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WHAT IS
SERVICE DESIGN?
Summer of Service Design
Richard Ekelman
Richard Ekelman
Founder, The Service Experience Academy
Service Experience Chicago
Co-Founder & Director 2013 - 2016
External & Internal Service Designer
Accenture, Slalom, Walgreens, Aetna
MFA Service Design
Savannah College of Art & Design
2
1
Service
Foundations
2 Capabilities &
Distinctions
3 Methods &
Myths
Our Journey Today
3
Why is Service Design a
buzzword right now?
4
Everyone knows their
part of the elephant.
It is impossible to design a system you
can completely see and measure.
5
“Channels” reflect
companies. Not people.
These are contrived boundaries created
by how organizations divide their labor
and not how people conceive a brand.
6
Co-created services
save money, reduce
risk, & build value.
Understanding the people that deliver
and consume a service allows an
organization to tailor their offerings.
7
ht
Services are
technology agnostic.
Human behavior and technology are
constantly evolving. Services adapt to
reality, current & future.
8
http://i.huffpost.com/gen/4350484/images/o-VIRTUAL-REALITY-facebook.jpg
Services are
technology agnostic.
Human behavior and technology are
constantly evolving. Services adapt to
whatever reality is now and in the future.
9
Competing on service requires
a service-aligned organization.
Competing on price or features creates organizations
that are disconnected from customers and siloed
from each other.
10
Core concepts
Service Foundations
11
S-D Logic
Service-Dominant (S-D) Logic is a mindset that organizations,
markets, and society are fundamentally concerned with
exchange of service—the applications of competences
(knowledge and skills) for the benefit of all parties involved.
According to S-D Logic, all of marketing needs to break free
from the goods and manufacturing-based model—that is,
goods-dominant (G-D) logic. S-D logic embraces concepts
of the value-in-use and co-creation of value rather than the
value-in-exchange and embedded-value concepts of G-D logic.
Vargo & Lusch, 2004
12
S-D Logic Axioms
1.	 Service is the fundamental basis of exchange.
2.	 Value is co-created by multiple actors, always including the beneficiary.
3.	 All social and economic actors are resource integrators.
4.	 Value is always uniquely and phenomenologically determined.
13
Parts of a Service
CORE SERVICE
The core way an organization creates value.
ENABLING SERVICES
Processes, training, and resources enabling the core.
ENHANCING SERVICES
Processes and partnerships that extend delight.
SERVICE RECOVERY
Processes that seek to salvage and repair.
Core
Enabling
Enhancing
Recovery
14
5Ps of Service Design
PEOPLE
Employees and customers that deliver and
exchange value across the moments of a service.
PLACE
The physical space or the virtual environment
through which the service is delivered.
PROCESS
Processes connect the front and back stages of
how a service is performed.
PROPS
The objects and the collateral used to produce the
service encounter (forms, products, signs, etc.).
PARTNERSHIP
Other businesses or entities that help to produce
or enhance the service encounter.
15
Services as
Theatre (airport)
BACKSTAGE
Baggage
Handler
Airport Ops
Food Services
Jet Bridge
Operator
Airport
Ground Crew
Mechanic
FRONT STAGE
Gate
Associates
Pilots
Flight Crew
16
Front Stage and
the Audience
BACKSTAGE
Baggage
Handler
Airport Ops
Food Services
Jet Bridge
Operator
Airport
Ground Crew
Mechanic
FRONT STAGE
Gate
Associates
Pilots
Flight Crew
17
Backstage Actors
and Partnerships
BACKSTAGE
Baggage
Handler
Airport Ops
Food Services
Jet Bridge
Operator
Airport
Ground Crew
Mechanic
FRONT STAGE
Gate
Associates
Pilots
Flight Crew
18
Services as
Theatre (airport)
BACKSTAGE
Baggage
Handler
Airport Ops
Food Services
Jet Bridge
Operator
Airport
Ground Crew
Mechanic
FRONT STAGE
Gate
Associates
Pilots
Flight Crew
19
Understanding how a service
lives over time will help create
the right balance and timing in
your service concepts.
Sequence
20
Services are largely intangible,
but evidence of a service can
help extend the connection
people feel to their experiences.
Evidencing
21
For example
Trunk Club
CORE SERVICE
1 on 1 fashion advice and clothing services.
ENABLING SERVICES
Supply partnerships, stylists, space, inventory system,
& stylist training program.
ENHANCING SERVICES
Premium drinks in-store, custom tailoring services,
look board (App.), handwritten notes from stylist.
