strategy, business models & service design
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Strategy, Business models & Service Design
Joel SandénHalmstad University
What we’ll cover in part 1
• What is strategy?
• How to analyse a market?
• How to create a business model?
• How to create goals for a business?
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
What we’ll cover in part 2
• The new role of “Design”
• What is Service Design?
What is strategy?
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
–Alfred Chandler Strategy and Structure: Chapters in the history of industrial enterprise
Doubleday, New York, 1962.
"the determination of the basic long-term goals of an enterprise, and the adoption of courses
of action and the allocation of resources necessary for carrying out these goals."
–Alfred Chandler Strategy and Structure: Chapters in the history of industrial enterprise
Doubleday, New York, 1962.
"the determination of the basic long-term goals of an enterprise, and the adoption of courses
of action and the allocation of resources necessary for carrying out these goals."
Think. Pair. Share.
Why does a business need a strategy?
Cause & Effect Growth
Mitigation
The 5 strategy P:s
The 5 strategy P:s
• Strategy as plan
The 5 strategy P:s
• Strategy as plan
• Strategy as pattern
The 5 strategy P:s
• Strategy as plan
• Strategy as pattern
• Strategy as position
The 5 strategy P:s
• Strategy as plan
• Strategy as pattern
• Strategy as position
• Strategy as ploy
The 5 strategy P:s
• Strategy as plan
• Strategy as pattern
• Strategy as position
• Strategy as ploy
• Strategy as perspective
Strategic Management Framework
Strategic Management Framework
https://en.wikipedia.org/wiki/Strategic_planning
Analysis Strategy Formation Goal Setting Structure Control & Feedback
Formulation Implementation
Strategic Management Framework
https://en.wikipedia.org/wiki/Strategic_planning
Analysis Strategy Formation Goal Setting Structure Control & Feedback
Formulation Implementation
Strategic Management Framework
https://en.wikipedia.org/wiki/Strategic_planning
Analysis Strategy Formation Goal Setting Structure Control & Feedback
Formulation Implementation
• SWOT
• PEST(LE)
• 5 forces
Strategic Management Framework
https://en.wikipedia.org/wiki/Strategic_planning
Analysis Strategy Formation Goal Setting Structure Control & Feedback
Formulation Implementation
• SWOT
• PEST(LE)
• 5 forces
• Mission & Vision statements
• Business model generation
• Design strategies
Strategic Management Framework
https://en.wikipedia.org/wiki/Strategic_planning
Analysis Strategy Formation Goal Setting Structure Control & Feedback
Formulation Implementation
• SWOT
• PEST(LE)
• 5 forces
• Mission & Vision statements
• Business model generation
• Design strategies
• Goals
• KPIs
• Scorecards
Strategic Management Framework
https://en.wikipedia.org/wiki/Strategic_planning
Analysis Strategy Formation Goal Setting Structure Control & Feedback
Formulation Implementation
• SWOT
• PEST(LE)
• 5 forces
• Mission & Vision statements
• Business model generation
• Design strategies
• Goals
• KPIs
• Scorecards
• Organizations
• Ways of working
• Cost structures
• Transformation
• etc…
Strategic Management Framework
https://en.wikipedia.org/wiki/Strategic_planning
Analysis Strategy Formation Goal Setting Structure Control & Feedback
Formulation Implementation
• SWOT
• PEST(LE)
• 5 forces
• Mission & Vision statements
• Business model generation
• Design strategies
• Goals
• KPIs
• Scorecards
• Organizations
• Ways of working
• Cost structures
• Transformation
• etc…
• User tests
• Statistics
• Reporting lines
• etc…
Analysis
SWOT
SWOT Analysis
https://en.wikipedia.org/wiki/SWOT_analysis
SWOT Analysis
https://en.wikipedia.org/wiki/SWOT_analysis
Strengths
SWOT Analysis
https://en.wikipedia.org/wiki/SWOT_analysis
Strengths Weaknesses
SWOT Analysis
https://en.wikipedia.org/wiki/SWOT_analysis
Strengths Weaknesses
Opportunities
SWOT Analysis
https://en.wikipedia.org/wiki/SWOT_analysis
Strengths Weaknesses
Opportunities Threats
Think. Pair. Share.
