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What is Service Design?
- 1. WHAT IS SERVICE DESIGN? Summer of Service Design Richard Ekelman
- 2. Richard Ekelman Founder, The Service Experience Academy Service Experience Chicago Co-Founder & Director 2013 - 2016 External & Internal Service Designer Accenture, Slalom, Walgreens, Aetna MFA Service Design Savannah College of Art & Design 2
- 3. 1 Service Foundations 2 Capabilities & Distinctions 3 Methods & Myths Our Journey Today 3
- 4. Why is Service Design a buzzword right now? 4
- 5. Everyone knows their part of the elephant. It is impossible to design a system you can completely see and measure. 5
- 6. “Channels” reflect companies. Not people. These are contrived boundaries created by how organizations divide their labor and not how people conceive a brand. 6
- 7. Co-created services save money, reduce risk, & build value. Understanding the people that deliver and consume a service allows an organization to tailor their offerings. 7
- 8. ht Services are technology agnostic. Human behavior and technology are constantly evolving. Services adapt to reality, current & future. 8
- 9. http://i.huffpost.com/gen/4350484/images/o-VIRTUAL-REALITY-facebook.jpg Services are technology agnostic. Human behavior and technology are constantly evolving. Services adapt to whatever reality is now and in the future. 9
- 10. Competing on service requires a service-aligned organization. Competing on price or features creates organizations that are disconnected from customers and siloed from each other. 10
- 12. S-D Logic Service-Dominant (S-D) Logic is a mindset that organizations, markets, and society are fundamentally concerned with exchange of service—the applications of competences (knowledge and skills) for the benefit of all parties involved. According to S-D Logic, all of marketing needs to break free from the goods and manufacturing-based model—that is, goods-dominant (G-D) logic. S-D logic embraces concepts of the value-in-use and co-creation of value rather than the value-in-exchange and embedded-value concepts of G-D logic. Vargo & Lusch, 2004 12
- 13. S-D Logic Axioms 1. Service is the fundamental basis of exchange. 2. Value is co-created by multiple actors, always including the beneficiary. 3. All social and economic actors are resource integrators. 4. Value is always uniquely and phenomenologically determined. 13
- 14. Parts of a Service CORE SERVICE The core way an organization creates value. ENABLING SERVICES Processes, training, and resources enabling the core. ENHANCING SERVICES Processes and partnerships that extend delight. SERVICE RECOVERY Processes that seek to salvage and repair. Core Enabling Enhancing Recovery 14
- 15. 5Ps of Service Design PEOPLE Employees and customers that deliver and exchange value across the moments of a service. PLACE The physical space or the virtual environment through which the service is delivered. PROCESS Processes connect the front and back stages of how a service is performed. PROPS The objects and the collateral used to produce the service encounter (forms, products, signs, etc.). PARTNERSHIP Other businesses or entities that help to produce or enhance the service encounter. 15
- 16. Services as Theatre (airport) BACKSTAGE Baggage Handler Airport Ops Food Services Jet Bridge Operator Airport Ground Crew Mechanic FRONT STAGE Gate Associates Pilots Flight Crew 16
- 17. Front Stage and the Audience BACKSTAGE Baggage Handler Airport Ops Food Services Jet Bridge Operator Airport Ground Crew Mechanic FRONT STAGE Gate Associates Pilots Flight Crew 17
- 18. Backstage Actors and Partnerships BACKSTAGE Baggage Handler Airport Ops Food Services Jet Bridge Operator Airport Ground Crew Mechanic FRONT STAGE Gate Associates Pilots Flight Crew 18
- 19. Services as Theatre (airport) BACKSTAGE Baggage Handler Airport Ops Food Services Jet Bridge Operator Airport Ground Crew Mechanic FRONT STAGE Gate Associates Pilots Flight Crew 19
- 20. Understanding how a service lives over time will help create the right balance and timing in your service concepts. Sequence 20
- 21. Services are largely intangible, but evidence of a service can help extend the connection people feel to their experiences. Evidencing 21
- 22. For example
- 23. Trunk Club CORE SERVICE 1 on 1 fashion advice and clothing services. ENABLING SERVICES Supply partnerships, stylists, space, inventory system, & stylist training program. ENHANCING SERVICES Premium drinks in-store, custom tailoring services, look board (App.), handwritten notes from stylist. SERVICE RECOVERY Call from the VP of Member Experience, follow-up emails from the stylist from each service encounter. Core Enabling Enhancing Recovery 23
- 24. 5Ps: Trunk Club People Props Place ProcessPartnership 24
