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Strategy, Business models & Service design

My slides from a 2 part lecture at Halmstad University about business strategy and how changing customer behaviours and social changes has paved the way for service design and a new kind of focus on the customer.

Strategy, Business models & Service design

  1. 1. Strategy, Business models & Service Design Joel Sandén Halmstad University
  2. 2. What we’ll cover in part 1 • What is strategy? • How to analyse a market? • How to create a business model? • How to create goals for a business? https://en.wikipedia.org/wiki/Porter_five_forces_analysis
  3. 3. What we’ll cover in part 2 • The new role of “Design” • What is Service Design?
  4. 4. What is strategy?
  5. 5. https://en.wikipedia.org/wiki/Porter_five_forces_analysis
  6. 6. –Alfred Chandler Strategy and Structure: Chapters in the history of industrial enterprise Doubleday, New York, 1962. "the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals."
  7. 7. –Alfred Chandler Strategy and Structure: Chapters in the history of industrial enterprise Doubleday, New York, 1962. "the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals."
  8. 8. Think. Pair. Share. Why does a business need a strategy?
  9. 9. Cause & Effect Growth Mitigation
  10. 10. The 5 strategy P:s
  11. 11. The 5 strategy P:s • Strategy as plan
  12. 12. The 5 strategy P:s • Strategy as plan • Strategy as pattern
  13. 13. The 5 strategy P:s • Strategy as plan • Strategy as pattern • Strategy as position
  14. 14. The 5 strategy P:s • Strategy as plan • Strategy as pattern • Strategy as position • Strategy as ploy
  15. 15. The 5 strategy P:s • Strategy as plan • Strategy as pattern • Strategy as position • Strategy as ploy • Strategy as perspective
  16. 16. Strategic Management Framework
  17. 17. Strategic Management Framework https://en.wikipedia.org/wiki/Strategic_planning Analysis Strategy Formation Goal Setting Structure Control & Feedback Formulation Implementation
  18. 18. Strategic Management Framework https://en.wikipedia.org/wiki/Strategic_planning Analysis Strategy Formation Goal Setting Structure Control & Feedback Formulation Implementation
  19. 19. Strategic Management Framework https://en.wikipedia.org/wiki/Strategic_planning Analysis Strategy Formation Goal Setting Structure Control & Feedback Formulation Implementation • SWOT • PEST(LE) • 5 forces
  20. 20. Strategic Management Framework https://en.wikipedia.org/wiki/Strategic_planning Analysis Strategy Formation Goal Setting Structure Control & Feedback Formulation Implementation • SWOT • PEST(LE) • 5 forces • Mission & Vision statements • Business model generation • Design strategies
  21. 21. Strategic Management Framework https://en.wikipedia.org/wiki/Strategic_planning Analysis Strategy Formation Goal Setting Structure Control & Feedback Formulation Implementation • SWOT • PEST(LE) • 5 forces • Mission & Vision statements • Business model generation • Design strategies • Goals • KPIs • Scorecards
  22. 22. Strategic Management Framework https://en.wikipedia.org/wiki/Strategic_planning Analysis Strategy Formation Goal Setting Structure Control & Feedback Formulation Implementation • SWOT • PEST(LE) • 5 forces • Mission & Vision statements • Business model generation • Design strategies • Goals • KPIs • Scorecards • Organizations • Ways of working • Cost structures • Transformation • etc…
  23. 23. Strategic Management Framework https://en.wikipedia.org/wiki/Strategic_planning Analysis Strategy Formation Goal Setting Structure Control & Feedback Formulation Implementation • SWOT • PEST(LE) • 5 forces • Mission & Vision statements • Business model generation • Design strategies • Goals • KPIs • Scorecards • Organizations • Ways of working • Cost structures • Transformation • etc… • User tests • Statistics • Reporting lines • etc…
  24. 24. Analysis
  25. 25. SWOT
  26. 26. SWOT Analysis https://en.wikipedia.org/wiki/SWOT_analysis
  27. 27. SWOT Analysis https://en.wikipedia.org/wiki/SWOT_analysis Strengths
  28. 28. SWOT Analysis https://en.wikipedia.org/wiki/SWOT_analysis Strengths Weaknesses
  29. 29. SWOT Analysis https://en.wikipedia.org/wiki/SWOT_analysis Strengths Weaknesses Opportunities
  30. 30. SWOT Analysis https://en.wikipedia.org/wiki/SWOT_analysis Strengths Weaknesses Opportunities Threats
  31. 31. Think. Pair. Share. Can you make a quick SWOT analysis for Spotify?
