Más contenido relacionado La actualidad más candente (10) Similar a ISS Service Innovation Leadership Seminar, 28 March - Jochen Wirtz (20) ISS Service Innovation Leadership Seminar, 28 March - Jochen Wirtz1. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 1
Can we have it all – Service Excellence,
Productivity & Profitability?
ISS Service Innovation Series:
Transformation Services through Service Innovation
Professor Jochen Wirtz
Director, UCLA – NUS EMBA
NUS Business School
National University of Singapore
Singapore, 28 March 2014
2. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 2
In Service Organizations Management Functions
Must Be Tightly Integrated With Each Other
Customers
Operations
Management
Marketing
Management
Human Resources
Management
Product
Price
Place
Promotion
People
Processes / IT
Physical Environment
3. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 3
What is the Relationship Between Service
Quality, Productivity and Profitability?
Service
Quality
Productivity
Profitability
+ +
+ / 0 / -
4) SST2) Dual Culture
5) Focused
Service Factory
3) Systems &
Technology
1) Generic
Strategies
4. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 4
Cost control, reduce wastage
Train & motivate employees to do things faster, better & more efficient
Better capacity utilization (better matching of supply & demand
Customer service process redesign (CSPR); (Lean) Six Sigma
Use of machines, technology & data
Outsourcing of non-core activities, back-office activities
Tiering of service to allocate resources better to more important customers; Hard
product/service level choices
Increasing Productivity without (much) Impacting the Customer Interface:
1. Generic Strategies to Enhance Productivity
5. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 5
Flying High in a
Competitive Industry:
Cost-effective
Service Excellence at
Singapore Airlines
Source: Loizos Heracleous and Jochen Wirtz,
“Singapore Airlines’ Balancing Act - Asia’s Premier Carrier Successfully
Executes a Dual Strategy: It Offers World-class Service and is a Cost Leader,”
Harvard Business Review, 2010, Vol. 88, No. 7/8, 145-149
2. Dual Culture Strategy
6. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 6
3. Systems & Technology
7. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 7
4. Self-service Technology (SST)
8. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 8
UCLA – NUS EMBA participants visiting Narayana
Hrudayalaya Hospital in Bangalore
5. The Focused Service Factory
9. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 9
(2) Isolate Technical Core &
Shift Activities to Back-Office
(3) Reduce Customer Contact & Choice
(4) Production Lining/
Industrialized Service Model
(1) Full-service model
ReducingUncertainty,ProcessFlexibility,CustomerChoice
StandardizationofInput,Process&Output
• Cost control, reduce wastage
• Train & motivate employees to
do things faster, better, more
efficient
• Better capacity utilization (better
matching of supply & demand)
• Customer service process
redesign (CSPR); (Lean) Six Sigma
• Use of technology (e.g.,
biometrics)
• Outsourcing on non-core
activities, back-office activities
• Tiering of service to allocate
resources better to more
important customers; Hard
product/service level choices
Increasing Productivity
without (much) Impacting the
Customer Interface
Possible Avenues to Cost-effective Service Excellence
4) SST
5) Focused
Service Factory
3) Systems &
Technology
1) Generic
Strategies
2) Dual Culture
10. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 10
(1) No/Little Change in
Customer Interface
Change in Business Model / Value Proposition to Customers
(2) Isolate Technical Core &
Shift Activities to Back-Office
(3) Reduce
Customer Contact
(4) Production Lining/
Industrialization of Service
> Same output with less input:
• Cost control
• Train & motivate employees to
do things faster, better, more
efficient
• Better capacity utilization (better
matching of supply & demand)
• Customer service process
redesign (CSPR); (Lean) Six Sigma
• Use of technology (e.g.,
biometrics)
• Outsourcing on non-core
activities, back-office activities
• Tiering of service to allocate
resources better to more
important customers;
Dual Culture Strategy
Example: Singapore Airlines
Same Business Model
Front-office Minus Modularization of
Service, SST
Reduced Uncertainty, Process Flexibility & Customer Choice Allows Increased Use of Technology & Systems
Standardization of Input, Processes & Output
Examples: Taco Bell’s K-Minus
Program; Banks’ cheque
processing plants
Examples: Google’s AdWords; ING
Direct, ATMs, Ikea; Biometric-
enabled immigration
Examples: Shouldice Hospital,
Narayana Hrudayalaya Hospital;
TranscribeMe; many Web- & App-
based services
> Separate & buffer activities in
the front-office and back-office.
> Shift activities from the
inefficient front-office to the
back-office.
> Then, industrialize the back-
office.
• PWP + buffering
• Two focused factories (front-
office: sales, customer
satisfaction; back-office:
productivity and low error rate)
• Use systems and technology to
industrialize the back-office
> Reduce customer input into
the process to reduce
uncertainty
> Reduce customer contact with
the servuction system
• Modularization of products
and their features;
• Hard product/service level
choices
• Tight customer scripts
• Use systems and technology
to industrialize the front -
office
• Replace customer interactions
with SST
> Standardize customer input into
the process
> Minimize customer contact with
the servuction system
> Standardize/ industrialize the
entire servuction process
• One/few standard products with
few standard features
• Tight selection of customer who
fit the service model
• Extremely tight customer scripts;
little flexibility & customization
possible
• Standard process with much SST
Need for Dual Culture
Focused Service FactoryGeneric Strategies
11. Slide © by Dr. Jochen Wirtz, 2013 Service Excellence Symposium 2013Page 11
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