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Service Design & Delivery [2]INFO 210 - 14 November 2007Bob Glushko2 of 38Plan for Today's LectureContrasting Approches to Service DesignA Design Methodology "Metamodel" that Bridges the Front and Back Stage"Technology Infusion in Service Encounters"Personalization {and,or,vs} Customization3 of 38The Context of DesignThe design of any service -- whether it will be performed by people or by information systems -- takes place in a context of:Current and potential customersCurrent and potential technologiesCurrent and potential competitorsExisting services or systemsExisting user or application interfacesLegal, regulatory, cultural systems and constraintsThese factors or constraints can never be equally important; how they are weighted determines the appropriate design methodology and the key characteristics of the design4 of 38Blueprinting {and,or,vs} Document EngineeringAgreement:Important to depict a service at multiple levels of analysisNeed an end-to-end process description...Disagreement:DE treats documents and processes as "yin" and "yang" and designs the reusable information components that documents use to "glue" processes togetherNot much focus on customer experience in DE, and no customer segmentation ...5 of 38Contrasting Design Goals for Methodologies6 of 38Resolving the Tension: Bridging the Back Stage and Front StageThese tensions between the back stage front stage are not intrinsic and unavoidable; they are just a consequence of too narrow a designperspective"Merging the mindsets" with multidisciplinary design teams is an obvious and necessary correction, but it is not sufficientWe need a methodology for designing service systems that cuts through these mindsets; i.e., we need to design an appropriate methodology based on the design context, drawing on activities from various approaches7 of 38A Design Methodology "Metamodel" that Bridges the Front and Back StageDevelop the service concept(s)Scope the service systemAnalyze current, competitive, and potential service systemsIdentify and apply best practices and design patternsPrototype and evaluate the serviceDeploy the service8 of 38Example "Bridging" Methodology Activitites for Information-Intensive ServicesDesign services to be modular and configurable... to enable them to be easily substituted for (from one provider to another, from a human provider to a technology-basedl one, and vice versa)... to enable them to be easily made visible or invisible to other parts of the service systemCreate information flow and process models that span both the back and front stages, exploiting the appropriate design patternsImplement "model-based user interfaces"9 of 38Information Flow and Process Models that Span the Service SystemWe have many useful modeling methods and frameworks for designingservice systems: supply chains, marketplaces, demand management,queuing theory, etc.Many of these can be used to ensure some level of service quality . customer experience by balancing capacity and demand in a coarse or aggregate mannerOther modeling approaches (e.g. data mining, business intelligence, intelligent dispatch) can shape service quality or experience for specific customers (e.g., personalization systems, customer selection for service)10 of 38Who "Drives the Model" as a Service System Design ChoiceThe same model can often be driven or exploited by either the service provider or the service consumer; this is a design choice in the service system11 of 38Classical View: The Service Marketing Triangle12 of 38Service Encounters and TechnologyThe traditional approach to understanding a service encounter was through interpersonal dynamics (the relationships at the base of the service marketing triangle)But technology can radically alter or eliminate the interpersonal relationshipsTechnology can also dramatically increase the number of encounters(24 x 7)And technology can dramatically increase the extent to which information can contribute to services13 of 38The Service Marketing Pyramid14 of 38The Technology Infusion Framework15 of 38Technology Used by Contact EmployeesCustomer databasesSales force automationCall center managementProduct information; help desk applicationsProduct and price configurators16 of 38"Customization" = "Personalization" in Bitner et al. (p. 142)"Customers want services that fit their individual needs""The ability to adapt in real time is a distinct advantage for providers who wish to be responsive to customer desires for individualized services"""This type of customization is also referred to as 'discretion,' 'PERSONALIZATION,' and 'adaptation'"17 of 38Distinguishing "Customization" and "Personalization"Some people reserve "customization" for activities initiated by the customer to tailor a product / service / experience; this is sometimes called "adaptable" customization"Personalization" is initiated by the provider, and is sometimes called "adaptive" customization; one important difference is that not all provider-driven personalization is desired by the customerIn either case, a service designer needs to determine:What information is required to modify the service?Where can this information come from?18 of 38What Information is Needed to Personalize?"Who the customers are and how they behave""Demographic and psychographic information""Comprehensive information... converted into actionable knowledge"19 of 38Where Does the Information Required for Personalization Come From?From the consumer:Surveys and formsTransactional recordsBehavioral records, navigation historyFrom data brokers, using keys obtained from the consumerFrom other consumers who are similar to the target consumerFrom descriptive or predictive models built using all of the above20 of 38Asking a Personalization Design Question in a "Service System Way"Is it more intense to ask the customer questions in a person-to-person encounter, or to fill out a self-service form?It is more intense to ask the customer to complete one complicated form or several simple ones over time?Instead of either of these explicit customer interactions, can we use information we already have (from previous encounters, from other contexts, from aggregated business intelligence) to make it unnecessary to collect information from the customer?21 of 38Descriptive Customer Models -- Identify Relations22 of 38Predictive Customer Models -- Calculate Risk / Opportunity23 of 38Building Customer Loyalty by Bridging the Front and Back StagesPrograms to encourage