Summary: Teaching An Old Service New Tricks

Read the summary and the most important questions on Teaching an Old Service New Tricks

• 1 Introduction

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• In the face of changing customer priorities, competitors, and technologies, how can organizations design their services to survive? 

  Contrary to the focus of most recent service design literature, creating new services is not the only option. The authors explore another viable competitive option—the redesigning of existing services. The promise of service redesign has received little attention in the services literature. Service design research resides in an “embryonic” state.

• 2 Service Redesign

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• What is service redesign?

  The reconstitution, rearrangement, or substitution of processes that make up a service. 

• What does service redesign require?

  It requires organizations to assess their current service designs — the way services are delivered and received —and create alternative, more effective ways to serve customers.

• What can decrease the customer's burdens or sacrifice?

  Improving access to a service, increasing speed of delivery, improving functionality, or reducing its costs.

• 3 A Framework for Service Redesign

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• 3.1 Self-Service

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• What does self-service redesign influence?

  The service process by requiring the customer to play a more participatory role in the service encounter.

• Are service employees required to perform the activities that compose the service?

  No, the service is redesigned to enable customers to perform the activities for themselves.

• What are the characteristics that services possess when they are the best candidates for self-service redesign?

  • Customers require frequent and flexible access
    
  • Speed of service delivery is paramount
    
  • Service performance requires limited skills that are easily transferable to customers
    
  • Gross margins are low, making cost-saving alternatives especially attractive
    

• 3.2 Direct Service

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• What does direct service increase?

  Customer value by decreasing the burdens of time, energy, and hassle. It enhances access to the service. 

• What are the characteristics that services possess when they are the best candidates for direct service redesign?

  • Customers must significantly disrupt their normal routines to receive the service
    
  • Customers’ inconvenience in visiting the service facility outweighs the benefits of the service
    
  • Customers dislike personally interacting with the service provider
    
  • Technology allows the remote delivery of services
    

• 3.3 Pre-Service

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• What does pre-service redesign involve?

  Streamlining the activation of a service.