Redesigning Service Processes

• Revitalizes process that has become outdated
• Changes in external environment make existing practices obsolete and require redesign of underlying processes
• Creation of brand-new processes to stay relevant
• Rusting occurs internally
• Natural deterioration of internal processes; creeping bureaucracy; evolution of spurious, unofficial standards
• Symptoms: -Extensive information exchange -Data redundancy -High ratio of checking or control activities to value-adding activities, increased exception processing -Customer complaints about inconvenient and unnecessary procedures 

Eliminating non-value-adding steps - Managers do eliminate those steps in service process which are simply not adding any value to services and it has some benefits of doing...

• Streamline front-end and back-end processes of services with goal of focusing on benefit-producing part of service encounter
• Eliminate non-value-adding steps
• Improve efficiency
• More customized service
• Differentiate company

Delivering direct service - Provide service to consumer instead of bringing consumer to service provider; whereas its hard to actually analyze those persons who will surely buy the specific service as its just like selling process

• Improve convenience for customers
• Productivity can be improved if companies can eliminate expensive
• retail locations
• Increase customer base

Shifting to self-service - Using automated steps in delivering or creation of service just like ATM or online banking or mobile banking etc.....it does increase in productivity and service quality and other benefits are

• Lower costs and perhaps prices
• Enhance technology reputation
• Greater convenience

Bundling services - Involves grouping multiple services into one offer, focusing on a well-defined customer group

• Often has a better fit to the needs of target segment
• Increase productivity
• Add value for customers through lower transaction costs
• Customize service
• Increase per capita service use

Redesigning physical aspects of service processes - Focus on tangible elements of service process; include changes to facilities and equipment to improve service experience Increase convenience as its other benefits are

• Enhance the satisfaction and productivity of front-line staff
• Cultivate interest in customers
• Differentiate company