Service Design

System & Process Design

Design of Service Systems
 Domino’s Service Innovation
Over the years, Domino's has revolutionized pizza
delivery with other innovations including the corrugated
pizza box, Domino's Tracker® , the Heatwave bag and
ordering by text, Twitter and emoji.

Innovate the process of ordering a pie, adopting gamification technology, ordering via
Facebook Messenger and becoming an early adopter of voice
Innovated the process of ordering a pie, adopting gamification technology, ordering via
Facebook Messenger and becoming an early adopter of voice
 Domino’s Delivery Expert (DXP)
Purpose-Built Pizza Delivery Vehicle

Hundreds of concepts were

initially identified in an 5-
stage online crowdsourcing
design competition hosted by
Local Motors on the
company's open innovation
platform called Open IO.
https://vimeo.com/135501806
 5 Weird Ways Domino’s uses
technology to enhance pizza delivery
1. Pizza Chef

3. Drone deliveries

4. SMS ordering

5. Delivery vehicle tracking

2. Self-driving delivery robot

Service Positioning & Delivery System Design
• Three parameters contact, divergence, complexity
and labour intensity pertaining to the service we
offer determine service delivery system design
• Service positioning is the strategic choice a firm
makes on the above three parameters
• Service blue printing helps organisations to design,
monitor, control and improve processes and the
service delivery system on an ongoing basis
Factors Affecting Design in Services
Divergence

Customization Interaction

Customer Contact

Complexity

Labour Intensity
 Degree of Divergence
An illustration
Low cost Airline Nature of the service Full Fare Airline
Air Ticket, Insurance Online Booking
Air Ticket, Insurance, Hotel, Airport
Transfer, Cab for local travel
Low cost fare Fare Options
Non-refundabe, APEX (Restricted),
APEX (Normal), Economy, Full Fare
Economy Cabin Class Economy, Club Class, First Class,
Business Class
On board sale of limited snacks Meal Preferences
Asian Veg. meal, Non. Veg. Meal,
Jain Meal, Diet Meal, Fruit Platter,
Choice of Beverages
None Airport Services
Valet, Lounge, Special Assistance
 Full fare airline Low cost airline
Degree of Provide alternative Provide alternative

Ticketing
options & Schedules options & Schedules
Complexity Schedule Selected Schedule Selected
An illustration Seat Selection Payment

Meal Preferences
Payment or
Miles Redemption
Obtain Boarding Obtain Boarding
Pass Pass

Check in &
Thru Check in Board Flight
for onward Travel

Board
Update Frequent
Flier Details
Use of Lounge
Facilities
Board Flight
 Degree of Complexity & Degree of
Divergence: Another illustration
Low complexity/Divergence Process Description High Complexity/Divergence

No reservation Table Reservation Specific table selection options offered

Recite Menu, Describe in detail all starters

Self seating, Menu on the board Seating Guests, Offering Menus
& other special items in offer for the day

Serve Water & Starters at the beginning of Assortment of salads, chips and fruit juices
Eliminate
the service offered

Order takers interact with the customers at

Customer calls out his requirements Order taking process the table in constructing the menu for the
guests

Individually prepared and served at the table

Pre-prepared: Fixed set of offering Salads, Papads
as per request

Just 2 or 3 choices offered Starters Customers can choose from 20 alternatives

South Indian, Jain, Tandoori, Chinese,

Only South Indian (Vegetarian) Main Menu Continental, Brazilian (Both vegetarian &
non-vegetarian)

Payment at the counter while leaving (Cash Multiple choices of payments (Cash, Card,
Cash Payment
only) Coupons etc.)

