Presentation is loading. Please wait.

Presentation is loading. Please wait.

ROLE AND NATURE OF SERVICES BBB 3273 | Service Operation Management

Published byNancy Powell Modified over 9 years ago

Similar presentations

Presentation on theme: "ROLE AND NATURE OF SERVICES BBB 3273 | Service Operation Management"— Presentation transcript:

1 ROLE AND NATURE OF SERVICES BBB 3273 | Service Operation Management
Lecturer: Babita Gupta Ext:8404

2 Chapter 1 Role of Services in an Economy & The Nature of Services
McGraw-Hill/Irwin Service Management: Operations, Strategy, and Information Technology, 6e Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

3 Service Definitions Services are deeds, processes, and performances.
Valarie Zeithaml & Mary Jo Bitner A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer. James Fitzsimmons 1-3

4 Definition of Service Firms
Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives. James Fitzsimmons 1-4

5 STAGES OF ECONOMIC ACTIVITY
Primary Extractive Agriculture, mining, fishing, forestry Secondary Goods – processing Manufacturing, processing Tertiary Domestic – service Restaurant & hotels, barber & beauty shop, laundry & dry cleaning, maintenance & repair Quaternary Trade & commerce service Transportation, retailing, communication, finance & insurance, real estate Refining and extending human capacities Health care, education, research, recreation, arts

6 Role of Services in an Economy
FINANCIAL SERVICES · Financing · Leasing · Insurance INFRASTRUCTURE SERVICE · Communications · Transportation · Utilities · Banking PERSONAL SERVICES · Healthcare · Restaurants · Hotels MANUFACTURING Services inside company: · Finance · Accounting · Legal · R&D and design DISTRIBUTION SERVICES · Wholesaling · Retailing · Repairing CONSUMER (Self-service) BUSINESS SERVICES · Consulting · Auditing · Advertising · Waste disposal GOVERNMENT SERVICES · Military · Education · Judicial · Police and fire protection 1-6

7 Stages of Economic Development
Pre Use of Standard dominant Human Unit of of Living Society Game Activity Labor Social Life Measure Structure Technology Pre Against Agriculture Raw Extended Sub Routine Simple hand Industrial Nature Mining muscle household sistence Traditional tools power Authoritative Industrial Against Goods Machine Individual Quantity Bureaucratic Machines fabricated production tending of goods Hierarchical nature Post Among Services Artistic Community Quality of Inter Information industrial Persons Creative life in terms dependent Intellectual health, education, recreation 1-7

8 Stages of Economic Development
Service economy has moved from transactional nature to experience-based relationship (refer next slide) In experience base we have Customer services Business services

9 Engaging with consumer in a personal & memorable way
Economic Evolution Engaging with consumer in a personal & memorable way Consumer becomes the co-producer and input to the service process Economy Agrarian Industrial Service Experience Economic Offering Food Packaged goods Commodity service Consumer services Business services Function Extract Make Deliver Stage Co-create Nature Fungible Tangible Intangible Memorable Effectual Attribute Natural Standardized Customized Personal Growth Method of Supply Stored in bulk Inventoried Delivered on demand Revealed over time Sustained over time Seller Trader Producer Provider Stager Collaborator Buyer Market Customer Client Guest Expectation Quantity Features Benefits Sensations Capability 1-9

10 Distinctive Characteristics of Services
Simultaneity: buying and selling happens at one go Perishability: time-perishable (will die off) capacity Intangibility: depends on the reputation of the firm and advertising Heterogeneity: more than one element has to be present Customer Participation in the Service Process: customer plays an active part in the process 2-10

11 The Service Package Supporting Facility: The physical resources that must be in place before a service can be sold. Examples are golf course, ski lift, hospital, airplane. Facilitating Goods: The material consumed by the buyer or items provided by the consumer. Examples are food items, legal documents, golf clubs, medical history. Information: Operations data or information that is provided by the customer to enable efficient and customized service. Examples are patient medical records, seats available on a flight, customer preferences, location of customer to dispatch a taxi. 2-11

12 The Service Package (cont.)
Explicit Services: Benefits readily observable by the senses. The essential or intrinsic features. Examples are quality of meal, attitude of the waiter, on-time departure. Implicit Services: Psychological benefits or extrinsic features which the consumer may sense only vaguely. Examples are privacy of loan office, security of a well lighted parking lot. 2-12

13 Service Package: Banking
Supporting Facility Building, machine and people Facilitating Goods money, transaction, security, documents Information about the customers, where the transactions done Explicit Services immediate attention given, on-time transaction Implicit Services quality, privacy (experienced by consumers)

