Graduate School of Management and Economics

Sharif University of Technology

Management of Services
(Focus on Information Technology & High-tech Industries)

Course 44488 1392-93 (1) (3 Units)

Instructor:

Dr. Mehran Sepehri (sepehri@sharif.edu)

Office phone: 6616 5856/6602 2755-8
Office Fax: 6602 2759

Assistant:

To be announced
Weekly TA classes/hours to be scheduled

Pre-requisite:

Operations Management 44286

Strategy Management Knowledge or Course
or By Instructor Permission

Time Schedule:

Lecture:
Office:

Saturdays
Mondays
Saturday/Monday

Classroom 1
3:00 pm 4:15 pm
Classroom 1
3:00 pm 4:15 pm
th
Office 4 Floor 4:30 pm 6:00 pm


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Course Overview
Management of Service Organizations investigates how to design and manage firms to achieve
sustainable service excellence, by creating and sustaining value for customers as well as owners,
employees, and other stakeholders. It focuses on concepts, design, and delivery of services and
explores the use of operations tools and perspectives in the service sector. The course builds on
conceptual frameworks and cases from a wide range of service operations, selected from health
care, transportation, hospitality, internet services, supply chain, transportation, retailing, food
service, entertainment, financial services, humanitarian services, government services and others.
The goal of this course is to provide a general view of the concepts and tools in Management of
Service Organizations to MBA students, with a particular attention to tools and applications. The
course explores how managers can influence customers, employees, and service designs to create
and capture value. Current practice reveals a widespread lack understanding of effective service
management. Consider, in virtually every industry customer service costs tend to increase even as
customer satisfaction decreases. This course takes the position that there is enormous potential to
improve services and has as a goal to equip students with the concepts and tools to do so.
The course will be heavily case based and will include cases from industries and sectors such as
retailing, government, health care, financial services, internet services, humanitarian services,
entertainment, hospitality. Each session is capped by a lecture/discussion, and includes readings.
The reading is meant to give some complementary discussion related to the sessions topics or to
provide some orientation to the problem addressed in the session. Analysis of cases is the principal
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method by which one will develop an understanding of the frameworks and skills that we discuss in
different sessions. Guest speakers may also present their relevant experiences.

( 32 4 - )0293

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Fizz C1. Role of Services in Economy

Botten C1.Themesin Global
Economy

Johnson C1. Introduction to Service

C2. Understanding Service
Challenges

Read short cases Ch 1-2

Johnson: Service Op
Mg

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()

Fizz C2. Nature of Services

Botten C2. Define Service Operations

Fizz C4. New Service Development

Fizz C5. Technology in Services

Harvard Case: Starbucks Delivering

the Service

Deliver Service Excellence,

Tradeoffs,
Service Econ, Fizz C6. Service
Quality
Harvard Case: Eye Hospital India
In Service for Sight
Johnson C3. Service Concept
Fizz C3. Service Strategy

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9
Fizz C9. Managing Service

Encounter

Johnson C4. Understanding

Customer
3

Read short cases Ch 4-6

Johnson: Service Op
Mg

C5. Managing Customer

Expectations
C6. Managing Supplier Networks

01

Harvard Case: Four Season Hotel

goes to Paris, Paper: Behavior
Science

00

C7. Designing Customer Experience

C8. Designing Service Processes

03

Read short cases C 7-10

Johnson: Service Op
Mg

C10. Managing People in Services

C11. Managing Service Resources

02

04
Harvard Cases: Zipcar, Influencing
00
7

the Customer Behavior, 7-11 Japan

Prepare Exam, Questions, Situations

06

ITIL
Orand: Get Started, Service Practice,

Intro ITIL, Processes, Functions

Roles

Orand: Service Strategy Overview,

Developing Strategy, Service

Portfolio

/

System Design Overview, Processes,

Availability, Capacity, Suppliers

Guest Speaker from System

Associates

Service Transition,
Planning/Support, Change
Management, Knowledge Mg
Service Operations, Events/Incidents,
Asset Management, Service Desk
4