SERVICE RECOVERY
Call from the VP of Member Experience, follow-up
emails from the stylist from each service encounter.
Core
Enabling
Enhancing
Recovery
23
5Ps: Trunk Club
People Props Place ProcessPartnership
24
Service System: Trunk Club
Front stage Enabling Processes Delivery/EvidenceService Encounter
Some of this will look similar
Capabilities & Distinctions
26
Core Capabilities of a Service Designer
The
Researcher
The
Strategist
The
Designer
Robert Bau, 2012
Identifying &
Overcoming
Innovation
Roadblocks
Generating,
Screening &
Visualizing Ideas
Developing
Viable Strategies
& Plans
Identifying
Opportunities
& Re-framing
Problems
Developing,
Prototyping
& Validating
Concepts
Understanding
Complex
Systems &
Problems
Understanding
People
Understanding
& Envisioning
the Future
Facilitating the
Collaborative
Process
Service Design borrows from everything
and everyone to solve problems.
We seek to find the right mix of
technology and processes needed to
create the most value in the simplest
manor possible.
Inherent Flexibility
UX
Product
Anthropology
CX
Architecture
Business Strategy
Marketing
Data Science
SD
28
Product Design
extending their makers
mentality beyond objects.
offering them the ability to
transition between digital
and physical contexts.
Business Strategy
creating a competitive
advantage by aligning to
what people value.
reducing the risk that can
paralyze innovation.
Content Strategy
adding the need to design
for service personality.
Six Sigma
highlighting optimizations
from both the customer and
org perspective to grow an
efficient and desirable system.
Organization Change
adding a tangible set of
business outcomes and
customer value to create a
catalyst for change.
Process Design
adding regular measurements,
evidence, and alignment to the
value of improved processes.
User Experience
getting beyond screens.
de-coupling their work with
technology platforms.
getting away from features.
Customer Experience
freeing them from sales and
marketing tactics.
delivering valuable relationship.
Employee Experience
adding systematic way to
identify and remove barriers.
co-creating with workers to
drive the innovation process.
Service Design extends __________ by __________________.
Service design is...
flexible and can be applied to any industry to solve systematic problems.
foundational and has always evolved out of a need to find a competitive advantage.
uniquely equipped to handle complexities.
co-creative and reduces the risk in innovation.
as digital and physical as needed to solve the problem.
30
The Mindset
Shelley Evenson
Director of Cultural Evolution, Fjord
• People are first and foremost
• Co-creation is critical
• Continuously storytelling
• Make early and often
• Develop a competitive advantage
• Evidence based
31
The mark of a professional is knowing
the right tool at the right time.
Methods & Myths
32
Service mapping
Standard execution time
3 minutes
15 seconds
Total acceptable execution time
6 minutes
15 seconds
Lynn Shostack, 1986
Repeat for
second coat
Apply
polish
Brush
shoes
Clean
shoes
Fail
point
Receipt
Sample of
shoe polish
Wrong
color wax
Buff Collect
payment
33
Map for Alignment
• Document the current state and find failures
• Align on KPIs
• Create a shared reality
• 1 map one experience based on research
• Treat maps as living documents
• Helps stakeholders unclench from a single feature
PHYSICAL
EVIDENCE
CUSTOMER
ASSOCIATE
DATA
COST
INTERNAL
SYSTEM
EXTERNAL
SYSTEM
TIME
35
Jobs to Be Done
Provides a clear sense of the jobs a
service must perform to be valuable.
Understanding the jobs a service
is hired for breeds constant
measurement and a connection to
real stories.
Lynn Shostack, 1986
When
I want
So I can the goal
service trigger
service context
36
Jobs Over Personas
Personas are assumptions wrapped in assumptions
The weight of personas make them too heavy
Jobs are more measurable
37
Thank You
Richard Ekelman
rich@sxacademy.com
www.sxacademy.com
Dollar Shave Club
Created a competitive advantage by
creating a more efficient and effective
service around a good product that fit
into the way people live and reducing
the friction and underlying cost of
production.
39
Product Dominance
Operational Excellence Customer Intimacy
Market Strategies
Product Dominance
Operational Excellence Customer Intimacy
40
Partnerships Backstage
Processes
Core Service Front stage People
TouchpointsKey Resources
Cost Structure Revenue Streams
One wipe CharliesStore
displays
Acquisition
costs
Women
Re-occurring
order intervalsManaging
regional store
locations
Improved
experiences by
removing friction
points and
making repeat
orders easy
to manage
Emails to drive
re-engagement
and offer control
Emails to drive
re-engagement
41
Product Dominance
Operational Excellence Customer Intimacy
Competitive Advantage
Product Dominance
Operational Excellence Customer Intimacy
42
Lower costs to compete and higher margins
$$$$$$$$$$
Zero to One
43

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What is Service Design?