  32. 32. SWOT Analysis https://en.wikipedia.org/wiki/SWOT_analysis Strengths Weaknesses Opportunities Threats
  33. 33. PEST(LE)
  34. 34. PEST(LE) Analysis https://en.wikipedia.org/wiki/PEST_analysis
  35. 35. PEST(LE) Analysis • Political factors https://en.wikipedia.org/wiki/PEST_analysis
  36. 36. PEST(LE) Analysis • Political factors • Economic factors https://en.wikipedia.org/wiki/PEST_analysis
  37. 37. PEST(LE) Analysis • Political factors • Economic factors • Social factors https://en.wikipedia.org/wiki/PEST_analysis
  38. 38. PEST(LE) Analysis • Political factors • Economic factors • Social factors • Technological factors https://en.wikipedia.org/wiki/PEST_analysis
  39. 39. PEST(LE) Analysis • Political factors • Economic factors • Social factors • Technological factors • Legal factors • Environmental factors https://en.wikipedia.org/wiki/PEST_analysis
  40. 40. Think. Pair. Share. Can you name some PEST(LE) factors for a company like Spotify?
  41. 41. PEST(LE) Analysis • Political factors • Economic factors • Social factors • Technological factors • Legal factors • Environmental factors
  42. 42. Five forces
  43. 43. Porters 5 forces https://en.wikipedia.org/wiki/Porter_five_forces_analysis Industry Rivalry Bargaining Power of Suppliers Threat of Substitutes Threat of New Entrants Bargaining Power of Buyers
  44. 44. Porters 5 forces https://en.wikipedia.org/wiki/Porter_five_forces_analysis Industry Rivalry Bargaining Power of Suppliers Threat of Substitutes Threat of New Entrants Bargaining Power of Buyers
  45. 45. Porters 5 forces https://en.wikipedia.org/wiki/Porter_five_forces_analysis Industry Rivalry Bargaining Power of Suppliers Threat of Substitutes Threat of New Entrants Bargaining Power of Buyers
  46. 46. Porters 5 forces https://en.wikipedia.org/wiki/Porter_five_forces_analysis Industry Rivalry Bargaining Power of Suppliers Threat of Substitutes Threat of New Entrants Bargaining Power of Buyers
  47. 47. Porters 5 forces https://en.wikipedia.org/wiki/Porter_five_forces_analysis Industry Rivalry Bargaining Power of Suppliers Threat of Substitutes Threat of New Entrants Bargaining Power of Buyers
  48. 48. Porters 5 forces https://en.wikipedia.org/wiki/Porter_five_forces_analysis Industry Rivalry Bargaining Power of Suppliers Threat of Substitutes Threat of New Entrants Bargaining Power of Buyers
  49. 49. Think. Pair. Share. Let’s make a 5 forces analysis for Spotify.
  50. 50. Porters 5 forces Industry Rivalry Bargaining Power of Suppliers Threat of Substitutes Threat of New Entrants Bargaining Power of Buyers
  51. 51. Porters 5 forces Industry Rivalry Bargaining Power of Suppliers Threat of Substitutes Threat of New Entrants Bargaining Power of Buyers
  52. 52. Think. Pair. Share. Why did I tell you about SWOT, PEST(LE) & 5 forces?
  53. 53. Strategy formation
  54. 54. Strategy Maps Design strategies Value Chains Mission & Vision Business models
  55. 55. Design strategiesMission & VisionBusiness models 2nd lecture
  56. 56. Business models
  57. 57. Business models are used to… …describe the rationale behind how a company creates, delivers and captures value. …describe current or near future states of the business.
