Design for service part 2 of 2


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Design for service part 2 of 2

  1. 1. designfor servicefor both service and manufacturing businesses
  2. 2. 04 How design for service can helpUsing design to improve Developing a service vision and strategy Focusing on customersservice: examples •Assisting organisations to become more service focused •Developing and communicating a •Working with senior managers to explore customer focus •Developing new insights into customers service-led vision and strategy and the means to use them •Designing-in service innovation •Developing methods for customer-facing processes staff to provide feedback to senior staff •Developing customer-centred business metrics and designing-in the means to measure Designing the Developing internal new service processes •Helping organisations to visualise the •Looking at what customers value most services they offer and how they as a means to organise resources offer them •Focusing internal processes around the •Identifying new opportunities for needs of customersThese fictional examples are intended Broadly speaking, design for service innovation by looking at the whole •Developing organisational structuresto be inspirational, not exhaustive. can help SMEs in six ways: system of service delivery that support staff who have directService design could exist in many • Developing a service vision •Working with internal teams and contact with customers customers to innovate new services •Identifying opportunities to reduceforms and be delivered in many ways and strategy •Generating ideas, modelling, overall costs to serve customersdepending on the business context. • Focusing on customers visualising and specifying new servicesIn these near-future case studies we • Designing the new service •Managing risk through servicehave assumed that each SME worked • Developing internal processes prototypingwith an experienced service design • Creating better experiencesconsultant or consultancy. • Creating and maintaining a brand. Creating better Creating and experiences maintaining a brandEach case study will start by Outlined in the table on the right •Measuring customers’ experiences •Developing service brandsoutlining the company’s current are some specific activities which across all the touch points of an •Helping internal teams to interpretposition and its business strengths companies can benefit from. In order organisation their brand into new services and •Developing service values and customer experiencesand weaknesses. It will then go on to exemplify how service design can principles that can be applied acrossto outline what a service design be applied in practice, these methods the businessconsultant might suggest so the and activities are highlighted in •Designing the experiences thatcompany can capitalise on its orange on the side of each example. customers have of customer-facing staffservice strengths, negate its service •Working with customer-facing staff toweaknesses and push the business improve these experiencesforward in the service century. •Designing the opportunities for customers to provide feedback and to participate 15
  3. 3. 04Using design to improveservice: examples Business context: Based in North Wales, TildaTech has 55 employees and a turnover of €14.8 million. At their factory they manufacture an electrical beauty therapy product. The equipment sells for €3,000 and requires annual servicing. Effective use of the equipment requires one day of training. Current customers of TildaTech are mainly beauty treatment salons and boutiques. These range from very small hair or nail salons4.1 TildaTech wanting to offer a broader service — to established chains of private sports and health spas.Using a better understanding of their Strengths:customers to inform the design of the TildaTech promote their product via adverts in trade journals andservice and to inspire new products attendance at key beauty therapy and health trade shows aroundand services. Europe. The company have a website that is essentially an on-line brochure with technical details and regional agent contacts — a well- established network of distributors comprising 28 approved suppliers in 15 different countries. TildaTech were one of the first into the market and have an established presence. Their brand is known and respected in the beauty treatment sector. Weaknesses: Unfortunately for TildaTech, developments in technology are now lowering barriers to entry – meaning more competition. Until 18 months ago TildaTech’s product was one of only three products available for this treatment. Now more companies are offering inferior quality products at a lower cost that can achieve similar results. So far, TildaTech have focused on getting the technology and manufacturing quality right and developing a network of agents to aid distribution. The owners and senior management have all come from manufacturing backgrounds and consider TildaTech to be a manufacturing company. 16
