Designing for tomorrows needs

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

TODAY, COMPANIES MUST EXCITE THEIR CUSTOMERS ON MULTIPLE LEVELS.

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

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

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

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.

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

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.

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

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

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

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

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.

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

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

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

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

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

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

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

ANTICIPATE NEEDS.

HTTP://WWW.APPLE.COM MMMH!

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.

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

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

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

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

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

SERVICE DESIGN IS ADDED VALUE CREATION $ ON MULTIPLE LEVELS.

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.

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.

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.

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

“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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

THANK YOU! WANT TO KNOW MORE? GET IN CONTACT: MAIL@NOUVE.DE COPYRIGHT © NOUVÉ ALL COGNITIONS, DOCUMENTS AND METHODS PRESENTED BY NOUVÉ IN THE FOREGOING CONCEPT WILL REMAIN THE AGENCY‘S INTELLECTUAL PROPERTY. UTILISATION OF THE PRESENTED IDEAS, TEXTS, GRAPHIC DESIGNS, TIMETABLES, PLANNINGS, FOTOS, MOVING PICTURES AND SOUND MATERIALS AS WELL AS OTHER STORED MEDIA ASSOCIATED WITH THIS CONCEPT IS RESTRICTED TO THE REALISATION IN CONJUNCTION WITH NOUVÉ. ALL REALISATION AND UTILSATION IS ONLY ALLOWED ON THE BASIS OF A CONTRACT AND ITS FULFILLING WITH THE ORIGINATORS / RIGHTS OWNERS. RIGHTS OF USE WILL ONLY BE GRANTED ON THE BASIS OF THIS CONTRACT THAT WILL ALSO REGULATE THEIR EXTENT REGARDING TIME, SPACE, CONTENT, INTENTION AND MANNER OF USE. ALL REALISATION AND UTILISATION (IN WHOLE OR PARTS) DEVIANT FROM THIS REGULATIONS AS WELL AS A PROPAGATION TO THIRD PARTIES ARE A VIOLATION OF COPYRIGHT WITH ALL ITS LEGAL CONSEQUENCES.

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Designing for tomorrows needs

by Torsten Henning Hensel

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