Dr Andrea SiodmokHead of Design Knowledge

Future challenges for service companies

#1 Global changes#2 The creative economy#3 Goods and services#4 The bottom line

#1 Global changes

creativeindustrial

consumptionproduction

small ideasbig ideas

Flash mob/the Hoff

Small ideasBig ideas

leisure society 24/7 work

$480$35

x7.5 m cap $19 - $146bn

$1$200

scarcitydiversity

350

100-1609 36

Global creative imperative

#2 The creative economy

‘Industrial economy’Production focused Design of thingsStandardised “Less is more”Form follows function

‘Creative economy’Consumption focused Design of experiencesCo-designed‘More has costs’Value follows experience

A journey of an iconic design in a multicultural world…

Cambodia

Seoul

Morocco

Ohio

Kuwait

Prague

Tokyo

Bagdad

Bangkok

Nepal

Outer Space

Texas

Why do people love their ipods?

i-pod i-tunes(Apple Designers) (Apple Customers)Modernist box Bundled servicesNot up-gradable Customised contentMinimal customisation 1 bn downloadsBuilt and shipped by Apple Built and adapted by

customers

#3 Goods and Services

In the west we are seeing a shift in the value chain, from physical commoditiesthat support basic needs, to carefully cultivated experience-led services that anticipate latent desires.

What is a service?

“any activity or benefit that one party can give to another that is essentially intangible and does not result in the ownership of anything”

Philip Kotler

Services

Goods

Cost

20041994

Inflatory

Deflatory

Cost

20041994

Some thoughts on Service Design

Photo by David Mansell - Demos

Design for theservice sectorfinance retailairportshospitalspolice healtheducation

Service design skillsholistic designprototypingmulti-stakeholderco-designingcomplex problemsformal and informal design interventions

The ‘front-end’ design of services

£427.20

£427.20

£4,444.20

“Design shapes ideas to become practical and attractive propositions for users or customers.” Cox Review

The ‘back-end’ design of services(service provision and delivery)

Efficiency in labour intensive servicesDevelopment of agile services

Lean consumptionUCD to PCD

# User centred design = Understanding needs of the user that is not you (Customers)

# Business centred design = Understanding needs of the business decision makers that are not you (Design Leadership)

# Provider centred design = Understanding the needs of the service providers that are in at the delivery end (Stakeholders)

# Designer centred design = understanding needs of design that are beyond all of the above

www.designcouncil.org.uk/