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The service blueprint is an applied process chart which shows the service delivery process from the customer's perspective. The service blueprint is one of the most widely used tools to manage service operations, service design and service.
A simple way to think about blueprints is as a process chart which consists of inputs, process and outputs.
A service blueprint is always constructed from the customer's perspective. A typical service blueprint identifies: [1]
Optional inclusions – depending on intended application: [2] [3]
Yet other scholars and practitioners have recommended adding different lines including
The service blueprint is a technique originally used for service design, but has also found applications in diagnosing problems with operational efficiency. The technique was first described by G. Lynn Shostack, a bank executive, in the Harvard Business Review in 1984. [5]
Since its original development, a number of scholars have sought to increase its usefulness by adding various modifications that provide additional information and more demarcations. Zeithaml and Bitner recommend adding four lines to the map. (1) the Line of Visibility (as in the original); (2) the Line of Interaction which separates customer actions from service provider actions (3) the Line of Internal Interaction which separates the front office and the back office and (4) the Line of Implementation which separates management zone from the support zone. [6] The addition of these lines helps to separate the functions of planning and controlling from support activities including preparation. Yet other scholars and practitioners have recommended adding different lines including (5) the Line of Order Penetration which separates customer-induced activities from customer-independent activities. [7]
Lovelock, Patterson, and Walker (2001) suggest that the service blueprint may also be useful for specifying the level of variation from standards that would be tolerated at each step of the process without affecting customers' perceptions of quality and timeliness. [8] Zeithaml, Bitner and Gremler (2006) also recommended adding bottlenecks and fail points to the map. A bottleneck is a point in the system at which consumers waiting time is likely to exceed average or minimum tolerable expectations. A fail point is any point within the encounter that has potential to affect customer satisfaction or quality. [9] These additions increase the diagnostic value of the service blueprint.
Service blueprinting has three main applications: simple representation; diagnosing operational deficiencies and service design (planning for structural change or new service development).
The original service blueprint is a highly visual, graphical map that delineates the key contact points in the service process and the nature of the contact – whether with physical evidence, personnel or procedures. It can be seen as a two dimensional map in which the horizontal axis represents time and the vertical axis represents the basic steps in the process. A line of visibility is included to separate actions visible to the customer from actions out of sight. Employee latitude, which refers to the amount of discretion given to employees to vary the service process, is shown on the map a call-out sign attached to the step. Process complexity is shown simply by the number of steps in the process.
The process of structuring a blueprint involves between five and seven steps, depending on the intended application. [16] From the outset, the blueprint was designed to be seen from the customer's perspective while simultaneously providing insights for management. Accordingly, the starting point should be to imagine the customer's step-by-step contact points, indicating, where known, customer's expectations in terms of minimum tolerable waiting times for each step.
Basic Service Blueprint
Traditionally, service blueprints have been depicted with lines and text boxes to depict anything from user actions to support processes. Fail points, bottlenecks and average time taken for each step can also be added at the analyst's discretion. The amount of information included in the service blueprint largely depends on how it is to be used. Over the years, a system of commonly accepted symbols associated with service blueprints has been developed. Although blueprints are not difficult to prepare, there is no universal agreement about how to present the finished process map.
When interpreting service blueprints, there are two basic considerations, complexity and divergence.
Complexity refers to the number and intricacy of the steps required to perform the service. A complex service process is one that has many steps.
Divergence refers to the degree of latitude, freedom, judgment, discretion, variability or situational adaptation permitted within any step of the process. The number of call-out signs attached to steps is an indicator of a service process that allows wide latitude to vary steps in the service delivery process.
Manipulations of the blueprint diagram might include increasing complexity, by adding more steps, or increasing divergence by allowing employees greater latitude in varying each step. In general, service processes that include high levels of employee discretion to vary steps to meet the needs of individual customers are moving towards customisation. On the other hand, reducing divergence, by standardising each step, often adds to complexity, but can result in a production-line approach to service process design. By manipulating complexity and divergence, it is possible to envisage four different positioning strategies: [17]
The examination of service blueprints 'may suggest opportunities for product improvement that might be achieved by reconfiguring delivery systems, adding or deleting specific elements, or repositioning the service to appeal to other segments'. [18] By manipulating complexity and divergence, it is possible to envisage service process improvements, service product improvements or new service innovations.
Reduce divergence: Reducing divergence typically requires substituting equipment for labour, involving customers in self-service and introducing standardised operating procedures. The outcome is uniformity which reduces costs and improves productivity. This approach usually involves a shift to high-volume/low margin positioning and requires access to mass markets to be successful. The vulnerability of this approach is that it reduces customisation and flexibility.