14 Challenges For Service Managers
SERVICE FACTORY Airlines Trucking Hotels Resorts and recreation SERVICE SHOP Hospitals Auto repair Other repair services Capital decision Technological changes Managing demand Scheduling service delivery

15 Challenges For Service Managers
SERVICE SHOP Hospitals Auto repair Other repair services Fighting cost increase Maintain quality Reacting to consumer Managing advancement of people Managing flat hierarchy with loose employer- employee relationships Gaining employee loyalty PROFESSIONAL SERVICE Doctors Lawyers Accountants Architects

16 Challenges For Service Managers
Hiring Training Employee welfare Scheduling workforce Start-up of new units Managing growth MASS SERVICE Retailing Wholesaling Schools Retail banking PROFESSIONAL SERVICE Doctors Lawyers Accountants Architects

17 Challenges For Service Managers
SERVICE SHOP Hospitals Auto repair Other repair services Marketing Making service ‘warm’ Attention to physical surrounding Managing rigid hierarchy with the need for standard operating procedure MASS SERVICE Retailing Wholesaling Schools Retail banking

18 Services can be classified base on various strategic insights, such as
Nature of the service act (tangible action and intangible action) Relationship with customers and the nature of delivery Degree of customization and the judgment involved in meeting customer needs Extent of demand fluctuation and demand capacity Nature of service delivery and service availability (refer to the text book – page

19 Source of Service Sector Growth
Information Technology (e.g. Internet) Innovation Changing Demographics Aging of the population Two-income families Growth in number of single people Home as sanctuary End of Lecture 1-19

20 End of Lecture

Download ppt "ROLE AND NATURE OF SERVICES BBB 3273 | Service Operation Management"

Similar presentations

Managing Services. What Services have you consumed today?

Managing Services. What Services have you consumed today?
The Nature of Services.

The Nature of Services.
The Nature of Services.

The Nature of Services.
Chapter 2 The Nature of Services. Learning Objectives 1. 1. Service process matrix. 2. 2. The service package. 3. 3. Distinctive characteristics of a.

Chapter 2 The Nature of Services. Learning Objectives Service process matrix The service package Distinctive characteristics of a.
Role of Services in an Economy Role of Services in an Economy Welcome to Service Management Service Management Professor James Fitzsimmons University of.

Role of Services in an Economy Role of Services in an Economy Welcome to Service Management Service Management Professor James Fitzsimmons University of.
Introduction to Services and Service Operations MD254 Service Operations Professor Joy Field.

Introduction to Services and Service Operations MD254 Service Operations Professor Joy Field.
Role of Services in an Economy Role of Services in an Economy Welcome to Service Management Service Management Professor James Fitzsimmons University of.

Role of Services in an Economy Role of Services in an Economy Welcome to Service Management Service Management Professor James Fitzsimmons University of.
Definining Services “A service is any act or performance that one party offers to another, that is essentially intangible, does not result in the ownership.

Definining Services “A service is any act or performance that one party offers to another, that is essentially intangible, does not result in the ownership.
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Service Products, Services, Intangibility, Inseparability, Perishability, Off Peak.

McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Service Products, Services, Intangibility, Inseparability, Perishability, Off Peak.
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Part 1 FOUNDATIONS FOR SERVICES MARKETING.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Part 1 FOUNDATIONS FOR SERVICES MARKETING.
1 MANAGEMENT 516 OPERATIONS MANAGEMENT What is Operations Management (OM) ? –Activities that relate to creation of goods and services through transformation.

1 MANAGEMENT 516 OPERATIONS MANAGEMENT What is Operations Management (OM) ? –Activities that relate to creation of goods and services through transformation.
1-1 Operations Management Introduction - Chapter 1.

1-1 Operations Management Introduction - Chapter 1.
Introduction: Role of Service in an Economy. 2 Service Definitions Services are deeds, processes, and performances. Valarie Zeithaml & Mary Jo Bitner.

Introduction: Role of Service in an Economy. 2 Service Definitions Services are deeds, processes, and performances. Valarie Zeithaml & Mary Jo Bitner.
Economic Sectors of Production APHG 2010. Primary Sector Jobs that deal with the extraction of natural resources. – Agriculture – Mining – Energy – Forestry.

Economic Sectors of Production APHG Primary Sector Jobs that deal with the extraction of natural resources. – Agriculture – Mining – Energy – Forestry.
© Copyright IBM Corporation 2006, All rights reserved

© Copyright IBM Corporation 2006, All rights reserved
The Nature of Services McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

The Nature of Services McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Chapter – 2 The Nature of Services

Chapter – 2 The Nature of Services
The Nature of Services.

The Nature of Services.
The Nature of Services McGraw-Hill/Irwin

The Nature of Services McGraw-Hill/Irwin

Similar presentations

Ads by Google