  • 1. WHAT IS SERVICE DESIGN? Summer of Service Design Richard Ekelman
  • 2. Richard Ekelman Founder, The Service Experience Academy Service Experience Chicago Co-Founder & Director 2013 - 2016 External & Internal Service Designer Accenture, Slalom, Walgreens, Aetna MFA Service Design Savannah College of Art & Design 2
  • 3. 1 Service Foundations 2 Capabilities & Distinctions 3 Methods & Myths Our Journey Today 3
  • 4. Why is Service Design a buzzword right now? 4
  • 5. Everyone knows their part of the elephant. It is impossible to design a system you can completely see and measure. 5
  • 6. “Channels” reflect companies. Not people. These are contrived boundaries created by how organizations divide their labor and not how people conceive a brand. 6
  • 7. Co-created services save money, reduce risk, & build value. Understanding the people that deliver and consume a service allows an organization to tailor their offerings. 7
  • 8. ht Services are technology agnostic. Human behavior and technology are constantly evolving. Services adapt to reality, current & future. 8
  • 9. http://i.huffpost.com/gen/4350484/images/o-VIRTUAL-REALITY-facebook.jpg Services are technology agnostic. Human behavior and technology are constantly evolving. Services adapt to whatever reality is now and in the future. 9
  • 10. Competing on service requires a service-aligned organization. Competing on price or features creates organizations that are disconnected from customers and siloed from each other. 10
  • 12. S-D Logic Service-Dominant (S-D) Logic is a mindset that organizations, markets, and society are fundamentally concerned with exchange of service—the applications of competences (knowledge and skills) for the benefit of all parties involved. According to S-D Logic, all of marketing needs to break free from the goods and manufacturing-based model—that is, goods-dominant (G-D) logic. S-D logic embraces concepts of the value-in-use and co-creation of value rather than the value-in-exchange and embedded-value concepts of G-D logic. Vargo & Lusch, 2004 12
  • 13. S-D Logic Axioms 1. Service is the fundamental basis of exchange. 2. Value is co-created by multiple actors, always including the beneficiary. 3. All social and economic actors are resource integrators. 4. Value is always uniquely and phenomenologically determined. 13
  • 14. Parts of a Service CORE SERVICE The core way an organization creates value. ENABLING SERVICES Processes, training, and resources enabling the core. ENHANCING SERVICES Processes and partnerships that extend delight. SERVICE RECOVERY Processes that seek to salvage and repair. Core Enabling Enhancing Recovery 14
  • 15. 5Ps of Service Design PEOPLE Employees and customers that deliver and exchange value across the moments of a service. PLACE The physical space or the virtual environment through which the service is delivered. PROCESS Processes connect the front and back stages of how a service is performed. PROPS The objects and the collateral used to produce the service encounter (forms, products, signs, etc.). PARTNERSHIP Other businesses or entities that help to produce or enhance the service encounter. 15
  • 16. Services as Theatre (airport) BACKSTAGE Baggage Handler Airport Ops Food Services Jet Bridge Operator Airport Ground Crew Mechanic FRONT STAGE Gate Associates Pilots Flight Crew 16
  • 17. Front Stage and the Audience BACKSTAGE Baggage Handler Airport Ops Food Services Jet Bridge Operator Airport Ground Crew Mechanic FRONT STAGE Gate Associates Pilots Flight Crew 17
  • 18. Backstage Actors and Partnerships BACKSTAGE Baggage Handler Airport Ops Food Services Jet Bridge Operator Airport Ground Crew Mechanic FRONT STAGE Gate Associates Pilots Flight Crew 18
  • 19. Services as Theatre (airport) BACKSTAGE Baggage Handler Airport Ops Food Services Jet Bridge Operator Airport Ground Crew Mechanic FRONT STAGE Gate Associates Pilots Flight Crew 19
  • 20. Understanding how a service lives over time will help create the right balance and timing in your service concepts. Sequence 20
  • 21. Services are largely intangible, but evidence of a service can help extend the connection people feel to their experiences. Evidencing 21
  • 23. Trunk Club CORE SERVICE 1 on 1 fashion advice and clothing services. ENABLING SERVICES Supply partnerships, stylists, space, inventory system, & stylist training program. ENHANCING SERVICES Premium drinks in-store, custom tailoring services, look board (App.), handwritten notes from stylist. SERVICE RECOVERY Call from the VP of Member Experience, follow-up emails from the stylist from each service encounter. Core Enabling Enhancing Recovery 23
  • 24. 5Ps: Trunk Club People Props Place ProcessPartnership 24
