moving towards service dominant logic in manufacturing sector: development of a tool for inquiry -...
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Moving towards Service Dominant Logic in Manufacturing Sector: Development of a Tool for Inquiry
Daniela Sangiorgi | Politecnico Di Milano Jung-Joo Lee | National University of Singapore Deniz Sayar | Istanbul Technical University Don Allen | Cisco Systems, Ltd. Nick Frank | Si2 Partners LLP
26 May 2016 | ServDes 2016
ISSIP (International Society of Service Innovation Professionals) is a professional association co-founded by IBM, Cisco, HP & several Universities with a mission to promote Service Innovation. Service Design SIG is a unit of ISSIP working on developing knowledge, approaches & guidelines for organizations to help them better understand and apply Service Design in their innovation processes.
www.issip.org
Moving toward a SDL requires..
- A change in perspective of what SERVICES are - An evolution of how organisations perceive and engage with DESIGN
- An evolution of how organisations perceive and engage with USERS and other stakeholders
Moving toward a Service Dominant Logic
Service Design User Added value to manufacturing
“Styling” of new technologies
Passive recipients of company’s offerings
In GDL, value is embedded in products. Company-centric perspective, focused on its own resources & technical abilities (Vargo & Lusch 2004)
STAGE 1 Good-Dominant Logic & Product Design
Here the focus of
innovation is on products
as tangible offerings and
manufacturing processes
design as styling working
on aesthetic
considerations such as
style, appearance and
ergonomics
The involvement of users
in the design process is
very limited (e.g.
statistics, focus groups,
usability testing, etc.)
Service Design User
As a market offer, an engine for growth & employment
Conscious activity of ‘Service Design’
Experts of their own experiences
From a peripheral activity to the mainstream manufacturing led economy, to the main driver for both economic and employment development
STAGE 2 Advent of Service Economy & Service Design
Attention into service
innovation, with a first
acknowledgement of
differences in service life
cycles and new service
development
design of service
interactions, to provide
better experiences for
users, using human-
centred design methods
direct involvement of
users in the design
process as “co-
designers” typically in
workshop settings
Service Design User
As a perspective on value co-creation
Design to implement a Service Dominant Logic
Participate in the co-creation of services
Interest has moved toward integrating studies on products and services into a higher-level framework to understand value co-creation
STAGE 3 Service Dominant Logic & Design for Service
Service as business
logic, a way of thinking
and innovating
Working with and within
organisations to help
them become more
dynamic and customer
centric
Organisations focus on
providing support for
users’ own activities and
purposes.
Parallel evolution of Services, Design and Users
Service Design User
Added value to manufacturing
“Styling” of new technologies
Passive recipients of company’s offerings
As a market offer, an engine for growth & employment
Conscious activity of ‘Service Design’
Experts of their own experiences
As a perspective on value co-creation
Design to implement a Service Dominant Logic
Participate in the co-creation of services
Stag
e 1
Stag
e 2
Stag
e 3
FRAMEWORK to develop a tool for inquiry into organisations’ own perception of their practices, identity, and future
Use this parallel evolution of Service, Design and User engagement as material for reflection for organisations to look into their own transformation journey:
TOOL FOR INQUIRY (Junginger, 2015) to enhance designers’ ability to engage organisations into a conversation about their own design legacies and the implications these have on their ability to fulfil their vision or purpose
Parallel evolution of Services, Design and Users
Inquiry Questions
Categories Questions
Service § How do you describe your company? § How do you understand service? § Who is involved in service delivery?
Design § How do you understand design in your company? § What role does design play in your company? § Who is involved in design for services?
Users
§ Who are your users? § What is your understanding of users? § How do you interact with users? § What type of information about users do you gather? § How do you engage users in the innovation process?
Vision
§ What is your vision on service innovation? § What is the reason for change? § Where does the initiative come from? § What is the focus of change? § What level of organisational support is there for change?
Service category
Users category
Design category
Vision category
Pilot Test
§ 5 employees from a global large manufacturing company participated § The participants chose the stages under each question + interviewed on the reasons behind their choices § 60-90 min each interview
Airflow Equipment Inventory (AEI) – core technology
AEI Customer Product AEI Accelerator Customer Service Product
AEI for Partners Partner Service Product
Director
Product Manager
Program Manager
Product Manager Director
PRODUCT SERVICES
*specifics modified for the anonymity of the company.
