Closing keynote
Oliver King – engine
(the slides will be available online…I can’t keep up with them)
The passage of time in design.
Engine’s goal was to take product design upstream to define the brief, not answer it
touch points are only the interface…began with innovation management, then ideation, then path finding, then service design.
idependent stratefic planning team that can help you to identify where, when and how…
focus on the “translation space” : translating between strategy and implementation
design is a creative process by which economic, social and aesthetic value is first imagined, shaped…
design is a way to make things better.
population growth is driving a lot of changes: diversity of people, needs, more competition, more waste, more confusion, more potential conflict….
results in less recognition and sense of identity.
this puts pressure on public services…
at the end of the day, we all need to see ourselves as service providers.
the progression of economic value: coffee beans to starbucks, generating value (reducing cost to serve, getting customers to spend more)
Demos (think tank) has a publication on service design in public sector
DIEC – design education and innovation center
how do you go about measuring improvements?
measure u2de2: useful, usable, desirable, efficient, effective
+2 things: differentiated, consistent (across encounters with service spatially or temporally)
working in the translation space: advertising, training programs, retail strategy, proposition development, assessment models for self-service counters in supermarkets, how to evolve a product brand to a product service strategy.
Discovering (virgin atlantic, possible to redesign the passenger experience onboard)
Informing (telling companies about how their products actually work)
Exciting (visual business cases, understanding the business model behind something, inspiration)
Optimization (teaching to fish)
Specifying (what is the service experience like? blueprinting everything: principles, metrics, processes, business models, guidelines, messages)
five fundamentals of service: systems, value, people, journeys, propositions
aligning user values with provider values. internet banking is great for banks: no physical property. great for users: do it online, not walk to the bank in the rain.
systems:
people: understanding the part people play in providing and designing services and how to include them
journeys: service over time, change over time
propositions: must be compelling for people to buy into them
identify, build, measure
service design: systems thinking. relationship mapping (literal and tacit). service blueprinting (going through the service, hour by hour, what needs to change, requirements, costs, time). design research. research probes. customer personas. communication. authoring (synthesis of information/results/research). process design. innovation networks. tools for design. participation. facilitation (listen, understand). visualization (hear, interpret it back). prototyping.
case studies
orange: investigations, insights, redesign.
the phone bill: redesign, evolve, transform, repackage
local bills (what’s going on around your local area), photo and text bill (sending photos back to you as stickers), sunday bills (turning the bill into a publication that people pay for).
great to have big ideas…how to implement them? Change is Very slow in big companies.
Virgin Atlantic: talking about a river, with personas “flo” and “eddy” to describe the types of use
journey mapping, stage by stage, what are people doing, what is the existing experience, how the experience will change. how long does it take from point a to b? what happens if your bags are too heavy?
establishing service envy: where should they show off, where is it less important?
establish a customer-centric journey: what’s the passenger’s ideal check-in experience?
the first ten yards of entering the airport…cognitive overload.
Challenges:
Education – new skills and aptitudes, new competition. how do you go about recruiting service designers?
New language for clients – a shared language of service…”moments of truth” “channels”
Methodology – selling process, clients buy process. the front-end confidence belies the chaos of the process. =) Need to effectively describe the process, language.
Is service design anything new?
services have been designed for many, many years. designers can add to that process, a new approach.
Differentiated – management consultants are good at cross-fertilization and optimizing best practices, but weak at creative development through to propositions. They run the numbers, but not beyond that. Designers can take the numbers and bring them to life.
Advertising agencies – big ideas and planning campaigns, weak at fulfilling the ideas and making it real. Need to fulfill the promises, take those ideas and make them real.
Strategic market research – unearthing needs and recognizing trends, but weak at translating them into propositions or making them real. They need to move into a “we found this out, you should do this” model, and not stop at the “we found this” tradition.
Integrated Marcoms – good at formulating overarching comms strategies, but weak at fulfillment beyond advertising and promotions.
Traditional agencies – good at center-piece touchpoints, but weak at influencing the broader propositions.