  4. 4. Working with servicedesign consultantsThrough a workshop with TildaTech’smarketing team and three beautytherapists, the service design consultantshelped the company to develop a customersegmentation model. This allowed them tounderstand the attitudes and behaviour Developing new insights into customersof end-users – the people that actually and the means to use themuse their products. After checking thismodel with some of their larger long-standing customers, the service designershelped TildaTech put together a panelof experienced end-users who now meetonce a month. TildaTech use this panel to Working with internal teams andunderstand more about how, why, when customers to innovate new servicesand where people use beauty and healthproducts and services.In a parallel project the service designers Designing-in service innovationworked closely with the product processesdevelopment team to understand howthey design and innovate products. Itwas essential that the user panel wasintegrated into the development process.The designers also helped the productdevelopment team to commission acustomer insight programme that enabledthem to learn even more about the peoplethat use their products.Although initially surprised by some Looking at what customers value mostof the ideas and opinions coming from as a means to organise resourcesthe insight programme, the productdevelopment team came to see the valueof putting users at the heart of their creating the segmentation model 17
  5. 5. development strategy. After six monthsthe user panel was helping TildaTech toimpress their customers by suggestingnew service features and product discoverfunctionality that the salons, spas andgyms had never considered.In a further workshop the development Developing organisational structures evolveteam looked at the sales processes that that support staff who have directtake place in salons, spas and gyms. contact with customersThe team identified an opportunity toprovide more support to staff in theircustomers’ businesses. The designers excitewere commissioned to carry out a detailedanalysis of user journeys and to developsome simple support materials and webpages that helped to train staff whenand how to explain the benefits of using optimiseTildaTech products. The brief to thedesigners was aimed at helping everybodyto get the most out of TildaTech. informThe success of the user insight Working with senior managers toprogramme gave the management team explore customer focusthe confidence to hire service designersagain a year later to help identify newcustomers for new higher-value productsand services. Working closely withmanagement and the sales and marketingteams, the service designers ran a seriesof customer-spotting workshops wherethey invited a range of people fromdiverse sectors to help anticipate futureneeds and markets. TildaTech identifiedcosmetic surgeries and other medical understanding the design process 18
  6. 6. practices as a high growth, high margin Working with internal teams andsector. With their user panel already customers to innovate new servicesin place TildaTech were able to testearly product and service ideas quickly,reducing risks and time to market. Managing risk through service prototypingTildaTech has now established a well-deserved reputation amongst its Developing service brandscustomers for its user-focused productdevelopment, and is now a regional leaderin the use of user insight and serviceinnovation in manufacturing. gaining user insight 19
  7. 7. 04Using design to improveservice: examples Business context: Brecon Furniture manufacture high-end task seating for offices across Europe. Principal customers include corporate buyers of task seating for the office, independent office furniture retailers, and architectural and interior design specifiers. Seventy-five employees work in modern premises in Mid Wales, and last year the company reported turnover of €26.7 million.4.2 Brecon FurnitureRemaining competitive by translating Strengths:a reputation for quality products into Brecon Furniture have a strong in-house design team. They havequality services. a clear design-led approach, with excellent attention to detail on product design and advertisements. They occasionally use high- profile external designers, and have effective ergonomic design techniques and good brand awareness amongst customers. They sell directly through their website, and they also have a single London showroom. However, most sales come through a network of independent, approved suppliers across Europe. Weaknesses: On the downside, Brecon Furniture have high manufacturing costs as all assembly and 50% of component manufacture is based in Wales. There is little scope for cost reduction on the UK manufacturing side of the business. Meanwhile competition is increasing as larger multinational manufacturers with foreign production bases are driving prices down. In addition, Brecon Furniture faces a new competitive threat from office solutions provided by companies such as IKEA, whose products are now of higher quality than before. 20
