The document discusses the importance of service design for companies. It argues that companies can no longer just deliver what customers expect, but must anticipate and create needs. Service design is presented as a way to design customer experiences and touchpoints that transcend expectations. The document outlines the process of service design and provides examples of how it can lead to innovative new services that make a difference for customers.

1. TORSTEN HENNING HENSEL
PARTNER // CREATIVE CONSULTANT
NOUVÉ // WWW.NOUVE.DE
DESIGNING FOR
TOMORROW’S NEEDS
FUTURE-ORIENTED SERVICE DESIGN
BERLIN // JUNE 2010
WWW.FLICKR.COM/PHOTOS/KKOSHY/500791545

2. TODAY, COMPANIES MUST
EXCITE THEIR CUSTOMERS
ON MULTIPLE LEVELS.

3. THEY DON‘T HAVE TO STAND
OUT IN ALL FIELDS, BUT...

4. THEY NEED TO CREATE
A DIFFERENCE IN THOSE
FIELDS THAT ARE RELEVANT
FOR THEIR CLIENTELE.

5. MORE AND MORE, IT’S
SERVICE THAT HELPS TO
CREATE A DIFFERENCE.
WWW.FLICKR.COM/PHOTOS/ARUTHA/439765764

6. SERVICE [DEFINITION]
INTANGIBLE PRODUCTS THAT ARE NOT GOODS
(TANGIBLE PRODUCTS), SUCH AS ACCOUNTING, BANKING,
CLEANING, CONSULTANCY, EDUCATION, INSURANCE,
KNOW HOW, MEDICAL TREATMENT, TRANSPORTATION. NO
TRANSFER OF POSSESSION OR OWNERSHIP TAKES PLACE
WHEN SERVICES ARE SOLD, AND THEY (1) CANNOT BE
STORED OR TRANSPORTED, (2) ARE INSTANTLY
PERISHABLE, AND (3) COME INTO EXISTENCE AT THE TIME
THEY ARE BOUGHT AND CONSUMED.

7. SERVICE BOOMS.
THE SERVICE ECONOMY IS EXPANDING IN MOST COUNTRIES
OF THE WORLD. IN 2005, SERVICES ACCOUNTED FOR 69%
OF THE WORLD GROSS DOMESTIC PRODUCT (GDP). IN THE
UNITED STATES, SERVICES REPRESENT NEARLY 80% OF
VALUE ADDED AND EMPLOYMENT WHILE IN MOST
EUROPEAN ECONOMIES THEY HAVE ALREADY EXCEEDED
„The new service economy in Europe“
AN ACHIEVEMENT LEVEL OF 70%.
Luis Rubalcaba, Gisela Di Meglio and Andreas Pyka

8. BUT: THE MARKET’S SHIFT
TO A SERVICE ECONOMY...
... HAS NOT HERALDED A SERVICE REVOLUTION YET.
MANY OF OUR INTERACTIONS WITH ORGANISATIONS ARE
STILL CHARACTERISED BY PROFOUND FRUSTRATION.
TOO OFTEN IT FEELS LIKE ‘PRODUCER INTERESTS’, OR
PROFIT INCENTIVES MATTER MORE THAN HOW WE FEEL.
SOPHIA PARKER AND JOE HEAPY. JOUNEY TO THE INTERFACE, 2006.

9. WHAT COMPANIES OFFER:
STUFF TO BUY.
WWW.FLICKR.COM/PHOTOS/ZOOBOING/4241390495

10. WHAT PEOPLE WANT:
MEANING AND SUPPORT.
WWW.FLICKR.COM/PHOTOS/DEIFCHEN/486749610

11. SO, OBVIOUSLY THERE’S
A DISCREPANCY BETWEEN
COMPANIES’ OFFERS AND
PEOPLES’ NEEDS.
WWW.FLICKR.COM/PHOTOS/SY_PARRYSH/2410649103

