DESIGNING FOR TOMORROW’S NEEDS

TORSTEN HENNING HENSELPARTNER // CREATIVE CONSULTANT

NOUVÉ // WWW.NOUVE.DE

WWW.FLICKR.COM/PHOTOS/KKOSHY/500791545

FUTURE-ORIENTED SERVICE DESIGN BERLIN // JUNE 2010

TODAY, COMPANIES MUST EXCITE THEIR CUSTOMERS ON MULTIPLE LEVELS.

THEY DON‘T HAVE TO STAND OUT IN ALL FIELDS, BUT...

THEY NEED TO CREATE A DIFFERENCE IN THOSE FIELDS THAT ARE RELEVANT FOR THEIR CLIENTELE.

WWW.FLICKR.COM/PHOTOS/ARUTHA/439765764

MORE AND MORE, IT’S SERVICE THAT HELPS TO CREATE A DIFFERENCE.

SERVICE [DEFINITION]

INTANGIBLE PRODUCTS THAT ARE NOT GOODS (TANGIBLE PRODUCTS), SUCH AS ACCOUNTING, BANKING,

CLEANING, CONSULTANCY, EDUCATION, INSURANCE, KNOW HOW, MEDICAL TREATMENT, TRANSPORTATION. NO TRANSFER OF POSSESSION OR OWNERSHIP TAKES PLACE

WHEN SERVICES ARE SOLD, AND THEY (1) CANNOT BE STORED OR TRANSPORTED, (2) ARE INSTANTLY

PERISHABLE, AND (3) COME INTO EXISTENCE AT THE TIME THEY ARE BOUGHT AND CONSUMED.

THE SERVICE ECONOMY IS EXPANDING IN MOST COUNTRIES OF THE WORLD. IN 2005, SERVICES ACCOUNTED FOR 69% OF THE WORLD GROSS DOMESTIC PRODUCT (GDP). IN THE

UNITED STATES, SERVICES REPRESENT NEARLY 80% OF VALUE ADDED AND EMPLOYMENT WHILE IN MOST

EUROPEAN ECONOMIES THEY HAVE ALREADY EXCEEDED AN ACHIEVEMENT LEVEL OF 70%.„The new service economy in Europe“

Luis Rubalcaba, Gisela Di Meglio and Andreas Pyka

SERVICE BOOMS.

... HAS NOT HERALDED A SERVICE REVOLUTION YET. MANY OF OUR INTERACTIONS WITH ORGANISATIONS ARE

STILL CHARACTERISED BY PROFOUND FRUSTRATION. TOO OFTEN IT FEELS LIKE ‘PRODUCER INTERESTS’, OR

PROFIT INCENTIVES MATTER MORE THAN HOW WE FEEL. SOPHIA PARKER AND JOE HEAPY. JOUNEY TO THE INTERFACE, 2006.

BUT: THE MARKET’S SHIFT TO A SERVICE ECONOMY...

WWW.FLICKR.COM/PHOTOS/ZOOBOING/4241390495

WHAT COMPANIES OFFER: STUFF TO BUY.

WWW.FLICKR.COM/PHOTOS/DEIFCHEN/486749610

WHAT PEOPLE WANT: MEANING AND SUPPORT.

WWW.FLICKR.COM/PHOTOS/SY_PARRYSH/2410649103

SO, OBVIOUSLY THERE’S A DISCREPANCY BETWEEN COMPANIES’ OFFERS AND PEOPLES’ NEEDS.

SOURCE: HTTP://WWW.SOCIALMEDIATODAY.COM/SMC/187825

COMPANY OUTPUTS CUSTOMER EXPECTATIONS

THE EXPECTATION GAP.

FOR MORE THAN 200 YEARS...

...COMPANIES HAVE BASED THEIR APPROACH TO BUSINESS ON SUPPLY-SIDE ECONOMICS, CONCENTRATING

ON CREATING PRODUCTS & SERVICES AND THEN ATTEMPTING – THROUGH MARKETING, PUBLICITY, DISTRIBUTION, AND PROMOTION – TO STIMULATE

DEMAND FOR THOSE PRODUCTS.

HOWEVER, OVER THE PAST 20 YEARS, THE MARKET HAS FUNDAMENTALLY SHIFTED. SWEEPING TECHNOLOGICAL

ADVANCES, GLOBALIZATION AND ACCESS TO NEARLY PERFECT INFORMATION HAVE RESULTED IN CONSUMERS

WHO ARE BETTER INFORMED, MORE SOPHISTICATED, AND FAR MORE DEMANDING.WWW.THECAMBRIDGEGROUP.COM

IT’S NO LONGER ENOUGH JUST TO DELIVER WHAT PEOPLE “EXPECT.”

HTTP://UOCONTEMPORARYDESIGN.BLOGSPOT.COM/2010/04/DESIGN-RESEARCH-METHODS.HTML

OUCH!