  8. 8. Working with servicedesign consultantsBrecon Furniture have an established anddeserved reputation for quality that comesfrom the high standards they employ attheir manufacturing facility in Mid Wales.Quality in manufacturing can be mirroredby quality in service, but only if a companyunderstands and supports its customer-facing staff — as Brecon Furniture foundout to their advantage.With new and large competitors closing Assisting organisations to become morein, Brecon’s management team knew that service focusedthey had to avoid competing on price,and that they risked losing competitiveadvantage on quality as the standard oftheir competitors’ products increased.They identified ‘service value’ as anopportunity to remain distinctive, toevolve their brand in the light of newentrants and to retain share at the mid-volume, premium end of the market.Through Design Wales they invited aservice design consultancy located inthe region to organise a series of openworkshops with Brecon’s employees toexplore how they could add ‘service value’to their products.Many of the staff that serve Brecon’s Developing organisational structurescustomers directly were invited. The that support staff who have directfurniture delivery agents, not normally contact with customersincluded in management decisions,identified ‘help and advice withinstallation’ as a major customer need. open workshops 21
  9. 9. Research with customers carried out by Identifying new opportunities forthe service designers after the workshop innovation by looking at the wholeconfirmed this. The management team system of service deliveryagreed that this was a real opportunity.Delivery agents and the service designersworked to develop a training package— and to train themselves — in providingadvice to customers on installation. Thenew ‘Total Delivery’ service was designedand prototyped through the BreconFurniture website with the help of thedesigners. This meant that managementcould carefully monitor and controlthe number of customers requesting Managing risk through servicethe service, and ask for their feedback prototypinganonymously on-line.With feedback from customers verypositive, and direct sales through thewebsite up, Brecon Furniture wereconfident in the delivery agents as avital source of customer intelligence – aswell as a means to add ‘service value’.Brecon began to apply their own triedand tested approaches to quality to the‘Total Delivery’ service. They integratedcustomer feedback from the delivery Designing the experiences thatagents into the service development customers have of customer-facing staffprocess and heldbi-monthly meetings between designersand delivery agents. Helping internal teams to interpretIn one such meeting the agents reported their brand into new services andthat customers, becoming used to help customer experiences generating ideas 22
  10. 10. with installation, were commentingthat they wished they had asked BreconFurniture more questions in advance ofplacing their order. As Brecon alreadyhad significant expertise in ergonomicand human factors design, they realisedthat they could also assist (and profitfrom) offering customers office design andlayout services to match their furnitureproduct portfolio. Generating ideas, modelling, visualisingDuring the following year, sales and and specifying new servicesdelivery agents were trained to offeradvice to customers to determine theirrequirements. Brecon developed expertisein advising on storage, the design offurniture solutions for flexible andmulti-use spaces, and in the commercialanalysis required to justify investing inquality. Developing service brandsWith a reputation for manufacturingquality and a new reputation for service,Brecon Furniture’s new ‘Total Office’service proved very popular. BreconFurniture’s expertise in translatinghuman factors research into officeenvironments, combined with theirability to design, supply and install officefurniture, has won them new, largercontracts. The company now plans toextend their ‘Total Office’ service to agrowing number of smaller customers byopening retail stores in three of the UK’sfastest-growing small-business districts,with customer service specialists asmanagers. planning environments 23
  11. 11. 04Using design to improveservice: examples Business context: Green Taxis is a very small start-up company in Cardiff, Wales’ largest city. The company wants to operate Cardiff’s first eco-taxi service with a fleet of hybrid petrol/electric vehicles. They aim to have 10 cars within 12 months.4.3 Green TaxisUsing service innovation and design Strengths:to overcome the barriers to entering a The company’s principal target market are corporate clientswell-served market with a new idea. interested in demonstrating their corporate social responsibility through the use of environmentally-friendly services. It is intended that a relationship can be developed with corporate clients so that the majority of fares are paid for on account. In addition, Green Taxis want to target the public who want to book a taxi for travel around the city with the minimum impact on the environment. Weaknesses: Due to the significant cost for buying a licence to pick up from the bus, train station and airport, all passengers will need to be pre- booked. There are 12 other well-established taxi firms operating in Cardiff. Green Taxis is the only eco-taxi service in the city. This gives them an advantage but also exposes the risk they are taking, as there is no sustained demonstration of demand. As they can’t pick up passengers at the kerbside, they rely on word of mouth, their brand, and a well-designed experience for their passengers of booking Green Taxis. 24
