Three stage transformation model of inputs, Strategic Management

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Product manufacturing operations can be described as a three stage transformation model of inputs.

Inputs

  • Inputs are intangible. Unlike a traditional product, a service does not rely on a stock of physical raw materials but is more reliant on the interpersonal skills and abilities of its workforce.
  • For a product the process of transformation is normally unseen by the customer. By comparison, customers participate in the delivery process of a service by interacting with an employee or representative of the organisation.
  • Service processes tend to be more labour intensive than most manufacturing processes which can rely heavily on plant and equipment.
  • Greater customisation of the service is needed to meet customer needs meaning that standardisation of process is complex to achieve.

 


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