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Connection between service design and profits.


                                                                               SERVICE
                                                                              DESIGN UP



     Image
     up                                            Service costs   Inspection Rework and
                        Customer                                   and test   scrap costs             Inventory
                                                   down                                                                                 Accounts Processing
                        retention                                  costs down down                    down
                        up                                                                                                              receivable time down
                                                                                             Cost for                                   down
                                              Share of                                 complaints and
                                              customer up                              warranty down
                                                                                                                 Capital
                                                              Scale                                              costs
                                 Sales up
                                                              economies                                          down
                                                              up
                                        Price
                                        competition                         PRODUCTIVITY UP
                                                              Production
                                        down                  costs down



                                                                            PROFITS UP
                                                                                               Oryginal logic of E.Gummesson has not been changed. Minor modification of the oryginal graph was replacement of words
Why is it profitable to inwest in service design?                                               'QUALITY UP' with 'SERVICE DESIGN UP'. Source of oryginal graph: E.Gummesson, „Productivity, quality and relationship
Why is service design a profitable effort?                                                      marketing in service operations”, International Journal of Contemporary Hospitality Management, 10/1 1988, p.6.$

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Linking better design to ROI

  • 1. Connection between service design and profits. SERVICE DESIGN UP Image up Service costs Inspection Rework and Customer and test scrap costs Inventory down Accounts Processing retention costs down down down up receivable time down Cost for down Share of complaints and customer up warranty down Capital Scale costs Sales up economies down up Price competition PRODUCTIVITY UP Production down costs down PROFITS UP Oryginal logic of E.Gummesson has not been changed. Minor modification of the oryginal graph was replacement of words Why is it profitable to inwest in service design? 'QUALITY UP' with 'SERVICE DESIGN UP'. Source of oryginal graph: E.Gummesson, „Productivity, quality and relationship Why is service design a profitable effort? marketing in service operations”, International Journal of Contemporary Hospitality Management, 10/1 1988, p.6.$