Questions:
Service design has a role to bring things together. interaction designers, product designers are good disciplines to contribute to service design because of the user-centric view.
begin with the user, there’s also a point when you as a designer begin with a project where you’re naive…which is very valuable when asking those “obvious” questions.
the quality of relationship with the company is an insurance policy for the designers.
——
Tamara Giltsoff – live|work
triple bottom line results – economic, social, environmental results
empowering clients to transfer capabilities so they can sustain the shift to service-led thinking
in the future successful organization will look to service to create value, not just products. services get 14% of R&D although they create over 70% of the wealth.
grid: insights, propositions, prototypes, blueprints along the top (left to right)
customer, strategy, operations along the side (top to bottom)
propositions: tangible mock-ups to get a sense of what it would be like to use something
prototypes: testing out implementations
how does service innovation differ from product innovation? Many differences:
push v pull
feature v solution
...
product innovation – how can we improve this and beat the competition?
looking within known territory and improving on it to beat competition
service innovation – how might we see the world in a different way? create new forms of value, deliver more effective and connected service solutions
step outside familiar territory to find answers
service innovation is intersection of: what is the problem/opportunity/need, how might we challenge assumptions? service innovation lies between them
solutions: customer-led, unmet needs, end not means
co-creation (involving delivery agents), non expert, alternative industries (think beyond the current realm, learn from others who are not like you)
moving toward product service systems, which use products to provide services.
project talking about today: selling alternative energy use (wattch [sic])
what happens when you make consumption visible? Visualization has potential to change behavior.
1) visualizing energy use
2) how do you sell reduced energy use?
decoupling economic growth from material use. think of the product as a part/component of the service. making money on the service, not on the product.
providing better solutions, rather than selling more products.
supermarket selling energy, energy saving products
customer-led prototyping
in the energy project: defining the problem together, sharing expertise, alternative industries, service ecologies…
measure value along the triple bottom line.
—-
Chris Down of live|work:
everyone here is a pioneer of service design.
a partial history of service design: lynn shostack 1984, birgit mager 1995, amtrak (by ideo) 2000, live|work 2001, ideo, engine, bill hollins (“about service design” for design council) 2003, ISDN 2006, Emergence 2006
why service?
products don’t work. GM sells the car, makes $47. Makes money off financing, OnStar.
upgrading cell phones, short product lifespans
product design has become a fashion discipline, not a functional discipline.
conditioning of needs and desires…need to be proud of what you do, not what you own.
values of live|work: dematerialization, more from less, use over ownership.
as designers, we are here for social and economic good, not just financial gain.
who are the agents of the service? environments, people, paperwork, products, interfaces
must know the needs and motivations of end customer, and of the agents.
service design is an ongoing process. Amazon makes 147 customer changes a year, but not in a “launch” process…constant process of change.
Service envy: designing services that have teh same functional, emotiongal and expressive value we receive from products. Can your service say a much as a Porsche Carrera?
public sector and private sector design differences…co-design and co-creation is easier in public sector, people are willing to involve themselves in that process because it benefits them. theory that the public sector can out-innovate the private sector.
Streetcar pay as you go car renting. each streetcar removes 6 cars from the road, drivers drive 69% less than if they own the car. Small communities of people develop around the cars, which involves peer pressure and introduces care in a group ownership situation.
system efficiency isn’t necessarily an effective user experience.
people at work are the same people at home. so services in b2b aren’t different from services in b2c.
future may be to develop services which are bought by other companies.
two new breeds of designers:
– mentioned rentathing as an example of designer-makers
– issue-based designers
Q: is the out-innovation potential purely in UK or elsewhere? A: not sure, haven’t designed/developed in the US but perhaps it is because of the tradition of public services in the UK.
Q: What is servicedesign.org doing? wikis, looking for participation from everyone
Q: do services still fill landfills? almost impossible to find something that doesn’t use network technology. goal: create great experiences without creating more “things”
Q: how do you deal with the fact that some people want the cheapest? need to make the experience meet the promise. Ryanair doesn’t promise on its website more than it can deliver.
(many other questions which I couldn’t capture…too interesting and busy listening, not typing!)
