PCN Analysis Exercise

Dr. Scott Sampson, Brigham Young University 2012

This exercise includes the following parts:

1.Identify a business process to analyze. It is good to select a process that
involves two entities a firm and a customer. Examples include:

the process of getting your computer repaired

the process of having an eye exam
the process of attending a concert

2.Construct one or more PCN Diagrams for the selected process.

First step is often customer need. Last step is often need resolved.
Dont make PCN Diagram too crowded use multiple pages if necessary.

3.Analyze the value proposition represented in the business process:

put by customer cost steps (waiting, inconvenience, etc.)

put by customer value steps (i.e., causing willingness to pay)
put -$ by firm cost steps
put +$ by firm revenue steps

4.Redo your PCN Diagram showing at least one enabling innovation and at
least one relieving innovation.

Highlight the innovation steps with either colored boxes or double-boarder

boxes.
For each innovation, describe the innovation and tell what impact it has on the
value proposition.

PCN Analysis Exercise for Scott Sampson

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page 1

PCN Analysis Exercise Optional Parts

This parts of this exercise may be optional (see instructor):
5.On a copy of your PCN Diagram, include notations showing important
sensory elements (signs, symbols, ambient conditions, etc.) that guide
customers in their roles of the process. For each sensory element indicate
what impact it is intended to have on customer behavior.
6.On a copy of your PCN Diagram, indicate a few service failure points (F)
and show some steps that would be used to effectively respond to the
failure.
7.The best learning comes from participants sharing their work with the
group. You can do the exercise on paper, or electronically. One way to do
it electronically is to edit the pages of this file. If you choose to do the PCN
Analysis Exercise electronically, please do the following:
1. Put your team member names in the page footer (select Header & Footer
from the menu, change footer, and click Apply to All for all pages).
2. Name your file PCN-Last-Names-Of-Team-Members.ppt
3. Email it to the course email address listed in the syllabus.

PCN Analysis Exercise for Scott Sampson

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PCN Analysis Exercise: Airline example

Part 1. Business process to analyze

Team members:
Scott Sampson

Process:
In this exercise we will analyze a commercial airline process.
We will consider the process from a passenger booking a flight to actually
going on the flight, where the passenger books online.

PCN Analysis Exercise for Scott Sampson

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PCN Diagram
for process:

Part 2. PCN Diagram of process (first page)

Airline passenger booking a ticket on an airline website

Providers Process Domain

Independent processing

Surrogate interaction

Customers Process Domain

Direct interaction

Direct interaction

Surrogate interaction

Independent processing

visit an airline
website

need air
transportation

enter search
information

develop flight
schedule

provide flight
options

acceptable
flight?

no

yes
select flight

process
payment

enter payment
information

send eticket

print eticket

wait until
flight day

PCN Analysis Exercise for Scott Sampson

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PCN Diagram
for process:

Part 2. PCN Diagram of process (second page)

Airline passenger check-in and transportation process

Providers Process Domain

Independent processing

Surrogate interaction

Customers Process Domain

Direct interaction

Direct interaction

Surrogate interaction

Independent processing

drive to airport

check identification

find parking

check reservation
receive checked bags

wait in line

get to terminal

tag checked bags

transfer bags to
appropriate gate

land plane
clean and
refuel plane

load bags on plane

fly to destination

unload checked
bags

go through security

place bags on belt

give boarding pass
board plane

wait for boarding

exit plane
walk to bag claim
watch and wait

transport bags to
baggage claim

PCN Analysis Exercise for Scott Sampson

retrieve bags

depart airport

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PCN Diagram
for process:

Part 3: Assessment of provider revenue (+$) and costs (-$), customer value () and costs ()

Airline passenger booking a ticket on an airline website

Providers Process Domain

Independent processing

Surrogate interaction

Customers Process Domain

Direct interaction

Direct interaction

Surrogate interaction

Independent processing

visit an airline
website

need air
transportation

enter search
information

develop flight
schedule

provide flight
options

acceptable
flight?

no

yes
select flight

+$
process
payment

enter payment
information

send eticket

print eticket

wait until
flight day

PCN Analysis Exercise for Scott Sampson

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PCN Diagram
for process:

Part 3: Assessment of provider revenue (+$) and costs (-$), customer value () and costs ()

Airline passenger check-in and transportation process

Providers Process Domain

Independent processing

Customers Process Domain

Surrogate interaction

Direct interaction

Direct interaction

Surrogate interaction

Independent processing

drive to airport

check identification
check reservation

wait in line

receive checked bags

find parking
get to terminal

-$

land plane
clean and
refuel plane

-$

tag checked bags

transfer bags to
appropriate gate

place bags on belt

load bags on plane

-$
-$

-$

go through security

board plane

transport bags to
baggage claim

PCN Analysis Exercise for Scott Sampson

wait for boarding

exit plane

fly to destination
unload checked
bags

give boarding pass

walk to bag claim

watch and wait

retrieve bags

depart airport

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PCN Diagram Part

for process:

