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CASECh004.doc
CHAPTER 4
NEW SERVICE DEvelopment

CASECh004.doc

James A. Fitzsimmons and Mona J. Fitzsimmons, New Service Development: Creating Memorable Experiences, Editors, Sage Publications, 2000

A contributed volume that has chapters from leading service researchers covering topics in three areas: service innovation, service process design, and service process implementation.

Leonard A. Schlesinger and James L. Heskett, "The Service-Driven Service Company," Harvard Business Review, September-October 1991, pp. 71-81.

The authors use Taco Bell as an example to describe how dead-end service jobs can be avoided. Taco Bell, by moving the kitchen off-site, allows employees and managers to focus on serving customers rather than manufacturing meals. This article is an excellent critique of the production-line approach to service design.

Case: Taco Bell Corporation (HBS Case 9-692-058)

Taco Bell is a fast food restaurant chain serving Mexican food that is formulated to appeal to the American general public. As of 1991, the company had gone through a remarkable transformation and was hailed by the press and industry experts as having revolutionized the fast food world. The new delivery process, referred to as K-minus (kitchen moved out of the restaurant to a central facility), illustrates the design strategy of separating physically the front-and back-office operations. The impact on employees, managers, and the firm are explored.

Case: Alaska Airlines (HBS case 9-800-004)

Alaska Airlines, serving west coast cities from Prudhoe Bay, Alaska, to Puerto Vallarta, Mexico, has won awards for providing outstanding customer service. Faced with price competition from Southwest Airlines, Alaska is introducing frontline technology and customer self-service options to improve productivity and reduce costs.

Case: Caruso 's Pizza (HBS Case 9-687-071)

Caruso 's Pizza is a small, entrepreneurial restaurant chain. Its owner is

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