HTTP://WWW.JAUNTED.COM/FILES/3/BEIJING_AIRPORT_SIGN.PNG

above expectations

below expectations

average expectations

YOU NEED TO CREATE OFFERS THAT TOTALLY OUTPERFORM THEIR EXPECTATIONS!

above expectations

WOW!

HTTP://WWW.GEEKALERTS.COM/GIANT-SWISS-ARMY-KNIFE/

level of your delivery

level of people‘s expectations

the ”wow“ space

DON‘T DELIVER ON WHAT PEOPLE WANT. TRANSCEND THEIR NEEDS AND DELIVER ON THAT.

CREATE NEEDS.

WWW.FLICKR.COM/PHOTOS/NORDICWALKING/2147019801

POSTULATE NEEDS.

WWW.FLICKR.COM/PHOTOS/BENHEINE/4561195225

ANTICIPATE NEEDS.

MMMH!

HTTP://WWW.APPLE.COM

PAUL GRAHAM, MADE IN USA: HTTP://WWW.PAULGRAHAM.COM/USA.HTML

I JUST GOT AN IPOD, AND IT'S NOT JUST NICE. IT'S SURPRISINGLY NICE. FOR IT TO SURPRISE ME, IT MUST BE SATISFYING EXPECTATIONS I DIDN'T KNOW I HAD. NO FOCUS GROUP IS GOING TO DISCOVER THOSE. ONLY A GREAT DESIGNER CAN.

THE SAME THING GOES FOR SERVICE.

COMPANIES CAN NO LONGER ”DECIDE“ THE WAY FORWARD. THEY MUST NOW ”DESIGN“ THE WAY FORWARD.

MARTY NEUMEIER, PRESIDENT NEUTRON LLC, AUTHOR OF ZAG, THE BRAND GAP AND THE DESIGNFUL COMPANY

TRUE TO THE BRAND

RELEVANT TO THE CUSTOMER

DIFFERENT FROM COMPETITION

SIGNIFICANT FORTHE FUTURE

CRITERIA FOR GOOD DESIGN.

...INTRODUCING SERVICE DESIGN.

HTTP://PROBLEMSOLVINGFIRE.FILES.WORDPRESS.COM/2008/06/GOOD-CHEAP-FAST3.JPG

SERVICE DESIGN IS A SYSTEMATIC, CREATIVE APPROACH TO INNOVATION. VALUE IS CREATED BY

TAKING INTERACTION BETWEEN THE USER AND THE SERVICE PROVIDER, AND IDENTIFICATION OF PROBLEMS

AS A STARTING POINT AND TRANSFORMING THESE INTO OPPORTUNITIES AND NEW SOLUTIONS.

SOURCE: HTTP://ISSUU.COM/1508/DOCS/SERVICEDESIGNBOOK

HTTP://DKDS.CIID.DK/PY/INDUSTRY-PROJECT-DSB/PROJECTS/MAPME/

SERVICE DESIGN CAN HELP YOU CREATE SERVICES THAT MAKE A DIFFERENCE.

WHAT & HOW.SERVICE DESIGN ADDRESSES THE FUNCTIONALITY & FORM OF SERVICES FROM THE PERSPECTIVE OF CLIENTS. IT AIMS TO ENSURE THAT SERVICE INTERFACES ARE USEFUL, USABLE, AND DESIRABLE FROM THE CLIENT’S POINT OF VIEW AND EFFECTIVE, EFFICIENT, AND DISTINCTIVE FROM THE SUPPLIER’S POINT OF VIEW.

SERVICE DESIGNERS VISUALIZE, FORMULATE, AND CHOREOGRAPH SOLUTIONS TO PROBLEMS THAT DO NOT NECESSARILY EXIST TODAY; THEY OBSERVE AND INTERPRET REQUIREMENTS AND BEHAVIORAL PATTERNS & TRANSFORM THEM INTO POSSIBLE FUTURE SERVICES. BIRGIT MAGER

$SERVICE DESIGN IS ADDED VALUE CREATION ON MULTIPLE LEVELS.

SERVICE DESIGN IS CUSTOMER-CENTRIC DESIGN.

PUTTING PEOPLE AT THE HEART OF SERVICE DESIGN AND INNOVATION HAS TWO SIMPLE, IMPORTANT BENEFITS: YOU

PUT A CLEAR FOCUS ON DESIGNING FOR AND WITH THE PEOPLE WHO WILL ACTUALLY BE USING AND PROVIDING THE SERVICES – WHICH IN TURN WILL HELP YOU TO DE-

RISK THE PROCESS OF CREATING NEW OFFERINGS.

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SERVICE DESIGN IS TOUCHPOINT DESIGN.

SERVICE DESIGN CREATES NEW OPPORTUNITIES FOR YOUR COMPANY TO GET IN TOUCH WITH YOUR

CUSTOMERS. IT HELPS YOU TO FIND INNOVATIVE WAYS TO MAKE A DIFFERENCE AND DELIVER ON

YOUR BRAND PROMISE.

