Thursday, April 13, 2006

Managing Service Experience

Often, the psychological behaviours of human being are very well used in the corporate world for running a successful business. In a way , it gives rise to the management philosophy.

As per the management philosophy, there are four kinds of people (customers.)

1. Those who always keep running from things and try to get something new, just to avoid thinking on what they did! = ESCAPIST

2. Those who do things for their interests and still believe in contemplating on the things they did. = ENRICHMENT AND AESHTETIC

3. Those who know right from the start what they want to do and where they are heading to! They do eaxactly that with some reasons behind. = EDUCATION AND ENRICHMENT

4. Those who are unaware of whats happening around them/ with them and who are really not bothered about it. May be bacause of their lack of ability, awareness, or some reasons. They just go by flow...join others in whatever they do! = ENTERTAINMENT

How the Management Guru's use these four categories for their strategies as Operations Strategies in Service Sector, for creating the disposition among customers, for creating organizational/business orientation, is interesting.

It is generally made sure by them that, they cater all above four categories of customers for running successfull business. It is a challenge to design and structure a business with emphasis on "Customer Experience", technically called "Managing Service Experience."

Now, the important question is- why talk about experience ?

It would give New Sources of Revenues when the needs of goods and services are essentially met.

Three sources of New Revenues are:

1. B2C - move towards providing "experience"
2. B2B - improve service, enhance work- experience ( thereby effectiveness), come up with new business processes.
3. Global Market - Provide goods and services to those who don't have them yet.

Extended examples of Designing for Experience are:

1. Frank Lloyd Wright's Unitary Temple
2. Ikea
3. Kansai Airport
4. Hard Rock Cafe
5. Outback Steakhouse

Extended examples of Desiging the Configuration of Service are:

1. Automobile sales, design and manufacturing

GM's Internet Overhaul, Technology Review

Ghosn's revival of Nissan

Carlos Ghosn; Shift - Inside Nissan's Historical Revival

2. Shouldice Hospital