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Chapter 8 VALUE ADDING SERVICE DELIVERY STRATEGIES

The document discusses value-adding service delivery strategies for healthcare organizations. It outlines that these strategies translate directional, adaptive, market entry, and competitive strategies into actions along the value chain. These service delivery strategies are critical for creating competitive advantages and include pre-service strategies like marketing research and branding, point-of-service strategies like clinical operations and patient satisfaction, and after-service strategies like follow-up, billing, and follow-on activities. Developing effective value-adding service delivery strategies is key to successfully implementing an organization's overall strategic plan.

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Sheeza Ashar
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326 views22 pages

Chapter 8 VALUE ADDING SERVICE DELIVERY STRATEGIES

The document discusses value-adding service delivery strategies for healthcare organizations. It outlines that these strategies translate directional, adaptive, market entry, and competitive strategies into actions along the value chain. These service delivery strategies are critical for creating competitive advantages and include pre-service strategies like marketing research and branding, point-of-service strategies like clinical operations and patient satisfaction, and after-service strategies like follow-up, billing, and follow-on activities. Developing effective value-adding service delivery strategies is key to successfully implementing an organization's overall strategic plan.

Uploaded by

Sheeza Ashar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER 8

VALUE ADDING SERVICE


DELIVERY STRATEGIES
COURSE INSTRUCTOR
DR. ASIMA FAISAL
LEARNING OBJECTIVES
1. Understand the decision logic for developing implementation
strategies.
2. Understand that the service delivery portion of the value chain
is key in the implementation of strategy.
3. Link the results of internal analysis and the development of
service delivery implementation strategies.
4. Understand how the pre-service, point-of-service, and after-
service strategies of an organization are the means to achieve
directional, adaptive, market entry, and competitive strategies.
---------LEARNING OBJECTIVES

5. Understand that competitive advantage may be created inside the


organization through implementation of the service delivery
strategies.
6. Understand that through service delivery strategies the
organization itself is changed, strengthening competitive
advantages and improving competitive disadvantages.
7. Create service delivery strategies that carry out the directional,
adaptive, market entry, and competitive strategies.
THE STRATEGIC PLANNING
PROCESS

Strategic Planning
• External Analysis
• Internal Analysis
• Directional Strategies

• Directional Strategies
• Adaptive Strategies
• Market Entry Strategies
• Competitive Strategies

• Service Delivery Strategies


• Support Strategies
• Action Plans
Directiona Adaptive Market Competitive Implementation
l Strategies Entry Strategies Strategies
Strategies Strategies
 Expansion of Purchase Strategic Posture Service Delivery
Mission Scope  Acquisition  Defender  Pre-service
 Diversification  Licensing  Prospector  Point-of-service
 Vertical
 Vision  Venture  Analyzer  After-service

Integration capital  (Reactor)


 Market
 Values investment Support
Development Positioning  Culture
STRATEGIC  Product
 Goals Cooperation Market-wide  Structure
THINKING Development  Merger  Cost leadership  Strategic
MAP  Penetration  Alliance  Differentiation resources
HIERARCHY  Joint venture
OF Contraction of Market Segment Unit Action Plans
STRATEGIC Scope Development  Focus/Cost  Objectives
DECISIONS  Divestiture  Internal leadership  Actions
AND  Liquidation
development  Focus/  Timelines
ALTERNATIV  Harvesting  Internal differentiation  Responsibilities
ES  Retrenchment
venture

Maintenance of
Scope
 Enhancement
PORTER’S VALUE CHAIN MODEL
VALUE ADDING SERVICE DELIVERY
STRATEGIES
• Value adding service delivery strategies translate the directional.
Adaptive, market entry and competitive strategies into actions as a
critical component of the value chain
• Attempt to reposition health care organization in the environment to
create new competitive advantage
• Value added service delivery strategies are critical to the success of
the organization because they are the principal methods for
creating value. Therefore, explicit strategies must be developed for
each.
VALUE ADDING SERVICE DELIVERY
STRATEGIES