07

18

19

20

21

22


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& Discussion of Short Cases

Examples :
) Short in class Exam (Test questions

34

Bettencourt C2-3. Service

Innovations Opportunities for Core
Innovation

35

Bet. C4-7. Service Delivery

Innovation Supplementary Service,
Differentiate
Johnson: C9. Measuring/Controlling,
C11-12 Continuous
Improve/Learning

37

Harvard Case: City Bank e-Business

Strategy for Global Banking

36

38

39

21

31

Johns. C15: Implementation,

Culture, World Class Service
Operations

Student Projects Presentation

Discussion of Various Papers

Student Projects Presentations,

)Short in class exam (questions




Harvard Vase: e-Health-point,
Health System for Rural India

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A. The assigned texts for this course are:
Johnston, Robert and Clark, Graham, 2012, Service Operations Management: Improving
Service Delivery (4th Edition), Pearson Publishing. [Text1].
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James A. Fitzsimmons and Mona J. Fitzsimmons, Service Management, McGraw Hills, 7th
Edition, 2008 [Text 2].

Orand, Brady, 2013, Foundation of IT Service Management with ITIL 2011, ITILya Brady
Publishers, New York [Text 3].

Bettencourt, Lance (2012), Service Innovation: How to Go from Customer Needs to

Breakthrough Services, McGraw Hills Publishing [Text 4].

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B. The following references will be useful:

Botton, Neil and McManus, John (1999), Competitive Strategies for Service Organizations,
MacMillan Press, Inc., [Reference 1].

Glynn, William and Barnes, James (2007), Understanding Services Management:

Integrating Marketing, Organizational Behavior, Operations and Human Resource
Management, Pearson Publishing [Reference 2].

Jauhari, Vinnie and Dutta, Kirti (2009), Services: Marketing, Operations, and Management,
1st Edition, Oxford Press [Reference 3].

Hurwitz, Judith (2009), Service Management for Dummies, Wiley, N.J. [Reference 4].

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C. Required Readings from Journals are:

Frei, Frances. "Breaking the Trade-off between Efficiency and Service." Harvard Business
Review 84, no. 11 (2006): 92-101.

Ford, Robert and Brown, Stephen. Delivering Excellent Service: Lessons from the Best
Firms. California Management Review, 44, no. 1 (2001): 39-56.

Frei, Frances X. "The Four Things a Service Business Must Get Right." Harvard Business
Review 86, no. 4 (2008): 70-80.

Bitran, Gabriel R., and Maureen Lojo. "A Framework for Analyzing Service Operations."
European Management Journal 11, no. 3 (1993): 271-282.

Chase, Richard and Dasu Sriram. Want to Perfect Your Companys Service? Use
Bahavioral Science. Harvard Business Review 79, no. 6 (2001): 78-84.

Bitner, Marry and Ostrom, Amy. Blueprinting: A Practical Technique for Service
Innovation, California Management Review 50, no. 3 (2008): 65-94

Hammer, Michael. "The Process Enterprise: An Executive Perspective." Hammer and

Company, June 2001.

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D. Harvard Business Cases for this course:

Sasser Jr, W. Earl, and John R. Klug. "Benihana of Tokyo." Harvard Business School Case.
Harvard Business School Publishing. Case: 9-673-057, July 10, 2004.

McAfee, Andrew. "Pharmacy Service Improvement at CVS (A)." Harvard Business School
Case. Harvard Business School Publishing. Case: 9-606-015, October 20, 2006.

Christensen, Clayton. Innovations in Diabetes care. Harvard Business

School Case. Harvard Business School Publishing. Case: 5-697-101, March 27, 1997.

Sucher, J., and Stacy McManus. "The Ritz-Carlton Hotel Company." Harvard Business
School Case. Harvard Business School Publishing. Case: 9-601-163, July 11, 2002.

