SDNC13 -Day1- The Service Design Imperative by Nick Leon

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The Service Design Imperative by Nick Leon

Service Design is the application of design practice to the other 80% of the economy. It demands new skills, tools and techniques, perhaps even a rethinking of what we mean by design itself. Designing product service systems and the business models that enable them, means crossing boundaries between design disciplines, business and technology. It means changing the processes and practices not only of designers but how firms innovate and organize themselves. This isn’t easy as we share different working practices and cultures, but, it’s essential, for service designers, if we are to collaborate or even lead innovation. Innovative service systems can create rich and integrated customer experiences – delivering real social and economic value, opportunities for self-expression, and bring meaning to peoples’ lives, as well as to the world we share. We live in extraordinary times, a perfect storm faces us; the environment and climate change, an ageing demographic, pressure on resources, rapid urbanization and issues of social and economic exclusion. These systemic issues need a systemic design response and that’s the role of service design if we are ready to take up that challenge and responsibility.

Published in: Design, Business, Technology

SDNC13 -Day1- The Service Design Imperative by Nick Leon

  1. 1. Commercialising Design Led Innovation RCA Service Design Module 2
  2. 2. Commercialising Design Led Innovation RCA Service Design Module 2 The Service Design Imperative Redefining Design, Transforming Business, Contributing to a Better World Dr Nick Leon Head of Service Design, Royal College of Art
  3. 3. Commercialising Design Led Innovation RCA Service Design Module 2 Service Design at the RCA Blending design expertise at the RCA with technology, entrepreneurship and business management from Imperial College‟s MBA and its world class Department of Computing
  4. 4. Commercialising Design Led Innovation RCA Service Design Module 2 Our take on Service Design • Design that addresses the other 80% of the economy • Transforming the quality and value of public services – from healthcare to justice • Delivering innovative customer experiences that are game changers in the market place • Translating technological innovation into new levels of user and business value
  5. 5. Commercialising Design Led Innovation RCA Service Design Module 2 Services as a % of US Economy Source: US Bureau of Statistics 100% 90% 80% Agriculture 70% Industry 60% Electrically Powered Industrial Revolution 50% 40% 30% 20% Post - Industrial Revolution powered by Digital Coal Powered Industrial Revolution Services 10% 0% 1800 1850 1900 1950 2000 2050
  6. 6. Commercialising Design Led Innovation RCA Service Design Module 2 A worldwide phenomenon Sources: OECD Yearbook % GDP 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % GDP
  7. 7. Commercialising Design Led Innovation RCA Service Design Module 2 Internet of Things Mobile Internet Big Data, Analytics Cloud Computing Social Media and Collaborative Innovation A Perfect Storm of Technological Change… transforming services
  8. 8. Commercialising Design Led Innovation RCA Service Design Module 2 Urbanization and Inequality Global Warming Ageing Demographics Bio-Diversity Natural Resources Globalization A Perfect Storm of Social, Cultural and Environmental Issues
  9. 9. Commercialising Design Led Innovation RCA Service Design Module 2 The Business Imperative
  10. 10. Commercialising Design Led Innovation RCA Service Design Module 2 IBM Service Evolution 100% 90% Hardware Hardware 19% 79% 80% 70% Services 59% 60% 50% 40% 30% 20% Services 5% 10% 0% 2008 1988 IBM‟s smarter cities not just smarter computers
  11. 11. Commercialising Design Led Innovation RCA Service Design Module 2 IBM and Rolls Royce Power by the Hour from Rolls Royce 100% Hardware 90% 19% 80% All other Revenues 47% 70% Services 60% 59% 50% Services 40% 53% • Rolls offers “Power by the hour” rather than jet engines 30% 20% 10% 0% Software 22% IBM Rolls Royce • IBM‟s smarter cities not just smarter computers
  12. 12. Commercialising Design Led Innovation RCA Service Design Module 2 Social Imperative
  13. 13. Commercialising Design Led Innovation RCA Service Design Module 2 Downing Street October 2012 Public Sector spend in top 25 nations is 42.8% to 57.9% of GDP US is 41.7% and ranked 27th
  14. 14. Commercialising Design Led Innovation RCA Service Design Module 2 Downing Street October 2012 Running workshops for the Cabinet Office
  15. 15. Commercialising Design Led Innovation RCA Service Design Module 2 We are working on witness support for the Ministry of Justice as well as Social Services
  16. 16. Commercialising Design Led Innovation RCA Service Design Module 2 Alignment: Translating Government Policy into Practice Policy Propositions Process Practice
