Background

1. The preparation of this presentation was supported by funding under the European Commission's Fifth Framework 'Growth' Programme via the Thematic Network "Pro-ENBIS" (contract reference: G6RT-CT-2001-05059). Building Quality Into The Total Service OfferingJukka Salmikuukka1, Jouni Kivistö-Rahnasto1 & Irena Ograjenšek21VTT Industrial Systems, Intelligent Products and Systems2 University of Ljubljana, Faculty of Economics

2. Background • Expectations for the economic growth. • The network economy is here. • Industrial changes. • New Service Development (NSD) • No comprehensive theoretical framework for NSD.

3. Total Service Offering (TSO) • “The whole package” customer is buying. • Can be divided into three groups (“sub-services”): • core services • facilitating services • supporting services • “Sub-services” are built from processes, which can be performed various ways by different actors: • person-to-person, • machine-to-person, • machine-to-machine • service / self-service

4. Service Production Network (SPN) • In the network economy services are produced together by several individual service providers. • These service providers compose the Service Production Network (SPN).

5. Quality and Expectations • Services differ from material goods: • customers participate into the service production process • constant quality assumption does not hold with services • changes in input affect more easily to the quality • direct measurement of quality often difficult • The role of quality expectations emphasises with services: • the perceived service quality is a subjective value: the difference between perceived and expected quality • The expectations play significant role, especially when launching new services • With service marketing much can be won and all can be lost

6. The problem of the brand owner: How to ensure satisfactory quality level still maintaining effective service production which require networked mode of operating ?

7. Designing new service • The quality has to be built into the service • The concept phase is essential • The brand owner is in key position, he/she has to select: • the targeted customers, • used technologies, • production partners, and also • correct measures for monitoring the quality of different “sub-services” and processes.

8. Different quality measures and evaluation methods: Garvin’s approaches to quality • Transcendent or philosophic approach. • Manufacturing-based approach. • Product-based approach. • User-based approach. • Value-based approach.

9. Different quality measures and evaluation methods: Areas of focus for service organisations • Service design: vignette method (factorial survey approach), penalty/reward analysis, analysis of willingness to pay • Service reliability: mystery shopping, critical incident technique, analysis of contacts • Service recovery: analysis of complaints

10. Different view to quality • Service provider should also monitor the quality of the product from the business point of view: • The fit to the company strategy • The fit to the project portfolio • The cost efficiency • The profitability Service provider Customer Product Quality for the business Quality for the customer

11. Case: eTampere City Card

12. The service production network City and regional transportation Public and private electronic services Swimming pools Student’s dinners Official student’s services Student’s medical services Library City bonus Passage control Fairs etc. Core services Facilitating services Card issuing PKI-services Authentication services Person registry Data communications WWW-portal ePurse and clearing Charging points for ePurse Electronic ticketing Supporting services Card and reader service System maintenance Service development Training Help desk

13. Conclusions • Concept of Total Service Offering provides a framework for the service development • Quality management of Total Service Offering constitutes complex research and development problems • Networked approach is required