Contrasting services with manufacturing - Innovation in services - Managing service innovation
4 important questions on Contrasting services with manufacturing - Innovation in services - Managing service innovation
What are the implications for innovation management when looking at the service characteristic "Customer contact"?
- Deciding on the appropriate degree of customer contact is essential. What is the current level of contact and does this match the expectations? Consider timing, intimacy and information exchanged.
- New service products may change the nature of customer contacts and so staff retraining may be necessary.
- Innovations in the way the customer contact is managed can give opportunities to improve the perceived quality of the service product.
- New service prototypes can only be tested with customers; 'laboratory testing' is not possible.
What are the implications for innovation management when looking at the service characteristic "Inhomogenity"?
- Service innovation must take account of the dependency of the service offering on both the customer and (often) the main persons in the delivery chain. Either consistency or customization can be a valid aim.
- Different customer segments can require both changes to the service product and the service augmentation. It is important to identify the main market segments.
What are the implications for innovation management when looking at the service characteristic "Services are perishable"?
- The production and delivery mechanism must ensure easy access for customers. Both front and back-office staff need to be involved in new product development.
- Capacity issues need to be considered at the design stage.
- To achieve high customer satisfaction, the quality of the augmented service must be high.
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What are the implication for innovation management when looking at the service characteristic "Service quality is multifaceted"?
- Expectations and perceptions need to be managed. Internal perceptions need to be matched to those of the customer and/or consumer.
- Managing service quality requires good cross-functional interaction between the front and back office.
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