Chapter 1

1. Service design for business
JiHoon Kwak
20150101

2. Contents
Why service design
Three Trends That Make Service
Design Relevant Today
Use Service Design to Deal with Business Ambitions and Organizational Challenges
Key Concepts
Chapter 1

3. Service design has emerged in the 21C because of these reasons:
Many trends.
Design history background.
Service marketing.
whywhat
Why Service Design
These two elements together
Why service design?
Why now?
How it is relevant to you as a manager, leader, or business?

4. Economic
Trend
Social
Trend
Technical
Trend
Design Relevant Today
These three trends should be considered in service design.

5. Manufacturing
Growing rapidly
Primary
industries
Secondary
industries
Tertiary
industries
Higher-margin businesses than manufacturers.
Services have the additional benefit of supporting customers to get the best from products and drive loyalty.
Bring the best design methodologies to bear on a new challenge.
Economic: The trend toward value in services
Agriculture
Service

6. Customers are expecting more as they value their own entitlements more than previous generations.
Consumer
expectations
Service
Design
(Customer needs)
We need to understand customer needs and expectations develops in parallel.
Social: The increase in customer expectations

7. We are all aware of the impact of the digital revolution.
It has driven radical change and disruption in the service sector.
Radical
Change
Digital
revolution
Ex) Amazon
Developing
technology
Dehumanize
Service
design
Humanize
technology
Technical: Growth of digital means
Service design offers tools to humanize technology.

8. Use Service Design to Deal with Business Ambitions and Organizational Challenges

9. Business
ambitions
Service
design
Internal &
External
Challenges
Service design offers a perspective, method, and tool set that enables an organization to realize business ambitions
as well as way to deal with internal and external challenges. It offers an approach to deal with strategic initiatives as well as
challenges by asking three fundamental questions:
1. What does this do for our current and future customers?
2. How will our business be impacted?
3. Which capabilities are needed by the organization to respond or to drive the initiative?
Customer-
related
challenges
Customers
Business
Organizatio
n
Connecting customers to the business and the organization

10. Seeing a business through customers’ eyes offers powerful insights that make customers’ expectations, experience,
and behavior more tangible.
Increase customer satisfaction and improve the level of adoption.
Reduce customer irritations and prevent costly service failures.
Improve service experience for customers and build better customer relations.
Exactly
actions
Service
design
Tangible
value
Understand customers and build high-value relationships

11. A service design approach identifies key customer drivers that impact customers’ behavior and finds customer-centric ways to
achieve business objectives:
Lower cost to serve existing and new customers.
Increase customer retention.
Create new sales or upsell opportunities.
Successfully launch product and service innovations into the market.
Business can win with customers

12. Understanding customers (especially their needs and expectations of the organization) translated to the reality of how the
organization operates and runs enables organizations to achieve:
Internal understanding and alignment.
High staff engagement and participation.
More customer-centric focus, leading to increased market agility.
Align the organization around customers

13. Business
thinking
Assumption
“Most problems are already out there”
Design
thinking
Solution
quickly
Service
design
Analytical
thinking
Imaginative
thinking+
Thinking by doing

14. Human
experiences
Another fundamental starting point in design is empathy with the human(customer) and their experiences.
Human-oriented

15. Creative
Design
processes
Innovative
services
Market
Organization
Creative processes

16. Qualitative
research
Human
Experience
with
predictable
pattern
Service
(Customer
needs)
Qualitative research

17. Understanding behavior
Qualitative
research
Uncover
human
behavior
Economics+
“Highly strategic impact”

18. Development
process
Customer
needs
Visualization of customer scenarios, retail spaces, websites, and cell phone interfaces and advertisements help us gain
precision business objectives.
Describe with people, not for them
Traditional design Current design
Describe customer experiences

19. Service excellence is primarily about continual
improvement. Business that win are experts at
avoiding customers irritations and inefficient delivery.
Design solutions with staff
The true service experts are the people that deliver the
service every day. Service employees have extremely
detailed knowledge about what creates value for
customers and what works for the business.
Observing
customers
behavior
Make
design
difference
Creative
design
Decrease
chance of
failure
Design solutions with customers

20. The service blueprint takes the customer journey as a starting point. It describes
the service from the customer’s point of view before, during, and after engagement.
The service blueprint can help do this:
Service
blueprint
Visual
overview
Resolve
service
delivery
issues
The service blueprint as framework

21. The service blueprint as framework
(RealtimeBoard, 2014)

22. Thank you
Any question?