You are on page 1of 16

PCN Analysis Exercise

Dr. Scott Sampson, Brigham Young University © 2012

This exercise includes the following parts:
1.Identify a business process to analyze. It is good to select a process that
involves two entities – a firm and a customer. Examples include:


the process of getting your computer repaired
the process of having an eye exam
the process of attending a concert

2.Construct one or more PCN Diagrams for the selected process.

First step is often customer need. Last step is often need resolved.
Don’t make PCN Diagram too crowded – use multiple pages if necessary.

3.Analyze the value proposition represented in the business process:



put  by customer cost steps (waiting, inconvenience, etc.)
put  by customer value steps (i.e., causing willingness to pay)
put -$ by firm cost steps
put +$ by firm revenue steps

4.Redo your PCN Diagram showing at least one enabling innovation and at
least one relieving innovation.

Highlight the innovation steps with either colored boxes or double-boarder
boxes.
For each innovation, describe the innovation and tell what impact it has on the
value proposition.

PCN Analysis Exercise for Scott Sampson

01/27/16

page 1

symbols. 6.On a copy of your PCN Diagram. 2. indicate a few service failure points (F) and show some steps that would be used to effectively respond to the failure. Put your team member names in the page footer (select “Header & Footer” from the menu. You can do the exercise on paper.On a copy of your PCN Diagram. ambient conditions. Name your file “PCN-Last-Names-Of-Team-Members. and click “Apply to All” for all pages). change footer. If you choose to do the PCN Analysis Exercise electronically. etc. Email it to the course email address listed in the syllabus. For each sensory element indicate what impact it is intended to have on customer behavior. include notations showing important sensory elements (signs. or electronically.ppt” 3. PCN Analysis Exercise for Scott Sampson 01/27/16 page 2 . One way to do it electronically is to edit the pages of this file. 7.PCN Analysis Exercise – Optional Parts This parts of this exercise may be optional (see instructor): 5. please do the following: 1.The best learning comes from participants sharing their work with the group.) that guide customers in their roles of the process.

– We will consider the process from a passenger booking a flight to actually going on the flight. where the passenger books online. Business process to analyze • Team members: – Scott Sampson • Process: – In this exercise we will analyze a commercial airline process.PCN Analysis Exercise: Airline example Part 1. PCN Analysis Exercise for Scott Sampson 01/27/16 page 3 .

PCN Diagram of process (first page) Airline passenger booking a ticket on an airline website Provider’s Process Domain Independent processing Surrogate interaction Customer’s Process Domain Direct interaction Direct interaction Surrogate interaction Independent processing visit an airline website need air transportation enter search information develop flight schedule provide flight options acceptable flight? no yes select flight process payment enter payment information send eticket print eticket wait until flight day PCN Analysis Exercise for Scott Sampson 01/27/16 page 4 .PCN Diagram for process: Part 2.

PCN Diagram for process: Part 2. PCN Diagram of process (second page) Airline passenger check-in and transportation process Provider’s Process Domain Independent processing Surrogate interaction Customer’s Process Domain Direct interaction Direct interaction Surrogate interaction Independent processing drive to airport check identification find parking check reservation receive checked bags wait in line get to terminal tag checked bags transfer bags to appropriate gate land plane clean and refuel plane load bags on plane fly to destination unload checked bags go through security place bags on belt give boarding pass board plane wait for boarding exit plane walk to bag claim watch and wait transport bags to baggage claim PCN Analysis Exercise for Scott Sampson retrieve bags depart airport 01/27/16 page 5 .

customer value () and costs () Airline passenger booking a ticket on an airline website Provider’s Process Domain Independent processing Surrogate interaction Customer’s Process Domain Direct interaction Direct interaction Surrogate interaction Independent processing visit an airline website need air transportation enter search information  develop flight schedule provide flight options acceptable flight? no yes select flight +$ process payment enter payment information send eticket print eticket  wait until flight day PCN Analysis Exercise for Scott Sampson 01/27/16 page 6 .PCN Diagram for process: Part 3: Assessment of provider revenue (+$) and costs (-$).

PCN Diagram for process: Part 3: Assessment of provider revenue (+$) and costs (-$). customer value () and costs () Airline passenger check-in and transportation process Provider’s Process Domain Independent processing Customer’s Process Domain Surrogate interaction Direct interaction Direct interaction Surrogate interaction Independent processing drive to airport check identification check reservation   wait in line receive checked bags find parking get to terminal -$ land plane clean and refuel plane -$ tag checked bags transfer bags to appropriate gate place bags on belt load bags on plane -$ -$ -$  go through security board plane transport bags to baggage claim PCN Analysis Exercise for Scott Sampson wait for boarding exit plane fly to destination unload checked bags   give boarding pass  walk to bag claim  watch and wait  retrieve bags depart airport 01/27/16 page 7 .

