SERVICE

OPERATIONS
MANAGEMENT
 Services play a vital role in our day to day life as well as in
the economy of any nation.
 The services can be seen between business to business
service and business to customer service.
 The services can be provided by government sector or
private sector or NGOs.
 Services take place when customer direct some actions to
service provider to get some intangible benefits assisted
with some goods.
 The output can be in the form of action done on customer
like surgery or on customer’s possessions like repair of
customer’s car.
 Service sector include all economic activities whose output
is not a physical product or Construction and is generally
consumed at the time it is produced, and facilitates in the
forms of convenience, comfort, timeliness or health that are
essentially intangible concerns of its customer.
 A service is an activity or series of activities of more or less
intangible nature that normally, but not necessarily, take
place in interactions between customer and service
employees and/or physical resources or goods and/or
systems of the service provider, which are provided as
solutions to customer problems.
 Service is a process or a set of activities in which a customer
interacts with service provider to produce intangible
experiences as an outcome.
 Service can be provided as a combination of tangible good
and intangible experience.
 Services that deploy resources in order to deliver some form
of service, which are given below.
• Business to consumer (Financial services, retail)
• Business-to-business (Consultants, communications)
• Internal services (Personnel, IT)
• Public services (Education, health services)
• Not-for-profit services (Charities, faith organizations)
 Services operations management is related with
delivering service to the customers of the service.
 It involves understanding the service needs of the
target customers, managing the processes that deliver
the services, ensuring objectives are met, while also
paying attention to the constant improvement of the
services.
 Service organization is one when two or more people
are engaged in systematic efforts to provide services to
customers.
 SCOPE OF SERVICE OPERATIONS
 Service Operation describes the processes, functions,
organization and tools used to underpin the ongoing
activities required to deliver and support services.
 The Service Operation publication provides guidance on
the Services, Service Management Processes, Technology
and People.
 With respect to services, the guidance covers the
management of various activities that form part of the
services. These activities might be performed by the
service provider, the external suppliers, customers or
users of the services.
 There are certain processes like Incident Management,
Problem Management, Service Request Fulfillment, Event
Management and Access Management that are specific to
Service Operation.
 Other processes like Capacity Management, Availability
Management, Change Management and Release and
Deployment Management though are initiated in Service
Design and Service Transition phases are used in the Service
Operation phase.
 Service Operation also provides inputs and receives
outputs from the Service Strategy and Continual
Service Improvement processes.
 Service Operation provides guidance on management of the
infrastructure used to deliver the services.
 The Service Operation publication recognizes the importance
of people in an organization and provides guidance on
organizing and managing people for effective and efficient
utilization of technology, processes and services.
 OBJECTIVES
 To synchronize and perform the activities and processes
required to deliver and manage services at agreed levels to
business users and customers.
 On-going management of the technology that is used to deliver
and support services.
 Approachable stable services
 Robust end to end operational practices
 Business as usual - day to day
 Implementation of processes and services
 Responsive and operational validation
 Realizing value
 Accomplishing service excellence
 CHARACTERISTICS
 High Consumer Contact
 Consumer Participation In The Process
 Labour Intensiveness
 Intangibility Of Output
 Difficulty Of Measuring Quality
 Difficulty Of Measuring Productivity
 A Site Dictated By Consumers' Location
 Simultaneity
 Perishability
 Heterogeneity
 ADVANTAGES
 Scalability: Service organization can be adapted for any
size of organization.
 Reduction in costs: Service organization has established
its value in reducing the overall cost of managing
services.
 Improved quality: Service organization helps improve the
quality of IT services through sound management
practices.
 Alignment to standards: Service organization may well
align to the ISO/IEC 20000 Standard for Service
Management.
 Return on Investment (ROI): Service organization helps
organizations demonstrate their return on investment
and measurable value to the business. This helps
establish a business case for new or continuing
investment.
 Seamless sourcing partnerships: Outsourcing, often
with multiple service providers, is increasingly common
today and service organization offers a common
practice base for improved service chain management.
  ISSUES IN SERVICE OPERATION MANAGEMENT:

◦ New service development

◦ Managing service experiences
◦ Front-office/Back-office
◦ Analysing processes
◦ Service quality
◦ Yield/Harvest management
◦ Inventory management
◦ Waiting time management
 CLASSIFICATION OF SERVICES
 Classification of service based on Tangible Action
 Classification of services based on Intangibility
 General classification of services based on the type of function
 Business services.
 Communication services.
 Construction and related engineering services.
 Distribution services.
 Educational services.
 Environmental services.
 Financial services.
 Health-related and social services.
 Tourism and travel-related services.
 Recreational, cultural, and sporting services.
 Transport services
 SERVICE DELIVERY
 Service delivery is a component of business that defines
the interaction between providers and clients where the
provider offers a service, whether that be information
or a task, and the client either finds value or loses value
as a result.
 Four Key Elements of a Service Delivery System
1. Service Culture
2. Service Quality
3. Employee Engagement
4. Customer Experience
 Service Culture is built on elements of leadership
principles, norms, work habits and vision, mission and
values.
 Culture is the set of overriding principles according to
which management controls, maintains and develops
the social process that manifests itself as delivery of
service and gives value to customers.
 Once a superior service delivery system and a realistic
service concept have been established, there is no
other component so fundamental to the long-term
success of a service organization as its culture.
 Service Quality includes strategies, processes and
performance management systems.
 The strategy and process design is fundamental to the
design of the overall service management model.
 Helping the client fulfill their mission and supporting
them in the pursuit of their organizational purpose,
must be the foundation of any service provider
partnership.
 Employee Engagement includes employee attitude
activities, purpose driven leadership and HR processes.
 Even the best designed processes and systems will only
be effective if carried out by people with higher
engagement.
 Engagement is the moderator between the design and
the execution of the service excellence model.
 Customer Experience includes elements of customer
intelligence, account management and continuous
improvements.
 Perception is king and constantly evaluating how both
customer and end-user perceive service delivery is
important for continuous collaboration.
 Successful service delivery works on the basis that the
customer is a part of the creation and delivery of the
service and then designs processes built on that
philosophy – this is called co-creation.