This document discusses service design and contrasts it with product design. It defines service design as shaping service experiences to make them easy and enjoyable for customers. The key aspects of service design are that it is user-centered, co-creative, considers the sequencing of customer interactions, uses evidence from research, and takes a holistic view of the customer experience. Principles of service design include involving customers in the design process and focusing on uniform and timely delivery of services. Examples provided include McDonald's service model and how service design can improve customer satisfaction.