12. THE EXPECTATION GAP.
COMPANY OUTPUTS CUSTOMER EXPECTATIONS
SOURCE: HTTP://WWW.SOCIALMEDIATODAY.COM/SMC/187825

13. FOR MORE THAN
200 YEARS...
...COMPANIES HAVE BASED THEIR APPROACH TO
BUSINESS ON SUPPLY-SIDE ECONOMICS, CONCENTRATING
ON CREATING PRODUCTS & SERVICES AND THEN
ATTEMPTING – THROUGH MARKETING, PUBLICITY,
DISTRIBUTION, AND PROMOTION – TO STIMULATE
DEMAND FOR THOSE PRODUCTS.
HOWEVER, OVER THE PAST 20 YEARS, THE MARKET HAS
FUNDAMENTALLY SHIFTED. SWEEPING TECHNOLOGICAL
ADVANCES, GLOBALIZATION AND ACCESS TO NEARLY
PERFECT INFORMATION HAVE RESULTED IN CONSUMERS
WHO ARE BETTER INFORMED, MORE SOPHISTICATED, AND
WWW.THECAMBRIDGEGROUP.COM
FAR MORE DEMANDING.

14. IT’S NO LONGER ENOUGH
JUST TO DELIVER WHAT
PEOPLE “EXPECT.”
HTTP://UOCONTEMPORARYDESIGN.BLOGSPOT.COM/
2010/04/DESIGN-RESEARCH-METHODS.HTML

15. HTTP://WWW.JAUNTED.COM/FILES/3/BEIJING_AIRPORT_SIGN.PNG
OUCH!

16. YOU NEED TO CREATE
OFFERS THAT TOTALLY
OUTPERFORM THEIR
EXPECTATIONS!
a bove expectations
ons
average expectati
s
below expectation

17. HTTP://WWW.GEEKALERTS.COM/GIANT-SWISS-ARMY-KNIFE/
a bove expectations
WOW!

18. DON‘T DELIVER ON WHAT
PEOPLE WANT. TRANSCEND
THEIR NEEDS AND DELIVER
ON THAT.
l of your delivery
leve
the ”wow “ space
l e‘s expe ctations
level of peop

19. CREATE NEEDS.
WWW.FLICKR.COM/PHOTOS/NORDICWALKING/2147019801

20. POSTULATE NEEDS.
WWW.FLICKR.COM/PHOTOS/BENHEINE/4561195225

21. ANTICIPATE NEEDS.

22. HTTP://WWW.APPLE.COM
MMMH!

23. I JUST GOT AN IPOD, AND IT'S NOT JUST NICE.
IT'S SURPRISINGLY NICE. FOR IT TO SURPRISE ME,
IT MUST BE SATISFYING EXPECTATIONS I DIDN'T
KNOW I HAD. NO FOCUS GROUP IS GOING TO
DISCOVER THOSE. ONLY A GREAT DESIGNER CAN.
PAUL GRAHAM, MADE IN USA: HTTP://WWW.PAULGRAHAM.COM/USA.HTML
THE SAME THING GOES FOR SERVICE.

24. COMPANIES CAN NO LONGER
”DECIDE“ THE WAY FORWARD.
THEY MUST NOW ”DESIGN“
THE WAY FORWARD.
MARTY NEUMEIER, PRESIDENT NEUTRON LLC, AUTHOR OF ZAG,
THE BRAND GAP AND THE DESIGNFUL COMPANY

25. CRITERIA FOR GOOD DESIGN.
TRUE TO THE SIGNIFICANT FOR
BRAND THE FUTURE
RELEVANT TO THE DIFFERENT FROM
CUSTOMER COMPETITION