Upton, David M. "McDonald's Corporation (Abridged)." Harvard Business School Case.

Harvard Business School Publishing. Case: 9-603-041, Rev. June 16, 2005.

Moon, Youngme, and John A. Quelch. "Starbucks: Delivering Customer Service." Harvard
Business School Case. Harvard Business School Publishing. Case: 9-504-016, Feb. 3, 2004.

Heskett, James L., and Early Sasser Jr. "Southwest Airlines: In a Different World." Harvard
Business School Case. Harvard Business School Publishing. Case: 9-910-419, June 15,
2010.

Hallowell, Roger, and James L. Heskett. "Shouldice Hospital Limited (Abridged)." Harvard
Business School Case. Harvard Business School Publishing. Case: 9-805-002, January 21,
2005.

Chopra, Sunil. "Seven-Eleven Japan Co." Kellogg School of Management Case. Case: KEL026, February 14, 2005.

Frei, Francis "Innovation at Progressive : Pay-As-You-Go Insurance." Harvard Business

School Case. Harvard Business School Publishing. Case: 9-602-175, April 29, 2004.

Wulf, Julie M. "Alibaba Group." Harvard Business School Case. Harvard Business School
Publishing. Case: 9-710-436, April 26, 2010.

Huckman, Robert S., Gary P. Pisano. "Amazon Web Services." Harvard Business School
Case. Harvard Business School Publishing. Case: 9-609-048, October 20, 2008.

Copies of above books and cases are available, in printed or electronic format, in 3rd week of class
in bookstore on the first floor. Students are provided with a collection of papers from international
journals and Harvard Business cases. You should bring your textbooks and cases with you to class.

Courseware:

http://el.sharif.ir/home )(

MIT freeware: http://ocw.mit.edu/courses/sloan-school-of-management/15-768-management-of-

services-concepts-design-and-delivery-fall-2010/
)

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Group Projects
The course project is a team opportunity to apply the course concepts and to perform an in-depth
analysis of Service Management issues. It can be done individually or in groups of up to 3 people. It
requires 2 verbal or written progress reports, a final report with Service Management comparison
study. You will design and recommend an improved set of service management requirements and
characteristics. You may use public or private companies, large or small, foreign or domestic.
Select a pair of organizations in the same (or similar) industry. Compare their Service Management
concepts, design and performance. Assess the strengths and weaknesses of each company and give
your opinions on the appropriateness of the service operations approach of each, and the role and
relative strengths and weaknesses of each company going forward in time.
The final report may be 15-20 pages in length (1.5-spaced, 12 point font) due 2 week after finals.
Examples of company pairs are at MITs courseware: McDonald's/Burger King, JetBlue/Delta,
Fidelity/Vanguard, Mass General Hospital/Beth Israel, Starbucks/Au Bon Pain, etc. Please note the
due dates. Student teams will give also short presentations on their papers in class in the last week.
Case Discussion/Write-ups
12 HBS cases are listed above, relevant to topics in this course. 7 cases will be discussed in class
(approximately one in every other week). Another 2 cases will be worked out off-class. Team of 2-3
students should write up cases during the term and help lead one discussion. A write-up is a 3-page
analysis of case, guided by the discussion questions, readings for the session, and ideas discussed
previously in the course. The main questions for each case will be announced in advance. For cases
discussed in class, a short write-up of the main points and preparation for quiz will be required.
Assume you are writing to someone (e.g., a senior person with responsibility in the organization)
who knows the facts; keep it succinct; many senior executives don't want to read long reports. The
write-up is not to exceed three single-spaced pages of typed text (not smaller than 12 pt. font,
please), with up to three supporting exhibits. Facts stated in the case need not be restated unless
used to make a point. Do not summarize the case in your paper.
This course is delivered in the framework of "Official Educational
Rules for Graduate Programs in Sharif University of Technology".