Increase divergence: Increasing divergence results is effectively a niche market strategy. Higher levels of customisation and flexibility require significant investments in human resources, recruitment and training all of which adds to costs. The approach usually involves a shift towards the prestige market segment and requires access to customers who are willing to pay a premium for customised services. The vulnerability of increased divergence is that processes are more difficult to manage, control and distribute.
Reduce complexity: Reduced complexity usually involves a specialisation strategy. As steps are removed from the process, the service firm concentrates on a narrower range of offerings. Examples include an obstetrician, radiologist. The advantage of this approach is that the service provider can develop high levels of expertise and that distribution and control are facilitated. The vulnerability of this approach is that it exposes the service firm to risk, especially if competitors continue to offer the convenience of full-service alternatives.
Increase complexity: Increased complexity is the service-product development option (i.e. sell different products to existing markets). Under this option, the service firm has an increased opportunity to maximise the revenue generated from each customer. The vulnerability inherent in this approach is that the firm's market positioning may become confused. Managing a broader array of products may also expose the firm to risks of spreading its effort too thin to the detriment of overall service quality.
While blueprints draw attention to operational deficiencies, the blueprint, per se, cannot suggest solutions. In order to identify potential solutions to operating problems, the analyst must examine the service process and consider the factors that are likely to cause the problem. In addition, the range of possible solutions may be constrained by organisation's mission, current market position and access to resources.
A very substantial body of marketing literature has addressed the question of possible solutions to problems identified through blueprinting. It is difficult to do justice to the wealth of studies using blueprints to gain managerial insights. A short summary of key managerial actions follows:
Standardize Procedures
Variable performance in service delivery is largely attributable to inseparability and human factors. Even in the back office, lack of standardisation can indirectly influence the customer process. In many organisations employees chose their own systems for storing files. Swank (2003: 125) cites an example of an insurance company where some employees filed according to policyholder (alphabetical), others by policy number (chronological) while others by date received. When employees were absent, substitutes sometimes found it hard to figure out where files were stored, so the process of retrieving files was delayed. [19]
To reduce this variation, the service firm has several options.
Standardization is clearly designed to provide tighter control over service delivery with a view to improving consistency of quality and making it easier for management to assess processes. Other benefits include reductions in costs and improved productivity. However, gains in operational efficiency achieved through standardization usually involve sacrificing flexibility and customisation. For the analyst, there is a constant trade off between improved operational efficiency and customised delivery.
Identify and Manage Critical Incidents
Some deviation is a normal aspect of service interactions; however any deviation that is likely to affect the customer's perceptions of value directly impacts on satisfaction. Those incidents which have the potential to become especially satisfying or dissatisfying are known as critical incidents and may benefit from standardised procedures. [21] Customer waiting time is often considered to be a critical incident and may also need to have standards and tolerances developed.
Reduce the Number of Contact Points
It is often suggested that a reduction in the number of contact points in the service processes can lead to greater efficiency since it reduces the total number of points where failure can creep into the system. [22] To simplify the delivery process, the most common way is to delegate activities to the customer through self-service technologies or self-guided processes. However, replacing technologies for humans contributes to inflexibility of service processes and may ultimately lead to fewer opportunities to differentiate a service offering in the marketplace. Planners may need to balance competing interests of controlling the process with the overall positioning strategy.
Increase customer participation
Customer participation should not be confused with customer contact. Customer participation is the degree of effort and involvement, both mental and physical, required to produce and deliver the service. [23] Examples of services high in customer participation include do-it-yourself car washes, salad bars and buffets, and distance (off-campus) education services.
The level of customer participation varies from providing simple information to the service provider, to joint-production with the assistance of service staff, to instances where the customer is the sole producer (i.e. self-service). Customer participation focuses on reducing the costs associated with delivering the service product. [24] For example, it costs approximately $3 for a bank to serve a customer over-the-counter as opposed to 1c via the Internet. Although the additional 'work' customers have to perform may be associated with such benefits as extended service hours, time-savings and in some instances monetary savings, these benefits may not be immediately obvious—they must be promoted.
Segregate Complexity
Anyone who has stood in line at a bank while a single teller assisted a customer with a lengthy transaction understands this principle. One solution is to cluster tasks with similar levels of difficulty into separate groups with their own procedures and performance. [12] : 124 For example, a bank branches with large numbers of retail customers (with relatively simple transactions) and commercial customers (making large deposits and withdrawals) might want to introduce separate teller windows for each group of customers.
