“Linking Services Design to Strategy” by Rafael ZaballaIESS 1.2 Geneva FebruaryParque                         16 2012   de...
Three research questions:1. Can services design play a pervasive role in a company’s strategic   positioning?2. What are t...
1.What is Strategy?2.Creating a Valuable Position?3.Services Design Opportunity Matrix                     3              ...
1.What is Strategy?2.Creating a Valuable Position?3.Services Design Opportunity Matrix                     4              ...
Michael Porter, 1996: A step forward for its understanding                        5                                © Rafae...
1. Competitive Strategy is about being different, choosing deliberately a diffrerent set of activitites to deliver a uniqu...
Competitive Strategy                        Operational Excellence           Strategic Positioning            Doing the sa...
About Positioning: A place in customer’s mind      •The 50s was the product Era: Characteristics and benefits      •The 60...
1.What is Strategy?2.Creating a Valuable Position?3.Services Design Opportunity Matrix                      9             ...
Creating a Valuable Position #1:                                                                          The Design Disco...
Creating a valuable position #2Brand Meaning (Source: ROCKWELL, C.: "The Mathematics of Brand Satisfaction" in Design Thin...
Service Design Performance Axes that Deliver the Meaning                                      5. People                   ...
Strategic Services Design                                               Company Strategy                                  ...
Services Value Categories:Adaptation from Cagan & Vogel, 2002                                           14                ...
1.What is Strategy?2.Creating a Valuable Position?3.Services Design  Opportunity Matrix                            15    ©...
Linking Services Design to Strategy, main concepts of this article                             16                         ...
The Services Design Opportunity Matrix (SDOM)                                                Five (5) Strategic Positionin...
The Services Design Opportunity Matrix (SDOM)                                                1.   iTunes culturally curren...
SDO Matrix: A tool to connect Srevices Design to Strategy1                                                                ...
Conclusions: Services Design is a contributor to competitive advantage within two (2) approaches: Operational  Excellence...
References:Porter, M.: What is Strategy?. Harvard Business Review, November-December (1996)Ries, A., Trout, J.: The Positi...
Shevket N. H., Celik, T.: Value of a Product: Definition. International Journal of Value Based Management Volume 12 Nº2 18...
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2012.2.15 rz linking services design to strategy

  1. 1. “Linking Services Design to Strategy” by Rafael ZaballaIESS 1.2 Geneva FebruaryParque 16 2012 de innovación 1 La Salle Parque de Innovación de Servicios para las Personas
  2. 2. Three research questions:1. Can services design play a pervasive role in a company’s strategic positioning?2. What are the links between services design and strategy?3. How to devleop a strategy in line with a services design discourse? 2 © Rafael Zaballa
  3. 3. 1.What is Strategy?2.Creating a Valuable Position?3.Services Design Opportunity Matrix 3 © Rafael Zaballa
  4. 4. 1.What is Strategy?2.Creating a Valuable Position?3.Services Design Opportunity Matrix 4 © Rafael Zaballa
  5. 5. Michael Porter, 1996: A step forward for its understanding 5 © Rafael Zaballa
  6. 6. 1. Competitive Strategy is about being different, choosing deliberately a diffrerent set of activitites to deliver a unique mix of value. 2. Introduces Activity Systema maps as a management tool for strategy definitionWhat is Strategy? (Porter 1996): 6 © Rafael Zaballa
  7. 7. Competitive Strategy Operational Excellence Strategic Positioning Doing the same better than others “Necessary, but not sufficient” Positioning: Once the of Strategy, “Too Static” “Strategy is the creation of a unique and valuable position, involving a different set of activities”What is Strategy? (Porter 1996): 7 © Rafael Zaballa
  8. 8. About Positioning: A place in customer’s mind •The 50s was the product Era: Characteristics and benefits •The 60s was the image Era: Reputation •The 70s was the positioning era: Where am I compared to others “Too much noise” “The mind is a memory bank” “With the rise of living standras customer is less interted in aking the best choice” ? ? Brand ? Brand Brand Brand Brand Brand Brand Producto Category 1 Producto Category 2RIES, Al, TROUT Jack "The Positioning Era Cometh" Advertising Age Crain Publications 1972 8 © Rafael Zaballa
  9. 9. 1.What is Strategy?2.Creating a Valuable Position?3.Services Design Opportunity Matrix 9 © Rafael Zaballa
  10. 10. Creating a Valuable Position #1: The Design DiscourseBest P.: Branding and Design Innovation Leadership: What’s next?. Design Thinking, pags. 145-155, Thomas Lockwood editor,Design Management Institute (2010) 10 © Rafael Zaballa
  11. 11. Creating a valuable position #2Brand Meaning (Source: ROCKWELL, C.: "The Mathematics of Brand Satisfaction" in Design Thinking, pag.221-229, Thomas Lockwood editor, Design Management Institute 2010) 11 © Rafael Zaballa