——My battery died and am borrowing a computer from the MAYA guys. Looks like Glenn Omura will have to be updated when I get back to the hotel later tonight…
(here’s Glenn)
Glenn S. Omura – Service Design Revolution in Hardgoods Retailng
Too much choice, too much information impacts decision-making. Camera stores have this problem with a large assortment of cameras, but a lot of products for people to sort through. Is that what the customer wants?
Big Box store segmentation: – barry – the wealthy professional man – ray – the family man – buzz – the young tech enthusiast – jill – helen (older), Carrie (single, kids, hipster)
Designing parts of the store to appeal to kids so that the parents (the target market) can shop.
design features > attributes > benefits > emotional consequences > lifestyle values
first three are rational, last two are emotional
avoid being commoditized, avoid competing on price, building relationships with buyers, convert merchandise departments into service inspiration centers.
——
Jennie Winhall – design council UK:
generation 1: improving existing services through incremental design,
generation 2: co-creating new services: radical innovation
a. society has changed – existing infrastructure designed for another time
b. demand outstrips supply – people demanding services more than in the past, number of services has gone up, but perception of them has gone down
c. emerging social issues –
people aren’t rational, but public policy is irrational: build more power plants rather than turn down everyone’s thermostat by 1 degree. install surveillance cameras instead of increasing social capital.
new generation of public services: designed around individuals, co-created, preventative
health care in the 19th century was about treating infectious disease. Now it’s about treating chronic disease.
communities of co-creation: peer to peer collaboration, user-driven, open source, distributed access, non-hierarchical organization: creative commons, linux, wikipedia, sims 2
Fitting solutions to peoples’ everyday lives. design provides a space for people and professionals to cocreate solutions.
opportunities:
1) Segmentation based on character types – not demographics
2) Interactions that are dynamic, personal, collaborative
3) tools and services to support people in their daily lives
Instead of plotting it out for people, let people do it for themselves. the consultation cards let people set the agenda, not the nurse.
sent some Mob kits to people they hadn’t interacted with to see what their input/reactions would be. mobs (the group) make it economical to have a personal trainer in a situation where it would be aspirational.
Motivation: varies between people, seeing progress is important (group-based, not individual, reinforces peer pressure and commitment), celebrating commitment (keeping people from dropping out, but not replacing intrinsic rewards/motivation withe extrinsic rewards).
co-created services: need to co-opt people themselves into the process
co-creation: line between user and producer is blurred, users themselves are generating content and shaping the service on offer.
1. co-created services:
Triangle of “roles, tools, rules” to create a platform.
Design for qualities: aspiration, trust, control, collaboration, open access, co-creation
designtime blends with runtime.
2. designing for behavior change:
giving shape to behavior, less about shaping products.
motivation, not medicine. build around the individual, not the disease.
redesign the situation so professionals and individual can collaborate on equal ground. shared interfaces can help to shift the balance of power in existing relationships.
build on existing social dynamics – peer pressure, moral support, obligation.
3. meaningful metrics: settings targets and goals based on individuals, not based on the system needs.
Transformation design: Brokering large-scale collaborations. there currently isn’t an entity to manage this process.
characteristics of transformation design: fundamental transformation, collaboration between disciplines (economists, policy, non-design disciplines), redesigning the brief (understanding), participatory design work (work with front-line workers, not a top-down approach), building capacity not dependency (building skills so they can continue the work), non-traditional outputs.
The last two are the most challenging…where is design applied, and by who? loss of authorship and deprofessionalization for designers, but there is great demand for this type of work.
——
Mary Jo Bitner, Professor of Marketing:
Academic director at the center for services leadership at Arizona State University, typically work with for-profit companies. Her perspective tends towards marketing, consumer behavior.
Co-Author of “Services Marketing: Integrating customer focus across the firm”
Service businesses compete through providing service excellence. What is “service”? Service as a product (mayo), customer service (Southwest), service as valued-added for manufactured products (IBM), service derived from a tangible product (Ford Motor Company).
Services are worldwide, becoming dominant everywhere. Therefore, service innovation is critical to the future success of companies, national economies, and personal quality of life.