Place Linked Processes in Close Physical Proximity
Complex services involve many steps and may require paperwork or customer files to be shuffled between contact staff, back office and support departments. The time taken to move paperwork or customers is very costly in terms of time and efficiency. Tertiary student enrolment provides a great example of complex processes that are often not very customer-friendly. Students must firstly see an academic advisor to ensure that their course progress is on track, then see an administrative advisor to check that paperwork is in order and finally see a cashier to pay tuition fees and pay any fines, such as overdue library books before they can finalise their enrolment. In many institutions, this enrolment process can take half a day – and requires students to run from pillar to post as they complete each step. Locating each stage in close proximity has many advantages. Not only does it improve operational efficiency, it has the potential to allow service staff to focus on the total process and gain a better understanding of the ways that their actions impact on other parts of the system. In short, it forces employees to focus not just on the activities for which they are directly responsible.
Eliminate Loop-Backs
In manufacturing, a loopback occurs when work is returned to a previous step for further processing. Loop-backs typically create delays because they cause consequential problems along the production line. Given that service processes involve humans, rather than machines, processing may be complicated by employees' choices concerning which tasks to undertake and how to schedule them. If loop-backs present a problem, management can assist employees to clarify roles and tasks by focusing on their place within the overall service process. [12] : 129
Control Fail Points
Failures in service process may be attributed to either the service provider or the customer. It is possible that the service provider did not utilise resources in a way that best serves the customers needs. Alternatively, service provider failures may be caused by mismanagement. For example, an employee, who chooses to deviate from the script, may fail to serve the customer correctly. Finally, failures can be caused by customers who do not understand the process and do not know what they should be doing. For example, a customer might fail to provide appropriate documents to an appointment with a bank manager or lawyer. [25]
It is important to spend time diagnosing the reasons for fail points before implementing solutions. Failures attributable to customers are often due to misinformation. In such cases, the service firm could, for instance, provide customers with information checklists at the time when they make an appointment. Failures due to lack of resources may require short-term solutions to alleviate the immediate problem while long-term solutions including resource acquisition can be pursued.
A quality management system (QMS) is a collection of business processes focused on consistently meeting customer requirements and enhancing their satisfaction. It is aligned with an organization's purpose and strategic direction. It is expressed as the organizational goals and aspirations, policies, processes, documented information, and resources needed to implement and maintain it. Early quality management systems emphasized predictable outcomes of an industrial product production line, using simple statistics and random sampling. By the 20th century, labor inputs were typically the most costly inputs in most industrialized societies, so focus shifted to team cooperation and dynamics, especially the early signaling of problems via a continual improvement cycle. In the 21st century, QMS has tended to converge with sustainability and transparency initiatives, as both investor and customer satisfaction and perceived quality are increasingly tied to these factors. Of QMS regimes, the ISO 9000 family of standards is probably the most widely implemented worldwide – the ISO 19011 audit regime applies to both and deals with quality and sustainability and their integration.
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. A period during which goods are sold for a reduced price may also be referred to as a "sale".
A service is an act or use for which a consumer, firm, or government is willing to pay. Examples include work done by barbers, doctors, lawyers, mechanics, banks, insurance companies, and so on. Public services are those that society as a whole pays for. Using resources, skill, ingenuity, and experience, service provider's benefit service consumers. Services may be defined as intangible acts or performances whereby the service provider provides value to the customer.
Product life-cycle management (PLM) is the succession of strategies by business management as a product goes through its life-cycle. The conditions in which a product is sold changes over time and must be managed as it moves through its succession of stages.
The marketing mix is the set of controllable elements or variables that a company uses to influence and meet the needs of its target customers in the most effective and efficient way possible. These variables are often grouped into four key components, often referred to as the "Four Ps of Marketing."
Services marketing is a specialized branch of marketing which emerged as a separate field of study in the early 1980s, following the recognition that the unique characteristics of services required different strategies compared with the marketing of physical goods.
A business process, business method or business function is a collection of related, structured activities or tasks performed by people or equipment in which a specific sequence produces a service or product for a particular customer or customers. Business processes occur at all organizational levels and may or may not be visible to the customers. A business process may often be visualized (modeled) as a flowchart of a sequence of activities with interleaving decision points or as a process matrix of a sequence of activities with relevance rules based on data in the process. The benefits of using business processes include improved customer satisfaction and improved agility for reacting to rapid market change. Process-oriented organizations break down the barriers of structural departments and try to avoid functional silos.
Database marketing is a form of direct marketing that uses databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes. The method of communication can be any addressable medium, as in direct marketing.
Personal selling occurs when a sales representative meets with a potential client for the purpose of transacting a sale. Many sales representatives rely on a sequential sales process that typically includes nine steps. Some sales representatives develop scripts for all or part of the sales process. The sales process can be used in face-to-face encounters and in telemarketing.
