctor)
OPERATIONS MANAGEMENT =
transforming a set of inputs into outputs.
Resources are organized into a network of
related processes that they go trough.
Resources and processes impact each other.
An operation’s resources will constrain what
its processes are capable of doing, and therefore these terms are equivalent. Operations improve
capabilities over time.
General op. man. = the transformed inputs are classed as some combination of materials, information
and customers. Ex/ multinational.
Service op. man. = customer is the central input to the transformation process. Transform their
consumers directly. Ex/ small restaurant.
THE OPERATION PERSPECTIVE =
Inputs – resources, materials, staff, technology, customers..
Outcomes – products, benefit, emotions, judgment,
intentions.
CHAPTER 2
Services operations = everyday s. that we buy, personal s. we provide, s. organization provide each
other, public s., non-profit s. etc. Services are 80% of GDP in developed countries, provide employment.
B2B – (consulting, outsourcing) long-term relationship, usually complex.
B2C – largest classes of services. challenge is providing wide variety and make people come back.
CLARK MODEL = 3 activities (agriculture, industry,
services). When a country develop the employment in these
activities is different (more services). Quaternary activities
are service related to intellectual and knowledge-base
activities (consultancy, tech..).
Why shift to services?
, - Hierarchy of needs. Manufactured good is satisfy more than agricultural output, so service
even more.
- The production of physical goods has become increasingly mechanised. Services are more
difficult to mechanize.
- Because of the relative productivity growth between secondary and tertiary sectors.
EXPERIENCE ECONOMY = idea that people are increasingly spending money on experience
instead of things.
- Servitisation: any approach that aims to transform how product functionality is offered to its
markets.
- Service-dominant logistic: way of thinking about nature of business and role of service.
Mindset of putting the nature of the service at the centre of all economic activities.
- Service science: study of services, service delivery systems and service-based tech.
o Service provide = input
o Service received = output
o Characteristic processes = IHIP
o Service outcomes = product, emotions, benefit, judgement, intentions
o Customer processes = steps a costumer goes trough to interact with an organization
▪ Awareness, engagement, evaluation, purchase, product / support experience.
CHAPTER 4
SERVICE CONCEPT = A service concept is a shared understanding of
the essential nature of the service provided and received. The role of
service managers is reconciling the needs of customers with the need for
stability and efficiency inside the operation. Some kind of 'linking
mechanism' that helps to bridge this gap would be useful. The thing that
links all these aspects of a service is the service concept. A service
concept is a "translation" process that aims to bring together possibly
opposing viewpoints and perspectives. It has the power to bring together
clients and workers while promoting competitive advantage.
STRUCTURE OF SERVICE CONCEPT:
- The org responsible for the service
- The org idea – the essence of the service bought/used by consumers.
- Service concept – an overview of what is to be delivered, to what standards, key resources used.
- Service provided
- Service received by consumers.
SERVICE VALUE = the cost of service to costumer is the combination of the financial price and the
cost (sacrifice). The task for operations is to find a balance between maximizing the value for customers
and minimizing the cost to the organization. The service concept is a tool that can communicate the set
of benefit to the costumer to show the potential value of the service.
Service designers and operations managers must understand which emotions are likely to be evoked.
Service concept can be used to define and communicate the nature of the business to all stakeholders,
and to create organizational alignment.
