Extended Qfd: Multi-Channel Service

Extended QFD: Multi-Channel Service

Concept Design

LUUK SIMONS & HARRY BOUWMAN

Delft University of Technology, The Netherlands

ABSTRACT The objective is to develop and test a multi-channel e-services design supportmethod that

meets relevant design criteria. On basis of the evaluation of existing service concept design methods, we

extracted relevant design criteria, such as customer orientation, channel coherence, channel synergy,

competitive positioning, speed, focus and communication, and developed an alternative service concept

design method, i.e. XQFD: extended quality function deployment focussed on achieving multi-channel

synergy. This paper illustrates how this design support method is used in six cases in the insurance and

telecommunication industry, and test on basis of a qualitative quasi-experiment the added value of this

new design approach. The results indicate that our XQFD method meets relevant design criteria and

that XQFD is an attractive approach due to its clear focus on channel synergy and coherence,

competitive positioning, and the relatively short time span required to come to relevant results.

KEY WORDS: Design, service design, multi-channel strategy, Internet service, case-studies

Introduction

Many traditional (click and brick) firms are struggling in their attempt to turn their Internet

presence into a competitive asset (Simons et al., 2002; Omwando et al., 2003; Latzer &

Schmitz, 2004). We focus on designing Internet or e-service concepts in situations

where other service and distribution channels (e.g. retail stores, personal sales representatives

or contact centres) are already available. These new e-service concepts have to be

aligned with existing channels and together they are expected to offer added value.

Service concepts and service design are among the least studied and understood areas

of services marketing. Even though service design has been identified as �perhaps the

most crucial factor for quality’ (Gummesson, 1993), the first concept definition phases

are ill-structured (Simons & Bouwman, 2004), time pressure is high (Gordijn, 2002)

and it is hard to guarantee customer orientation (Ramaswamy, 1996).

Service concept and service design methodologies, which we will discuss in more detail

in the next section, are not well-developed, nor are they used effectively and efficiently, and

Total Quality Management

Vol. 17, No. 8, 1043–1062, October 2006

Correspondence Address: Harry Bouwman, Delft University of Technology, Faculty of Technology, Policy and

Management, Information and Communication Technology, PO BOX 5015, 2600 GA Delft, The Netherlands.

Email: W.A.G.A.Bouwman@tbm.tudelft.nl

1478-3363 Print=1478-3371 Online=06=081043–20 # 2006 Taylor & Francis

DOI: 10.1080=14783360600748042

as a result services are often sloppily designed (Tax & Stuart, 1997; Johnston, 1999;

Goldstein et al., 2002; Menor et al., 2002). It is even more difficult to find methods that

support e-service design for a multi-channel context. A study of 19 cases shows that

e-service (concept) design is a chaotic process that often leads to service failures, channel

conflicts and financial losses (Simons & Bouwman, 2004). In this paper we present a

method that meets design criteria such as channel coherence and synergy, and using qualitative

quasi-experimental research we show that it is a method thatmeets