The Information Services Procurement Library (ISPL) is a best practice library for the management of Information Technology related acquisition processes. It helps both the customer and supplier organization to achieve the desired quality using the corresponded amount of time and money by providing methods and best practices for risk management, contract management, and planning. ISPL focuses on the relationship between the customer and supplier organization: It helps constructing the request for proposal, it helps constructing the contract and delivery plan according to the project situation and risks, and it helps monitoring the delivery phase. ISPL is a unique Information Technology method because where most other Information Technology methods and frameworks focus on development, ISPL focuses purely on the procurement of information services. The target audience for ISPL consists of procurement managers, acquisition managers, programme managers, contract managers, facilities managers, service level managers, and project managers in the IT area. Because of ISPL's focus on procurement it is very suitable to be used with ITIL and PRINCE2.
Service design is the activity of planning and arranging people, infrastructure, communication and material components of a service in order to improve its quality, and the interaction between the service provider and its users. Service design may function as a way to inform changes to an existing service or create a new service entirely.
Servicescape is a model developed by Booms and Bitner to emphasize the impact of the physical environment in which a service process takes place. The aim of the servicescapes model is to explain behavior of people within the service environment with a view to designing environments that does not accomplish organisational goals in terms of achieving desired behavioural responses. For consumers visiting a service or retail store, the service environment is the first aspect of the service that is perceived by the customer and it is at this stage that consumers are likely to form impressions of the level of service they will receive.
SERVQUAL is a multi-dimensional research instrument designed to capture consumer expectations and perceptions of a service along five dimensions that are believed to represent service quality. SERVQUAL is built on the expectancy–disconfirmation paradigm, which, in simple terms, means that service quality is understood as the extent to which consumers' pre-consumption expectations of quality are confirmed or disconfirmed by their actual perceptions of the service experience. When the SERVQUAL questionnaire was first published in 1985 by a team of academic researchers, A. Parasuraman, Valarie Zeithaml and Leonard L. Berry to measure quality in the service sector, it represented a breakthrough in the measurement methods used for service quality research. The diagnostic value of the instrument is supported by the model of service quality which forms the conceptual framework for the development of the scale. The instrument has been widely applied in a variety of contexts and cultural settings and found to be relatively robust. It has become the dominant measurement scale in the area of service quality. In spite of the long-standing interest in SERVQUAL and its myriad of context-specific applications, it has attracted some criticism from researchers.
The eCRM or electronic customer relationship management coined by Oscar Gomes encompasses all standard CRM functions with the use of the net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms of managing relationships with customers through the use of information technology (IT).
Once the strategic plan is in place, retail managers turn to the more managerial aspects of planning. A retail mix is devised for the purpose of coordinating day-to-day tactical decisions. The retail marketing mix typically consists of six broad decision layers including product decisions, place decisions, promotion, price, personnel and presentation. The retail mix is loosely based on the marketing mix, but has been expanded and modified in line with the unique needs of the retail context. A number of scholars have argued for an expanded marketing, mix with the inclusion of two new Ps, namely, Personnel and Presentation since these contribute to the customer's unique retail experience and are the principal basis for retail differentiation. Yet other scholars argue that the Retail Format should be included. The modified retail marketing mix that is most commonly cited in textbooks is often called the 6 Ps of retailing.
Value-stream mapping, also known as material- and information-flow mapping, is a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from the beginning of the specific process until it reaches the customer. A value stream map is a visual tool that displays all critical steps in a specific process and easily quantifies the time and volume taken at each stage. Value stream maps show the flow of both materials and information as they progress through the process.
In marketing, a company’s value proposition is the full mix of benefits or economic value which it promises to deliver to the current and future customers who will buy their products and/or services. It is part of a company's overall marketing strategy which differentiates its brand and fully positions it in the market. A value proposition can apply to an entire organization, parts thereof, customer accounts, or products and services.
Service quality (SQ), in its contemporary conceptualisation, is a comparison of perceived expectations (E) of a service with perceived performance (P), giving rise to the equation SQ = P − E. This conceptualistion of service quality has its origins in the expectancy-disconfirmation paradigm.
Service 4.0 is a collective term for technologies and concepts of service and support function organizations, based on new disruptive technological concepts, the Internet of Things and the Internet of Services. It is a similar concept to industry 4.0, applied to value chain. The proponents of Service 4.0 claim that it is a major opportunity for service companies to make a leap forward in terms of efficiency and effectiveness, and an opportunity for service users to discover and benefit from new features, impossible to be delivered before this disruption.
Operations management for services has the functional responsibility for producing the services of an organization and providing them directly to its customers. It specifically deals with decisions required by operations managers for simultaneous production and consumption of an intangible product. These decisions concern the process, people, information and the system that produces and delivers the service. It differs from operations management in general, since the processes of service organizations differ from those of manufacturing organizations.
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