  17. 17. Commercialising Design Led Innovation RCA Service Design Module 2 Orientation: Putting the user right at the centre Health Service Patients Doctor Patients Specialist Doctor Health Service Patients Specialist Patient Patients …design of new services based on users needs not ministries‟ – Francis Maude, 2013
  18. 18. Commercialising Design Led Innovation RCA Service Design Module 2 A New Agenda for Design • Responding to the global challenges we collectively face • Focusing on product service systems not just system components or gadgets • Blending deep customer insight with technological innovation • Generating enterprise value for companies and their customers as well as for public sector and citizens
  19. 19. Commercialising Design Led Innovation RCA Service Design Module 2 Exploring the Service Landscape Material World World of knowledge and content World of Actions The opportunity: address the “world of actions” with innovative services, share in the creation of content, and increase the overall global value for citizens/customers and the organisations that serve them
  20. 20. Commercialising Design Led Innovation RCA Service Design Module 2
  21. 21. Commercialising Design Led Innovation RCA Service Design Module 2 Service Landscape: Education Tablets, Projectors, Course Materials Authored Content Libraries Media Content Bought in Services Interviews Course Development Workshops Feedback Grades Validation World of Actions Authoring Attendance Monitoring Assessment World of knowledge and content Admissions Timetabling Teaching Material World How much of the landscape can you cover? How much value can you capture? How much of what the client does, can you do? How much new value can you create for their clients or users? What is the business model – supplier or partner?
  22. 22. Commercialising Design Led Innovation RCA Service Design Module 2 Service Design at the RCA
  23. 23. Commercialising Design Led Innovation RCA Service Design Module 2 Sainsbury‟s: If you can order on the subway what‟s the future of retail superstores….? 23
  24. 24. Commercialising Design Led Innovation RCA Service Design Module 2 Sainsbury’s: re-inventing how staff interact with 20m customer a week – reassigning from checkout to serving customers
  25. 25. Commercialising Design Led Innovation RCA Service Design Module 2 Combining in-store café with bakery and a „flour bar‟ creating personalised mixes of ingredients and recipes
  26. 26. Commercialising Design Led Innovation RCA Service Design Module 2 UK Design Museum – Visitor Experience of the Big Picture
  27. 27. Commercialising Design Led Innovation RCA Service Design Module 2 Co-Creation with Potential Visitors on themes, programmes and delivery models: digital, physical, outreach
  28. 28. Commercialising Design Led Innovation RCA Service Design Module 2 User Centred Design Research – Observation, Ethnography, Interviews, Service Safaris
  29. 29. Commercialising Design Led Innovation RCA Service Design Module 2 Output: a collaborative programme with Universities and industry – the co:studio and wall, a digital platform for outreach
  30. 30. Commercialising Design Led Innovation RCA Service Design Module 2 NHS: Is technology alone the answer to diabetes? What other services are required and by whom?
  31. 31. Commercialising Design Led Innovation RCA Service Design Module 2 …yesterday I was diagnosed with diabetes, today life tastes bitter
  32. 32. Commercialising Design Led Innovation RCA Service Design Module 2 …we are developing the support service required to transform despair in to a life worth living
  33. 33. Commercialising Design Led Innovation RCA Service Design Module 2 Systemic Solution
  34. 34. Commercialising Design Led Innovation RCA Service Design Module 2 …Telecom and Financial Services in Phone Charging Service: Only 4% can charge Africa their phone but for 80%, their livelihood depends on the phone
  35. 35. Commercialising Design Led Innovation RCA Service Design Module 2 Creating a phone charging service currently transforming the lives of 10,000 farmers in Uganda already and will help millions more
  36. 36. Commercialising Design Led Innovation RCA Service Design Module 2 Loowatt: Waterless Sanitation and Energy System 36
  37. 37. Commercialising Design Led Innovation RCA Service Design Module 2 37
  38. 38. Commercialising Design Led Innovation RCA Service Design Module 2 38
  39. 39. Commercialising Design Led Innovation RCA Service Design Module 2 39
  40. 40. Commercialising Design Led Innovation RCA Service Design Module 2 The Service Designer: a truly Transdisciplinary role Design Business Digital Goal: Envisage and then enable a holistic and seamless user experience, and create new levels of value not only for the recipient but all the stakeholders involved
  41. 41. Commercialising Design Led Innovation RCA Service Design Module 2 Summary • Services are the other 80% of our economy • Digital technology is transforming their delivery and expectations • Service Design – transformative design • Two perfect storms are colliding ...creating value, designing with values

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