• It is the strategies managers responsible for developing and managing


the strategies plan to ensure their compatibilities. Value adding
service delivery strategies include
• Pre-service
• Point-of-service
• After-service strategies
DEVELOPING VALUE-ADDING STRATEGIES
Value-Adding Results of Requirement Comparison of Maintain or
Service Delivery Internal s Requirements Change
Strategies Analysis of Selected and Internal
Strategies Analysis
Pre Service
 Research
 Target Market
 Branding
 Pricing
 Distribution
 Promotion

Point-of-Service
 Clinical Ops

After-Service
 Follow-up
 Billing
 Follow-on
PRE-SERVICE ACTIVITIES
• It entails the planning and activities that enable the organization to
determine its customers and the services that will be offered to them
as they enter the system pre-service marketing include
• Marketing and marketing research
• Design services
• Brand
• Price
• Distribution / logistics
• Promotion
MARKETING AND MARKETING RESEARCH
• Marketing and marketing research enables the organization to
determine the appropriate customers (target market) and types of
services to be delivered by
• Gathering data about the market itself, potential customers, their
wants and needs and what will satisfy them, customers’ habits and
choices in terms of healthcare
DESIGN SERVICES
Design services will provide satisfaction to:
1. Customers
2. Physicians
3. Friends
4. Families
and to include
5. Multiple service categories such as Long term care
6. Emergency medication or segmentation (a recognizable group that makes
your market as target market)
BRAND
Branding represents three things
1. What an organization offers to the market?
2. What organization does?
3. What organization is?
• It implies trust, consistency, defined set of expectation
• It sets promise
• Strong brands have a unique position in the mind of buyer and can be usually
articulated
PRICE:
Moderate price strategy must be selected carefully because it is very difficult to
determine price and consumers don’t have ability to judge quality
DISTRIBUTION/LOGISTICS
• Location of health care provider will impact the number of people to seek the
service because people don’t want to travel great distances
• Demographic studies of population are important part of choosing location for
facilities
• Satellite offices and hospital branches are important
• Convenience factors drives people in mobile unit
PROMOTION
• Advertisements
• Public relation events
• Personal selling’s
• Sales promotions
• Contest participation in trade shows
POINT OF SERVICE ACTIVITIES
Point of service is oriented around patient care and delivery (clinical),
market activities, market study in order to suggest good manner in
health care delivery
• Point of service clinical operations
• Point of service marketing
• Clinical innovation
• Marketing
• Patient satisfaction
POINT OF SERVICE CLINICAL OPERATIONS

• Intensive care required, such as acute illness with quick recovery,


significant illness (chronic but manageable) catastrophic illness- AIDS
• Mass customization (is a way of capturing physician-patient relationship)
• Quality operation must be maintained owing to the media report that
98,000 deaths yearly due to medical errors
CLINICAL INNOVATION
• Expects organization to come up with entirely new ways, systems or
ideas to improve patient care
• Achieving high performance via mode of operations
POINT OF SERVICE MARKETING

• Redesigning service lines around by the patient experiences rather by


the financial aspects of delivery care
• Multi-specialist, physician care team point of service to the strategy
• Increase physician patients’ communication
• Matching
• Quality
• Efficiency
• Speed
AFTER SERVICE ACTIVITIES (BACK OFFICE
STARTEGIES)
• This is the final contact customer has with the healthcare organization
or next appointment for further service is built for customer
satisfaction
• Follow-up (both clinical and marketing)
• Billing activities
• Follow-on (both clinical and marketing)
FOLLOW UP ACTIVITIES

• Follow-up activities (caring and concerned)


• Calling out patient to ask if everything is going as expected or
whether additional prescriptions are needed
• Patients’ satisfaction studies to determine how she or he was treated
can save pain, complications and unnecessary anxiety
• Follow-up says to customer “we care”
BILLING ACTIVITIES

• Billing activities describe customers decision whether value receive


or not
• Redesigning billing process reduced customer complaint from about
30 percent
• Avoid billing error
• Address complaints
• Explain service charges
• Use medical terminology that patients understand
FOLLOW-ON ACTIVITIES

• It identifies failure and rectify immediately


• It gives room for further services
• It gives chance for further check up to make sure the problem is no
longer present
• It gives additional care
THANK YOU

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