  58. 58. https://en.wikipedia.org/wiki/Porter_five_forces_analysis
  59. 59. Create Deliver De..liv.scherchr!! INTERNAL / ORGANIZATION EXTERNAL / CUSTOMERS Capture
  60. 60. Business model canvas
  61. 61. COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION RELATIONSHIPS CUSTOMER SEGMENT KEY RESOURCES CHANNELS http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  62. 62. COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION RELATIONSHIPS CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES CHANNELS http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  63. 63. COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES CHANNELS http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  64. 64. COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines? http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  65. 65. COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS What type of relationship does each of our Customer Segments expect? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines? http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  66. 66. COST STRUCTURE REVENUE STREAMS For what value are our customers willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS What type of relationship does each of our Customer Segments expect? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines? http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  67. 67. COST STRUCTURE REVENUE STREAMS For what value are our customers willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS What type of relationship does each of our Customer Segments expect? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships? CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines? http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  68. 68. COST STRUCTURE REVENUE STREAMS For what value are our customers willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? KEY PARTNERS KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships? VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS What type of relationship does each of our Customer Segments expect? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships? CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines? http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  69. 69. COST STRUCTURE REVENUE STREAMS For what value are our customers willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? KEY PARTNERS Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from our partners? When key activities do partners perform? KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships? VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS What type of relationship does each of our Customer Segments expect? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships? CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines? http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  70. 70. COST STRUCTURE What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? REVENUE STREAMS For what value are our customers willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? KEY PARTNERS Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from our partners? When key activities do partners perform? KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships? VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS What type of relationship does each of our Customer Segments expect? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships? CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines? http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  71. 71. COST STRUCTURE What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? REVENUE STREAMS For what value are our customers willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? KEY PARTNERS Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from our partners? When key activities do partners perform? KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships? VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS What type of relationship does each of our Customer Segments expect? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships? CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines? http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model • Local beverage companies • Sabco (the creator of the bottles) • Distribution companies • Food chains • Restaurant chains • Bottling • Distribution • Marketing • Producing and supplying syrup • Secret recipe • Syrup factory • Bottles & Crates • Bottling plants • Distribution centers • Quench thirst • Social status • Get sugar! • Familiar taste • Always there for you • Displays • Fridges • Adverts to end customers • Sponsorships • Large scale distribution • Manual distribution centers • Bulk sales • Retail sales • Merchandise • Larger retail outlets • Small shops/ restaurants • Franchises • Marketing • Syrup production • Legal cost • Distribution • Sponsorships
  72. 72. Think. Pair. Share. Create a business model canvas for Spotify
  73. 73. COST STRUCTURE What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? REVENUE STREAMS For what value are our customers willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? KEY PARTNERS Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from our partners? When key activities do partners perform? KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships? VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS What type of relationship does each of our Customer Segments expect? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships? CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines? http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
  74. 74. Value Proposition Canvas
  75. 75. COST STRUCTURE What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? REVENUE STREAMS For what value are our customers willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? KEY PARTNERS Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from our partners? When key activities do partners perform? KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships? VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? RELATIONSHIPS What type of relationship does each of our Customer Segments expect? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships? CHANNELS How do we reach our customers? How are channels integrated? How are we integrating them in in customer routines?
  76. 76. VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers?
  77. 77. VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers?
  78. 78. VALUE PROPOSITION What value do we deliver to the customer? Which of the customer’s problems are we trying to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? CUSTOMER SEGMENT For whom are we creating value? Who are our most important customers? Market fit
  79. 79. Gains Pains Customer Jobs Gain creators Pain Relievers Products & Services VALUE PROPOSITION CUSTOMER SEGMENT
  80. 80. Think. Pair. Share. Create a value proposition canvas for Spotify’s curated playlists
  81. 81. Revenue streams
  82. 82. Revenue streams • Recurring • Transaction based • Project revenue • Service revenue https://en.wikipedia.org/wiki/Revenue_stream
  83. 83. Common revenue streams • Freemium • Premium • Monthly subscription • Price per unit • Flash sales/Daily deals • Rental • Licensing • Certification • Auctions • Promoted content • Brokerage • Affiliate Programs • Advertising
  84. 84. Mission & Vision statements
  85. 85. Mission & Vision statements are used to… • …define a common purpose • …give a sense of direction for the company & it’s employees • …be achievable
  86. 86. Sadly, most of them suck…
  87. 87. […] is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment.
  88. 88. […] is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment. General Motors
  89. 89. …but not all of them.
  90. 90. To bring inspiration and innovation to every athlete* in the world.
  91. 91. Nike * If you have a body, you’re an athlete To bring inspiration and innovation to every athlete* in the world.
  92. 92. Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.
  93. 93. Amazon.com Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.
  94. 94. Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
  95. 95. Patagonia Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
  96. 96. …our vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed […] at prices so low that as many people as possible will be able to afford them.
  97. 97. IKEA …our vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed […] at prices so low that as many people as possible will be able to afford them.
