2012.2.15 rz linking services design to strategy

1 La Salle Parque de Innovación de Servicios para las Personas

Parque de innovación IESS 1.2 Geneva February 16 2012

“Linking Services Design to Strategy” by Rafael Zaballa

2 © Rafael Zaballa

1. Can services design play a pervasive role in a company’s strategic

positioning?

2. What are the links between services design and strategy?

3. How to devleop a strategy in line with a services design discourse?

Three research questions:

3 © Rafael Zaballa

1.What is Strategy?

2.Creating a Valuable Position?

3.Services Design Opportunity Matrix

4 © Rafael Zaballa

1.What is Strategy? 2.Creating a Valuable Position?

3.Services Design Opportunity Matrix

5 © Rafael Zaballa

Michael Porter, 1996: A step forward for its understanding

6 © Rafael Zaballa

1. Competitive Strategy is about being different, choosing deliberately a diffrerent set of activitites to deliver a unique mix of value.

2. Introduces Activity Systema maps as a management tool for strategy definition

What is Strategy? (Porter 1996):

7 © Rafael Zaballa

“Strategy is the creation of a unique and

valuable position, involving a different set of activities”

Competitive Strategy

Operational Excellence Strategic Positioning

“Necessary, but not sufficient”

Doing the same

better than others

Positioning: Once the of Strategy,

“Too Static”

What is Strategy? (Porter 1996):

8 © Rafael Zaballa

About Positioning: A place in customer’s mind

•The 50s was the product Era: Characteristics and benefits

•The 60s was the image Era: Reputation

•The 70s was the positioning era: Where am I compared to others

RIES, Al, TROUT Jack "The Positioning Era Cometh" Advertising Age Crain Publications 1972

“Too much noise” “The mind is a memory bank”

Producto Category 1 Producto Category 2

Brand

? ?

?

“With the rise of living standras customer is less interted in aking the best choice”

Brand

Brand

Brand

Brand

Brand

Brand

9 © Rafael Zaballa

1.What is Strategy?

2.Creating a Valuable Position? 3.Services Design Opportunity Matrix

10 © Rafael Zaballa

Creating a Valuable Position #1:

Best P.: Branding and Design Innovation Leadership: What’s next?. Design Thinking, pags. 145-155, Thomas Lockwood editor,

Design Management Institute (2010)

The Design Discourse


Creating a valuable position #2

Brand Meaning (Source: ROCKWELL, C.: "The Mathematics of Brand Satisfaction" in Design Thinking, pag.

221-229, Thomas Lockwood editor, Design Management Institute 2010)


1. Objects 2. Environments

3. Communication

4. Identities

6. Processes

5. People

Service Design Performance Axes that Deliver the Meaning

Services Design

Source: ZABALLA, R. 2010


Shared Knowledge & Values

Ma

rketi

ng

Pro

du

cts

Pe

op

le

Pro

ce

ss

es

C.S

.R.

Stakeholders Interactions

Activities

Technology and Facilities

Company Strategy

Assets

Strategic Services Design

People Systems

Bid

irectional F

low

“rely on the 6 Design

Axes”

rhat deliver Meaning:

Objects, People,

Processes, Spaces,

Identities and

Communication

Source: ZABALLA, R. 2010


Services Value Categories:Adaptation from Cagan & Vogel, 2002


1.What is Strategy?

2.Creating a Valuable Position?

3.Services Design

Opportunity Matrix


The Services Design Opportunity Matrix (SDOM)

Five (5) Strategic Positioning Statements:

1) iTunes culturally current content portal

2) Cool brand high impact

3) Proprietary platform & Intuitive Interface

4) Well Designed Products & Technology

5) Exclusive 3rd Party Peripherals & Accessories

“Five (5) Value Proposal

Approach Uniqueness

Atrributes”

HOWs

1 2

3

4 5


The Services Design Opportunity Matrix (SDOM)

1. iTunes culturally current content portal

2. Cool brand high impact

3. Proprietary platform & Intuitive Interface

4. Well Designed Products & Technology

5. Exclusive 3rd Party Peripherals & Accessories


SDO Matrix: A tool to connect Srevices Design to Strategy

SDO Matrix

2

3

© Rafael Zaballa

Three Steps Description

1


Conclusions:

Services Design is a contributor to competitive advantage within two (2) approaches: Operational

Excellence and Strategic Positioning.