Source: Adapted from Shostack, G.L., “Service Positioning through Structural Change”, Journal of Marketing, 51: 34 – 43.
 Video Insight
Service System Design & Operation: The Medanta, The
Medcity
Right click on the URL below to open the hyperlink in the web browser…

http://www.youtube.com/watch?v=f9CVzpMqIIs
 Service Positioning
An illustration
Low Degree of Interaction High
Low
No frill Fast-food
Airlines Joints
Restaurants
Degree of Labour Intensity

Online Airlines
Retailers
Budget
Internet & Phone Hotels Ethnic & High End
Banking Eating Places

For-profit Five Star

Hospitals Hotels
Traditional
Retailing Traditional
Banking Boutique
Personal Hospitals
Banking
High
 Service Blue Printing
An example from healthcare
Preliminary Activities Meet the Doctor Post-consultation

Front Office
Patient meets Advise Patient leaves
Patient calls for Receptionist
the Doctor Prescription the hospital
an appointment Interaction

ye
Patient arrives Registration Cause s
Line of Pharmacy Billing &
Payment Clear?
visit Payment
Interaction n
o

Patient waits
for his/her turn

Diagnostic
Line of tests done
Visibility

Back
Office
Receptionists checks Patient file Analysis Extract medicines
& confirms the appointment Extracted Reporting As per prescription
Servicescapes Impacts how customer view the brand and service
Personas become the key tool in driving forward the definition of the
desired customer journey, designing scenarios, prioritizing user flows
and making decisions on scope of functionality.
How Every Square Foot Of An Apple Store Is Designed
Apple Retail Stores Designed around Activities
and not Products.

This is where you'll buy your iPhone, iPad,

Macbook or Apple Watch. Screens—
"windows" in Apple jargon—explore music,
creativity, apps and photography, while
"Creative Pros" proffer advice on how to get
the most out of your Apple products.
Apple thought that the Genius Bar was too
evocative of a noisy pub, so now the
product experts will ply their trade under a
canopy of trees in the Genius Grove.
The San Francisco store boasts a 35-foot-wide,
high-definition video screen and will host
game nights, music-video premieres as well as
artists and musicians discussing their craft.
Visitors will be able to enjoy the show from a
few dozen wooden and leather stools designed
by Ive's elite unit.
The Boardroom
This space extends Apple's push to attract
business customers that has seen the company
team up with Cisco, SAP and IBM in recent
years. Entrepreneurs, developers and owners
of small and medium-sized business can learn
how to make the most of their iPad Pros and
Mac Pros.
 Setting up a Restaurant
Process design issues
• Nature and level of interactions of the service provider with the customer
• Alternatives available for positioning the service
• Factors influencing service positioning and implications of this on the overall
service delivery design
• Overall level of technology to be used
• Identifying the elements of a front office and back office of this service
delivery system
• Design of the dining and the kitchen areas
• Layout of the service delivery system - areas that need greater attention with
respect to look and feel
• Capacity of the dining and the kitchen areas –
– Estimating this given a certain uncertainty in the arrival
pattern and the demand for the restaurant services
 Design of Service Systems
Different from manufacturing
• Design of service operation systems typically involves
making choices with respect to location, technology,
capacity and layout of the system.
• In most service systems customer participation in the
conversion process is inevitable.
– It requires the designer to incorporate customer as an integral
element in the design process.
– Designing services requires looking at tiny details that pleases
the customer
– Another aspect of services is the need to address the issue of
personalization
 Process Design Issues
Service Systems
• Customer contact signifies
– the extent to which customer participates in the preparation and consumption of
service
– the nature and intensity of interaction that the customer has with the entities and
service personnel
– the level of exposure that the customer has of the various facets of the service
system while the customer is receiving the service
• Degree of complexity refers to the steps and sequences in
the process measured by the number and intricacy of the
steps
• Degree of divergence indicates the executional latitude or
variability of these steps and sequences
• All the three influence the service process design
 Degree of Customer Contact
Design implications
• Low: Quasi- Manufacturing
• Medium: Mixed Service
• High: Pure Service
 Customer Contact
Implications
• Efficiency of Operations
• Capacity Decisions
• Facility Location Choices
• Control of Operations
• Effectiveness Vs Efficiency Goals
 Video Insight
Service System Tour: Maruti Showroom in Meerut

Right click on the URL below to open the hyperlink in the web browser…

https://www.youtube.com/watch?v=CGnR6wTHYxM