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- Revitalizes process that has become outdated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
Process Redesign : Approaches and Potential Benefits
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
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