Article

Managing the risks of the "Invisible"

Authors:
  • AUS American Institute of Applied Sciences in Switzerland
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... How does a physician, an I.T. expert, an artisan, a plumber, a lawyer, or a musician, provide the value? Knowledge-based services deal with transferring intangible -we like calling it "invisible" value (Catenazzo and Fragnière, 2011). ...
Chapter
Services make most of the value in developed economies. In knowledge-based (credence) services, during each transaction, clients look for transmission of value through advice, information, knowledge, or counselling. Providers and clients interact during the service profusion; the human nature of these transactions makes errors inevitable. This chapter intends to guide managers step-by-step in providing better services and managing risks effectively. Each phase includes the presentation of a hands-on managerial tool. To design or improve a service, blueprint can help to visualize and fine-tuning its value chain. Riskoprint allows capturing the complexity of service risks, their sources, and severity. Finally, feed-forward controls contribute to preventing and recovering from service failures.
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