Building Quality Into The Total Service Offering Jukka Salmikuukka1, Jouni Kivist

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Building Quality Into The Total Service
OfferingJukka Salmikuukka1, Jouni
Kivistö-Rahnasto1 Irena Ograjenšek21 VTT
Industrial Systems, Intelligent Products and
Systems2 University of Ljubljana, Faculty of
Economics
The preparation of this presentation was
supported by funding under the European
Commission's Fifth Framework 'Growth' Programme
via the Thematic Network "Pro-ENBIS" (contract
reference G6RT-CT-2001-05059).
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Background

• Expectations for the economic growth.
• The network economy is here.
• Industrial changes.
• New Service Development (NSD)
• No comprehensive theoretical framework for NSD.

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Total Service Offering (TSO)

• The whole package customer is buying.
• Can be divided into three groups
  (sub-services)
• core services
• facilitating services
• supporting services
• Sub-services are built from processes, which
  can be performed various ways by different
  actors
• person-to-person,
• machine-to-person,
• machine-to-machine
• service / self-service

4
Service Production Network (SPN)

• In the network economy services are produced
  together by several individual service providers.
• These service providers compose the Service
  Production Network (SPN).

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Quality and Expectations

• Services differ from material goods
• customers participate into the service production
  process
• constant quality assumption does not hold with
  services
• changes in input affect more easily to the
  quality
• direct measurement of quality often difficult
• The role of quality expectations emphasises with
  services
• the perceived service quality is a subjective
  value the difference between perceived and
  expected quality
• The expectations play significant role,
  especially when launching new services
• With service marketing much can be won and all
  can be lost

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The problem of the brand owner

• How to ensure satisfactory quality level still
  maintaining effective service production which
  require networked mode of operating ?

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Designing new service

• The quality has to be built into the service
• The concept phase is essential
• The brand owner is in key position, he/she has to
  select
• the targeted customers,
• used technologies,
• production partners, and also
• correct measures for monitoring the quality of
  different sub-services and processes.

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Different quality measures and evaluation
methods Garvins approaches to quality

• Transcendent or philosophic approach.
• Manufacturing-based approach.
• Product-based approach.
• User-based approach.
• Value-based approach.

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Different quality measures and evaluation
methods Areas of focus for service organisations

• Service design vignette method (factorial survey
  approach), penalty/reward analysis, analysis of
  willingness to pay
• Service reliability mystery shopping, critical
  incident technique, analysis of contacts
• Service recovery analysis of complaints

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Different view to quality

• Service provider should also monitor the quality
  of the product from the business point of view
• The fit to the company strategy
• The fit to the project portfolio
• The cost efficiency
• The profitability

Service provider
Customer
Product
Quality for the business
Quality for the customer
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Case eTampere City Card
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The service production network
City and regional transportation Public and
private electronic services Swimming
pools Students dinners Official students
services Students medical services Library City
bonus Passage control Fairs etc.
Core services
Facilitating services
Card issuing PKI-services Authentication
services Person registry Data communications WWW-p
ortal ePurse and clearing Charging points for
ePurse Electronic ticketing
Supporting services
Card and reader service System maintenance Service
development Training Help desk
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Conclusions

• Concept of Total Service Offering provides a
  framework for the service development
• Quality management of Total Service Offering
  constitutes complex research and development
  problems
• Networked approach is required