SERVICE DESIGN
1

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?
2

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?
3

Example: Service & Product
Apple 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.
4

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.
5

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?
6

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.
7

SERVICE DESIGN
&
UX DESIGN
8

Service Design scope
Macro 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.
9

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.
10

SERVICE DESIGN
in detail
11

5 Principles of Service Design
User-Centred
Processes should be experienced through the user’s eyes. Empathy based.
Co-Creative
All stakeholders should be included in the service design process
Sequencing
The service should be visualised as a sequence of interrelated actions
Evidencing
Intangible services should be visualised in terms of physical artefacts
Holistic
The entire environment of a service should be considered
12

Service Design Process
13

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 Brainstorming
ideation techniques used to generate alternative
solutions and opportunities quickly
14

To list a few more...
Service Safari
go on-location to experience first hand to gain better understanding
User Shadowing
observe user’s experience in their environment, helps to gain context
and further understand how they interact and identify their needs
Experience Prototyping
a 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
15

To list a few more...
Business Model Canvas
visual tool describing and developing business models
The Business Model Canvas
Designed for: Designed by: Date: Version:
Key Partners Key Activities Value Propositions Customer Segments
Channels
Revenue Streams
Key Resources
Cost Structure
Customer Relationships
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 more
Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
sample characteristics
Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scale
Economies of scope
designed by: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
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 phases
1. 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 Market
Niche Market
Segmented
Diversified
Multi-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?
examples
Personal assistance
Dedicated Personal Assistance
Self-Service
Automated Services
Communities
Co-creation
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
catergories
Production
Problem Solving
Platform/Network
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
types of resources
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
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 partnerships
Optimization and economy
Reduction of risk and uncertainty
Acquisition 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?
characteristics
Newness
Performance
Customization
“Getting the Job Done”
Design
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability
types
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
fixed pricing
List Price
Product feature dependent
Customer segment
dependent
Volume dependent
dynamic pricing
Negotiation (bargaining)
Yield Management
Real-time-Market
strategyzer.com
16

To list a few more...
Service Journey Mapping or Blueprinting
a detailed visual representation of the total service over time
17

Case Study
Couloir 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%.
18

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?
19

RESOURCES
SERVICE DESIGN
From Insight to Implementation
THIS IS SERVICE DESIGN
Basics - Tools - Cases
20

The End.
21