4. Enabling Innovation: Online checking and bag tagging

Airline passenger check-in and transportation process

Providers Process Domain

Independent processing

Customers Process Domain

Surrogate interaction

Direct interaction

Direct interaction

Surrogate interaction

Independent processing

check in on airline
website

check identification

drive to airport
find parking
get to terminal

print boarding pass

and luggage
tag

check reservation
receive checked bags

-$

land plane
clean and
refuel plane

-$

tag checked bags

transfer bags to
appropriate gate

place bags on belt

load bags on plane

-$
-$

scan luggage tag

and tape on bag*

-$

transport bags to
baggage claim

PCN Analysis Exercise for Scott Sampson

go through security

give boarding pass

board plane

wait for boarding

exit plane

fly to destination
unload checked
bags

-$

walk to bag claim

watch and wait

retrieve bags

depart airport

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PCN Diagram
for process:

Part 4. Relieving Innovation: Provided county airport shuttle

Airline passenger check-in and transportation process

Providers Process Domain

Independent processing

Customers Process Domain

Surrogate interaction

Direct interaction

drive passenger to airport

Direct interaction

Surrogate interaction

Independent processing

meet shuttle at
county parking lot

drive to airport

check identification

-$ (+$?)
check reservation

wait in line

receive checked bags

find parking
get to terminal

-$

land plane
clean and
refuel plane

-$

tag checked bags

transfer bags to
appropriate gate

place bags on belt

load bags on plane

-$
-$

-$

go through security

board plane

transport bags to
baggage claim

PCN Analysis Exercise for Scott Sampson

wait for boarding

exit plane

fly to destination
unload checked
bags

give boarding pass

walk to bag claim

watch and wait

retrieve bags

depart airport

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Part 4. Description of Enabling and Relieving Innovations

Enabling Innovation
Passengers print their own boarding pass and
luggage tag.
Description:
Passengers have the option of printing their
own boarding pass and luggage tags at home
within 24 hours of their flight.
The only contact customer has with the airline
before security is allowing a low-wage employee
to tape the luggage tag on the luggage.
If the luggage tag printed by the passenger is
unusable, the low-wage employee can scan the
tag or boarding pass and print out a new one.
Impact on Value Proposition:
Reduced cost to customer, who does not
need to wait in line to check bags (low-wage
employee is highly efficient)
Reduced -$ cost to firm, replacing multiple bag
checkers with one or two low-wage employees.

PCN Analysis Exercise for Scott Sampson

Relieving Innovation
Provide a county-based shuttle to the airport
Description:
When passenger books their ticket, they are
given the opportunity to buy a slot on a shuttlebus that departs from a location in the
passengers county or city.
Passenger still needs to get a ride to the shuttle
location, or drive car and pay for parking there.
Shuttles leave at fixed intervals, but passenger
would have a reserved seat.
Passenger would print out their shuttle
confirmation at time of ticketing.
Impact on Value Proposition:
Reduced cost, since customer only has to
drive to a county location to take the airline
shuttle bus.
Reduced -$ cost and cost, since less
expensive than a private shuttle.
Dont have to deal with airport parking (reduced
).
Additional revenue opportunity +$ for airline.

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PCN Diagram
for process:

Part 5. Key sensory elements in this process

Airline passenger check-in and transportation process

Providers Process Domain

Independent processing

Customers Process Domain

Surrogate interaction

Direct interaction

attire of
employee

Direct interaction

check identification
check reservation
receive checked bags
tag checked bags

transfer bags to
appropriate gate

land plane
clean and
refuel plane

load bags on plane

fly to destination

unload checked
bags

Surrogate interaction

Independent processing

drive to airport
information
about which
line to be in

find parking

wait in line

get to terminal

line layout
noise or music

info about policies

and procedures
go through security

place bags on belt

give boarding pass
board plane

wait for boarding

exit plane
info about where bag walk to bag claim
claim for this flight is

noise, smells,
entertainment,
seating, electrical
outlets, boarding
progress info

watch and wait

transport bags to
baggage claim

PCN Analysis Exercise for Scott Sampson

retrieve bags

depart airport

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Part 5. Description of sensory elements

and impact on customer behavior

step: wait in line

behavior: passenger not spending time in wrong
line and line jumping.
element (sign): information about which line to
be in.
behavior: passenger having reasonable
expectations about line duration.
element (space): line layout that allows
passenger to see how line progresses.
behavior: passengers not being grumpy in line.
element (ambient condition): provide pleasant
music.

step: check in
behavior: passenger have confidence in
employee
element (symbols): attire of employee makes
employee look more like a captain than a
baggage handler.

step: go through security

behavior: passenger be prepared for that
specific process (e.g. belt removed, pockets
emptied, shoes off, etc.)
element (sign): provide information in line about
that airports specific policies and procedures.

