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Service-System Design Matrix
                                                                                                                                    • The Service-System Design Matrix is a useful
                                                                                                                                      tool for understanding the different elements
                                   Service Design Matrix                                                                              of a service system.
                                                                                                                                    • The matrix establishes the relationship
                                                      Presented By:                                                                   between
                                                                   Anupam Kumar                                                          – three key factors of service and
                                                                          Reader                                                         – how these factors relate to service production
                                                                     SMS Varanasi                                                          and delivery.

                                                     © Copyright 2013 Anupam Kumar                                  1                                               © Copyright 2013 Anupam Kumar                                  2




                               The Service Design Matrix                                                                               Operational Classification of Services
                                                                                                                                                      Stagnant          Substitutable
              • The Service design matrix consists of                                                                                 Type
                                                                                                                                                      Personal            Personal
                                                                                                                                                                                                    Progressive        Explosive
                                                                                                                                     Aspect                                                          Services          Services
                                                                                                                                                      Services            Services
                       – Degree of contact
                             • between the consumer and the service provider.                                                        Efficiency    Extremely low
                                                                                                                                                                         Significantly
                       – Opportunity for sales                                                                                      (Degree of        (person                                       Moderate        Extremely high
                                                                                                                                                                             low
                                                                                                                                   Automation)        specific)
                             • the greater the amount of contact;
                             • the greater the sales opportunity;                                                                   Degree of
                                                                                                                                                                         Significantly
                                                                                                                                    Customer       Extremely high                                   Moderate         Extremely low
                                                                                                                                                                             high
                       – Production efficiency                                                                                       Contact

                             • services that require a large amount of customization
                               and customer input have lower efficiency                                                           Opportunity of
                                                                                                                                                   Extremely high
                                                                                                                                                                         Significantly
                                                                                                                                                                                                    Moderate         Extremely low
                                                                                                                                      sale                                   high

                                                     © Copyright 2013 Anupam Kumar                                  3                                               © Copyright 2013 Anupam Kumar                                  4




                    The Service System Design Matrix                                                                                        Service System Design Matrix
                      High                                                                                   Total
                                                                                                         customization                                           Degree of Customer Contact
      Opportunity




                                                                                           Loose Specs
                                                                                                                         Low
        Sales




                                                                          Face to face
                                                                         (tight control)
                                                                                                                    Production
                                                                                                                     Efficiency




                                                     Phone Contact
                      Low             On-site
                                    technology

                    Mail Contact

                                                                                                                         High

                             Buffered                      Permeable                       Reactive System
                                                                                                                                         Sales Opportunity       Technology                                   Production Efficiency

                Low                              Degree of Customer Contact                                     High
                                                     © Copyright 2013 Anupam Kumar                                  5                                               © Copyright 2013 Anupam Kumar                                  6




© Copyright 2013 Anupam Kumar                                                                                                                                                                                                          1
Three Contrasting Service Design                                          Designing the Service System
        • Services are classified           • The service design may               • Major Design Issues:
          according to the degree             thus be considered                     – Product & Process to be designed simultaneously
          of customer contact                 using one of the
                                                                                     – Scheduling of Capacity
          with the technical core.            following approaches.
                                                                                           • due to uncertainty in demand
           – High Contact (Pure                    – The Personal Attention                • inability to store inventory
             Services)                               Approach
           – Medium Contact (Mixed                 – The Self Serving                – Dealing will uncertainty in demand
             Service)                                Approach                              •   preemptive tactics
                                                                                           •   flexibility
           – Low Contact (Quasi                    – The Production Line                   •   forecasting
             Manufacturing)                          Approach                              •   use of waiting lines

                            © Copyright 2013 Anupam Kumar                      7                         © Copyright 2013 Anupam Kumar          8




         Characteristics of Service System                                          Characteristics of Service System
        • Each element of service                                                  • It should provide
          system should be                                                           effective links between
          consistent with the                                                        the back and front
          operating focus of the                                                     offices so that nothing
                                                                                     falls between the
          organization.                                                              cracks.
        • It should be structured                                                  • It should manage the
          so that consistent                                                         evidence of service
          performance by people                                                      quality such that
          and systems may be                                                         customers see the value
          maintained.                                                                of the service.