Creating a competitive strategic positioning is about building a powerful brand promise which relies on

uniqueness and meaning.

Uniqueness is defined by our activities, and we gain it by doing different ones or performing them in

different ways than others.

Brand meaning relies on a Design Discourse and a dynamic cycle in which perception, expectations

and experiences define customer satisfaction, and the increase of customer satisfaction strengthens

brand meaning.

Strategic Services Design, as a Design Management framework, consists of a simultaneous approach

to the creation of the brand promise and the services value proposal under a common design

discourse, covering six (6) interrelated design performance areas (identities, communication, object,

environments, processes and people) as an enhancer of consistency, reinforcement and optimization.

Strategic Design Opportunity Matrix (SDOM) as a tool for this design approach process that connects

activities to desired value concepts and design performance areas. The matrix serves as a reference

document to begin an iterative design discourse creative process, leading a reinterpretation of our

activities in order to reach our objectives in terms of creating valuable services in consistency with a

powerful brand promise.


References:

Porter, M.: What is Strategy?. Harvard Business Review, November-December (1996)

Ries, A., Trout, J.: The Positioning Era Cometh. Advertising Age Crain Publications (1972)

Mcluhan, M.: Understanding Media: The Extensions of Man. Gingko Press, (2003)

Fraser, H.: Designing Business: New Models for Success. Design Thinking, Thomas Lockwood editor, Design Management

Institute pag. 35-45, (2010)

Best P.: Branding and Design Innovation Leadership: What’s next?. Design Thinking, pags. 145-155, Thomas Lockwood editor,

Design Management Institute (2010)

Rockwell, C.: The Mathematics of Brand Satisfaction. Design Thinking, Thomas Lockwood editor, Design Management Institute,

pag. 221-229, (2010)

Parasuraman, A., Zeithaml V. A., BERRY, L. L.: A Conceptual Model of Service Quality and its Implications for Future Research.

Journal of Marketing, 49 (4), 41-50, (1985)

Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E. Jr., Schlesinger, L. A.: Putting the Service Profit Chain to Work. HBR

(March April 1994)

Heskett, J.: Toothpicks & Logos, Design in Everyday Life. Oxford University Press (2002)

Zaballa R.: Services Design for People. Jean-Henry Morin, Jolita Ralyté, Mehdi Snene, Exploring Services Sciences, Springer

(2010)

Verganti, R.: Design Driven Innovation: Changing the Rules of Competition by Radically Innovating What Things Mean. Harvard

Business Review (2009)

Zeithaml, V.: Consumer Perceptions of Price Quality and Value: A Means-And Model and Syntheis of Evidence. Journal of

Marketing, 52 (3) 2-22, (1988)


Shevket N. H., Celik, T.: Value of a Product: Definition. International Journal of Value Based Management Volume 12 Nº2 181-191

(1999)

International Council of Societies of Industrial Design: http://www.icsid.org/about/about/articles31.htm

Lockwood T.: "Design Thinking". Lockwood T. Editor, Design Management Institute (2011)

Cagan, J., Vogel C.: Creating Breakthrough Products. Princeton N.J. Prentice Hall (2002)

Parasuraman, A., Zethaml, V. ; Berry, L.: SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality.

Journal of Retailing, Vol 64 (1), 12-40. Springer (1988)

Martin, R. "The Design of Business: Why Design Thinking is the Next Competitive Advantage. Harvard Business Press (2009)

http://www.icsid.org/about/about/articles31.htm

2012.2.15 rz linking services design to strategy

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