Lecture on why Design thinking and customer focus are often superficial and do not lead to the desired results

1. SERVICE DESIGN
WORKS!
DOESN’T WORK!
a PALMU presentation for Singapore design week, 18.3.2015

2. DESIGN THINKING
Design thinking is generally considered the ability to combine
Empathy for the context of the problem,
creativity in the generation of insights and solutions and
rationality to analyze and fit solutions to the context.*
*Wikipedia

4. Relentless customer focus
Fast customer exposure

5. Service models
and -processes
Roles and goals
Service surroundings
Service
gestures and
style
Interactions and
communication
Tools supprting
the change
Service experience
which is born out of
human actions
What does the service designer design?

6. Business challenge
- Extremely tight competition in the field. Old biz-model
doesn’t work any more  need to stand out
- Sales goals lagging  need for new sale model

7. Customer point of view
Planning
+
-
POSITIVE
EXPERIENCE
NEGATIVE
EXPERIENCE
Life in the new bath-
room
Selection of products
and time scheduling
Renovation
Towards completion
Project planning
Hopes&
expectations

9. Insight I The shop is a tool for the sales-
team, not a show-room

10. Luottamus, korkeat
palveluodotukset
Skeptisyys,
varauksellisuus
Uncomfortable, anxiety, unclear big picture
Passion, research, dedication, own vision
Preparedeness to let others take
care of things
Do it your self,
preparedeness to put in
effort
In need of
support
Enlightened
Doubtful
Do-it your self
Profiling of customers
Apuun tukeutuminen,
epävarmuus
Harrastaminen,
oma kehittyminen

11. Phased iterative and agile
development model which
enables light testing before
big investments

12. The new sales-
model

14. Store to become the
primary sales tool for sales
staff in which bathrooms are
sold, not tiles or shower
cabinets

15. Sales skyrocketed during pilot
phase and grew in all stores
implementing the new
concept
Time spent with individual
customer
+60%
-20%

16. Focusing on customer value: dramatic business
effect
Security check is a
customer oriented service 5 54
NPS
From selling tiles to
renewing bathrooms 60%
SALES
From equipment and lesson sales
to service experience
MARKET SHARE
From 0 to 2. in sales in
7 months (Finland)
In 6 locations
From phone books to market
leader in e-directory services
MARKET LEADER
2.000.000 app downloads
24 -> 47 NPS
REVENUE
6 -> 9 M€ / week
350 -> 500 M€ / year
New games and services
to new customer segments
From ticket sales
to customer service +36%
NPS

18. SERVICE DESIGN
‘Service design is an activity that, among other things,
suggests behavioral patterns or “scripts” to the actors
interacting in the service.’
Wikipedia
WORKS!

19. CUSTOMER ORIENTED?
OF COURSE, EVERYONE IS!
Bain & Company

20. 80%
Management Customers
8%
We have experienced
a SUPERRIOR
customer experience
We deliver a
SUPERRIOR
customer
experience

21. Customer
journey
Customer encounter
Online- UI/UX
Business- kriittiset
palveluprosessit
Organisoituminen
ja prosessit
Osaaminen ja
lähijohtaminen
Suhtautuminen
asiakkaisiin
Suhtautuminen
omiin työntekijöihin
Visio tulevasta ja
palvelustrategia
The goal for Service
design is a better
customer experience
Jatkuva
mittaaminen ja
kehittäminen
Menestysennuste
ja taserakenne
Kulut ja investoinnit
MUTTA MYÖS
KANNATTAVAMPI
LIIKETOIMINTA

22. Vision and service
strategy KPI’s
Roles and processes
Middle management
Attitude towards clients
Attitude towards employees
Balance sheet structure
Costs/investments
Customer
journey
Customer encounter
Online- UI/UX
But more importantly
a more profitable and
productive business

23. Customer focus is often superficial
PALMU’s finding
We asked our clients in which business areas
they are customer focused
GAP

24. -Committees
-Fixed policies
-Marketing
-Brandguidelines
-Back-end IT renewal
-New managers own vision
-New planning teams
-Not invented here syndrome
-Defensiveness of IT
department
-Tech challenges
-Shortsighted Quarter
based decisions
-Random
opinions&comments

25. Large corporations maximise profits
Development of existing biz-model by
quarterly results
New challengers take market share
Development of challenging biz-model
through iteration and customer focus
How can companies escape the
shackles of the old biz-model?
Customer expectations
and demand
Source: Innovator’s Dilemma
When New Technologies Cause Great Firms to Fail
Clayton Christensen
Classic service design
New service design
Design
thinking
Disruptiv
innovation/
megatrend
Agile
Developmen
t
Service Design, unrelenting client
focus and agile development

26. Simultaneously ”classic” service design becomes
the hit-product which is easy to buy
In 2015 succesful service design impact organisations in a profound
way reaching organisational culture, business growth and
competitive advantage
SERVICE DESIGN
DOESN’T WORK!

27. Case Helsinki Airport Service Design http://vimeo.com/40504488

28. • Palveluprosessi
• Palveluympäristöt
• Palveluteot (§)

29. Fysical design to support new operating model and service
Solution

30. Result: A world class
customer experience
Net Promoter
tracking at
Terminal 1
53
6
24.10.2011 27.3.2012

31. R&D+
Manufacturing
Marketing
Sales
IT
Customer
service
A combination of behavioural and market researchers,
management consultants, designers and IT professionals – all
working together across the silos, all focusing on the
customer.
UNCOMPROMISING CUSTOMER
ORIENTATION

33. SERVICE DESIGN
WORKS!
THANK YOU
a PALMU presentation in collaboration with ideactio for Singapore design week, 18.3.2015