                            © Copyright 2013 Anupam Kumar                      9                         © Copyright 2013 Anupam Kumar         10




         Characteristics of Service System
        Further, the services should be:
        • Cost Effective
                                                                                    For further details / comments ...
        • User Friendly
                                                                                                                -Contact:
        • Robust                                                                                                             Anupam Kumar
                                                                                                                                    Reader,
                                                                                                    School of Management Sciences, Varanasi.
                                                                                                                Email: anupamkr@gmail.com


                            © Copyright 2013 Anupam Kumar                     11                         © Copyright 2013 Anupam Kumar         12




© Copyright 2013 Anupam Kumar                                                                                                                       2

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Service design matrix

  • 1. Service-System Design Matrix • The Service-System Design Matrix is a useful tool for understanding the different elements Service Design Matrix of a service system. • The matrix establishes the relationship Presented By: between Anupam Kumar – three key factors of service and Reader – how these factors relate to service production SMS Varanasi and delivery. © Copyright 2013 Anupam Kumar 1 © Copyright 2013 Anupam Kumar 2 The Service Design Matrix Operational Classification of Services Stagnant Substitutable • The Service design matrix consists of Type Personal Personal Progressive Explosive Aspect Services Services Services Services – Degree of contact • between the consumer and the service provider. Efficiency Extremely low Significantly – Opportunity for sales (Degree of (person Moderate Extremely high low Automation) specific) • the greater the amount of contact; • the greater the sales opportunity; Degree of Significantly Customer Extremely high Moderate Extremely low high – Production efficiency Contact • services that require a large amount of customization and customer input have lower efficiency Opportunity of Extremely high Significantly Moderate Extremely low sale high © Copyright 2013 Anupam Kumar 3 © Copyright 2013 Anupam Kumar 4 The Service System Design Matrix Service System Design Matrix High Total customization Degree of Customer Contact Opportunity Loose Specs Low Sales Face to face (tight control) Production Efficiency Phone Contact Low On-site technology Mail Contact High Buffered Permeable Reactive System Sales Opportunity Technology Production Efficiency Low Degree of Customer Contact High © Copyright 2013 Anupam Kumar 5 © Copyright 2013 Anupam Kumar 6 © Copyright 2013 Anupam Kumar 1
  • 2. Three Contrasting Service Design Designing the Service System • Services are classified • The service design may • Major Design Issues: according to the degree thus be considered – Product & Process to be designed simultaneously of customer contact using one of the – Scheduling of Capacity with the technical core. following approaches. • due to uncertainty in demand – High Contact (Pure – The Personal Attention • inability to store inventory Services) Approach – Medium Contact (Mixed – The Self Serving – Dealing will uncertainty in demand Service) Approach • preemptive tactics • flexibility – Low Contact (Quasi – The Production Line • forecasting Manufacturing) Approach • use of waiting lines © Copyright 2013 Anupam Kumar 7 © Copyright 2013 Anupam Kumar 8 Characteristics of Service System Characteristics of Service System • Each element of service • It should provide system should be effective links between consistent with the the back and front operating focus of the offices so that nothing falls between the organization. cracks. • It should be structured • It should manage the so that consistent evidence of service performance by people quality such that and systems may be customers see the value maintained. of the service. © Copyright 2013 Anupam Kumar 9 © Copyright 2013 Anupam Kumar 10 Characteristics of Service System Further, the services should be: • Cost Effective For further details / comments ... • User Friendly -Contact: • Robust Anupam Kumar Reader, School of Management Sciences, Varanasi. Email: anupamkr@gmail.com © Copyright 2013 Anupam Kumar 11 © Copyright 2013 Anupam Kumar 12 © Copyright 2013 Anupam Kumar 2