Service Design in Product Service Systems for Small and Medium Sized Enterprises
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Service Design in Product Service Systems for Small and Medium Sized Enterprises Presentation at the 2nd Service Design Network Conference 2009.
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Service Design in Product Service Systems for Small and Medium Sized Enterprises
- 1. Service Design in Product Service Systems for Small and Medium Sized Businesses Prof. Jürgen Faust, Thomas Schönweitz SDN Conference 2009, 27.10.2009
- 3. Design Development Products Utility Functionality Universal aesthetics Goods, Services and Identities Marketability Symbolic diversity Folk and local aethetics Interfaces Natural interactivity Understandability Reconfigurability /adaptability Multiuser systems/ Networks Informativeness Connectivity Accessability Projects Social viability Directionality Commitment Discources Generativity Rearticulability Solidarity 20th century 21st century
- 4. Products vs. Services Shostack GL. 1977. Breaking Free from Product Marketing. The Journal of Marketing 41(2): 73-80
- 5. Products and Services Shostack GL. 1977. Breaking Free from Product Marketing. The Journal of Marketing 41(2): 73-80
- 8. Characteristics of SMEs Limited Financial Resources Limited Scope Limited Research Capabilities Flat Hierarchies Local Focus Faster Response Times More Options for Subsidies and Funding Less political influence Limited Market Share
- 10. Why is it important for SMEs to build upon SD? Hollins G. & Hollins B. 1993. Total Design : Managing the design process in the service sector. Pearson Education: London 41,9% in the Concept Phase 45,6% in the Production
- 11. Suggested Origin of Costs in Service Design Hollins G. & Hollins B. 1993. Total Design : Managing the design process in the service sector. Pearson Education: London 50% in the Concept Phase 50% in Implementation
- 12. Suggested Origin of Costs in Service Design Hollins G. & Hollins B. 1993. Total Design : Managing the design process in the service sector. Pearson Education: London Investments in Analysis and Design reduce risk and the cost of failure.
- 13. Service Design Processes in all Shapes and Sizes
- 14. Service Design Process for SMEs
- 18. Service Design Tools for SMEs
- 19. Service Design Tools for SMEs ANALYZE DESIGN DEVELOP IMPLEMENT Observation Interviews Questionnaire Storyboard Character Profiles Personas Offering Map Mock Up Blueprint U s e Cases Service Prototype
- 22. Services Chart / Status Quo
- 24. Methods used
- 28. The Process of Purchase and Manufacturing
- 33. More Info: www.mhmk.de and www.servicebydesign.de Find us at LinkedIn and Twitter ( @netsaver ) Thank You for the Opportunity!
Editor's Notes
- Just a quick definition of servicedesign here, I think I dont have to explain anyone here what it is they are doing all day long. ;-)
- Followin Shostacks approach, we can classify every product and every service along this axis somewhere from „product only with no service“ to „service without product“. (Go through the line quickly)
- Now to create a rich user experience, we have to add the accompanying component to the respective „product“, be it a product or a service. If we look at the product of „cosmetics“, we have a strong tangible component, which we need to add the virtual, the intangible component such as image and service to. For Airline Travel, which has very few physical evidence, we need to make that physicality more visible to create a complete experience for the user.
- „ In the enlarged European Union of 25 countries, some 23 million SMEs provide around 75 million jobs and represent 99% of all enterprises.” SMEs are difficult to define since they are a “grown organism” and are a subset of all companys. There are several definitions which all seem to have some core elements.
- Official EU Defnition, which then is important for subsidies etc.
- SMEs are often confronted with market deficiencies. SMEs frequently have difficulties in obtaining capital or credit, particularly in the early start-up phase. Their restricted resources may also reduce access to new technologies or innovation.
- Now lets look at what is the problem with design for SMEs...
- But then, why do we do all this? Why is Designing and Design Process so important? Hollins & Hollins point out the origin of costs in Product Design: What is clear here is, that, the earlier we recognize errors and mistakes and correct them, the less money we „waste“.
- Now this what they suggest it looks like f or service design. So we can see that we can save the 50% implementation cost, or even more, if we find that our idea is a failure, or even better: optimize the design so that it becomes a success early in the process.
- Now this what they suggest it looks like f or service design. So we can see that we can save the 50% implementation cost, or even more, if we find that our idea is a failure, or even better: optimize the design so that it becomes a success early in the process.
- The Design Processes used by Service Design Agencies around the world imply a prototyping process and are focused on the user and the experience. All processes though have many steps in common. IMPORTANT: C ost effective F ast (t create trust)
- They all have these steps in common. IDEO would call step 1 INSPIRATION, step 2 and 3 IDEATION and step 4 IMPLEMENTATION. The 5th step here is a resume after the project is finished, evaluation during the process happens continuously in the prototyping phases. The final evaluation phase is critical for SMEs to see the benefits of design and encourage further innovation.
- Now who are some of the stakeholders to SMEs.
- Lets look at some of the stakeholders with respect to their proximity to the company and information they have about and from the company
- I have selected some parties which are fairly easily available to SMEs for co-creation. Public, Banks and Suppliers could be included with statistical information, but access to those can be very difficult.
- Next, we need to identity tools which we can easily apply to these parties.
- Questionnaire (customer) Interviews (employee) Observation (customer, competition) Storyboard (all) Character Profiles (professional) Personas (employee) Offering Map (all) Mock Up (customers) Blueprint (professional) U s e Cases (professional) Service Prototype (customer)
- First I analyzed all the existing services in the company to get a status quo.
- Those were then compiled in a matrix. On the horizontal axis we have the intent to create revenue to the left and the intent to create brand image to the right. On the vertical axis we have the net-cost to the customer upward, and net-cost to the company down. To give some examples: The repair of glasses costs money for the customer and creates revenue for the company. A contact lens consult costs money depending on the status of the customer. If he or she is a new customer, the company charges regular fees. If it is a returning customer the service might be provided for free. If the service is provided for free, the customer feels valued, increasing positive feelings toward the brand. The Satisfaction Guarantee is something which is a free service for the customer, creates cost for the company, but creates a positive image with the customer.
- A nalysis of competitors
- Customer Journey
- C ustomer analysis / questionnaire
- I nterviews and brainstormings with employees
- Following the Brainstorming Phase with employees, the various steps of providing the service are broken down into the different views for better analysis.
- I nterviews and brainstormings with CEO and experts.
- How does convergence change the rules of the game in converging sectors?