  • 25. Service System: Trunk Club Front stage Enabling Processes Delivery/EvidenceService Encounter
  • 26. Some of this will look similar Capabilities & Distinctions 26
  • 27. Core Capabilities of a Service Designer The Researcher The Strategist The Designer Robert Bau, 2012 Identifying & Overcoming Innovation Roadblocks Generating, Screening & Visualizing Ideas Developing Viable Strategies & Plans Identifying Opportunities & Re-framing Problems Developing, Prototyping & Validating Concepts Understanding Complex Systems & Problems Understanding People Understanding & Envisioning the Future Facilitating the Collaborative Process
  • 28. Service Design borrows from everything and everyone to solve problems. We seek to find the right mix of technology and processes needed to create the most value in the simplest manor possible. Inherent Flexibility UX Product Anthropology CX Architecture Business Strategy Marketing Data Science SD 28
  • 29. Product Design extending their makers mentality beyond objects. offering them the ability to transition between digital and physical contexts. Business Strategy creating a competitive advantage by aligning to what people value. reducing the risk that can paralyze innovation. Content Strategy adding the need to design for service personality. Six Sigma highlighting optimizations from both the customer and org perspective to grow an efficient and desirable system. Organization Change adding a tangible set of business outcomes and customer value to create a catalyst for change. Process Design adding regular measurements, evidence, and alignment to the value of improved processes. User Experience getting beyond screens. de-coupling their work with technology platforms. getting away from features. Customer Experience freeing them from sales and marketing tactics. delivering valuable relationship. Employee Experience adding systematic way to identify and remove barriers. co-creating with workers to drive the innovation process. Service Design extends __________ by __________________.
  • 30. Service design is... flexible and can be applied to any industry to solve systematic problems. foundational and has always evolved out of a need to find a competitive advantage. uniquely equipped to handle complexities. co-creative and reduces the risk in innovation. as digital and physical as needed to solve the problem. 30
  • 31. The Mindset Shelley Evenson Director of Cultural Evolution, Fjord • People are first and foremost • Co-creation is critical • Continuously storytelling • Make early and often • Develop a competitive advantage • Evidence based 31
  • 32. The mark of a professional is knowing the right tool at the right time. Methods & Myths 32
  • 33. Service mapping Standard execution time 3 minutes 15 seconds Total acceptable execution time 6 minutes 15 seconds Lynn Shostack, 1986 Repeat for second coat Apply polish Brush shoes Clean shoes Fail point Receipt Sample of shoe polish Wrong color wax Buff Collect payment 33
  • 34.
  • 35. Map for Alignment • Document the current state and find failures • Align on KPIs • Create a shared reality • 1 map one experience based on research • Treat maps as living documents • Helps stakeholders unclench from a single feature PHYSICAL EVIDENCE CUSTOMER ASSOCIATE DATA COST INTERNAL SYSTEM EXTERNAL SYSTEM TIME 35
  • 36. Jobs to Be Done Provides a clear sense of the jobs a service must perform to be valuable. Understanding the jobs a service is hired for breeds constant measurement and a connection to real stories. Lynn Shostack, 1986 When I want So I can the goal service trigger service context 36
  • 37. Jobs Over Personas Personas are assumptions wrapped in assumptions The weight of personas make them too heavy Jobs are more measurable 37
  • 39. Dollar Shave Club Created a competitive advantage by creating a more efficient and effective service around a good product that fit into the way people live and reducing the friction and underlying cost of production. 39
  • 40. Product Dominance Operational Excellence Customer Intimacy Market Strategies Product Dominance Operational Excellence Customer Intimacy 40
  • 41. Partnerships Backstage Processes Core Service Front stage People TouchpointsKey Resources Cost Structure Revenue Streams One wipe CharliesStore displays Acquisition costs Women Re-occurring order intervalsManaging regional store locations Improved experiences by removing friction points and making repeat orders easy to manage Emails to drive re-engagement and offer control Emails to drive re-engagement 41
  • 42. Product Dominance Operational Excellence Customer Intimacy Competitive Advantage Product Dominance Operational Excellence Customer Intimacy 42
  • 43. Lower costs to compete and higher margins $$$$$$$$$$ Zero to One 43