INFORMS 2014 - The Integration Quality Gap in Service System Networks
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This document discusses the concept of an integration service quality gap, which highlights the disparity between expected and perceived service quality in service system networks. It presents a framework that incorporates traditional service quality gaps to assess and improve service metrics. The document also outlines future research opportunities in understanding value propositions and measuring customer service experiences in complex networks.
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Composition of a Value Proposition (1)
VP = [SE,B,C,P,Q,Sc,R,M,FR]
Benefits
Costs
Quality
Probability
of Success
Performance
Metrics
Stakeholders’
Roles
Schema for Data
Exchange
Service Experience
will
do
will
do
for +$
will
not
do
Failure
Recovery](https://image.slidesharecdn.com/informs2014-141109173546-conversion-gate02/85/INFORMS-2014-The-Integration-Quality-Gap-in-Service-System-Networks-5-320.jpg)
![6
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/informs2014-141109173546-conversion-gate02/85/INFORMS-2014-The-Integration-Quality-Gap-in-Service-System-Networks-6-320.jpg)
INFORMS 2014 - The Integration Quality Gap in Service System Networks
- 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 Karlsruhe Service Research Institute Karlsruhe Institute of Technology Presented at Karlsruhe, Germany peter.hottum@kit.edu INFORMS Annual Meeting Peter Hottum San Francisco, November 9-12, 2014 1
- 2. 2 Service providers often have to construct networks of partners to fulfill service obligations 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.
- 3. 3 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.
- 4. Customer VPS VPP VPP Customer’s Social Network VPC VP: Value Proposition Service Experience Service Provider Focal Relationship Provider Partner Network 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. 4
- 5. 5 Composition of a Value Proposition (1) VP = [SE,B,C,P,Q,Sc,R,M,FR] Benefits Costs Quality Probability of Success Performance Metrics Stakeholders’ Roles Schema for Data Exchange Service Experience will do will do for +$ will not do Failure Recovery
- 6. 6 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.”
- 7. 7 Traditional Service Quality Gap Model From Fitzsimmons & Fitzsimmons 6th ed Figure 6.3 original by Uttarayan Bagchi.
- 8. 8 Causes of Gaps Promoted Inflated Expectation Expectation G5 = Service Quality Gap Communication Marketing Research Customer’s Assessment Management’s G4 Service Provider’s Assessment Perceived Customer Expectation Service Design Spec. Service Delivered G1 G2 G3 Service Received Design Conformance Service Quality Realistic Expectation Created by Value Proposition VPC
- 9. Customer VPS VPP VPP Customer’s Social Network VPC VP: Value Proposition Service Experience Service Provider Focal Relationship Provider Partner Network 9
- 10. 10 Customer Service Journey with Multiple Service Providers over Time (1) Service Episodes in Sequence Time Service Episodes in Parallel Multiple Providers In a Service Episode 10
- 11. Value Propositions in a Service System Network Customer (C) Provider (B) VPc The question is: Do the Service Episodes add up to the entitled Service Experience? Provider (B) Customer (C) SE ………. S: Service Components Se ≈ S? Se: Service Episodes Customer Service Journey Delivered by Partners/Subcontractors 11 VP VPP Derivatives
- 12. 12 VP VP1 VP2 VP3 …VPK VP’s to K Partners/ Subcontractors S1S2…. S2S3…. S1S4…. Service Components to be delivered Example: University College Department Major Concentration Course Offering Value Proposition Derivations (1)
- 13. Created Customer Expectation Service Episodes in Parallel 13 Customer Service Journey with Multiple Service Providers over Time (2) Service Episodes in Sequence Time Multiple Providers In a Service Episode
- 14. 14 SE” = SE η1 to communicate SE to partners η2 ηij= p(S’j|Si) an “Information System” η3 η4 ηK example of perfect S S information S’ 1 1 1 1 S’ 1 0 1 .25 .75 example of imperfect information, noise due to Marschak (1968) “quasi-garbling” Marschak & Radner (1972) Value Proposition Derivations (2)
- 15. Value Proposition Derivations (3) What causes the “quasi-garbling” phenomenon? • Information (part of the VP) was not passed on deliberately – pricing, IP, etc. • There are multiple partners/subcontractors and they are not made visible to each other • Practice of “flipping” • Practice of derivatives – unable to reconstruct original VP and identify responsibility 15
- 16. 16 Inflated Expectation Causes of Gaps Communication Marketing Research Design Customer’s Assessment G4 G1 G2 G3 Service Provider’s Assessment G5 = Service Quality Gap Conformance Service Quality Realistic Expectation Created by Value Proposition VPC Service Delivered Service Received G0 Integration “quasi-garbling” caused by VP Derivations VPP
- 17. Created Customer Expectation Service Episodes in Parallel 17 Customer Service Journey with Multiple Service Providers over Time (3) Service Episodes in Sequence Time Multiple Providers In a Service Episode
- 18. 18 Future Research on these Approaches: 1. Derive “loss-less” Value Propositions for partners/subcontractors. Would it be possible to re-construct the original VP from the sub-VP’s? 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 “Integrity Quality Gap”: Se ≈ S caused by multiple service providers in the experience?
- 19. 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 Karlsruhe Service Research Institute Karlsruhe Institute of Technology Presented at Karlsruhe, Germany peter.hottum@kit.edu INFORMS Annual Meeting Peter Hottum San Francisco, November 9-12, 2014 19