- 25. Service System: Trunk Club Front stage Enabling Processes Delivery/EvidenceService Encounter
- 26. Some of this will look similar Capabilities & Distinctions 26
- 27. Core Capabilities of a Service Designer The Researcher The Strategist The Designer Robert Bau, 2012 Identifying & Overcoming Innovation Roadblocks Generating, Screening & Visualizing Ideas Developing Viable Strategies & Plans Identifying Opportunities & Re-framing Problems Developing, Prototyping & Validating Concepts Understanding Complex Systems & Problems Understanding People Understanding & Envisioning the Future Facilitating the Collaborative Process
- 28. Service Design borrows from everything and everyone to solve problems. We seek to find the right mix of technology and processes needed to create the most value in the simplest manor possible. Inherent Flexibility UX Product Anthropology CX Architecture Business Strategy Marketing Data Science SD 28
- 29. Product Design extending their makers mentality beyond objects. offering them the ability to transition between digital and physical contexts. Business Strategy creating a competitive advantage by aligning to what people value. reducing the risk that can paralyze innovation. Content Strategy adding the need to design for service personality. Six Sigma highlighting optimizations from both the customer and org perspective to grow an efficient and desirable system. Organization Change adding a tangible set of business outcomes and customer value to create a catalyst for change. Process Design adding regular measurements, evidence, and alignment to the value of improved processes. User Experience getting beyond screens. de-coupling their work with technology platforms. getting away from features. Customer Experience freeing them from sales and marketing tactics. delivering valuable relationship. Employee Experience adding systematic way to identify and remove barriers. co-creating with workers to drive the innovation process. Service Design extends __________ by __________________.
- 30. Service design is... flexible and can be applied to any industry to solve systematic problems. foundational and has always evolved out of a need to find a competitive advantage. uniquely equipped to handle complexities. co-creative and reduces the risk in innovation. as digital and physical as needed to solve the problem. 30
- 31. The Mindset Shelley Evenson Director of Cultural Evolution, Fjord • People are first and foremost • Co-creation is critical • Continuously storytelling • Make early and often • Develop a competitive advantage • Evidence based 31
- 32. The mark of a professional is knowing the right tool at the right time. Methods & Myths 32
- 33. Service mapping Standard execution time 3 minutes 15 seconds Total acceptable execution time 6 minutes 15 seconds Lynn Shostack, 1986 Repeat for second coat Apply polish Brush shoes Clean shoes Fail point Receipt Sample of shoe polish Wrong color wax Buff Collect payment 33
- 35. Map for Alignment • Document the current state and find failures • Align on KPIs • Create a shared reality • 1 map one experience based on research • Treat maps as living documents • Helps stakeholders unclench from a single feature PHYSICAL EVIDENCE CUSTOMER ASSOCIATE DATA COST INTERNAL SYSTEM EXTERNAL SYSTEM TIME 35
- 36. Jobs to Be Done Provides a clear sense of the jobs a service must perform to be valuable. Understanding the jobs a service is hired for breeds constant measurement and a connection to real stories. Lynn Shostack, 1986 When I want So I can the goal service trigger service context 36
- 37. Jobs Over Personas Personas are assumptions wrapped in assumptions The weight of personas make them too heavy Jobs are more measurable 37
- 39. Dollar Shave Club Created a competitive advantage by creating a more efficient and effective service around a good product that fit into the way people live and reducing the friction and underlying cost of production. 39
- 40. Product Dominance Operational Excellence Customer Intimacy Market Strategies Product Dominance Operational Excellence Customer Intimacy 40
- 41. Partnerships Backstage Processes Core Service Front stage People TouchpointsKey Resources Cost Structure Revenue Streams One wipe CharliesStore displays Acquisition costs Women Re-occurring order intervalsManaging regional store locations Improved experiences by removing friction points and making repeat orders easy to manage Emails to drive re-engagement and offer control Emails to drive re-engagement 41
- 42. Product Dominance Operational Excellence Customer Intimacy Competitive Advantage Product Dominance Operational Excellence Customer Intimacy 42
- 43. Lower costs to compete and higher margins $$$$$$$$$$ Zero to One 43