S M
T
C
A
Job Scope of the Interviewees
Findings: Overall Reaction
§ Going through the stages helped participants’ thought-process about the company’s status.
“(reading the description) service is a specific function to support sales… we are definitely not in this stage.”
Program manager / customer product
A “Stage 3... you’re saying ‘design helps our strategy?’ I’m not sure what it means. Actually we have a strategy and then we go into the design.”
Findings: Overall Reaction
“(reading the description) service is a specific function to support sales… we are definitely not in this stage.”
Program manager / customer product
A “Stage 3... you’re saying ‘design helps our strategy?’ I’m not sure what it means. Actually we have a strategy and then we go into the design.”
§ For a big company, “context-setting” is important: e.g. which business model, division, market segment?
§ The category of “design” is the most difficult to answer: “Which activities and processes could be considered as design in our company?”
Director / customer product
M
“What do you mean by design in this area?...By design, do we mean my user experience team who are focused on the customer journey mapping or… the architects who are responsible for taking the business requirements… I don’t know if either of those fit in design, so I’m not quite sure what’s meant by this.”
§ Going through the stages helped participants’ thought-process about the company’s status.
Mis-alignment in individual employees’ understanding
Findings: Misalignment in Understanding of Service
S M T C A
S M T C A
A S M T C
T A M C S
“How do you describe your company?”
Findings: Misalignment in Understanding of Service
M T C A
M T C A
A M T C
T A M C
“How do you describe your company?”
S
S
S
S
Director / partner service product
“…sometimes we talk as if we are at Stage 2…I think it’s a little unknown. I don’t think- I’m not hundred percent sure our ambition is actually Stage 3.”
Findings: Misalignment in Understanding of Design
S T C A
C S A T
“Who should be involved in design?”
M
M
S T A
S A T
M
M
Findings: Misalignment in Understanding of Design
“Who should be involved in design?”
C
C
Project manager / service product
“design as a holistic development process, which involves collaboration among different teams (engineering, marketing, product development, sales etc.) and all levels of companies (across executive level and “worker bees”)
T C A
C A T
M
M
Findings: Misalignment in Understanding of Design
“Who should be involved in design?”
S
S Director / partner service product
“We are not at Stage 3 and I’m not hundred percent sure we want to be at Stage 3…’all levels of the company’.”
§ Product development-oriented view where efficiency on development and implementation is important à company wouldn’t want to involve a lot of people and resources in the development.
Findings: Limited Recognition of User Engagement
S S S S
“Who are your users?”
S Director / partner service product
“What is your understanding of users?”
§ S deals with partners (resellers) and his understanding of the final customers is through these partners. à ‘Our company clusters users in terms of past purchase requirements and market segment.’
§ The term users is relational according to the company’s tier distribution model.
Interrelations of the understanding of service, design & user, depending on the job focus
S (Director / partner service product) (Manager / customer service product) C
Service Added-value to products, a specific function to support sales & company’s performances
Company visions to deliver product-service system (distinction between two)
Users Clustered by past purchase requirements & market segment
Design A set of skills & systematic process for the development of things to meet requirements by market segment.
Efficiency than holistic approach
An integrated solution for customers to create value
Company should move to a solution-oriented company.
Design needs to involve different levels of the company – from high-level to set strategy by managers to ‘detail’ design for hardware/software design, delivery and marketing across different teams
Learning from the Pilot study
§ To identify a possible scope of the tool as a ‘conversation piece’.
§ To explore the level of (mis)alignment of different organisational departments
§ The tool can be used as a small part of mind-set change & vision setting process, by helping to externalise views and identify misalignment across different teams & levels
Future Plan
§ Applying the 2nd version with employees from different teams & levels from a large
company
§ In the workshop context, combined with group mapping activities that help to
visualise current status & future visions, and set action strategies
Future Plan
2nd version
Context setting
Future Plan
2nd version
Continuum to allow choices in between
Model A – D, not to impose Stage 3 is the right answer.