New Service Development - TTR

8/3/2019 New Service Development - TTR

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New Service Development

Thirumal Reddy



• Both husband and wife are employees, and

they are staying in a nuclear family, they need

different services like ?

•



• At night 11pm you suddenly need a medicine

and what kind of service you look for?



• The distance from home to office are

increasing you need difference services to

reach there office quicker and safer?



5

Origin of new services

• Human needs – stimulus for new services

• Need for survival and growth in the private

sector• Social needs not adequately covered by

private sector – stimulus for public sector



Challenges for Service Innovation

• Ability to protect intellectual and property

technologies.

• Incremental nature of innovation.

• Degree of integration required.

• Ability to build prototypes or conduct tests

in a controlled environment.

4-6



Figure 9.1

Risks of Relying on Words Alone to Describe Services

Oversimplification

Incompleteness

Subjectivity

Biased

Interpretation



8

Life cycle of a service

• Infancy: many risks; high mortality rate; slow growth of demand

• Growth: acceptance by customer

– Pressures for additional capacity

– More efficient service

– Adjustments in managerial style

• Maturity: demand reaches saturation level (long duration forservices that meet genuine need)

• Decline: changes in economy, new improved services, changes in

technologyWhen to introduce new services?



9

Steps in service design

• Idea generation

• Selection: compatibility with organization’sgoals and resources

– Private sector, drop the idea if:• Not much profit

• Deteriorates company image

• Incompatible with skills, facilities

– Public sector

• Goals less easily definable (public welfare)• Little attention to operational issues



10

Steps in service design

• Preliminary design: little product testing.

Marketing present

– Specify key attributes of service package

• Final design: specify service level



11

New Service Development Cycle

People

Technology Systems

Product

Full Launch Development

Design Analysis

Tools

Enablers

• Formulation

of new servicesobjective / strategy

• Idea generation

and screening

• Concept

development and

testing

•Business analysis

• Project authorization

• Full-scale launch

• Post-launch review

• Service design

and testing

• Process and system

design and testing

• Marketing program

design and testing

• Personnel training

• Service testing and

pilot run

• Test marketing



Types of New Services

• major or radical innovations

• start-up businesses

• new services for the currently served market

• service line extensions

• service improvements

• style changes



Figure 9.2

New Service Development Process

Sources : Booz-Allen & Hamilton, 1982;Bowers, 1985; Cooper, 1993; Khurana &Rosenthal 1997.

Business strategy development or review

New service strategy development

Idea generation

Concept development and evaluation

Business analysis

Service development and testing

Postintroduction evaluation

Commercialization

Market testing

Screen ideas against new service strategy

Test concept with customers and employees

Test for profitability and feasibility

Conduct service prototype test

Test service and other marketing-mix elements

Front-endPlanning

Implementation



Figure 9.3

New Service Strategy Matrix for Identifying Growth Opportunities

Markets

Offerings

ExistingServices

NewServices

Current Customers New Customers

Sharebuilding

Diversification

Marketdevelopment

Servicedevelopment



Figure 9.5 Service Blueprinting

A tool for simultaneously depicting the service process, thepoints of customer contact, and the evidence of service from thecustomer’s point of view.

ServiceBlueprint

Process

Points of contact

Evidence



Service Blueprint Components

Customer Actions

line of interaction

“Onstage” Contact Employee Actions

line of visibility

“Backstage” Contact Employee Actions

line of internal interaction

Support Processes



Figure 9.7

Blueprint for Express Mail Delivery Service

DriverPicks UpPackage

Dispatch

Driver

AirportReceives& Loads

SortPackages

Load onAirplane

Fly toDestination

Unload

&Sort

Load

OnTruck

S U P P O R T P R O

C E S S

C O N T A C T

P E R

S O N

( B a c k S t a g e )

( O

n S t a g e )

C U S T O M E R

P H Y S

I C A L

E V I D E

N C E

CustomerCalls

CustomerGivesPackage

TruckPackaging

FormsHand-held ComputerUniform

ReceivePackage

TruckPackaging

FormsHand-held ComputerUniform

DeliverPackage

CustomerServiceOrder

Fly toSortCenter

Line of interaction

Line of visibility

Line of internal interaction



Figure 9.8

Blueprint for Overnight Hotel Stay Service

S U P P O R T P R O C

E S S

C O N T A C T P E R S O N

( B a c k S t a g e )

( O n S t a g e )

C U S T O M E R

Hotel ExteriorParking

Cart forBags

DeskRegistrationPapersLobbyKey

ElevatorsHallwaysRoom

Cart forBags

RoomAmenitiesBath

Menu DeliveryTrayFoodAppearance

Food BillDeskLobbyHotel ExteriorParking

ArriveatHotel

Give BagstoBellperson

Check inGo toRoom

ReceiveBags

SleepShower

CallRoomService

ReceiveFood

EatCheck outandLeave

Greet andTakeBags

ProcessRegistration

DeliverBags

DeliverFood

ProcessCheck Out

Take Bagsto Room

TakeFoodOrder

RegistrationSystem

PrepareFood

P H Y S I C A

L

E V I D E N C

E

Line of Interaction

Line of Visibility

Line of Internal Interaction

RegistrationSystem



Figure 9.9

Building a Service Blueprint

Step 1

Identify theprocess tobe blue-printed

Step 2

Identify thecustomerorcustomersegment

Step 3

Map theprocessfrom thecustomer’s

point ofview

Step 4

Map contactemployeeactions,onstage andback-stage,and/ortechnologyactions

Step 5

Link contactactivities toneededsupportfunctions

Step 6

Addevidence ofservice ateachcustomeraction step

New Service Development - TTR

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