IT Service System Design PDF

IT2312 IT Service System Design Service System Design The success of the IT service system, regardless of any strategy, depends on how well the design and management of the customer-experience system is. One that must deliver a unique positive experience. An exp...

IT2312 IT Service System Design Service System Design The success of the IT service system, regardless of any strategy, depends on how well the design and management of the customer-experience system is. One that must deliver a unique positive experience. An expectancy-disconfirmation model can be used to introduce the customer-experience system. An expectancy-disconfirmation model is used to explain customer satisfaction with public services based on the initial expectations about a service/product before buying or using the said service/product. Company Develops Company Designs & Communicates Customer- Value Proposition Experience System Initial Customer Expectations Actual Customer Shaped Customer Experience Expectations 1st /2nd Moment of Truth Figure 1. Customer-experience service system design The process begins (1) with a deep understanding of customers’ expectations. Managers then use this insight (2) and knowledge of the company’s value-added capabilities. It is to create attractive value propositions, which are a company’s promises to customers about how it will meet their needs. Some roles value propositions serve. Value propositions define what the company must do to earn a customer’s business, (3) which ultimately sets the parameters for designing the company’s customer- experience system. (4) A company's value propositions can also shape customer expectations. These influence customer purchase decisions and how the customers assess the service experience. 07 Handout 1 *Property of STI  [email protected] Page 1 of 4  IT2312 Touch Points A customer touches a company’s value system at various points of the experience when satisfaction emerges. The phrase “moment of truth” was coined to help employees grasp that each touch point is vital as it may be the moment that sets customer impressions of a service forever. Two (2) Types of Touch Points To design a successful customer-experience system, consider how each type of touch point influences customer assessments of satisfaction. 1. Acquisition Touch Points: This is consistent with the economic concept of value-in-exchange. It happens as customers learn about the services/products and make purchase decisions. For instance, when making networking plans for an IT infrastructure, comparing alternative services based on installation and costs is considered before finalizing the purchase. 2. Utilization Touch Points: This is the equivalent of value-in-use and occurs as the service is experienced. Using the same example, utilization touch points are exemplified when networks are installed and are performing based on the promised conditions. These same touch points are also used to refer to the two “moments of truth” (5). The first moment happens in a store, or a website store, when a customer places a service or product in their cart. If the experience of the customers is greater than or meets their expectations, satisfaction emerges, compliments can arise, and customers are more likely to re-purchase. But, if the customer's experience with a service or a product does not meet their expectations, dissatisfaction emerges instead, complaints are more likely, and they would be less likely to re-purchase. It is the second moment of truth. Both of these outcomes can also affect shaping the customers’ expectations. Orchestration No company has enough resources and skills to do everything needed to meet customers’ needs. Companies rely on a network of suppliers, service providers, and customers for the necessary skills to achieve the company’s value proposition. Orchestration is a skill that allows companies to bring network resources together. Orchestration has three (3) core steps: A company’s orchestration skills and the skills or resources of each member will determine how and how well the execution of these core steps is. 1. Selecting Team Members: Identifying the right people with key resources to participate as members must be prioritized, knowing what value is necessary to create. This step requires extensive scanning and comparative evaluation skills, largely analytical and left- brain skills. 2. Assigning Team Roles: Each member has a skill that must be correctly understood. It is to assign the right roles and responsibilities to the correct people with expertise. 07 Handout 1 *Property of STI  [email protected] Page 2 of 4  IT2312 3. Building Team Cohesion: In this context, Cohesion refers to team members forming a united relationship by working well together. Investing in team chemistry by establishing the right relationships should be considered. This step requires careful coaching to get different team members to want and be able to work together. It needs strong right-brain collaboration and creativity skills. Service Value Gaps It is important to note that only the customer determines service or product satisfaction. Extensive customer feedback integrated into a customer-experience system can be helpful. It can make a company confident, but customers only assess the specific experience after using a service or a product. These feedback systems would be unable to measure when customers have overestimated the anticipated benefits of their purchased service/product. A value gap emerges that results in disappointment and dissatisfaction. Six (6) Value Gaps These value gaps affect customer satisfaction perceptions and damage buyer/supplier relationships. 1. Knowledge Gap exists between customers’ real expectations and the provider’s understanding or perceptions of those expectations. Managers must accurately assess what customers want to avoid failing to design the right customer-experience system. A customer’s expectation of a faster Internet speed for their company does not automatically mean that the customer wants to buy dozens of modems. If this gap is not resolved, additional gaps throughout the design and execution of the customer-experience system are inevitable. 2. Translation/Specification Gap: This gap emerges when the focus is too intently on industry standards not aligned with customers’ real needs. For example, a company insists its clients acquire four (4) certifications before availing their training services. It pushes a strict compliance that could drive consumers away. It is why accurate insight into customer needs must be understood and translated into the company’s operational standards. 3. Performance/Service Delivery Gap: Poor execution that leads to this value gap can still occur even if standards are set appropriately. For example, the norm for on-time delivery is 98%, but a company only delivers 90% of shipments on time. This is why service systems must be designed for visibility and traceability. To avoid this gap, constant effort in identifying and removing the root sources of service failure is also necessary. 07 Handout 1 *Property of STI  [email protected] Page 3 of 4  IT2312 4. Communication Gap: This gap emerges when a company overpromises and underdelivers its services. One way to shape expectations is through marketing. An IT Solution company might market a 24/7 support system for their services, but users are only replied to after a day. The company overpromises beyond its capabilities. These gaps sour buyer-supplier relationships quickly. It can easily be resolved by living up to promises and providing exactly what is included in the purchases. 5. Perception Gap: Customers often interpret results differently than reality. Some customer measurement systems may not capture actual performance, and sometimes, customers put extra emphasis on the most recent service, especially if it was a good service. It brings pressure to perform on the same level as the last service provided and can easily undermine the buyer-supplier relationship if unmet. It is advisable to do any service with complete dedication that results in success without worrying about failing the user, as this could enforce negative results. 6. Satisfaction/Service Quality Gap: This gap happens when the customer understands the service and expectations are not aligned. Note that expectations are affected by word of mouth, operating requirements, and past experiences, and it is important for a company where customer expectations come from. Constant measurement and active communication with customers are key in this situation. Reference: Fawcett, A. & Fawcett S. (n.d.a.). The definitive guide to order fulfillment and customer service: Principles and strategies for planning, organizing, and managing fulfillment and service operations. Pearson. 07 Handout 1 *Property of STI  [email protected] Page 4 of 4