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From product to service

Transformation of the world market’s orientation

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From the industrial society

Significant paradigm shift

2

To the networked society

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Outoptimised

3

Source: Adaptive Path

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Economic Theory

Taylorism

OrganisationalPsychology

OrganisationalManagement

QualityManagement(Japan)

TotalQualityManagement(USA)

ChangeManagement

SupplyChainManagement

BusinessProcessReengineering

Activity-BasedCosting

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Valu

e fo

r the

org

anis

atio

n

Value for customers

Commodity

Product

Service

Experience

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ExperiencesThings

Shift 01

5

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UsingOwning

Shift 02

6

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Outside inInside out

Shift 03

7

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Service Dominant Logic

Transformation of the economy

8

Product Culture Remainder

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10 Careers that didn’t exist 10 years ago

1. Bloggers

2. Community managers

3. Green funeral directors

4. Interior redesigners

5. Patient advocates

9

http://msn.careerbuilder.com

6. Senior move management

7. Social media strategists

8. User experience analyst

9. Video journalists

10. Virtual business service providers

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Transformation of the economy

10

Poland’s GDP

agricultureindustryservices

64%

32%

Source: www.cia.gov 2010

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IBM

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10% services

90% services90% products

10% products

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€ 67.00€ 3,121.00

Gap 01

Producing companies

12

Service companies

Investment in research

Source: Birgit Mager

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6%41%

Gap 02

of producing companies see design as integral

13

of service companies see any role of design

Design effort

Source: Design Council UK 2005

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Products

Gap 03

14

Productivity

Source: Estimate based on desk research

Gap 04Quality

Service

Products

Service

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Proof point: Flylo check-in

15

http://www.youtube.com/watch?v=BOrhMcqx6vw

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“80% of companies believe they deliver outstanding value and a superior customer experience.

8% of their customers agree.”

Source: Bain & Company

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35%60%

Gap 05

of new service introductions fail

18

of launched services are removed from the market after a short period

Failure

Source: Cooper & Edgett 1996 / Stevends & Burley 2003

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EXAMPLEService Design for cars

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From owning to using

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From owning to using

$100M

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SERVICE DESIGN

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Experience prototyping with human empathy beyond products.

SERVICE DESIGN

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Services are different

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You have to be there.It happens over time.You don’t own it but use it.

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“The only people that see the bigger picture of any company are their customers.”

26

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Anders Frostenson 2010

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Anders Frostenson 2010

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www.servicededesigntools.org

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Understanding Thinking Generating Filtering Sensualisation Realising

Finding out and learning

Giving strategic direction

Developing concepts

Selecting the most relevant

Enabling understanding

Making it happen

The six SD collaboration zones

SERVICEDESIGN

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Experience prototyping with human empathy beyond products.

SERVICE DESIGN

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Follow the logic of the customers

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5% 99%!85%?

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Experience prototyping

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Experience prototyping

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Mutual value

35

Improve or innovate service experiences

Satisfied Customers

Profitable Enterprises

Lower riskof failure+ +

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Thank you! 36

st_moritz stefan@plusMoritz.com