Can you make a quick SWOT analysis for Spotify?
SWOT Analysis
https://en.wikipedia.org/wiki/SWOT_analysis
Strengths Weaknesses
Opportunities Threats
PEST(LE)
PEST(LE) Analysis
https://en.wikipedia.org/wiki/PEST_analysis
PEST(LE) Analysis
• Political factors
https://en.wikipedia.org/wiki/PEST_analysis
PEST(LE) Analysis
• Political factors
• Economic factors
https://en.wikipedia.org/wiki/PEST_analysis
PEST(LE) Analysis
• Political factors
• Economic factors
• Social factors
https://en.wikipedia.org/wiki/PEST_analysis
PEST(LE) Analysis
• Political factors
• Economic factors
• Social factors
• Technological factors
https://en.wikipedia.org/wiki/PEST_analysis
PEST(LE) Analysis
• Political factors
• Economic factors
• Social factors
• Technological factors
• Legal factors
• Environmental factorshttps://en.wikipedia.org/wiki/PEST_analysis
Think. Pair. Share.
Can you name some PEST(LE) factors for a company like Spotify?
PEST(LE) Analysis
• Political factors
• Economic factors
• Social factors
• Technological factors
• Legal factors
• Environmental factors
Five forces
Porters 5 forces
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
Industry Rivalry
Bargaining Power of Suppliers
Threat of Substitutes
Threat of New Entrants
Bargaining Power of Buyers
Porters 5 forces
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
Industry Rivalry
Bargaining Power of Suppliers
Threat of Substitutes
Threat of New Entrants
Bargaining Power of Buyers
Porters 5 forces
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
Industry Rivalry
Bargaining Power of Suppliers
Threat of Substitutes
Threat of New Entrants
Bargaining Power of Buyers
Porters 5 forces
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
Industry Rivalry
Bargaining Power of Suppliers
Threat of Substitutes
Threat of New Entrants
Bargaining Power of Buyers
Porters 5 forces
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
Industry Rivalry
Bargaining Power of Suppliers
Threat of Substitutes
Threat of New Entrants
Bargaining Power of Buyers
Porters 5 forces
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
Industry Rivalry
Bargaining Power of Suppliers
Threat of Substitutes
Threat of New Entrants
Bargaining Power of Buyers
Think. Pair. Share.
Let’s make a 5 forces analysis for Spotify.
Porters 5 forces
Industry Rivalry
Bargaining Power of Suppliers
Threat of Substitutes
Threat of New
Entrants
Bargaining Power of Buyers
Porters 5 forces
Industry Rivalry
Bargaining Power of Suppliers
Threat of Substitutes
Threat of New
Entrants
Bargaining Power of Buyers
Think. Pair. Share.
Why did I tell you about SWOT, PEST(LE) & 5 forces?
Strategy formation
Strategy Maps
Design strategies
Value Chains
Mission & Vision
Business models
Design strategiesMission & VisionBusiness models
2nd lecture
Business models
Business models are used to…
…describe the rationale behind how a company creates, delivers and captures value.
…describe current or near future states of the business.
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
Create Deliver
De..liv.scherchr!!
INTERNAL / ORGANIZATION
EXTERNAL / CUSTOMERS
Capture
Business model canvas
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION
RELATIONSHIPS CUSTOMER SEGMENT
KEY RESOURCES CHANNELS
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION
RELATIONSHIPS CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES CHANNELS
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES CHANNELS
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS What type of relationship does each of our Customer Segments expect?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE REVENUE STREAMS For what value are our customers willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS What type of relationship does each of our Customer Segments expect?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE REVENUE STREAMS For what value are our customers willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS What type of relationship does each of our Customer Segments expect?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships?
CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE REVENUE STREAMS For what value are our customers willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?
KEY PARTNERS KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships?
VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS What type of relationship does each of our Customer Segments expect?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships?
CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE REVENUE STREAMS For what value are our customers willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?
KEY PARTNERS Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from our partners?When key activities do partners perform?
KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships?
VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS What type of relationship does each of our Customer Segments expect?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships?
CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
REVENUE STREAMS For what value are our customers willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?
