I learned some management and life lessons in my recent trip to Halong Bay, Vietnam. I took a local two-day-1-night cruise at Halong Bay. It was a very enjoyable vacation.
There are three basic components in the cruise that provide comfort and enjoyment to me during the cruise.
Halong Bay and Honoi area was part of the communist regime. Such cultural background does not land itself to good services. So the front-line service can be better. Small nuisances like missing utensils at the dining table, lukewarm coffee, delays in program schedule, impolite and arrogant managers.
In traditional manufacturing, the interface between division of work is precise and can be clearly defined. The "distance" from a designer to a customer is large. The same is true for the distance between a production unit and a customer. The concerns in manufacturing are low cost, product reliability, and product usability. These clear and well designed interfaces are needed to produce millions of products and are essential for out-sourcing.
In service industry, on the other hand, there is no distance between customers and service people. The back-office, the supporting logistics and the front-line serving staffs are an integrated whole. The interfaces are complicated and changing. It is almost impossible to clearly define the line between one functional group to another. A good service company must integrate the many variations of processes in a real-time and immediate responding customer needs. The workers need to be high quality knowledge workers. The company must implement communication, logistics support, alarm and reporting, knowledgeable beyond his/her functions supervisors. Take the case of the Halong Bay cruise. The back-office should know exactly the quantity of utensils required. They should know immediately there was a lack of Tai-chi coach to fulfill the program requirement. High-quality front-line + real time support back-end are essential.
Thus I concluded, a good service company must be a well integrated tightly-knitted entity. The complexity comes, if the company (i) has a broad service range; (ii) reduce back-office process man-power and delays; (iii) reduce front-line influence of adversity. This is trading front-line complexity (costly serving personnels) with supporting back-end offices and logistics. By moving the remote front-end to internal controllable back-end.
I will address the issue of service automation based on the above observation.