Business case for service innovation: cost focus, bottom line improvements, productivity enhancements, efficiency of processes, systems innovation. self-service technologies: kiosks, the internet.
Revenue focus is another business case: top line growth. Brand new services, service improvements, improved customer experience, customer loyalty.
design is at the center of the “Service profit chain” – “putting the service-profit chain to work” HBS publication
Service vs. products
Traditional product/service innovation process: Front-end planning leads to implementation. Business strategy, analysis leads to implementation.
——
Challenges of services
Services are performances, experiences with customer participation, not just the design. Involving customers into the service process (delivery).
Production and consumption of services occurs simultaneously.
New services must often be integrated into existing systems, getting buy-in
Services are not easily standardized, providing the opportunity for customization.
Employees are integral to service, may even BE the service. People are integral to the service, unlike in product systems.
Services often require significant changes in consumer behavior.
Success is as much about execution as the design.
——
Success Drivers and tools for service innovation and design:
know your customers
design service processes from your customer’s point of view
excel at execution
invest in people
standout at service recovery
co-create services with your customers
integrate…
1) Know your customer intimately. really listen, observe what they do, watch industry trends. Front-line employees know a lot about customer needs and behavior.
eBay: continuously listens, weekly hour-long teleconferences with customers, complaints are encouraged, “listen, adapt, enable” — listening is good, but eBay actually does something. Easier for eBay to change because they don’t have fixed assets like a hotel.
2) design services from the customer’s point of view. consider the customer’s total experience from beginning to end. Match experience with expectations. Petsmart is growing because they’re introducing services (per services). can’t compete with walmart on food, so doing pet hotels, grooming, photos… “pet parent” not pet owner. The pet hotel has a lobby, check-in, “yappy hour”, bone booth for pet parents to call their pet.
rethinking the hospital experience: wireless phone communication, mot mass intercom. changing the building from a public space to a personalized space: private rooms, no waiting room: check-in desk
intersection of People, Process, Physical evidence.
1992 Journal of Marketing: “Servicescapes” – integrates environmental psychology: the environment affects employees, which affects their service delivery. physical environmental dimensions, holistic environment, internal responses, behavior.
Starbucks: total customer experience defines value. “We’re not in the coffee business service people, we’re in the people business serving coffee.” Howard Shultz, CEO. The coffee isn’t the focus (it has to be good or the company won’t be successful), people are the focus. Tangibles and service environment align with customer expectations and create an emotional connection. Creates a “third space” where the experience is attractive.
Service blueprinting – a tool for simultaneously depicting the service process, the points of customer contact…visual map of the service process from the customer point of view.
service blueprint components: Consumer actions. line of interaction
3) Excel at execution – keep promises to customers, design with execution in mind, enable promises to be kept (training, technology), manage the experience and handoffs (the customer understands what is happening).
The services triangle: company > “making promises” > customers > “keeping promises” > providers > “enabling promises” > company
Adding technology creates a pyramid
Aligning the triangle: ongoing process, requires integration and communication across functions
4) Invest in people: Service innovation requires knowledge, skills and creativity, people ARE the service, people build and maintain relationships. The embodied knowledge in people is critical to service. The human capital. the lack of human resources is a major impediment to innovation and execution (delivery).
Marriott, one of the worls’ most successful hotel companies, on the bast places to work for top 100 list every year.
want to be the preferred employer in their industry, which they believe makes them preferred provider. get the best people, get the best delivery. delivery of value starts with employees.
Is there a role for service design within a company? provide service within a company for employees to make them productive and want to be there.
Bill Marriott talked about his people, not employees. take good care of your people, they will take care of your customers.
Questions:
Services requiring significant changes in behavior: travel agents (resistance from customers initially…what is their motivation? self-checkout…that’s their job. am I being tricked into doing this? what’s the benefit to me?)
learning from product innovation when convincing people how to change behavior or adopt new behaviors. video recorders as a product example.
involving people in the process…important to have a customer roll-out and an employee roll-out to get the employees involved in the process.
09:28 in the auditorium with opening remarks