This article considers some of the most successful actions that companies are adopting to create profitable service operations.
Intangible benefits are difficult to quantify and then replicate; strategic solutions that enable these to be measured and valued by the customer are therefore powerful differentiators. Successful companies understand how to drive the growth of service businesses in general, and how to launch and promote a successful service business. New calculation models are now required to demonstrate the value of service; it is the personal experience that is valuable and must be created by unique combinations of:
• Service propositions (solving a business problem and thereby adding value). Service propositions are most successful when based on unique knowledge of technology and its application to the situation of the customer.
• Management practices, wherein value is created when a company is capable of managing the service uniformly, using best practices in service management. Few managers currently benefit from formal education in service business management.
• Measurement systems (drivers of value when “rich” customer feedback is transformed quickly and effectively into better propositions and service performance) delivered at optimum cost.
• People competencies – behaviour is very much influenced by brand values unique to a company (the company’s ability to develop people with the desirable competencies is already a strong driver of competitive advantage).
• Processes that enable the employees to perform, and deliver a superior customer experience. A process is then more than a sequence of activities optimised to produce a measurable output.
Service Economics is not intended as a “buzz phrase” – it is an attempt to explain service in terms that the Board will become fully aligned to, and recognise as valuable. Service economics should be considered in terms of generation of high returns, through...
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Noventum Service Management Consultants has established a reputation for providing effective business advice within the Services Sector specialising in guiding senior management teams and supporting service operations both large and small to manage their customers improve performance profitability and deliver service excellence.
steve.downton@noventum.eu
www.noventum.eu