PCN Diagram Part for process: 4. Enabling Innovation: Online checking and bag tagging Airline passenger check-in and transportation process Provider’s Process Domain Independent processing Customer’s Process Domain Surrogate interaction Direct interaction Direct interaction Surrogate interaction Independent processing check in on airline website check identification drive to airport find parking get to terminal print boarding pass and luggage  tag check reservation receive checked bags -$ land plane clean and refuel plane -$ tag checked bags transfer bags to appropriate gate place bags on belt load bags on plane -$ -$ scan luggage tag and tape on bag* -$ transport bags to baggage claim PCN Analysis Exercise for Scott Sampson go through security   give boarding pass board plane wait for boarding exit plane fly to destination unload checked bags   -$  walk to bag claim  watch and wait  retrieve bags depart airport 01/27/16 page 8 .

Relieving Innovation: Provided county airport shuttle Airline passenger check-in and transportation process Provider’s Process Domain Independent processing Customer’s Process Domain Surrogate interaction Direct interaction drive passenger to airport Direct interaction Surrogate interaction Independent processing meet shuttle at county parking lot drive to airport check identification -$ (+$?)  check reservation   wait in line receive checked bags find parking get to terminal -$ land plane clean and refuel plane -$ tag checked bags transfer bags to appropriate gate place bags on belt load bags on plane -$ -$ -$  go through security board plane transport bags to baggage claim PCN Analysis Exercise for Scott Sampson wait for boarding exit plane fly to destination unload checked bags   give boarding pass  walk to bag claim  watch and wait  retrieve bags depart airport 01/27/16 page 9 .PCN Diagram for process: Part 4.

– Passenger would print out their shuttle confirmation at time of ticketing. Impact on Value Proposition: – Reduced  cost to customer. replacing multiple bag checkers with one or two low-wage employees. the low-wage employee can scan the tag or boarding pass and print out a new one. – If the luggage tag printed by the passenger is unusable. PCN Analysis Exercise for Scott Sampson • • • Relieving Innovation – Provide a county-based shuttle to the airport Description: – When passenger books their ticket. – Reduced -$ cost and  cost. they are given the opportunity to buy a slot on a shuttlebus that departs from a location in the passenger’s county or city. Description of Enabling and Relieving Innovations • • • Enabling Innovation – Passengers print their own boarding pass and luggage tag. – Additional revenue opportunity +$ for airline. who does not need to wait in line to check bags (low-wage employee is highly efficient) – Reduced -$ cost to firm. Impact on Value Proposition: – Reduced  cost. but passenger would have a reserved seat. – Passenger still needs to get a ride to the shuttle location. Description: – Passengers have the option of printing their own boarding pass and luggage tags at home within 24 hours of their flight. or drive car and pay for parking there.Part 4. since customer only has to drive to a county location to take the airline shuttle bus. since less expensive than a private shuttle. 01/27/16 page 10 . – Shuttles leave at fixed intervals. – The only contact customer has with the airline before security is allowing a low-wage employee to tape the luggage tag on the luggage. – Don’t have to deal with airport parking (reduced ).

Key sensory elements in this process Airline passenger check-in and transportation process Provider’s Process Domain Independent processing Customer’s Process Domain Surrogate interaction Direct interaction attire of employee Direct interaction check identification check reservation receive checked bags tag checked bags transfer bags to appropriate gate land plane clean and refuel plane load bags on plane fly to destination unload checked bags Surrogate interaction Independent processing drive to airport information about which line to be in find parking wait in line get to terminal line layout noise or music info about policies and procedures go through security place bags on belt give boarding pass board plane wait for boarding exit plane info about where bag walk to bag claim claim for this flight is noise.PCN Diagram for process: Part 5. electrical outlets. entertainment. seating. smells. boarding progress info watch and wait transport bags to baggage claim PCN Analysis Exercise for Scott Sampson retrieve bags depart airport 01/27/16 page 11 .

