Measuring Integration Service Quality Gap in A Service System Network
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This document discusses service quality gaps that can occur when multiple service providers are involved in fulfilling a customer's service experience. It introduces the concept of an "integration service quality gap" that represents the difference between a customer's expected quality of service and their perceived quality when multiple providers are involved. The document argues that service standards can help reduce this gap by ensuring a consistent level of service across the network of providers. It also discusses how value propositions must be effectively communicated across the network to maintain quality.
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Composition of a Value Proposition (1)
Service Experience
VP = [SE,B,C,P,Q,Sc,R,M,FR]
will
do
will
do
for +$
will
not
do
Benefits
Costs
Probability
of Success
Quality
Schema for Data
Exchange
Stakeholders’
Roles
Performance
Metrics
Failure
Recovery](https://image.slidesharecdn.com/3-3kwanhottum-151002013135-lva1-app6891/85/Measuring-Integration-Service-Quality-Gap-in-A-Service-System-Network-4-320.jpg)
![5
Composition of a Value Proposition (2)
VP = [SE,B,C,P,Q,Sc,R,M,FR]
“Our service will provide such and such experience
which will result in certain benefits to you. It will cost $.
We have a good reputation and will be capable to
perform the service successfully and with high quality.
We will exchange data about each other in a particular
format. We will perform the service based on the
agreeable upon criteria and you will also be expected to
perform in a certain manner in order to co-create value as
intended. You will be able to measure our performance
and vice versa. In case of service failure, we will perform
certain procedure to restore service.”](https://image.slidesharecdn.com/3-3kwanhottum-151002013135-lva1-app6891/85/Measuring-Integration-Service-Quality-Gap-in-A-Service-System-Network-5-320.jpg)
![17
Composition of a Value Proposition (3)
Benefits
Costs
Probability
of Success
Quality
Schema for Data
Exchange
Stakeholders’
Roles
Performance
Metrics
Service Experience
VP = [SE,B,C,P,Q,Sc,R,M,FR]
Failure
Recovery
Essential Elements of a Service Standard](https://image.slidesharecdn.com/3-3kwanhottum-151002013135-lva1-app6891/85/Measuring-Integration-Service-Quality-Gap-in-A-Service-System-Network-17-320.jpg)
Measuring Integration Service Quality Gap in A Service System Network
- 1. Stephen K. Kwan Lucas Professor of Service Science Lucas Graduate School of Business San José State University San José, CA, USA stephen.kwan@sjsu.edu Presented at Frontiers in Service Conference July 9-12, 2015, San José, CA, USA Draft June 26th 2015 Peter Hottum Karlsruhe Service Research Institute Karlsruhe Institute of Technology Karlsruhe, Germany peter.hottum@kit.edu 1
- 2. 2 Service providers often have to construct networks of partners to fulfill service obligations (entitlement) to customers. We introduce an integration service quality gap that represents the difference between customer service quality expectation and perceived service quality in his service journey in a service system network. The integration service quality gap is incorporated with traditional service quality gaps to form a more complete treatment of service quality metrics in such an environment. We will also address reduction in service quality due to poor communication between the service provider and partner/subcontractors as well as the role of service standards in constructing value propositions.
- 3. Customer’s Social Network Customer Service Experience Service Provider Focal Relationship Provider Partner Network VP: Value PropositionVPC VPS VPP VPP Kwan, S. K. & Yuan, S. T. ”Customer-Driven Value Co-Creation in Service Networks”, in Demirkan, H., Spohrer, J.C. and Krishna, V. ed., The Science of Service Systems, volume in Service Science: Research and Innovation (SSRI) in the Service Economy series, Springer, 2010. 3
- 4. 4 Composition of a Value Proposition (1) Service Experience VP = [SE,B,C,P,Q,Sc,R,M,FR] will do will do for +$ will not do Benefits Costs Probability of Success Quality Schema for Data Exchange Stakeholders’ Roles Performance Metrics Failure Recovery
- 5. 5 Composition of a Value Proposition (2) VP = [SE,B,C,P,Q,Sc,R,M,FR] “Our service will provide such and such experience which will result in certain benefits to you. It will cost $. We have a good reputation and will be capable to perform the service successfully and with high quality. We will exchange data about each other in a particular format. We will perform the service based on the agreeable upon criteria and you will also be expected to perform in a certain manner in order to co-create value as intended. You will be able to measure our performance and vice versa. In case of service failure, we will perform certain procedure to restore service.”
- 6. 66 From Fitzsimmons & Fitzsimmons 6th ed Figure 6.3 original by Uttarayan Bagchi. Traditional Service Quality Gap Model
- 7. 7 Customer’s Assessment Inflated ExpectationPromoted Expectation Service Provider’s Assessment Management’s Perceived Customer Expectation Service Design Specifications Service Delivered Received G1 G2 G3 G4 G5 = Service Quality Gap Conformance Design Marketing Research Communication Causes of Gaps Service Quality Realistic Expectation Created by Value Proposition VPC Service Standard Specifications
- 8. Customer’s Social Network Customer Service Experience Service Provider Focal Relationship Provider Partner Network VP: Value PropositionVPC VPS VPP VPP 8
- 9. 9 Customer Service Journey with Multiple Service Providers over Time (1) Service Episodes in Sequence Time Multiple Providers In a Service Episode Service Episodes in Parallel ★★ ★ ★ ★
- 10. Value Propositions in a Service System Network Customer (C) Provider (B) VPc Provider (B) Customer (C) Se: Service Episodes Customer Service Journey Delivered by Partners/Subcontractors SE S: Service Components ………. The question is: Do the Service Episodes add up to the entitled Service Experience? Se ≈ S? 10 VP DerivativesVPP Was the Service Component performed? How well was the Component performed?
