Monday, February 9, 2015

2014-15 Services Management Course : PGDM : Full Credit : Planning

Class on December 31st, 2014
2 sessions 
INTRODUCTION TO SERVICES

Self and Course Introduction 

NATURE OF SERVICES 

  • 3 sectors : service pie increasing : affluence leads to increase in services because there is an upper limit on how much service can be consumed. Maslow connection.
  • Why study service ? (A) Max employment opportunities (B) Service can be distinguishing factor when products are commoditized 
  • HUL is a "Product Company" ? 50% cost comes from services
  • Product - Service Continuum
  • Tailored suit vis-v-vis vehicle loan : product service continuum
  • Differences between products and services
DIFFERENCES BETWEEN PRODUCTS AND SERVICES 
  • A product can be made "operationally" even if the customer is absent and can be stored and transported and distributed. Services are produced in a different way : the high contact services need the presence of a customer who demands customization and co-creation. Products are made in absence of the customer hence they are standardized and efficiency oriented and for such companies the marketing concept and voice of customer becomes important in product business. Services 
  • are made in presence of the customer and are therefore intrinsically customer centric.
  • But a service 
  • Have a service radius
  • Product can be m 

Dushyant Training Company
The concept of encounters
Architecture of an encounter
Hint that the encounter can be analyzed through blueprint

Products are bought in units which are inventoried. Services are bought in encounters of duration.

Where is the value embedded. In product or in the encounter.

Class on January 2nd 2015
2 sessions 
HOW IS VALUE CREATED IN SERVICES

Encounters ( Facility : 3 types of logic, People : Selection .., Process....Proof..blue printing)
Marketing Mix ( People, Process, Proof)


Class on January 5th 2015
2 sessions 
SERVICE CLASSIFICATION
IMPORTANCE OF PEOPLE IN SERVICE
Case : Coimbtore Finance Corporation

8 Differences :  High & Low Contact Services 

It is clear that the "cost to serve" per person is higher in high contact service.
High contact service is effective (satisfying) but not efficient
High contact service needs "broad band" providers and deft handlng
High contact service difficult to scale up

Processing of
1.       Materials
2.      Bodies
3.      Minds
4.      Information
5.      Ideas

Where
1.       On customer site
2.      At service center
3.      Mobile place

What customers expect ?
Product
Factory : Material and Processes
Machines
Service
Labour
People : Physical
Expertise
Providing solution
Qualification, Experience
Facility
Sensory Experience,

Access
Location, Speed, Conv
Real Estate
Reputation
Capability surrogate

Platform
Network
Others
Image
Who others use it

Performance
Talent
Recruitment
Total time spent
End to end
Process


Coimbtore Case 
- Profit can be improved  by attrition
- draw the individual profile LOS x Productivity
- draw the pyramid of wasted cost due to attrition 
- draw the service profit chain model


  



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