1. Chapter - 13
Application In
Service Sector

2. Introduction
Learning Objectives:
 Introduction to service sector
 Creating a distinctive service
 Service concept
 Service process cycle and analysis
 Customer service design
 Service management system
 MIS application in service industry
 MIS service Industry

3. Introduction
 Unlike the manufacturing sector, the service
sector does not have physical goods to be
manufactured for the customer.
 The data processing applications like payroll,
accounting and inventory are required in the
service industry too, but they may not be all
critical to the service industry

4. Introduction
 Service is essentially a process of human
interaction.
 Any human interaction is knowledge based,
hence information based

5. Introduction
 Tom peters in ‘The service Edge’ states
five principles of a distinctive service.
1. Listen, understand, and Respond to the
customers.
2. Define a superior service and establish a
service strategy.
3. Set standards and measure and performance.
4. Select, train and empower the employees
to work for the customers.
5. Recognize and reward the accomplishments.

6. Creating a distinctive service
 Service VS product
Service Product
Service is not tangible. Product is tangible(real or
Definite)
Services are offered on Demand Products are offered on payment
Service cannot be Demonstrated Product can be demonstrated
To judge quality of service is difficult due It can be possible to judge quality of
to its customers response and behavior product

7. Creating a distinctive service
 To summaries, the service conscious management
would create service focused organization, where:
1. The organization listens, understands and responds swiftly to
the changing character of the customer wants, needs and
expectations.
2. The organization develops and maintains a ‘customer-
friendly’ service delivery system.
3. Organization employs, inspires and develops a customer-
oriented frontline personnel.
 in sort, the service function essentially is a human
interaction between the service receiver and the provider.

8. Creating a distinctive service
Purpose Expectation Perception
Annual Health Check up Quick service and total Depends on socioeconomic
coverage at single location status.
with proper guidance and
advise
Normal treatment Proper guidance and very Les paper work and
less waiting time infrequent visit
Emergency Immediate Doctor’s choice and a norm
attentintion,necessary of immediate attention
resources and services are
immediately available
Hospitalization Clean and quiet Service with smile
surrounding.pleasant,stay
and fast recovery
Old patient Faster service with least Good layout
cost and help them
Child patient care Parents are relevant Interaction reduced parent
anxiety

9. Service concept
 Service is an identifiable, intangible activity
or a process designed to fulfill certain
expectations of the customer/consumer.
 Kotler defines it as ‘service is an activity or a
benefit that one part can offer to another
which is essentially intangible and does not
result in the ownership of anything
 To understand the service better, it is
necessary to understand its character or
attributes as below

10. Service Concept
 Service character or attributes as below
 Intangibility
 All services are fully intangible i.e they
lack ‘physical existence’. They can be seen
being delivered and being received by the
customer but cannot be displayed.
 For example, teacher teaches in the class
with textbook, notebook, chalk or
transparencies are the goods associated with
‘teaching’, a service where customer is a
student.

11. Service Concept
 Inseparability of Receiver & Provider
 In Service case, receiver and provider must be
present.
 Service process cannot be executed unless
both are present at the site of service delivery.
 Storage
 Service being intangible cannot be stored
like goods, which can be stored in the
warehouse and can be used at a later date.

12. Service Concepts
 Inconsistency( not in agreement)
 The inconsistency occurs due to different service providers
performing at different times.
 Though service process is the same, service experience varies
from incident to incident.
 Every customer has different service expectations.
 For example, bank’s ATM service is consistent and is
also standard when compared with other banks. However,
a service is remembered by its quality

13. Service Concept
 The quality of service has two dimensions,
namely:
1. Quality of resources used: service inputs,
equipment's, facilities, tools, designs and so on.
2. Functional quality of the process :
empathy, level of responsiveness, and process
design quality
 Note: all services have two components, one
basic core and second its features.

14. Service Quality Model
Customer Service Customer
Expectations Quality perceived
standard
Added features
Functional core
Component servicing the
Objective
objectives
Component

15. Service Process cycle and analysis
 All services are bound by process steps and each step adds value in the
service.
 All the steps can be classified in stages based on the role played in the
process.
 These stages together build a service process cycle
 The stages in the cycle are:
1. Initiation of service
2. Transition to service
3. Pre-service
4. Service
5. Post-service

16. Model of service process cycle
Stage in Service cycle Steps in stage Example of airlines:
passenger service
1.Inititation of service Enquiry, information Checking for flights, timing
seeking, checking and facilities
2.Transition of service Steps towards effecting Issue of ticket, boarding
service services
3.pre-service Document checking, Ticket inspection on
guideline etc ground etc
4.Service Effecting service delivery Finding seat,softdrink
with goods physical service etc
assistance
5.Post service Providing existence service Arrival guidance,tranport
information etc.

17. Service process cycle and

analysis kind of service in
All service stages are applicable in every
every environment. The customer satisfaction is best achieved
completing these steps in the most effective and efficient
manner.
 The Responsiveness of the service would increase with:
 Faster data capture and processing in every interaction.
 Access to various databases and services.
 Error free transaction processing and updating. And
application processing at each stage of service cycle.