- 11. 11 VP VP1 VP2 VP3 …VPK S1S2…. S2S3…. S1S4…. VP’s to K Partners/ Subcontractors Service Components to be delivered University College Department Major Concentration Course Offering Example: 11 Value Proposition Derivations (1)
- 12. 12 Customer Service Journey with Multiple Service Providers over Time (2) Service Episodes in Sequence Time Created Customer Expectation Examples: Healthcare Travel Hospitality Education Financial Services
- 13. 13 ηij= p(S’j|Si) SE” = SE η1 η2 η3 η4 ηK an “Information System” to communicate SE to partners S S’ 1 1 1 1 example of perfect information S S’ 1 0 1 .25 .75 example of imperfect information, noise due to “quasi-garbling” Value Proposition Derivations (2) Marschak, J. (1968) “Economics of Inquiry, Communicating, Deciding”, American Economics Review. (58): 1-18. Marschak, J., Radner, R. (1972) Economic Theory of Teams, Cowles Foundation Monograph 22, Yale University Press.
- 14. What causes the “quasi-garbling” phenomenon? • Miscommunication – oversight, language, etc. • Omission/Obfuscation - Information (part of the VP) was not passed on or made unclear deliberately – pricing, IP, etc. • Opaqueness- There are multiple partners/subcontractors and they are not made visible to each other • Low Cost Substitutes - Practice of “flipping” • Information Loss - Practice of derivatives – unable to reconstruct original VP and identify responsibility Value Proposition Derivations (3) 14
- 15. 15 Customer’s Assessment Inflated Expectation Service Provider’s Assessment G1 G2 G3 G4 G5 = Service Quality Gap Conformance Design Marketing Research Communication Causes of Gaps Service Quality Realistic Expectation Created by Value Proposition VPC G0 Integration Gap caused by “quasi-garbling” VPP Service Delivered Received Gap caused by non conformance to Service Standards Operational Gaps
- 16. 16 Customer Service Journey with Multiple Service Providers over Time (3) Service Episodes in Sequence Time Created Customer Expectation
- 17. 17 Composition of a Value Proposition (3) Benefits Costs Probability of Success Quality Schema for Data Exchange Stakeholders’ Roles Performance Metrics Service Experience VP = [SE,B,C,P,Q,Sc,R,M,FR] Failure Recovery Essential Elements of a Service Standard
- 18. Service Standards (1) A standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose. ----------------------------------------------------------------------------- A Service Standard is performance-based – not design-based, is non-prescriptive and a reference implementation could be used for conformance measurement, benchmarking, and interoperability assessment. International Standards Organization (ISO) Definition: Only 700 out of 19,000 ISO Standards are service related!
- 19. Examples of Different Types of Standards: • Industry (Segment) Standards • National Standards • International Standards • Private Standards (e.g., SLA’s) • Company Standards • Industry Standards Service Standards (2)
- 20. Importance of Service Standards • There is an increasing need for Service Standards as countries begin to develop their service sector and face market-based forces within the sector as well as import/export of service in the global economy. In this case Service Standards can be viewed as a surrogate level of market requirements (i.e., the bar set by the industry). • The use of relevant Service Standards could be a mechanism to connect VPs across the service network in order to ensure the customer enjoys a level of service consistent with the expectation set by the original VP offered by service provider (reduce G0). Service Standards are important elements of setting customer expectations. • Service Standards provide specifications for interoperability, performance measurement, and conformance assessment guidelines. High potentials in reducing G3.
- 21. 2121 Future Research on these Approaches: 1. More research on Service Standards, Standardization, and Conformance Assessment. 1. Measure the quality of the customer service experience based on individual service episodes, service components, partner/subcontractors, as well as the whole experience. Would it be possible to measure the “Integration Service Quality Gap – G0”: Se ≈ S caused by multiple service providers in the experience?
- 22. 22 Kwan, SK, Hottum, P (2014) The Integration Quality Gap in Service System Networks. Presentation at INFORMS Annual Meeting, San Francisco, November 9-12. Kwan, SK, Hottum, P (2014) Maintaining Consistent Customer Experience in Service System Networks, Service Science, Vol. 6, No. 2, pp. 1-12. (Presented at 2013 Naples Forum) Kwan SK, Hottum P, Kieliszewski CA (2012) Moving from B2X to B2X2Y value propositions in service system networks. Presentation at the 1st International Conference on the Human Side of Service Engineering, July 24, San Francisco. Kwan SK, Müller-Gorchs M (2011) Constructing effective value propositions for stakeholders in service system networks. Sprouts: Working Papers Inform. Systems 11:Article 160. Freund L, Kwan SK (2010) Co-production process quality management for service systems. Presentation at the 19th Frontiers in Services Conference, June 10–13, Karlstad, Sweden.
- 23. Stephen K. Kwan Lucas Professor of Service Science Lucas Graduate School of Business San José State University San José, CA, USA stephen.kwan@sjsu.edu Peter Hottum Karlsruhe Service Research Institute Karlsruhe Institute of Technology Karlsruhe, Germany peter.hottum@kit.edu 23 Presented at Frontiers in Service Conference July 9-12, 2015, San José, CA, USA Draft June 26th 2015