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Redesigning Service Processes

Updated on May 25, 2010

Why Redesign

  • Revitalizes process that has become outdated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 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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