  98. 98. …to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible
  99. 99. Tesla Motors …to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible
  100. 100. Think. Pair. Share. Create a vision statement for Spotify
  101. 101. A definition to help you: The tangible result of your mission. A compelling and detailed visualization of your successful outcome that could be as simple as one descriptive paragraph. http://zurb.com/article/263/the-dreadful-mission-statement
  102. 102. Music moments everywhere.
  103. 103. – Collins and Porras Built to Last: Successful Habits of Visionary Companies "A true BHAG is clear and compelling, serves as unifying focal point of effort, and acts as a clear catalyst for team spirit. It has a clear finish line, so the organization can know when it has achieved the goal; people like to shoot for finish lines."
  104. 104. • SpaceX: Enable human exploration and settlement of Mars. • Facebook: To make the world more open and connected. • Ford: Democratize the automobile. • Google: Organize the world's information and make it universally accessible and useful. • Blackpool FC: Reach English Premier League. https://en.wikipedia.org/wiki/Big_Hairy_Audacious_Goal
  105. 105. Goal Setting
  106. 106. Goals • The result of a strategy • Should be as clear as possible, actionable • The day to day compass for each employee • Should work on unit/department level and trickle down • Very easy to get the wrong effect https://hbr.org/2014/11/a-list-of-goals-is-not-a-strategy
  107. 107. S.M.A.R.T goals https://en.wikipedia.org/wiki/SMART_criteria
  108. 108. S.M.A.R.T goals • Specific https://en.wikipedia.org/wiki/SMART_criteria
  109. 109. S.M.A.R.T goals • Specific • Measurable https://en.wikipedia.org/wiki/SMART_criteria
  110. 110. S.M.A.R.T goals • Specific • Measurable • Achievable https://en.wikipedia.org/wiki/SMART_criteria
  111. 111. S.M.A.R.T goals • Specific • Measurable • Achievable • Relevant https://en.wikipedia.org/wiki/SMART_criteria
  112. 112. S.M.A.R.T goals • Specific • Measurable • Achievable • Relevant • Time-bounded https://en.wikipedia.org/wiki/SMART_criteria
  113. 113. Think. Pair. Share. Find 3 great goals for the next 12 months for Spotify’s curated playlists
  114. 114. https://antonsten.com/book/
  115. 115. What is service design?
  116. 116. https://hbr.org/2015/09/design-thinking-comes-of-age?cm_sp=Article-_-Links-_-Top%20of%20Page%20Recirculation
  117. 117. http://www.fastcodesign.com/3028271/ibm-invests-100-million-to-expand-design-business
  118. 118. http://www.nytimes.com/2015/11/15/business/ibms-design-centered-strategy-to-set-free-the-squares.html?_r=1
  119. 119. CEO VP Sales VP Marketing VP Product Development VP IT CFO
  120. 120. CEO VP Sales VP Marketing VP Product Development VP IT CFO
  121. 121. CEO VP Sales VP Marketing VP Product Development VP IT CFO
  122. 122. Service design is the result of a shift in customer behaviour that is yet to be reflected in how most companies operate.
  123. 123. The new customer
  124. 124. unctadstat.unctad.org/wds/TableViewer/chartView.aspx
  125. 125. https://en.wikipedia.org/wiki/Porter_five_forces_analysis
  126. 126. www.industrytap.com/knowledge-doubling-every-12-months-soon-to-be-every-12-hours/3950
  127. 127. Always globalised Always on Always informed Always ahead Socially empowered
  128. 128. This creates a new model
  129. 129. http://image.slidesharecdn.com/mcolondon-150403080406-conversion-gate01/95/mobile-trends-creativity-nimbletank-mobile-convention- london-2015-6-638.jpg?cb=1428400901
  130. 130. 30 years of services 1986 • Cash • Bank transfer • Bank- / Postgiro • Invoice • Bank card 2016 • Swish • iZettle • Klarna • Bank Card • Credit Card • Credit • Bitcoin • Pay what you want • Google Wallet • Apple Pay • Pay by phone • Pay via internetbank • Postal advance • SMS • Pay via phone subscription • and more…
  131. 131. Technology vs. Organisational change
  132. 132. Technology vs. Organisational change
  133. 133. Technology vs. Organisational change http://www.aei.org/publication/fortune-500-firms-in-1955-vs-2014-89-are-gone-and-were-all-better-off-because-of-that-dynamic-creative-destruction/
  134. 134. http://www.mckinsey.com/insights/marketing_sales/the_consumer_decision_journey
  135. 135. http://www.cooper.com/journal/2014/07/service-design-101
  136. 136. Think. Pair. Share. So, really. What is design?
