Services Operations

Services
• Retailing
• Health & Wellbeing
• Education & Training
• Banking and Insurance
• Consulting
• Auction platforms
• Dispute settlement/ Matchmaking platforms
• Leisure & Entertainment
• Financial services
• Transportation & Delivery Services
• Information Technology Services
Growth Of Services
Difference between Services and
Manufacturing Operations
• Intangible Nature
• Customer contact
• Customer is part of the process
• Simultaneous production and consumption
• Not able to have inventory
• Service Failure
The problems that it pose
• Take care of variability in arrival of customers
• Employee Capability / Skills in customer engagement
• Employee capability & willingness to put effort to respond to customer
needs & Preferences
• Measuring customer satisfaction
• Managing failure in service delivery
• Information on failures
• Distributive
• Procedural
• Interactional
Think about Zip Car/ Zoom Car
Classifying Services
• Criteria – Degree of Customer Contact
Customer Induced Variability
• 5 types of variability
• Arrival
• Requests
• Capability
• Effort
• Subjective Preference
Accommodation Vs Reduction

Inevitable Trade-off
Strategies for Managing Customer Induced Varibility
Behavioral Insights help …
• Case of perceived delay in service delivery
• Role of Incentives
• Pricing Strategy
• Case of delay in picking children at a creche
Managing Customer Behaviour
Assignment
• Select one service organization
• Apply the customer induced variability framework and analyze how
the organization manages the 5 variability sources
• Analyze process for recovery from service failures
• Analyze quality management process
• Write a letter to the organization how they can improve