KEY PARTNERS Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from our partners?When key activities do partners perform?
KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships?
VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS What type of relationship does each of our Customer Segments expect?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships?
CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
COST STRUCTURE What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
REVENUE STREAMS For what value are our customers willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?
KEY PARTNERS Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from our partners?When key activities do partners perform?
KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships?
VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS What type of relationship does each of our Customer Segments expect?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships?
CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
• Local beverage companies
• Sabco (the creator of the bottles)
• Distribution companies
• Food chains • Restaurant
chains
• Bottling • Distribution • Marketing • Producing and
supplying syrup
• Secret recipe • Syrup factory • Bottles & Crates • Bottling plants • Distribution
centers
• Quench thirst • Social status • Get sugar! • Familiar taste • Always there for
you
• Displays • Fridges • Adverts to end
customers • Sponsorships
• Large scale distribution
• Manual distribution centers
• Bulk sales • Retail sales • Merchandise
• Larger retail outlets
• Small shops/restaurants
• Franchises
• Marketing • Syrup production • Legal cost
• Distribution • Sponsorships
Think. Pair. Share.
Create a business model canvas for Spotify
COST STRUCTURE What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
REVENUE STREAMS For what value are our customers willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?
KEY PARTNERS Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from our partners?When key activities do partners perform?
KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships?
VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS What type of relationship does each of our Customer Segments expect?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships?
CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model
Value Proposition Canvas
COST STRUCTURE What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
REVENUE STREAMS For what value are our customers willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?
KEY PARTNERS Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from our partners?When key activities do partners perform?
KEY ACTIVITIES What Key Activities do our VPs require? Our Distribution Channels?Our Customer Relationships?
VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
RELATIONSHIPS What type of relationship does each of our Customer Segments expect?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
KEY RESOURCES What Key Resources do our VP require? Our Distribution Channels?Our Customer Relationships?
CHANNELS How do we reach our customers?How are channels integrated?How are we integrating them in in customer routines?
VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
VALUE PROPOSITION What value do we deliver to the customer?Which of the customer’s problems are we trying to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
CUSTOMER SEGMENT For whom are we creating value?Who are our most important customers?
Market fit
Gains
Pains
Customer Jobs
Gain creators
Pain Relievers
Products & Services
VALUE PROPOSITION CUSTOMER SEGMENT
Think. Pair. Share.
Create a value proposition canvas for Spotify’s curated playlists
Revenue streams
Revenue streams
• Recurring
• Transaction based
• Project revenue
• Service revenue
https://en.wikipedia.org/wiki/Revenue_stream
Common revenue streams
• Freemium
• Premium
• Monthly subscription
• Price per unit
• Flash sales/Daily deals
• Rental
• Licensing
• Certification
• Auctions
• Promoted content
• Brokerage
• Affiliate Programs
• Advertising
Mission & Vision statements
Mission & Vision statements are used to…
• …define a common purpose
• …give a sense of direction for the company & it’s employees
• …be achievable
Sadly, most of them suck…
[…] is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of
such quality that our customers will receive superior value while our employees and
business partners will share in our success and our stock-holders will receive a sustained
superior return on their investment.
[…] is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of
such quality that our customers will receive superior value while our employees and
business partners will share in our success and our stock-holders will receive a sustained
superior return on their investment.
General Motors
…but not all of them.
To bring inspiration and innovation to every athlete* in the world.
Nike * If you have a body, you’re an athlete
To bring inspiration and innovation to every athlete* in the world.
Our vision is to be earth's most customer centric company; to build a place where people
can come to find and discover anything they might want to buy online.
Amazon.com
Our vision is to be earth's most customer centric company; to build a place where people
can come to find and discover anything they might want to buy online.
Build the best product, cause no unnecessary harm, use business to inspire and implement
solutions to the environmental crisis.
Patagonia
Build the best product, cause no unnecessary harm, use business to inspire and implement
solutions to the environmental crisis.
…our vision is to create a better everyday life for the many people. Our business idea
supports this vision by offering a wide range of well-designed […] at prices so low that as
many people as possible will be able to afford them.