18. Customer service Design
 The customer, who initiates the service trigger
to avail the service, is influenced by:
 Assessment of service, scope, quality
 Assessment of price of offer and willingness to
pay that price.
 Perception of service standard.
 Extend to knowledge about the service.
 Impact of promotion campaign.

19. Customer Service Design
 The Service process designer designs the ‘customer service' based on the
assessment and analysis of customer’s choices, preferences, quality
expectations, willingness to pay the price and so on. Following factors
influences the customer service design.
 Promotion
 Product
 Price
 Place
 Processes
 People(process drivers)

20. Customer Service Design
Product
Price
Promotion
Customer
Service
design
Place People
Customer
Service
Design

21. Customer Service Design
 The Service will be decided based on the capacity and capability of people
and also by the layout of place and facilities.
 Customer service design addresses primarily the ‘service product
formulation’ which states:
 Who is customer?
 What is the service scope?
 How it is delivered?
 What is the quality level?
 What additional features to provide?
 What should be the price of service?
 Where it should be offered and what facilities to provide?
 Who would drive the service process?
 What kind of promotion would enthuse customers to avail the
 Service?
 Any finally, what process design would deliver the scope?
 Customer service design is crucial for customer satisfaction.

22. Service Management System(SMS)
Service Management
System(SMS)
Initiation of Transition Pre consumption Consumption Post Service
Service To Service Of service of Service consumption
Scope Pre service Stage by
Enquiry DB
Of Service Processing stage
Process
processing
Data capture Transaction Pre servicing
Of service Input processing Feedback
Service
Document
Imitation Resource Pre service processing
For service allocation Integration

23. Service Management System(SMS)
 Scope and objective in SMS
 Initiation for service(front End)
 Scope: answer queries, standard and non-standard. Record the
query details and seek for agreement to avail the service.
 Capture the data in standard format to initiate service action.
 Ascertain the service requirement.
 Create a bill of service offer.
 Give a service job number. Put the service job in queue.
 •Objective

: win the customer for availing the service.

24. Service Management System(SMS)
 Transition to service(front End)
 Scope: check, asses, validate the service requirement.
 Ascertain commercial and technical viability, and operational
feasibility.
 Check for submission of any document, or goods, which may
be mandatory for service.
 Obtain formal acceptance for beginning the service.
 Issue acknowledgement, acceptance card, voucher, and so on.
 Objective
 : establish technical, commercial feasibility and obtain
customer acceptance.

25. Service Management System(SMS)
 Pre-service (back End)
 Scope:
 inspect all submissions from all points of view.
 In doubt, clarify and ascertain.
 Issue service job identity for record, communication, and for
reference at a later date.
 Update customer database with this service job identity.
 objective
 : enlist the service offer with identity.

26. Service Management System(SMS)
 Service(back End)
 Scope:
 conducting the customer and/or the goods for service after
execution. Execute all necessary transactions, which are part
of service process. Collect transaction results and update the
records for reporting. Produce and/or display documents.
 Collect relevant data for computing cost of service. Close the
service process and obtain acknowledgement of service
completion.
 Objective
 : complete the service execution process efficiently and
effectively to the satisfaction of the customer

27. Service Management System(SMS)
 Post-Service(front End)
 Scope: collect feedback on service experience, suggestions if
any.
 Bill the customer for services availed.
 Process payment as per terms of services.
 Up-date customer record, job record, and other information
databases.
 Generate a report for examination to close the service offer
 Objective
 : collect data and information about service for decision-
making and improvement.

28. Mis application In Service Industry
 Airlines
 1. Passenger information
 2. Information on the Aviation industry
 Hotels
 1. Keep track of the customer profile
 2. Monitoring occupancy Level
 3. Project future needs
 4. Monitor the level of expectations
 5. Monitor the communication needs
 6. Customer database

29. Mis application In Service Industry
 Hospital (Front end applications)
 1. Patient database
 2. Medical server database
 3. Resource planning and control
 4. Medical case history database
 Hospital (Front end applications)
 1. Core applications
 2. Critical control applications

30. Mis application In Service Industry
 Banking
 1. Customer database
 2. Service to the account holders
 3. Service for business promotions
 4. The index monitoring system
 5. Human resource upgrade
 Insurance
 1. Information for new products
 2. The settlement of claims
 3. Management of the policies

31. Mis application In Service Industry
 Utilities
 Data gathering
 Data entry
 Data validation
 Data processing for billing
 Total amount
 Verification
 Data analysis
 collection

32. Mis application In Service Industry
 Finance:
 Statement for each amount and scheme
 Analysis of investment
 Statement of cash
 Statements of refunds etc
 Balance sheet and other legal documents
 Statement of brockage.commosion etc
 Query report processing

33. MIS: service industry
 MIS focus on the key factors
 Factors:
 People
 Process
 technology