Service Strategy, New Service Development, and Technology in.pptVIP

* Service Strategy,New Service Development, and Technology in Services MD254 Service Operations Professor Joy Field Strategic Service VisionTarget Market Segments What are common characteristics of important market segments? What dimensions can be used to segment the market e.g. demographic, psychographic ? How important are various segments? What needs does each have? How well are these needs being served, in what manner, by whom? Strategic Service VisionService Concept What are important elements of the service to be provided, stated in terms of results produced for customers i.e., how is value created for the customer ? How are these elements supposed to be perceived by the target market segment, by the market in general, by employees, by others? How do customers perceive the service concept? What efforts does this suggest in terms of the manner in which the service is designed, delivered, marketed? Strategic Service VisionOperating Strategy What are important elements of the strategy: structural and managerial decisions and interfaces with other functional areas? On which will the most effort be concentrated? Where will investments be made? How will quality and cost be controlled: measures, incentives, rewards? What results will be expected versus competition in terms of, quality of service, cost profile, productivity, etc.? Strategic Service VisionService Delivery System How is the service delivery system implemented, including: role of people, technology, equipment, layout, procedures? What capacity does it provide, normally, at peak levels? To what extent does the service delivery system help insure quality standards, differentiate the service from competition, provide barriers to entry by competitors? Competitive Environment of Services Entry Barriers Economies of Scale Sales Fluctuations Power Dealing with Buyers or Suppliers Product Substitutions for Service Customer Loyalty Exit Barriers How do each of these factors affect the competitive