A Framework for Delivering Service Differentiation Through Operating Segments: Research Opportunities and Implementation Challenges

This paper presents a framework for developing a differentiated strategy for the delivery of services. It summarizes the methodology introduced in Guajardo and Cohen in (Manuf Serv Oper Manag 30(3):440-454, 2018 [6]) and discusses modeling and implementation implications associated with application of the framework for the management of value-added services that are bundled with manufactured products. The framework utilizes the concept of operating segments (introduced by Frei and Morriss in (Uncommon service: how to win by putting customers at the core of your business, 2012 [5])) and considers issues associated with the definition of market segments appropriate for differentiated services as well as for the design of such services. The paper also discusses operational processes and the tradeoffs associated with producing and delivering differentiated service products to market segments. This discussion includes a review of a set of representative analytical models for service delivery that illustrate OM Service research opportunities.