PCN Analysis Exercise for Scott Sampson

step: wait for boarding

behavior: passengers experience severe
psychological costs during the waiting process
element (ambient condition): provide a pleasant
noise (other than CNN disaster news), provide a
pleasant smell (like candy), provide some type
of appropriate entertainment (besides CNN).
element (function): furnish seating areas with
more power outlets, so that waiting passengers
can self-entertain or be productive.
element (sign): provide passengers with a clear
identification of boarding progress (besides PA
announcements).

step: walk to bag claim

behavior: passenger going to the wrong bag
claim area and reporting missing bags.
element (sign): provide disembarking
passengers with information about where
baggage claim is for the flight they are just
getting off of.

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PCN Diagram
for process:

Part 6. Indication of two service failure points.

Airline passenger booking a ticket on an airline website

Providers Process Domain

Independent processing

Surrogate interaction

Customers Process Domain

Direct interaction

Direct interaction

Surrogate interaction

Independent processing

visit an airline
website

need air
transportation

enter search
information

(F1) server goes down

develop flight
schedule

acceptable
flight?

provide flight
options

no

yes
select flight

process
payment

enter payment
information

send eticket

print eticket

(F2) passenger never receives e-ticket

wait until
flight day

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PCN Diagram
for process:

Part 6. Steps to effectively recover from failure (F1).

Airline passenger booking a ticket on an airline website

Providers Process Domain

Independent processing

Surrogate interaction

Customers Process Domain

Direct interaction

Direct interaction

Surrogate interaction

Independent processing

visit an airline
website

need air
transportation

enter search
information

(F1) server goes down

develop flight
schedule

acceptable
flight?

provide flight
options

no

yes
provide form for
customer to
provide phone
number

airline calls customer

select flight
discuss flight
alternatives and options

process
payment

provide payment
information

send eticket

print eticket
wait until
flight day

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PCN Diagram
for process:

Part 6. Steps to effectively recover from failure (F2).

Airline passenger booking a ticket on an airline website

Providers Process Domain

Independent processing

Surrogate interaction

Customers Process Domain

Direct interaction

Direct interaction

Surrogate interaction

Independent processing

visit an airline
website

need air
transportation

enter search
information

develop flight
schedule

acceptable
flight?

provide flight
options

no

yes
select flight

process
payment

enter payment
information

send e-ticket link

click e-ticket link

(F2) passenger never clicks e-ticket link

airline calls customer

wait until
flight day

print e-ticket

discuss problem and determine if

alternate ticketing method is needed
PCN Analysis Exercise for Scott Sampson

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Part 6. Description of plan for service recovery

Failure (F1): Airline web server goes down

This failure may occur because of technical
problem, system overload.
We assume that when the reservation system
goes down the router is still able to redirect
requests to another system or web page.
Details:
When server goes down, customer is
immediately redirected to a form that explains
that there is a problem, and if the customer will
provide a phone number then an agent will call
the customer back about the flight.
Customer might optionally provide a time
window to be called back.
If the server comes back up, agents can call
customers and tell them that is the case.
Customer would not be charged any extra fees
for using an agent for reservations.
Benefits to customer:
Not needing to call airline and wait on hold.
Benefits to airline:
Fewer lost customers.

PCN Analysis Exercise for Scott Sampson

Failure (F2): e-ticket not received

This failure may happen with airlines that email
the e-ticket to passengers. Causes might
include:
bad email address
e-ticket filtered as spam
customer does not recognize e-ticket
email message
customer does not check email account
very often
and so forth
Details:
To detect this failure (without waiting for
customers to report it), instead of sending the eticket the airline sends a link to the e-ticket. If
the customer has not clicked the e-ticket link
with 5 days we assume a service failure.
On detected failure, the airline calls the
customer at the number they gave when
ticketing.
Airline agent asks customer if they are aware of
the problem.
Agent records in database any information
about cause of the problem (e.g.s above).
Agent determines an alternate email address,
or if snail-mail ticketing is necessary (perhaps
for a mailing fee).
Airline tracks common causes of problems and
makes process adjustments accordingly.
Benefits to passenger:
Less likely to forget about not having e-ticket.
Benefits to airline:
Able to identify more errors and correct causes.

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