Embodied Futures and Service Design - Introduction


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Embodied Futures and Service Design - Introduction
CMU Summer Academy
June 23-25 | 2009

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Embodied Futures and Service Design - Introduction

  1. 1. CMU Summer Academy Embodied Futures and Service Design June 23-25 lpatric@fe.up.pt 1
  2. 2. Relative importance of services in the world economy Employment GDP I II III I II III Portugal 12,8% 24,8% 54,2% 2000 3,9% 24,8% 71,3% 2004 EU 25 4,4% 27,2% 67,2% 2005 2,2% 27,3% 70,5% 2004 (est) USA 0,7% 22,9% 76,4% 0 7% 22 9% 76 4% 2005 1,0% 20,4% 78,7% 1 0% 20 4% 78 7% 2005 ( t) (est) Japan 4,6% 27,8% 67,7% 2004 1,7% 25,8% 72,5% 2005 (est) I – A i lt Agriculture II - Manufacturing III - Services Source: CIA world Fact book 2 Lia Patrício© 2009
  3. 3. Service • A service is an action, a performance, and effort (Rathmell 1966). ( ) – Services are processes – “A service can not be dropped on your foot A foot, stored in a box, or lost in a drawer.” 3 Lia Patrício© 2009
  4. 4. Categories of services • P Pure t tangible product ibl d t – salt, detergent, rice. • T Tangible product with supplementary services ibl d t ith l t i – car, computer • H b id product Hybrid d t – Restaurants • S i with a product component Service ith d t t – Air transportation • Pure service – Health club, medical advice 4 Lia Patrício© 2009
  5. 5. Distinctive characteristics of services • Intangibility • Simultaneity • Heterogeneity • Perishability 5 Lia Patrício© 2009
  6. 6. Intangibility • A service cannot be touched or put on a shelf, because they have no physical existence. • This intangibility raises challenges for consumers in evaluating the service before g consumption. • The design of the physical evidence is crucial for a good service experience. – The look of a bank branch, display of degrees and certifications of medical doctors or lawyers, cleanliness of a restaurant. 6 Lia Patrício© 2009
  7. 7. Simultaneity between production and consumption • S i Services are consumed as th are d they produced (theater, class…) • Frequently, the customer actively p participates in the p p process, being na , g important concreator of the service(ex: educat o ) education). • Service provision requires a high degree of interaction between the customer and the provider 7 Lia Patrício© 2009
  8. 8. Heterogeneity • Services result from the interaction beween people and other p p , or p p people, people and the service environment. • This interactive nature of service experience makes it more difficult to standardize services. 8 Lia Patrício© 2009
  9. 9. Perishability • S i Services cannot be stored f future t b t d for f t consumption. (ex: seat in a plane or hotel rooms) • Perishability raises importante challenges y p g for service management, requiring a st o g demand a age e t effort. strong de a d management e o t • Some demand management strategies: – Differentiated prices, reservations prices – Part-time workers, 9 Lia Patrício© 2009
  10. 10. Distictive challenges posed to Service design • Services cannot be stored for future consumption • The intangible elements frequently represent the g q y p largest share in value co-creation • Services are difficult to visualize and understand • Customers play a crucial role in value co- creation • Service inputs and outputs tend to vary more • Time assumes is crucial for service management • Service can be provided through virtual delivery channels 10 Lia Patrício© 2009
  11. 11. The 7 P’s of Services Marketing Ps (Bitner e Booms 1981) • Product • Price • Promotion • Place Pl • Participants – Service workers and customers who co create the co-create service. • Physical evidence y – Service tangible aspects that facilitate communication and provision. • Process of service delivery – Procedures and activity flows that contribute to the service provision. p 11 Lia Patrício© 2009
  12. 12. The importance of interaction design in service design • Service experiences – The service experience results from all the moments of contact (service encounters) between the customer and the firm. • V l i use Value in – Value is no longer embbeded in physical offerings, but is b t i co-created th t d through customer i t h t interactions. ti • Implications for service design – Firms no longer design pre-determined services, but they offer value propositions, which customer turn into value th l through usage. h 12 Lia Patrício© 2009
  13. 13. Service Systems • Services are delivered by systems of p p , processes and p y people, p physical evidence. • All system components should b t t h ld be integrated to enhace the service experience and value co-creation by the customer. 13 Lia Patrício© 2009
  14. 14. Co- Co-creation of value • New service centered paradigm (Vargo and Lusch 2004) – Value is no longer embedded in tangible products, but is co- created by customers through interaction and usage. – Customers are always co creators of value and firms can only co-creators value, offer value propositions. • Service Systems (ifm and IBM 2008). – complex service systems involve multi-channel configurations of people and t h l l d technology th t enable customers t co-create value. that bl t to t l What are the implications of value co- co creation for service system design? 14 Lia Patrício© 2009
  15. 15. Service delivery systems • “Co-creating configuration of resources, such as people, technology and p p , gy organizations, all connected internally and externally through value propositions” (ifm & propositions IBM 2008) 15 Lia Patrício© 2009
  16. 16. Se uc o ( g Servuction (Langeard,, Bateson,, Lovelock and Eiglier 1981) Backstage Frontstage Customer Physical A Customer environment B System’s invisible component Customer Service C representatives Service value for 16 Lia Patrício© 2009 the customer
  17. 17. Service Delivery System (Lovelock) Service Delievery System y y Other touch points Operations Other Adverstisements customers Call center E-mail Physical Surveys environment Web site Word-of-mouth Technical Customer core Equipment Service S i representatives Other customers Backstage Frontstage 17 Lia Patrício© 2009
  18. 18. The Service Theater Metaphor (Fisk,, e Se ce ea e e ap o ( Grove and John) Performance Environment Actors Audience 18 Lia Patrício© 2009