26. HTTP://PROBLEMSOLVINGFIRE.FILES.WORDPRESS.COM/2008/06/GOOD-CHEAP-FAST3.JPG
INTRODUCING
...
SERVICE DESIGN.

27. SERVICE DESIGN CAN HELP
YOU CREATE SERVICES THAT
MAKE A DIFFERENCE.
HTTP://DKDS.CIID.DK/PY/INDUSTRY-
PROJECT-DSB/PROJECTS/MAPME/
SERVICE DESIGN IS A SYSTEMATIC, CREATIVE
APPROACH TO INNOVATION. VALUE IS CREATED BY
TAKING INTERACTION BETWEEN THE USER AND THE
SERVICE PROVIDER, AND IDENTIFICATION OF PROBLEMS
AS A STARTING POINT AND TRANSFORMING THESE
INTO OPPORTUNITIES AND NEW SOLUTIONS.
SOURCE: HTTP://ISSUU.COM/1508/DOCS/SERVICEDESIGNBOOK

28. WHAT & HOW.
SERVICE DESIGN ADDRESSES THE FUNCTIONALITY & FORM OF
SERVICES FROM THE PERSPECTIVE OF CLIENTS. IT AIMS TO ENSURE
THAT SERVICE INTERFACES ARE USEFUL, USABLE, AND DESIRABLE
FROM THE CLIENT’S POINT OF VIEW AND EFFECTIVE, EFFICIENT, AND
DISTINCTIVE FROM THE SUPPLIER’S POINT OF VIEW.
SERVICE DESIGNERS VISUALIZE, FORMULATE, AND CHOREOGRAPH
SOLUTIONS TO PROBLEMS THAT DO NOT NECESSARILY EXIST TODAY;
THEY OBSERVE AND INTERPRET REQUIREMENTS AND BEHAVIORAL
PATTERNS & TRANSFORM THEM INTO POSSIBLE FUTURE SERVICES.
BIRGIT MAGER

29. SERVICE DESIGN IS
ADDED VALUE CREATION
$
ON MULTIPLE LEVELS.

30. SERVICE DESIGN IS
CUSTOMER-CENTRIC
DESIGN.
WWW.FLICKR.COM/PHOTOS/VICTORIAPECKHAM/164175205
PUTTING PEOPLE AT THE HEART OF SERVICE DESIGN AND
INNOVATION HAS TWO SIMPLE, IMPORTANT BENEFITS: YOU
PUT A CLEAR FOCUS ON DESIGNING FOR AND WITH THE
PEOPLE WHO WILL ACTUALLY BE USING AND PROVIDING
THE SERVICES – WHICH IN TURN WILL HELP YOU TO DE-
RISK THE PROCESS OF CREATING NEW OFFERINGS.

31. SERVICE DESIGN IS
TOUCHPOINT DESIGN.
SERVICE DESIGN CREATES NEW OPPORTUNITIES
FOR YOUR COMPANY TO GET IN TOUCH WITH YOUR
CUSTOMERS. IT HELPS YOU TO FIND INNOVATIVE
WAYS TO MAKE A DIFFERENCE AND DELIVER ON
YOUR BRAND PROMISE.

32. SERVICE DESIGN IS HTTP://DKDS.CIID.DK/PY/INDUSTRY-
PROJECT-DSB/PROJECTS/MAPME/
INTERACTION DESIGN.
CUSTOMER JOURNEYS ALLOW TO ILLUSTRATE THE
COMPLETE PROCESS OF A SERVICE WITH ITS EMOTIONAL,
MATERIAL AND PROCEDURAL COMPONENTS FROM A
CLIENT’S PERSPECTIVE – THUS MAKING IT POSSIBLE TO
MODEL ALL THE INTERACTIONS WITHIN THE SERVICE.

33. SERVICE DESIGN IS
EXPERIENCE DESIGN.
IF I WAS DESIGNING A PRODUCT I’D TAKE LOTS OF IDEAS,
FIND OUT WHAT WORKS AND REFINE THAT. EVENTUALLY
I’D GET A SOLUTION. DESIGNING SERVICES HAPPENS IN
REVERSE: THE OBJECTIVE IS TO DEFINE EXACTLY WHAT IT
IS YOU WANT THE EXPERIENCE TO BE – AND THEN WORK
BACK TO ACTUALLY DELIVER THAT.
JOE FERRY, HEAD OF DESIGN AND SERVICE DESIGN, VIRGIN ATLANTIC
WWW.FLICKR.COM/PHOTOS/RAYCHELNBITS/2114144788

