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28 The Service Concept Explained | Service Automation Framework

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One of the central models of the Service Automation Framework is services
the service concept. In this post we explore the use of a Service
 Eric Nguyen on
Concept in further detail, and why it is important to understand
Service
what the Service Concept of an organization is.
Automation
The service concept outlines how a service provider can realize the
value and desired outcomes of its services. The service concept
can best be described as the way in which an organization would Categories
like to have its services perceived by its stakeholders.[i] It  Expert Interview
describes the non-tangible aspects of service delivery and is an
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13.02.2022 20.28 The Service Concept Explained | Service Automation Framework

integral part of the value proposition of service providers.

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Whereas with tangible objects the final product is mostly the sum
of its parts, this is certainly not the case with services.
 Robotic Process
Automation
Various studies have shown that users tend to see a service as a
‘whole experience.’ For example, a day at Disneyland’s Magic
 Service
Kingdom is more likely to be defined by its visitors as a magical
Automation
experience rather than six rides and a burger in a clean park.[ii]
The service concept facilitates this holistic approach by providing a  Service
Home description
detailed Certifications
of whatPartnership
is to be done forFramework
the user (whatResources
needs Contact 
Automation
and wishes are to be satisfied) and how this is to be achieved.[iii]
Framework
As such, the service concept can be a major driver for the Service
Design phase of (new) services.  Service
Management
The service concept consists of the holistic combination (i.e. all
element
 should be considered equally) of four dimensions[iv]:  Webinar

1. Service operation: the way in which the service is delivered;

2. User experience: the user’s direct experience of the service;
3. Service outcome: the benefits and results of the service for
the user;
4. Value: the benefits the user perceives as inherent in the
service, weighed against the cost of the service.

The four dimensions of the service concept form a key to defining

how the stakeholders in an organization perceive the value of
services, minimizing the gap between user expectations and the
service delivery operation:

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The four dimensions of the Service Concept

The service concept plays an important role in determining the

Service Automation strategy for organizations, and the
subsequent design and development activities. It is positioned as a
high-level and overarching concept that gives input to the overall
strategy of the service provider.

Why is the Service Concept important?

One of the most distinctive characteristics of services is their
process-oriented nature. Each service can be seen as a chain of
activities that help a service to function effectively.[v] For example,
a package delivery service consists of a number of activities that
need to be executed in a predetermined order. First, you need to
register your package with the shipping company. Next you print
the package label and attach this to the shipment item. Finally the
courier will pick up the package and subsequently ensure that it is
delivered at the designated address. Each of the activities
mentioned is part of a larger (again holistic) process that
constitutes the whole service. Because each activity contributes to
a singular outcome of a service (in this example the shipment of
the package from A to B) the service concept of any organization
needs to take into account that its potential to deliver value is only
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13.02.2022 20.28 The Service Concept Explained | Service Automation Framework

as good as its weakest link. If any of the activities in the sequence

fail, the user will have a very poor user experience because the
desired outcome of the service is not achieved.

Almost every service provider delivers not one, but a variety of

different services, which can all be considered as separate
processes of value creation. Service organizations do, however,
only have one service concept, which functions as an overarching
directive to all other services. It is the glue that binds the individual
Home of Certifications
services Partnership
an organization together, aiming Framework
them towards theResources Contact 

common objectives of the service concept. As such, the service

concept aligns an organization’s service offering towards a
common direction by setting overall goals and objectives that
apply for the complete collection of services. This is especially so in
larger organizations, which offer a variety of different services,

where establishing a uniform service concept greatly helps in
determining and setting priorities.

The Service Concept directs the design of multiple services

The primary goal of the Service Concept is to determine the

desired service outcomes and value of a service provider, which is
subsequently incorporated into the design of the organization’s
various services. A firm that delivers accountancy services, for
example, might have a service concept that concentrates on
national delivery (service operation) of various accounting services
(value) that comply with all relevant rules and regulations (service
outcomes) and that primarily focuses on online delivery (user
experience). Although this is an extremely abbreviated example of
a service concept, it can set the direction for all services of the
accountancy firm. Each of the organization’s accountancy services,
which are all individual processes, can be related and designed
based on the service concept. Ultimately, the service concept
might form the foundation upon which organizations can start
managing their service portfolio, which is the collection of various
services a service provider offers.
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References

[i] Heskett, James L. Managing in the service economy. Harvard Business Press, 1986.

[ii] Clark, Graham, Robert Johnston, and Michael Shulver. Exploiting the service concept for
service design and development. New Service Design. Sage, Thousand Oaks, CA (2000): 71-
91.

[iii] Edvardsson, Bo, and Jan Olsson. Key concepts for new service development. Service
Industries Journal 16.2 (1996): 140-164.
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[iv] Johnston, Robert, and Graham Clark. Service operations management: improving
service delivery. Pearson Education, 2005.

[v] A. Johne and C. Storey, New Service Development: A Review of the Literature and
Annotated Bibliography, European Journal of Marketing, 32/3-4 (1998), pp. 184-251.

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