HTTP://DKDS.CIID.DK/PY/INDUSTRY-PROJECT-DSB/PROJECTS/MAPME/SERVICE DESIGN IS

INTERACTION DESIGN.

CUSTOMER JOURNEYS ALLOW TO ILLUSTRATE THE COMPLETE PROCESS OF A SERVICE WITH ITS EMOTIONAL,

MATERIAL AND PROCEDURAL COMPONENTS FROM A CLIENT’S PERSPECTIVE – THUS MAKING IT POSSIBLE TO

MODEL ALL THE INTERACTIONS WITHIN THE SERVICE.

WWW.FLICKR.COM/PHOTOS/RAYCHELNBITS/2114144788

SERVICE DESIGN IS EXPERIENCE DESIGN.

IF I WAS DESIGNING A PRODUCT I’D TAKE LOTS OF IDEAS, FIND OUT WHAT WORKS AND REFINE THAT. EVENTUALLY I’D GET A SOLUTION. DESIGNING SERVICES HAPPENS IN

REVERSE: THE OBJECTIVE IS TO DEFINE EXACTLY WHAT IT IS YOU WANT THE EXPERIENCE TO BE – AND THEN WORK

BACK TO ACTUALLY DELIVER THAT.JOE FERRY, HEAD OF DESIGN AND SERVICE DESIGN, VIRGIN ATLANTIC

“TRY TO DESIGN THE EXPERIENCE BEFORE YOU SPEND TIME ON DESIGNING THE PROCESSES AND TECHNOLOGY NEEDED TO EVENTUALLY RUN THE SERVICE.” LIVE|WORK

WWW.FLICKR.COM/PHOTOS/BUENOSAURUS/3481606161

...

HTTP://ADAMSONKNOWS.COM/CUSTOMER-JOURNEY

THE PROCESS.

HTTP://SERVICEDESIGNTOOLS.ORG/REPOSITORY

DESIGNTOOLS.

POSSIBLE OUTCOMES.

SOURCE: HTTP://WWW.ZEUSJONES.COM/BLOG/2009/RECENTLY-LAUNCHED-BP-PHOTOBOOTH/

POSSIBLE OUTCOMES.

SOURCE: HTTP://CEA.MBLAST.COM/WS/WFAWARD/RSP/VOTENOMINATION.ASP?SESSIONID=3849275

HTTP://WWW.NETFLIX.COM

POSSIBLE OUTCOMES.

SOURCE: HTTP://WWW.NETFLIX.COM

POSSIBLE OUTCOMES.

SOURCE: HTTP://WWW.Q110.DE/DE/INDEX.HTML

POSSIBLE OUTCOMES.

SOURCE: HTTP://WWW.AMAZON.COM / HTTP://WWW.NEWSWEEK.COM

POSSIBLE OUTCOMES.

SOURCE: HTTP://WWW.SHELL.DE/HOME/CONTENT/DEU/PRODUCTS_SERVICES/ON_THE_ROAD/SHOP_AND_SERVICES/TANKWART/

WWW.FLICKR.COM/PHOTOS/BUENOSAURUS/3670109860

IS THERE A FORMULA FOR A BOMBASTIC SERVICE?

CUSTOMER INSIGHTS+

FUTURE KNOWLEDGE=

ANTICIPATED NEEDSX

CREATIVE SOLUTIONS=

RELEVANT SERVICE SPECTRUM–

NON-BRAND-CONFORM IDEAS=

BRAND-CONFORM SERVICE OPTIONSX

BUSINESS MODEL CREATIVITY=

BOMBASTIC SERVICE CREATION

STILL BUSY WITH PRODUCTS?

WWW.FLICKR.COM/PHOTOS/ROBERTOMBERNA/2342717944

??

??

HTTP://MEDIA-CDN.TRIPADVISOR.COM/MEDIA/PHOTO-S/01/24/F8/C7/THINGS-WE-BOUGHT.JPG

ASK YOURSELF: WHERE’S SPACE FOR SERVICE IN OR AROUND YOUR PRODUCT.

SERVITIZE YOUR PRODUCT.

THE RELATIONSHIP BETWEEN PRODUCTS AND SERVICES IS EVOLVING. PARTICULARLY IN TECHNOLOGY DRIVEN INDUSTRIES, SERVICES ARE BECOMING AS FUNDAMENTAL TO PRODUCTS AS HARDWARE AND SOFTWARE. THE TERM SERVITIZATION IS USED TO DESCRIBE THIS TREND.

THE FUNDAMENTAL PRINCIPLE OF SERVITIZATION IS TO UNDERSTAND HOW YOUR CUSTOMER WILL USE YOUR PRODUCT AND INCREASE THE VALUE OF YOUR PROPOSITION BY PROVIDING ADDITIONAL SERVICES THAT WILL COMPLIMENT ITS USE, FUNCTION, DEPLOYMENT OR APPLICATION.

SERVICE IS THE FUTURE OF PRODUCT. TRANSFORM YOUR PRODUCTS INTO SERVICE!

THANK YOU!

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