34. “TRY TO DESIGN THE EXPERIENCE BEFORE YOU SPEND TIME
ON DESIGNING THE PROCESSES AND TECHNOLOGY NEEDED TO
EVENTUALLY RUN THE SERVICE.” LIVE|WORK
WWW.FLICKR.COM/PHOTOS/BUENOSAURUS/3481606161

35. THE PROCESS.
...
HTTP://ADAMSONKNOWS.COM/CUSTOMER-JOURNEY

36. DESIGN
TOOLS.
HTTP://SERVICEDESIGNTOOLS.ORG/REPOSITORY

37. POSSIBLE OUTCOMES.
SOURCE: HTTP://WWW.ZEUSJONES.COM/BLOG/2009/RECENTLY-LAUNCHED-BP-PHOTOBOOTH/

38. POSSIBLE OUTCOMES.
SOURCE: HTTP://CEA.MBLAST.COM/WS/WFAWARD/RSP/VOTENOMINATION.ASP?SESSIONID=3849275

39. POSSIBLE OUTCOMES.
HTTP://WWW.NETFLIX.COM
SOURCE: HTTP://WWW.NETFLIX.COM

40. POSSIBLE OUTCOMES.
SOURCE: HTTP://WWW.Q110.DE/DE/INDEX.HTML

41. POSSIBLE OUTCOMES.
SOURCE: HTTP://WWW.AMAZON.COM / HTTP://WWW.NEWSWEEK.COM

42. POSSIBLE OUTCOMES.
SOURCE: HTTP://WWW.SHELL.DE/HOME/CONTENT/DEU/
PRODUCTS_SERVICES/ON_THE_ROAD/SHOP_AND_SERVICES/TANKWART/

43. IS THERE A FORMULA FOR A
BOMBASTIC SERVICE?
WWW.FLICKR.COM/PHOTOS/BUENOSAURUS/3670109860

44. CUSTOM ER INSIGHTS
+
FUTU RE KNOWLEDGE
=
ANTICI PATED NEEDS
X
CREATIVE SOLUTIONS
=
RE LEVANT SERV ICE SPECTRUM
–
NON-BRAND- CONFORM IDEAS
=
BRAND -CONFORM SER VICE OPTIONS
X
BUSINESS MO DEL CREATIVITY
=
BOMBASTIC SER VICE CREATION

45. STILL BUSY WITH
PRODUCTS?
WWW.FLICKR.COM/PHOTOS/ROBERTOMBERNA/2342717944

46. ASK YOURSELF: WHERE’S
SPACE FOR SERVICE IN OR ?
?
AROUND YOUR PRODUCT.
?
HTTP://MEDIA-CDN.TRIPADVISOR.COM/MEDIA/PHOTO-S/01/24/F8/C7/THINGS-WE-BOUGHT.JPG

47. SERVITIZE YOUR PRODUCT.
THE RELATIONSHIP BETWEEN PRODUCTS AND SERVICES IS
EVOLVING. PARTICULARLY IN TECHNOLOGY DRIVEN INDUSTRIES,
SERVICES ARE BECOMING AS FUNDAMENTAL TO PRODUCTS AS
HARDWARE AND SOFTWARE. THE TERM SERVITIZATION IS USED TO
DESCRIBE THIS TREND.
THE FUNDAMENTAL PRINCIPLE OF SERVITIZATION IS TO
UNDERSTAND HOW YOUR CUSTOMER WILL USE YOUR PRODUCT AND
INCREASE THE VALUE OF YOUR PROPOSITION BY PROVIDING
ADDITIONAL SERVICES THAT WILL COMPLIMENT ITS USE, FUNCTION,
DEPLOYMENT OR APPLICATION.

48. SERVICE IS THE FUTURE OF
PRODUCT. TRANSFORM YOUR
PRODUCTS INTO SERVICE!

49. THANK YOU!
WANT TO KNOW MORE? GET IN CONTACT:
MAIL@NOUVE.DE
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