CHAPTER 8

VALUE ADDING SERVICE

DELIVERY STRATEGIES
COURSE INSTRUCTOR
DR. ASIMA FAISAL
Implementation Strategies Are Directed Toward Value Adding Services And Value Adding
Support

Implementation
Competitive
Directional Adaptive Market entry

PURCHASE
E.g. production SERVICE
-EXPANSION
Development STRATEGIC DELIVERY
-MISSION SCOPE
COORPERATE POSTURE SERVICE
-VISION -REDUCTION
Merger POSITIONING SUPPORT
-VALUE SCOPE
Joint venture MARKET ACTION
-GOAL -MAINTENANCE
DEVELOP- SEGMENT PLAN
SCOPE
MENT
Internal Devt.
 REASON FOR ADDING VALUES
• Because of competition and complexity in marketplace, the healthcare provider must add value in
order to survive the value chain

Implementation Strategies

Value adding services support

Value adding service delivery
PORTER’S VALUE CHAIN MODEL
 Value Chain Are Primarily Operational And Market Oriented
Value Added Service Delivery Strategies

Pre-service
Point of service After-service

-Market & market research -Follow-up

-Clinical operations Clinical
-Target market
Quality -Marketing
-Branding
-Process Billing
-Distribution/logistic
innovation -Follow-on
-Promotion
-Marketing Clinical
-Patient satisfaction -Marketing

Matching—to the strategies/maintaining activities

 VALUE ADDING SERVICE DELIVERY
STRATEGIES
• Value adding service delivery strategies translate the directional. Adaptive, market entry and
competitive strategies into action as a critical component of the value chain
• Attempt to repositioning health care organization in the environment to create new competitive
advantage
• Value added service delivery strategies are critical to the success of the organization because they
are the principal methods for creating value. Therefore, explicit strategies must be developed
for each.
 VALUE ADDING SERVICE DELIVERY
STRATEGIES
• The components must be coordinated and work in concert. It is the strategies managers
responsible for developing and managing the strategies plan to ensure their compatibilities. Value
adding service delivery strategies include
• Pre-service
• Point-of-service
• After-service strategies
 PRE-SERVICE ACTIVITIES

• It entails the planning and activities that enable the organization to determine its customers and
the services that will be offered to them as they enter the system pre-service marketing include
• Marketing and marketing research
• Design services
• Brand
• Price
• Distribution / logistics
• Promotion
 MARKETING AND MARKETING RESEARCH

• Marketing and marketing research enables the organization to determine the appropriate
customers (target market) and types of services to be delivered by
• Gathering data about the market itself
• Potential customers
• Their wants and needs and what will satisfy them
• Customer habit in term of healthcare
 DESIGN SERVICES
• Design services that will provide satisfaction to them
• Customers
• Physicians
• Friends
• Families and to include

• Multiple service categories such as

• Long term care
• Emergency medication or segmentation (a recognizable group that makes your market as target market)
 BRAND
• Branding represents three things
• What an organization offers to the market?
• What organization does?
• What organization is?

• It implies trust, consistency, defined set of expectation

• It sets promise
• Strong brands have a unique position in the mind of buyer and can be usually articulated
 PRICE

• Moderate price strategy must be selected carefully because it is very difficult to determine price
and consumers don’t have ability to judge quality
 DISTRIBUTION/LOGISTICS

• Location of health care provider will impact the number of people to seek the service because
people don’t want to travel great distances
• Demographic studies of population are important part of choosing location for facilities
• Satellite offices and hospital branches are important
• Convenience factors drives people in mobile unit
 PROMOTION

• Advertisements
• Public relation events
• Personal selling’s
• Sales promotions
• Contest participation in trade shows
 POINT OF SERVICE ACTIVITIES

• Point of service is oriented around patient care and delivery (clinical), market activities, market
study in order to suggest good manner in health care delivery
• Point of service clinical operations
• Point of service marketing
• Clinical innovation
• Marketing
• Patient satisfaction
 POINT OF SERVICE CLINICAL OPERATIONS

• Point of service clinical operations

• Intensive care required, such as acute illness with quick recovery, significant illness (chronic but
manageable) catastrophic illness- AIDS
• Mass customization (is a way of capturing physician-patient relationship)
• Quality operation must be maintained owing to the media report that 98,000 deaths yearly due to
medical errors
 CLINICAL INNOVATION

• Expects organization to come up with entirely new ways, systems or ideas to improve patient
care
• Achieving high performance via mode of operations
 POINT OF SERVICE MARKETING

• Redesigning service lines around by the patient experiences rather by the financial aspects of delivery care
• Multi-specialist, physician care team point of service to the strategy
• Increase physician patients’ communication
• Matching
• Quality
• Efficiency
• Speed
 AFTER SERVICE ACTIVITIES (BACK OFFICE
STARTEGIES)
• This is the final contact customer has with the healthcare organization or next appointment for
further service is built for customer satisfaction
• Follow-up (both clinical and marketing)
• Billing activities
• Follow-on (both clinical and marketing)
 FOLLOW UP ACTIVITIES

• Follow-up activities (caring and concerned)

• Calling out patient to ask if everything is going as expected or whether additional prescriptions
are needed
• Patients’ satisfaction studies to determine how she or he was treated can save pain, complications
and unnecessary anxiety
• Follow-up says to customer “we care”
 BILLING ACTIVITIES

• Billing activities describe customers decision whether value receive or not

• Redesigning billing process reduced customer complaint from about 30 percent
• Avoid billing error
• Address complaints
• Explain service charges
• Use medical terminology that patients understand
 FOLLOW-ON ACTIVITIES

• It identifies failure and rectify immediately

• It gives room for further services
• It gives chance for further check up to make sure the problem is no longer present
• It gives additional care
THANK YOU