  12. 12. Service Design Performance Axes that Deliver the Meaning 5. People 2. Environments 1. Objects Services Design 4. Identities 3. Communication 6. ProcessesSource: ZABALLA, R. 2010 12 © Rafael Zaballa
  13. 13. Strategic Services Design Company Strategy Shared Knowledge & Values Assets Technology and Facilities Bidirectional Flow Activities “rely on the 6 Design Axes” rhat deliver Meaning: Marketing Processes Products Objects, People, People C.S.R. Processes, Spaces, Identities and Communication Stakeholders Interactions People SystemsSource: ZABALLA, R. 2010 13 © Rafael Zaballa
  14. 14. Services Value Categories:Adaptation from Cagan & Vogel, 2002 14 © Rafael Zaballa
  15. 15. 1.What is Strategy?2.Creating a Valuable Position?3.Services Design Opportunity Matrix 15 © Rafael Zaballa
  16. 16. Linking Services Design to Strategy, main concepts of this article 16 © Rafael Zaballa
  17. 17. The Services Design Opportunity Matrix (SDOM) Five (5) Strategic Positioning Statements: 1) iTunes culturally current content portal 2) Cool brand high impact 1 2 3) Proprietary platform & Intuitive Interface 4) Well Designed Products & Technology 5) Exclusive 3rd Party Peripherals & Accessories 3 4 5 “Five (5) Value Proposal Approach Uniqueness Atrributes” HOWs 17 © Rafael Zaballa
  18. 18. The Services Design Opportunity Matrix (SDOM) 1. iTunes culturally current content portal 2. Cool brand high impact 3. Proprietary platform & Intuitive Interface 4. Well Designed Products & Technology 5. Exclusive 3rd Party Peripherals & Accessories 18 © Rafael Zaballa
  19. 19. SDO Matrix: A tool to connect Srevices Design to Strategy1 2 3 Three Steps Description© Rafael Zaballa 19 SDO Matrix Rafael Zaballa ©
  20. 20. Conclusions: Services Design is a contributor to competitive advantage within two (2) approaches: Operational Excellence and Strategic Positioning. Creating a competitive strategic positioning is about building a powerful brand promise which relies on uniqueness and meaning. Uniqueness is defined by our activities, and we gain it by doing different ones or performing them in different ways than others. Brand meaning relies on a Design Discourse and a dynamic cycle in which perception, expectations and experiences define customer satisfaction, and the increase of customer satisfaction strengthens brand meaning. Strategic Services Design, as a Design Management framework, consists of a simultaneous approach to the creation of the brand promise and the services value proposal under a common design discourse, covering six (6) interrelated design performance areas (identities, communication, object, environments, processes and people) as an enhancer of consistency, reinforcement and optimization. Strategic Design Opportunity Matrix (SDOM) as a tool for this design approach process that connects activities to desired value concepts and design performance areas. The matrix serves as a reference document to begin an iterative design discourse creative process, leading a reinterpretation of our activities in order to reach our objectives in terms of creating valuable services in consistency with a powerful brand promise. 20 © Rafael Zaballa
  21. 21. References:Porter, M.: What is Strategy?. Harvard Business Review, November-December (1996)Ries, A., Trout, J.: The Positioning Era Cometh. Advertising Age Crain Publications (1972)Mcluhan, M.: Understanding Media: The Extensions of Man. Gingko Press, (2003)Fraser, H.: Designing Business: New Models for Success. Design Thinking, Thomas Lockwood editor, Design ManagementInstitute pag. 35-45, (2010)Best P.: Branding and Design Innovation Leadership: What’s next?. Design Thinking, pags. 145-155, Thomas Lockwood editor,Design Management Institute (2010)Rockwell, C.: The Mathematics of Brand Satisfaction. Design Thinking, Thomas Lockwood editor, Design Management Institute,pag. 221-229, (2010)Parasuraman, A., Zeithaml V. A., BERRY, L. L.: A Conceptual Model of Service Quality and its Implications for Future Research.Journal of Marketing, 49 (4), 41-50, (1985)Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E. Jr., Schlesinger, L. A.: Putting the Service Profit Chain to Work. HBR(March April 1994)Heskett, J.: Toothpicks & Logos, Design in Everyday Life. Oxford University Press (2002)Zaballa R.: Services Design for People. Jean-Henry Morin, Jolita Ralyté, Mehdi Snene, Exploring Services Sciences, Springer(2010)Verganti, R.: Design Driven Innovation: Changing the Rules of Competition by Radically Innovating What Things Mean. HarvardBusiness Review (2009)Zeithaml, V.: Consumer Perceptions of Price Quality and Value: A Means-And Model and Syntheis of Evidence. Journal ofMarketing, 52 (3) 2-22, (1988) 21 © Rafael Zaballa
  22. 22. Shevket N. H., Celik, T.: Value of a Product: Definition. International Journal of Value Based Management Volume 12 Nº2 181-191(1999)International Council of Societies of Industrial Design: http://www.icsid.org/about/about/articles31.htmLockwood T.: "Design Thinking". Lockwood T. Editor, Design Management Institute (2011)Cagan, J., Vogel C.: Creating Breakthrough Products. Princeton N.J. Prentice Hall (2002)Parasuraman, A., Zethaml, V. ; Berry, L.: SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality.Journal of Retailing, Vol 64 (1), 12-40. Springer (1988)Martin, R. "The Design of Business: Why Design Thinking is the Next Competitive Advantage. Harvard Business Press (2009) 22 © Rafael Zaballa

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