  12. 12. Working with servicedesign consultantsUnderstanding the co-productive nature Helping internal teams to interpretof service branding means working their brand into new services andclosely with customers. This is especially customer experiencesimportant for a service such as GreenTaxis where their core service offer isbased on selling a ‘lifestyle’ choice ratherthan low prices or efficiency. Servicedesign helped Green Taxis understandthis from the very beginning, makingtheir approach a model for many new eco-service companies across Europe.Initially, the service designers helpedGreen Taxis research the environmentalposition of large local corporateorganisations. Once they had identified Developing new insights into customersthe most progressive organisations in the and the means to use themarea, they contacted the personnel incharge of corporate social responsibility totell them about the new service.Prior to the meetings they workedwith the service designers to develop Helping organisations to visualise theand visualise a range of marketing services they offer and how they offerpropositions they could offer the themcompanies. After the meetings they wentaway and developed unique, co-brandedservice options for the companies. Somefirms opted to sponsor individual taxis,some wanted a taxi outside their offices atall times, others decided to use their PR Generating ideas, modelling, visualisingteams to highlight the relationship to the and specifying new serviceslocal media. customer thinking 25
  13. 13. This carefully co-produced service Identifying opportunities to reducebranding meant that Green Taxis’ overall costs to serve customersmarketing and PR budget was completelyfinanced by their customers — with plentyof profit left over to invest in acquiringmore cars and drivers.The publicity from the large companiesled new private customers to contactGreen Taxis through their website,asking how they could be sure of alwaysgetting a Green Taxi. Working with theservice designers again, Green Taxis Working with internal teams andidentified two ways they could help these customers to innovate new servicesnew customers access the taxi service,whilst keeping overheads low for the newcompany.First, Green Taxis’ knowledge of greenactivities and organisations in the areameant that they could set up a newwebsite to promote green initiativesin Cardiff. The website encouragedsmaller businesses to sign up to the siteto receive tips and ideas on going green(and profiting from it). The site helped to Designing the opportunities forbuild awareness of Green Taxis. Data on customers to provide feedback and tosmaller firms was then used to identify participatethe ‘greenest’ areas of the city, and GreenTaxis began to directly market theirservice in these neighbourhoods.Second, working closely with several Developing new insights into customersvolunteer ‘green users’ who regularly and the means to use themhired the taxi service for private use,the service designers helped Green proposition development 26
  14. 14. Taxis identify the barriers for privateindividuals using the service. Theydiscovered that although these customerswould prefer a Green Taxis to a normaltaxi, they weren’t prepared to wait morethan five minutes longer for a Green Taxithan a normal taxi. They also found thatcustomers resented having to wait on holdwhen booking any taxis by telephone.Green Taxis worked with the service Generating ideas, modelling, visualisingdesigners to design and implement a and specifying new servicesservice for customers allowing them touse SMS to indicate their approximatelocation to be picked up from (a streetname or a postcode). Provided thecustomer is near the city centre, GreenTaxis can then reply by SMS immediatelyto reassure them that they will not haveto wait more than five minutes. GreenTaxis can now dispatch a car and call thecustomer back withinfive minutes. proposition specification 27
  15. 15. 05References Academic Dr Bill Hollins Prof. Birgit Mager Mads Clausen Institute, University of Southern Denmark Design Innovation Education Centre (DIEC)The list opposite details those who developing and working with Emergence Conference, Carnegie Mellon Universityservice design and where to find more and guidance. Design Management Institute Established Service Design Consultancies Engine Ideo live|work project has been commissioned by Design Walesand produced by Engine Service Design. 28
  16. 16. service design design by engine service design