IKEA
…our vision is to create a better everyday life for the many people. Our business idea
supports this vision by offering a wide range of well-designed […] at prices so low that as
many people as possible will be able to afford them.
…to accelerate the advent of sustainable transport by bringing compelling mass market
electric cars to market as soon as possible
Tesla Motors
…to accelerate the advent of sustainable transport by bringing compelling mass market
electric cars to market as soon as possible
Think. Pair. Share.
Create a vision statement for Spotify
A definition to help you:
The tangible result of your mission. A compelling and detailed visualization of your successful outcome that could be as simple as one descriptive paragraph.
http://zurb.com/article/263/the-dreadful-mission-statement
Music moments everywhere.
– Collins and Porras Built to Last: Successful Habits of Visionary Companies
"A true BHAG is clear and compelling, serves as unifying focal point of effort, and acts as a
clear catalyst for team spirit. It has a clear finish line, so the organization can know when it has
achieved the goal; people like to shoot for finish lines."
• SpaceX: Enable human exploration and settlement of Mars.
• Facebook: To make the world more open and connected.
• Ford: Democratize the automobile.
• Google: Organize the world's information and make it universally accessible and useful.
• Blackpool FC: Reach English Premier League.https://en.wikipedia.org/wiki/Big_Hairy_Audacious_Goal
Goal Setting
Goals
• The result of a strategy
• Should be as clear as possible, actionable
• The day to day compass for each employee
• Should work on unit/department level and trickle down
• Very easy to get the wrong effect
https://hbr.org/2014/11/a-list-of-goals-is-not-a-strategy
S.M.A.R.T goals
https://en.wikipedia.org/wiki/SMART_criteria
S.M.A.R.T goals
• Specific
https://en.wikipedia.org/wiki/SMART_criteria
S.M.A.R.T goals
• Specific
• Measurable
https://en.wikipedia.org/wiki/SMART_criteria
S.M.A.R.T goals
• Specific
• Measurable
• Achievable
https://en.wikipedia.org/wiki/SMART_criteria
S.M.A.R.T goals
• Specific
• Measurable
• Achievable
• Relevant
https://en.wikipedia.org/wiki/SMART_criteria
S.M.A.R.T goals
• Specific
• Measurable
• Achievable
• Relevant
• Time-bounded
https://en.wikipedia.org/wiki/SMART_criteria
Think. Pair. Share.
Find 3 great goals for the next 12 months for Spotify’s curated playlists
https://antonsten.com/book/
What is service design?
https://hbr.org/2015/09/design-thinking-comes-of-age?cm_sp=Article-_-Links-_-Top%20of%20Page%20Recirculation
http://www.fastcodesign.com/3028271/ibm-invests-100-million-to-expand-design-business
http://www.nytimes.com/2015/11/15/business/ibms-design-centered-strategy-to-set-free-the-squares.html?_r=1
CEO
VP Sales VP Marketing VP Product Development VP IT CFO
CEO
VP Sales VP Marketing VP Product Development VP IT CFO
CEO
VP Sales VP Marketing VP Product Development VP IT CFO
Service design is the result of a shift in customer behaviour that is yet to be reflected in how most
companies operate.
The new customer
unctadstat.unctad.org/wds/TableViewer/chartView.aspx
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
www.industrytap.com/knowledge-doubling-every-12-months-soon-to-be-every-12-hours/3950
Always globalised Always on
Always informed Always ahead
Socially empowered
This creates a new model
http://image.slidesharecdn.com/mcolondon-150403080406-conversion-gate01/95/mobile-trends-creativity-nimbletank-mobile-convention-london-2015-6-638.jpg?cb=1428400901
30 years of services
1986 • Cash • Bank transfer • Bank- / Postgiro • Invoice • Bank card
2016 • Swish • iZettle • Klarna • Bank Card • Credit Card • Credit • Bitcoin • Pay what you want • Google Wallet • Apple Pay • Pay by phone • Pay via internetbank • Postal advance • SMS • Pay via phone subscription • and more…
Technology vs. Organisational change
Technology vs. Organisational change
Technology vs. Organisational change
http://www.aei.org/publication/fortune-500-firms-in-1955-vs-2014-89-are-gone-and-were-all-better-off-because-of-that-dynamic-creative-destruction/
http://www.mckinsey.com/insights/marketing_sales/the_consumer_decision_journey
http://www.cooper.com/journal/2014/07/service-design-101
Think. Pair. Share.
