SERVICE DESIGN

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What is Service Design?Service Design is all about making the services we use usable, easy, and desirable. Focused on creating experiences using a combination of intangible and tangible mediums to cover a broad range of channels.

It’s an age old focus, as far back as when trades were first developed, in Ancient Near East... Can you guess which trade it was?

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What is Service Design?Service Design is an emerging field of design focused on creation of well thought through experieces.

A service happens over time and is made up of Touchpoints - the people, information, products and spaces that we encounter. To design great service it is important to have service users in mind: do they include staff, suppliers or customers?

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Example: Service & ProductApple sells computer products. What makes them stand out is their service, every touch point that supports a customer to make a purchase.

From website, online store, inventory, shipping, to in-store experience, servicing, apps, and accessories, all of these possible ‘experiences’ act as services help to support the sale and use of their products.

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How does Service Design help?

Service Design helps to develop well thought out environments, tools, and processes which enable the delivery of a superior holistic experience to all users, and in the end, delights the end-user.

How? By using design tools and methods that can deliver and in-depth understanding of user behaviours, their likes, needs, and expectations, which can enable new solutions to be developed.

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Why Service Design?

When two or more companies offer the same product or service at similar prices, service design is what makes you buy from one and not the other.

With larger companies/organisations that have complicated human to human systems, the Silo Effect often occurs, this is where Service Design becomes an increasingly important.

Can you think of some large organisations that could probably use some more focus with their Service Design?

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What’s in it for the business side?

The company with the better thought out environment, systems, and processes will lend itself to better staff experiences which leads to better touch points output that trickles down to better customer experiences as a whole. All this means better profit.

Service Design can be used to create an entirely new service, allowing a business to become a leader.

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SERVICE DESIGN &

UX DESIGN

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Service Design scopeMacro approach and focus.

Organisational level down to various user groups. Works with qualitative methods to observe people to people, people to organisations, and orgs to orgs interactions from the business environment, to systems, and its processes.

Results in objective strategy for innovation or change. Sometimes projects for tool development are needed in order to facilitate the delivery of a service, and/or to improve the holistic experience.

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UX Design scope

Micro approach and focus.

Project based, people to interfaces (tools/products). Focuses on a specific user group, such as End-User, or Customer.

Performs both qualitative and quantitative research to ensure needs and values are met, resulting in delightful experiences for the targeted end-users.

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SERVICE DESIGN in detail

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5 Principles of Service Design

User-CentredProcesses should be experienced through the user’s eyes. Empathy based.

Co-CreativeAll stakeholders should be included in the service design process

SequencingThe service should be visualised as a sequence of interrelated actions

EvidencingIntangible services should be visualised in terms of physical artefacts

HolisticThe entire environment of a service should be considered

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Service Design Process

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Service Design Tools

These help Service Designers to discover and define an organisation’s needs and values within the environment, systems, processes, the intangibles, as well as it’s end-user groups needs and values.

Co-creative Brainstormingideation techniques used to generate alternative solutions and opportunities quickly

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To list a few more...

Service Safarigo on-location to experience first hand to gain better understanding

User Shadowingobserve user’s experience in their environment, helps to gain context and further understand how they interact and identify their needs

Experience Prototypinga way of testing new service ideas or designs for specific touch points

STORYBOARDS - Quick hand-drawn comic-like

ACTORS - Act the service out using scenarios

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To list a few more...Business Model Canvasvisual tool describing and developing business models

The Business Model Canvas

Revenue Streams

Channels

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Key Resources

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

designed by: Business Model Foundry AGThe makers of Business Model Generation and Strategyzer

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What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

is your business moreCost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)

sample characteristicsFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope

Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

channel phases1. Awareness

How do we raise awareness about our company’s products and services?2. Evaluation

How do we help customers evaluate our organization’s Value Proposition?3. Purchase

How do we allow customers to purchase specific products and services?4. Delivery

How do we deliver a Value Proposition to customers?5. After sales

How do we provide post-purchase customer support?

For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

For whom are we creating value?Who are our most important customers?

Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform

What type of relationship does each of our Customer Segments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?

examplesPersonal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

catergoriesProductionProblem SolvingPlatform/Network

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

types of resourcesPhysicalIntellectual (brand patents, copyrights, data)HumanFinancial

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?

motivations for partnershipsOptimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities

What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?

characteristicsNewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability

typesAsset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising

fixed pricingList PriceProduct feature dependentCustomer segment dependentVolume dependent

dynamic pricingNegotiation (bargaining)Yield ManagementReal-time-Market

strategyzer.com

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To list a few more...Service Journey Mapping or Blueprintinga detailed visual representation of the total service over time

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Case StudyCouloir Actionwear, Outerwear manufacturer and wholesaler

Problem: 2 year repeat yo-yo cycle of profit and decline, as well as staff turnover.

Strategy: Service design. Listed observed problem areas, and began user centred inquiry to discover and define what could be made better. Included people to people, people to organisation, and organisation to organisation touch points.

Results: Post 1.5 year change management and implementation for improvements, company grew from staff of 7 to 17, and profits increased 30%.

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Major breakdowns: Lack of collaboration between touch points; certain user groups where lacking support from other groups in order to perform better; products were late in development, rushed; sales materials were late due to lack of manpower to meet print deadlines; etc... After all the trickle down effects, retailers did not receive the best possible service experience from the company, thus their sales diminished, which equated to less profits for the company.

Can you see what other effects the breakdowns would have caused in any of the people to people, people to organisation, and organisation to organisation touch points?

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RESOURCESSERVICE DESIGN

From Insight to Implementation

THIS IS SERVICE DESIGNBasics - Tools - Cases

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The End.

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