DESIGN OF SERVICE SYSYEMS-

SERVICE BLUEPRINTING

Aiswarya,Meghna,Aswani,Harikrishnan,Shahzin
NEW SERVICE DEVELOPMENT
New service development relies on the complex task of understanding and anticipating
latent customer needs. To facilitate proactive learning about the customer, recent findings
stress customer involvement in the development process and observations of customers in
real action.
The experiment reveals that the consumers service ideas are found to be more innovative,
in terms of originality and user value, than those of professional service developers.
Ideas for new service innovations can originate from many sources. Customers can offer
suggestions (e.g., menu additions at a restaurant). Frontline employees can be trained to
listen to customers’ concerns (i.e., listening posts). Customer databases can be mined for
possible service extensions (e.g., additional financial services). Trends in customer
demographics can suggest new services (e.g., long-term health care) and new advances in
technology.
STAGES OF NEW SERVICE DEVELOPMENT

1. Concept/ideation
2. Feasibility study and design planning
3. Design and development
4. Testing & verification
5. Validation & collateral production
6. Manufacture/launch
7. Improvement
NSD CYCLE
SERVICE DESIGN ELEMENTS
• Service design elements -creates a consistent service offering
• It is of 2 types
• 1)Structural design elements
• 2)Mangerial design elements
STRUCTURAL DESIGN ELEMENTS

• Delivery system- Process structure ,service blueprint, strategic

positioning.
• Facility design –services cape layout.
• Location – geographical demand , site selection ,location strategy.
MANAGERIAL DESIGN ELEMENTS

• Information – Technology , scalability, use of internet,

• Quality – measurement , design quality , recovery tools.
• Service encounter –Encounter triad , culture, supply relationship ,
outsourcing.
• Mnaging capacity and demand –strategies , yield management , queue
management.
STRATEGIC POSITIONING THROUGH PROCESS STRUCTURE

• Preparing the service blueprint is the first step in developing a service

process structure.
• Decisions still remain on the degree of complexity and divergence
desired in the service.
• The steps and sequences in the process captured by the service blueprint
and measured by the number and intricacy of the steps represent the
degree of complexity of the service delivery structure.
• The amount of discretion or freedom that the server has to customize the
service is the degree of divergence that is allowed at each service
process step.
Low divergence - the service can be provided with narrowly skilled
employees performing routine tasks, and the result is consistent quality at
reduced cost.
High divergence - It is characterized as a niche strategy that seeks out
customers who are willing to pay extra for the personalization.
Low complexity - Narrowing the scope of a service by specializing is a
focused strategy that results in low complexity.
High Complexity - To gain greater market penetration or maximize the
revenue from each customer, a strategy of adding more services can be
initiated, thereby creating a structure with high complexity
Structural Alternatives for family restaurant
SERVICE BLUEPRINTING
• Diagram of the service process showing activities, flows, physical
evidence, and lines of visibility and interaction
• Blueprints – what the product or service should look like ;
all the specifications needed for its manufacture.
• G.Lynn proposed – service delivery system also can be captured in a
visual diagram  Service Blueprint
• Useful for design of services
• Service blueprint  Map or flow chart of all transactions constituting
the service delivery process.
• Customer actions, interactions, internal interactions, etc
• Can help to understand and eliminate unnecessary transactions.
• Clarity of service delivery process
• Helps improve efficiency of the process.
• Helps avoid unwanted costs incurred through trial- and – error process.
• Facilitates problem solving and creative thinking  identify potential
points of failure and highlight opportunities ; enhance customers’
perception of service.
 TAXONOMY FOR PROCESS DESIGN
• Based on divergence
• Services are broadly divided into low divergence (i.e., standardized service) and high
divergence (i.e., customized service).
• A standardized service (i.e., low divergence) is designed for high volumes with a narrowly
defined and focused service. The tasks are routine and require a workforce with relatively
low levels of technical skills.
•  For customized services (i.e., high divergence), more flexibility and judgment are required
to perform the service tasks. In addition, more information is exchanged between the
customer and the service worker.
• Based on Object of the Service Process
• When goods are processed, a distinction must be made between goods
that belong to the customer and goods that are provided by the service
firm (i.e., facilitating goods
•  Other services such as restaurants supply facilitating goods as a
significant part of the service package. Therefore, appropriate stock
levels and the quality of these facilitating goods become a concern, as
illustrated by McDonald’s attention to the purchase of food items.
• Processing people involves physical changes (e.g., a haircut or a surgical
operation) or geographic changes (e.g., a bus ride or a car rental).
Because of the “high-touch” nature of these services, workers must
possess interpersonal as well as technical skills
 BASED ON TYPE OF CUSTOMER CONTACT
• Customer contact with the service delivery system can occur in three
basic ways. First, the customer can be physically present and interact
directly with the service providers in the creation of the service. 
• In this instance, the customer has full sensory awareness of the service
surroundings. Second, the contact may be indirect and occur via the
Internet from the customer’s home or office. Third, some service
activities can be performed with no customer contact at all.
• Banking provides an example where all three options occur.
• Direct customer contact is subdivided into two categories: no interaction
with service workers (i.e., self-service) and customer interaction with
service workers.