  137. 137. Service Design
  138. 138. –Brandon Schauer Adaptive Path ”the process of carefully framing a project of what to design before you figure out how it should be designed”
  139. 139. Wikipedia “Design strategy is a discipline which helps firms determine what to make and do, why do it and how to innovate contextually, both immediately and over the long term. This process involves the interplay between design and business strategy.” https://en.wikipedia.org/wiki/Design_strategy
  140. 140. Design Strategy = Business strategy + Users + Innovation
  141. 141. Design Strategy = Business strategy + Users + Innovation Joel Sandén
  142. 142. http://www.cooper.com/journal/2014/07/service-design-101
  143. 143. What is it? • Horizontal rather than vertical • Touchpoint coordination - People - Place - Props - Partners - Processes http://www.slideshare.net/notrevol/using-service-design-thinking-to-make-awesome-products
  144. 144. When to use it? • When you need to improve your service offering • When you’re mixing online & offline • When you’ve lost track • When you have a complex setup of different “players” • When you want to move up the value chain http://www.slideshare.net/notrevol/using-service-design-thinking-to-make-awesome-products
  145. 145. Service Design vs. Traditional product development • Facilitate the creation of outcomes • Value co-creation • Integrated eco-system • Relationship • Focus on exchanging value http://www.slideshare.net/notrevol/using-service-design-thinking-to-make-awesome-products • Make & Distribute a unit • Discrete value chain • Specialist silos • Transaction • Focus on extracting value
  146. 146. Service Design - Principles
  147. 147. User-centered
  148. 148. User-centered Co creative
  149. 149. User-centered Co creative Sequenced
  150. 150. User-centered Co creative Sequenced Evidence based
  151. 151. User-centered Co creative Sequenced Evidence based Holistic
  152. 152. User-centered • Male • Born 1948 • English • Wealthy • Twice Married • Grown children • Dog lover • Live in the countryside • Granddad • Winter holiday in the alps
  153. 153. Co-creative • Who’s the customer? Are there several customer segments? • What stakeholders do we have? • How can we involve anyone who either creates, provides or consumes the service?
  154. 154. Sequenced • Imagine your service as a movie! • How can we influence the rhythm of a service? • Touchpoint coordination
  155. 155. Evidencing • Make the users aware of intangible services • Tell the user what’s going on
  156. 156. Evidencing • Make the users aware of intangible services • Tell the user what’s going on
  157. 157. Holistic • Keep the big picture • Find patterns • Mitigate external factors • Recognise overarching sequences
  158. 158. Think. Pair. Share. What skills should a designer have?
  159. 159. Service Design - Tools
  160. 160. Service Design - Tools - The five whys
  161. 161. Just ask “why?” five times • Why does it take so long to serve a customer? • Why is there always a queue during lunch time? • Why don’t we have enough staff to cope with the busy periods? • Why is there not enough room for more staff? • Why is there so much equipment around? https://en.wikipedia.org/wiki/Porter_five_forces_analysis
  162. 162. Service Design - Tools - Touchpoint Trip
  163. 163. Pre Service During Service After Service Phone E-mail On the bus Outside Website Youtube
  164. 164. Pre Service During Service After Service Phone E-mail On the bus Outside Website Youtube
  165. 165. Service Design - Tools - Service Blueprint
  166. 166. http://www.cooper.com/journal/2014/08/service-blueprints-laying-the-foundation
  167. 167. Additional swimlanes • Time • Quality measures • Emotional journey • Splitting up the stages • Customer Phase • Photos/sketches of major interactions www.cooper.com/journal/2014/08/service-blueprints- laying-the-foundation
  168. 168. Service Design - Tools - Customer Journeys
  169. 169. https://canvanizer.com/new/customer-journey-canvas
  170. 170. Service Design - Tools - Stakeholder Maps
  171. 171. Internal External
  172. 172. Internal External Frontend developers Backend developers Managers Designers Consultants Record labels Advertising Agency The Pirate Bay Artists Product Owners
  173. 173. Think. Pair. Share. Which tools did you prefer?
  174. 174. Think. Pair. Share. Make a service blueprint for a flight with an airline
  175. 175. Service Design - Stories
  176. 176. Service Design - Stories - PepsiCo
  177. 177. Good for you Better for you Fun for you
  178. 178. Service Design - Stories - PepsiCo

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