– behavior: passenger having reasonable expectations about line duration. Description of sensory elements and impact on customer behavior • step: wait in line – behavior: passenger not spending time in wrong line and line jumping. • step: go through security – behavior: passenger be prepared for that specific process (e. • step: check in – behavior: passenger have confidence in employee – element (symbols): attire of employee makes employee look more like a captain than a baggage handler.g.) – element (sign): provide information in line about that airport’s specific policies and procedures. shoes off. 01/27/16 page 12 . PCN Analysis Exercise for Scott Sampson • step: wait for boarding – behavior: passengers experience severe psychological costs during the waiting process – element (ambient condition): provide a pleasant noise (other than CNN disaster news). – element (ambient condition): provide pleasant music. provide a pleasant smell (like candy). – element (sign): provide passengers with a clear identification of boarding progress (besides PA announcements). – element (function): furnish seating areas with more power outlets. – element (space): line layout that allows passenger to see how line progresses. – behavior: passengers not being grumpy in line.Part 5. – element (sign): provide disembarking passengers with information about where baggage claim is for the flight they are just getting off of. provide some type of appropriate entertainment (besides CNN). belt removed. etc. • step: walk to bag claim – behavior: passenger going to the wrong bag claim area and reporting missing bags. pockets emptied. – element (sign): information about which line to be in. so that waiting passengers can self-entertain or be productive.

PCN Diagram for process: Part 6. Indication of two service failure points. Airline passenger booking a ticket on an airline website Provider’s Process Domain Independent processing Surrogate interaction Customer’s Process Domain Direct interaction Direct interaction Surrogate interaction Independent processing visit an airline website need air transportation enter search information (F1) server goes down develop flight schedule acceptable flight? provide flight options no yes select flight process payment enter payment information send eticket print eticket (F2) passenger never receives e-ticket wait until flight day PCN Analysis Exercise for Scott Sampson 01/27/16 page 13 .

PCN Diagram for process: Part 6. Airline passenger booking a ticket on an airline website Provider’s Process Domain Independent processing Surrogate interaction Customer’s Process Domain Direct interaction Direct interaction Surrogate interaction Independent processing visit an airline website need air transportation enter search information (F1) server goes down develop flight schedule acceptable flight? provide flight options no yes provide form for customer to provide phone number airline calls customer select flight discuss flight alternatives and options process payment provide payment information send eticket print eticket wait until flight day PCN Analysis Exercise for Scott Sampson 01/27/16 page 14 . Steps to effectively recover from failure (F1).

Steps to effectively recover from failure (F2). Airline passenger booking a ticket on an airline website Provider’s Process Domain Independent processing Surrogate interaction Customer’s Process Domain Direct interaction Direct interaction Surrogate interaction Independent processing visit an airline website need air transportation enter search information develop flight schedule acceptable flight? provide flight options no yes select flight process payment enter payment information send e-ticket link click e-ticket link (F2) passenger never clicks e-ticket link airline calls customer wait until flight day print e-ticket discuss problem and determine if alternate ticketing method is needed PCN Analysis Exercise for Scott Sampson 01/27/16 page 15 .PCN Diagram for process: Part 6.

Causes might include: • bad email address • e-ticket filtered as spam • customer does not recognize e-ticket email message • customer does not check email account very often • and so forth Details: – To detect this failure (without waiting for customers to report it). – Airline agent asks customer if they are aware of the problem. – We assume that when the reservation system goes down the router is still able to redirect requests to another system or web page. – Customer would not be charged any extra fees for using an agent for reservations. agents can call customers and tell them that is the case. If the customer has not clicked the e-ticket link with 5 days we assume a service failure. Benefits to airline: – Fewer lost customers. system overload. and if the customer will provide a phone number then an agent will call the customer back about the flight. – On detected failure. – Agent determines an alternate email address. or if snail-mail ticketing is necessary (perhaps for a mailing fee). Benefits to customer: – Not needing to call airline and wait on hold. – Airline tracks common causes of problems and makes process adjustments accordingly. Description of plan for service recovery • • • • Failure (F1): Airline web server goes down – This failure may occur because of technical problem. 01/27/16 page 16 .s above). Benefits to passenger: – Less likely to forget about not having e-ticket. Details: – When server goes down. – Customer might optionally provide a time window to be called back. Benefits to airline: – Able to identify more errors and correct causes.Part 6. – Agent records in database any information about cause of the problem (e. – If the server comes back up.g. the airline calls the customer at the number they gave when ticketing. customer is immediately redirected to a form that explains that there is a problem. instead of sending the eticket the airline sends a link to the e-ticket. • • • • PCN Analysis Exercise for Scott Sampson Failure (F2): e-ticket not received – This failure may happen with airlines that email the e-ticket to passengers.