Five Elements of a Service-Delivery System
Question 1 (Christopher Crenshaw)
Before we can explain the influence of technology on the five elements of a service-delivery system, we must identify the five elements. Collier and Evans (2019) define a service-delivery system includes facility location and layout, the servicescape, service process and job design, and technology and information support systems (chap 5 sec4). These factors are all interdependent a poor choice in one will influence another.
The influence of technology in the banking systems is a prevalent topic I’d like to discuss in comparison to the five elements. First, I will explain how the banking system uses the five elements, then I will discuss technology’s influence on each.
- Facility location and layout: many banks are located nearly every block in busy cities and are close to major retailers and large strip malls. Some banks are even present in the lobbies of malls and grocery stores.
- Servicescape: most banks try to be in well-populated areas that are well lit and give the consumer a sense of safety.
- Services process and Job Design: drive through lanes at banks are narrow and designed to have minimum space between vehicles and intercom boxes or ATMs
- Technology: Includes mirrors on ATMs for safety, card security while placed within ATM, release of money after card is removed.
- Information Support Systems: Banker/teller/ financial advisor has information for your disposal.
All the elements have, or can be, affected by technology in the following ways. First, facility location and layout, servicescape, and services process and job design are all affected by technology because all these functions can be minimalized into online banking. Consumers don’t have to worry where the nearest bank is, nor do they have to worry about the safety of the nearest ATM or drive through layout. If they feel uneasy, or if it is more convenient, they can perform their banking needs online. Next, technology has influenced the banking world by utilizing mirrors and card security on ATMs. Also, you can deposit and withdraw money without having to see a bank teller. Lastly, information support systems are now mostly online. Customers can go online to find answers to financial advice, open and close accounts, finance rates, and more. In 2018, about 61 percent of Americans used digital banking, which is set to rise to 65.3 percent by 2022 (Statista, 2018, p.1).
QUESTION 2 (Avis)
The service-delivery system design includes facility location and layout, the servicescape service process and job design, and technology and information support system (Collier & Evans, 2019, section 5-4). All these elements combined enable a firm to offer valuable services to customers and take a competitive advantage over the competition. As technology continues to advance, it influences the five elements creating a way to better enhance products and services while improving efficiency. According to Collier and Evans (2019), “location affects a customer’s travel time and is an important competitive priority in a service business” (section 5-4a). Technology such as the internet impacts facility location because, through outlets such as e-commerce, a physical location is not needed. This means transactions can take place online reaching more customers at any time and saving on travel time. Technology’s impact on servicescape has given companies the ability to create a company website presenting intangibility elements of the service or products offered (Deswind & Hakim, 2014, para.2). This allows firms to promote products and services through interactions with existing customers all while drawing in the attention of new customers. The influence of technology on the service process and job design has advanced over the years. For example, using Chick Fil A again, employees have handheld tablets. This allows them to have a few employees in the drive-thru, inputting orders, taking payments, all from the handheld tablet. This keeps the line moving and with efficiency. Hard and soft technologies are key factors in designing services to ensure speed, accuracy customization, and flexibility (Collier & Evans, 2019, section 5-4d). For example, Amazon is known for it is huge e-commerce and delivery of packages at incredible speed. Hard technology will be the algorithm used to operate the online service, the systems used in the warehouse, operations, etc. Soft technology will be the delivery trucks driven by the workers to deliver the packages to customers.
QUESTION 3 (Jake)
Businesses run operations in foreign countries regularly. In order for them to be successful the business and the operations manager need to understand the local culture. When a business operates in another country this process is called offshoring. “Offshoring is the building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control” (2019). Not all businesses have been successful when it comes to offshoring, businesses that have had success is because they understand the culture.
The influence of a local culture can have extensive impact on the business when it comes to employees, third party vendors, can approvals of expansion or daily operations. If a business is not well liked by the local culture and they want to expand permitting and approvals will most likely get denied. Local vendors may not work with them, and the hiring of local employees will be hard. “It impacts everything from how employees are managed to the pace at which business is conducted, how negotiations are handled, and how risk management is enforced” (Seah, 2021). If the business understands the local culture operations will run much smoother and possibilities for growth will be able to happen in that country. Contracts can be awarded, vendors will work with the company, and people will want to work with the company as well.
QUESTION 4 (Yvonne)
It is vital to an organization to understand the local culture and practices if the company plans to be successful in that region. Understanding the local culture and practices will tell you what kind of leadership to implement as each culture values things differently. For example, a business could be expanding from a country who favors individuality and independence, to a country who is accustomed to getting approvals from those around them and being part of a tight knit group. If that translation of culture of not made, the business will not be successful since the business has failed to connect with the local population. Employees would not respect leadership as much, if they did not display the same values shared amongst the local population. Some countries have very strong tradition they follow, not following these traditions and customs could lead to sign of disrespect. Brown also suggests that when you understand the local culture more, such as knowing a few words in the language the local can tell a person is trying to understand them and the surroundings (2022). By doing a little research of the next region, a better understanding of local culture and practices will done and the locals will feel respected, in return gaining respect for leadership within the company.