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Service Design for Business


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Service Design for Business

  1. 1. Service design for business JiHoon Kwak 20150101
  2. 2. Contents Why service design Three Trends That Make Service Design Relevant Today Use Service Design to Deal with Business Ambitions and Organizational Challenges Key Concepts Chapter 1
  3. 3. Service design has emerged in the 21C because of these reasons: Many trends. Design history background. Service marketing. whywhat Why Service Design These two elements together Why service design? Why now? How it is relevant to you as a manager, leader, or business?
  4. 4. Economic Trend Social Trend Technical Trend Design Relevant Today These three trends should be considered in service design.
  5. 5. Manufacturing Growing rapidly Primary industries Secondary industries Tertiary industries Higher-margin businesses than manufacturers. Services have the additional benefit of supporting customers to get the best from products and drive loyalty. Bring the best design methodologies to bear on a new challenge. Economic: The trend toward value in services Agriculture Service
  6. 6. Customers are expecting more as they value their own entitlements more than previous generations. Consumer expectations Service Design (Customer needs) We need to understand customer needs and expectations develops in parallel. Social: The increase in customer expectations
  7. 7. We are all aware of the impact of the digital revolution. It has driven radical change and disruption in the service sector. Radical Change Digital revolution Ex) Amazon Developing technology Dehumanize Service design Humanize technology Technical: Growth of digital means Service design offers tools to humanize technology.
  8. 8. Use Service Design to Deal with Business Ambitions and Organizational Challenges
  9. 9. Business ambitions Service design Internal & External Challenges Service design offers a perspective, method, and tool set that enables an organization to realize business ambitions as well as way to deal with internal and external challenges. It offers an approach to deal with strategic initiatives as well as challenges by asking three fundamental questions: 1. What does this do for our current and future customers? 2. How will our business be impacted? 3. Which capabilities are needed by the organization to respond or to drive the initiative? Customer- related challenges Customers Business Organizatio n Connecting customers to the business and the organization
  10. 10. Seeing a business through customers’ eyes offers powerful insights that make customers’ expectations, experience, and behavior more tangible. Increase customer satisfaction and improve the level of adoption. Reduce customer irritations and prevent costly service failures. Improve service experience for customers and build better customer relations. Exactly actions Service design Tangible value Understand customers and build high-value relationships
  11. 11. A service design approach identifies key customer drivers that impact customers’ behavior and finds customer-centric ways to achieve business objectives: Lower cost to serve existing and new customers. Increase customer retention. Create new sales or upsell opportunities. Successfully launch product and service innovations into the market. Business can win with customers
  12. 12. Understanding customers (especially their needs and expectations of the organization) translated to the reality of how the organization operates and runs enables organizations to achieve: Internal understanding and alignment. High staff engagement and participation. More customer-centric focus, leading to increased market agility. Align the organization around customers
  13. 13. Business thinking Assumption “Most problems are already out there” Design thinking Solution quickly Service design Analytical thinking Imaginative thinking+ Thinking by doing
  14. 14. Human experiences Another fundamental starting point in design is empathy with the human(customer) and their experiences. Human-oriented
  15. 15. Creative Design processes Innovative services Market Organization Creative processes
  16. 16. Qualitative research Human Experience with predictable pattern Service (Customer needs) Qualitative research
  17. 17. Understanding behavior Qualitative research Uncover human behavior Economics+ “Highly strategic impact”
  18. 18. Development process Customer needs Visualization of customer scenarios, retail spaces, websites, and cell phone interfaces and advertisements help us gain precision business objectives. Describe with people, not for them Traditional design Current design Describe customer experiences
  19. 19. Service excellence is primarily about continual improvement. Business that win are experts at avoiding customers irritations and inefficient delivery. Design solutions with staff The true service experts are the people that deliver the service every day. Service employees have extremely detailed knowledge about what creates value for customers and what works for the business. Observing customers behavior Make design difference Creative design Decrease chance of failure Design solutions with customers
  20. 20. The service blueprint takes the customer journey as a starting point. It describes the service from the customer’s point of view before, during, and after engagement. The service blueprint can help do this: Service blueprint Visual overview Resolve service delivery issues The service blueprint as framework
  21. 21. The service blueprint as framework (RealtimeBoard, 2014)
  22. 22. Thank you Any question?