A framework for strategic service management

Abstract A service framework is needed to foster strategic thinking in services. This paper introduces the service process/service package matrix to meet that need. The important feature of the service process is the degree of customer influence on the service process. The unique characteristic of the service package is that it consists of both tangible and intangible aspects. The service package is described by the degree of customization found in those tangible and intangible elements. Strategic competencies are identified and discussed along the service process dimension, the service package dimension, and the main diagonal of the matrix. Some existing strategic frameworks are embedded and incorporated in the matrix. Additionally, we formulate research propositions based on the matrix. Service firms can use this matrix to gain strategic insights by aligning the type of service package offered with the type of process used to create the service and to have a better understanding of their service operations strategy.