So, really. What is design?
Service Design
–Brandon Schauer Adaptive Path
”the process of carefully framing a project of what to design before you figure out how it
should be designed”
Wikipedia
“Design strategy is a discipline which helps firms determine what to make and do, why do
it and how to innovate contextually, both immediately and over the long term. This
process involves the interplay between design and business strategy.”
https://en.wikipedia.org/wiki/Design_strategy
Design Strategy
=
Business strategy + Users + Innovation
Design Strategy
=
Business strategy + Users + Innovation
Joel Sandén
http://www.cooper.com/journal/2014/07/service-design-101
What is it?
• Horizontal rather than vertical
• Touchpoint coordination - People
- Place
- Props
- Partners
- Processes
http://www.slideshare.net/notrevol/using-service-design-thinking-to-make-awesome-products
When to use it?
• When you need to improve your service offering
• When you’re mixing online & offline
• When you’ve lost track
• When you have a complex setup of different “players”
• When you want to move up the value chain
http://www.slideshare.net/notrevol/using-service-design-thinking-to-make-awesome-products
Service Design vs. Traditional product development
• Facilitate the creation of outcomes
• Value co-creation
• Integrated eco-system
• Relationship
• Focus on exchanging value
http://www.slideshare.net/notrevol/using-service-design-thinking-to-make-awesome-products
• Make & Distribute a unit
• Discrete value chain
• Specialist silos
• Transaction
• Focus on extracting value
Service Design - Principles
User-centered
User-centered
Co creative
User-centered
Co creative
Sequenced
User-centered
Co creative
Sequenced
Evidence based
User-centered
Co creative
Sequenced
Evidence based
Holistic
User-centered• Male
• Born 1948
• English
• Wealthy
• Twice Married
• Grown children
• Dog lover
• Live in the countryside
• Granddad
• Winter holiday in the alps
Co-creative
• Who’s the customer? Are there several customer segments?
• What stakeholders do we have?
• How can we involve anyone who either creates, provides or consumes the service?
Sequenced
• Imagine your service as a movie!
• How can we influence the rhythm of a service?
• Touchpoint coordination
Evidencing
• Make the users aware of intangible services
• Tell the user what’s going on
Evidencing
• Make the users aware of intangible services
• Tell the user what’s going on
Holistic
• Keep the big picture
• Find patterns
• Mitigate external factors
• Recognise overarching sequences
Think. Pair. Share.
What skills should a designer have?
Service Design - Tools
Service Design - Tools - The five whys
Just ask “why?” five times
• Why does it take so long to serve a customer?
• Why is there always a queue during lunch time?
• Why don’t we have enough staff to cope with the busy periods?
• Why is there not enough room for more staff?
• Why is there so much equipment around?
https://en.wikipedia.org/wiki/Porter_five_forces_analysis
Service Design - Tools - Touchpoint Trip
Pre Service During Service After Service
Phone
On the bus
Outside
Website
Youtube
Pre Service During Service After Service
Phone
On the bus
Outside
Website
Youtube
Service Design - Tools - Service Blueprint
http://www.cooper.com/journal/2014/08/service-blueprints-laying-the-foundation
Additional swimlanes
• Time
• Quality measures
• Emotional journey
• Splitting up the stages
• Customer Phase
• Photos/sketches of major interactions
www.cooper.com/journal/2014/08/service-blueprints-laying-the-foundation
Service Design - Tools - Customer Journeys
https://canvanizer.com/new/customer-journey-canvas
Service Design - Tools - Stakeholder Maps
Internal
External
Internal
External
Frontend developers
Backend developersManagers
Designers
Consultants
Record labels
Advertising Agency
The Pirate Bay
Artists
Product Owners
Think. Pair. Share.
Which tools did you prefer?
Think. Pair. Share.
Make a service blueprint for a flight with an airline
Service Design - Stories
Service Design - Stories - PepsiCo
Good for you
Better for you
Fun for you
Service Design - Stories - PepsiCo
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