Design for service part 2 of 2

design
for service
for both service and manufacturing businesses

04 How design for service can help

Using design to improve Developing a service
vision and strategy
Focusing on
customers

service: examples •Assisting organisations to become
more service focused
•Developing and communicating a
•Working with senior managers to
explore customer focus
•Developing new insights into customers
service-led vision and strategy and the means to use them
•Designing-in service innovation •Developing methods for customer-facing
processes staff to provide feedback to senior staff
•Developing customer-centred business
metrics and designing-in the means to
measure

Designing the Developing internal
new service processes
•Helping organisations to visualise the •Looking at what customers value most
services they offer and how they as a means to organise resources
offer them •Focusing internal processes around the
•Identifying new opportunities for needs of customers
These fictional examples are intended Broadly speaking, design for service innovation by looking at the whole •Developing organisational structures
to be inspirational, not exhaustive. can help SMEs in six ways: system of service delivery that support staff who have direct
Service design could exist in many • Developing a service vision •Working with internal teams and contact with customers
customers to innovate new services •Identifying opportunities to reduce
forms and be delivered in many ways and strategy
•Generating ideas, modelling, overall costs to serve customers
depending on the business context. • Focusing on customers visualising and specifying new services
In these near-future case studies we • Designing the new service •Managing risk through service
have assumed that each SME worked • Developing internal processes prototyping
with an experienced service design • Creating better experiences
consultant or consultancy. • Creating and maintaining a brand. Creating better Creating and
experiences maintaining a brand
Each case study will start by Outlined in the table on the right •Measuring customers’ experiences •Developing service brands
outlining the company’s current are some specific activities which across all the touch points of an •Helping internal teams to interpret
position and its business strengths companies can benefit from. In order organisation their brand into new services and
•Developing service values and customer experiences
and weaknesses. It will then go on to exemplify how service design can
principles that can be applied across
to outline what a service design be applied in practice, these methods the business
consultant might suggest so the and activities are highlighted in •Designing the experiences that
company can capitalise on its orange on the side of each example. customers have of customer-facing
staff
service strengths, negate its service
•Working with customer-facing staff to
weaknesses and push the business improve these experiences
forward in the service century. •Designing the opportunities for
customers to provide feedback and to
participate

15

04
Using design to improve
service: examples
Business context:
Based in North Wales, TildaTech has 55 employees and a turnover of
€14.8 million. At their factory they manufacture an electrical beauty
therapy product. The equipment sells for €3,000 and requires annual
servicing. Effective use of the equipment requires one day of training.
Current customers of TildaTech are mainly beauty treatment salons
and boutiques. These range from very small hair or nail salons
4.1 TildaTech wanting to offer a broader service — to established chains of private
sports and health spas.

Using a better understanding of their Strengths:
customers to inform the design of the TildaTech promote their product via adverts in trade journals and
service and to inspire new products attendance at key beauty therapy and health trade shows around
and services. Europe. The company have a website that is essentially an on-line
brochure with technical details and regional agent contacts — a
well- established network of distributors comprising 28 approved
suppliers in 15 different countries. TildaTech were one of the first
into the market and have an established presence. Their brand is
known and respected in the beauty treatment sector.

Weaknesses:
Unfortunately for TildaTech, developments in technology are now
lowering barriers to entry – meaning more competition. Until 18
months ago TildaTech’s product was one of only three products
available for this treatment. Now more companies are offering
inferior quality products at a lower cost that can achieve similar
results. So far, TildaTech have focused on getting the technology and
manufacturing quality right and developing a network of agents to
aid distribution. The owners and senior management have all come
from manufacturing backgrounds and consider TildaTech to be a
manufacturing company.

16

Working with service
design consultants
Through a workshop with TildaTech’s
marketing team and three beauty
therapists, the service design consultants
helped the company to develop a customer
segmentation model. This allowed them to
understand the attitudes and behaviour
Developing new insights into customers
of end-users – the people that actually
and the means to use them
use their products. After checking this
model with some of their larger long-
standing customers, the service designers
helped TildaTech put together a panel
of experienced end-users who now meet
once a month. TildaTech use this panel to Working with internal teams and
understand more about how, why, when customers to innovate new services
and where people use beauty and health
products and services.

In a parallel project the service designers Designing-in service innovation
worked closely with the product processes
development team to understand how
they design and innovate products. It
was essential that the user panel was
integrated into the development process.
The designers also helped the product
development team to commission a
customer insight programme that enabled
them to learn even more about the people
that use their products.

Although initially surprised by some Looking at what customers value most
of the ideas and opinions coming from as a means to organise resources
the insight programme, the product
development team came to see the value
of putting users at the heart of their

creating the segmentation model 17

development strategy. After six months
the user panel was helping TildaTech to
impress their customers by suggesting
new service features and product discover
functionality that the salons, spas and
gyms had never considered.

In a further workshop the development Developing organisational structures evolve
team looked at the sales processes that that support staff who have direct
take place in salons, spas and gyms. contact with customers
The team identified an opportunity to
provide more support to staff in their
customers’ businesses. The designers excite
were commissioned to carry out a detailed
analysis of user journeys and to develop
some simple support materials and web
pages that helped to train staff when
and how to explain the benefits of using optimise
TildaTech products. The brief to the
designers was aimed at helping everybody
to get the most out of TildaTech.
inform
The success of the user insight Working with senior managers to
programme gave the management team explore customer focus
the confidence to hire service designers
again a year later to help identify new
customers for new higher-value products
and services. Working closely with
management and the sales and marketing
teams, the service designers ran a series
of customer-spotting workshops where
they invited a range of people from
diverse sectors to help anticipate future
needs and markets. TildaTech identified
cosmetic surgeries and other medical
understanding the design process 18

practices as a high growth, high margin Working with internal teams and
sector. With their user panel already customers to innovate new services
in place TildaTech were able to test
early product and service ideas quickly,
reducing risks and time to market. Managing risk through service
prototyping
TildaTech has now established a well-
deserved reputation amongst its
Developing service brands
customers for its user-focused product
development, and is now a regional leader
in the use of user insight and service
innovation in manufacturing.

gaining user insight 19

04
service: examples
Business context:
Brecon Furniture manufacture high-end task seating for offices
across Europe. Principal customers include corporate buyers of task
seating for the office, independent office furniture retailers, and
architectural and interior design specifiers. Seventy-five employees
work in modern premises in Mid Wales, and last year the company
reported turnover of €26.7 million.
4.2 Brecon Furniture

Remaining competitive by translating Strengths:
a reputation for quality products into Brecon Furniture have a strong in-house design team. They have
quality services. a clear design-led approach, with excellent attention to detail on
product design and advertisements. They occasionally use high-
profile external designers, and have effective ergonomic design
techniques and good brand awareness amongst customers. They
sell directly through their website, and they also have a single
London showroom. However, most sales come through a network of
independent, approved suppliers across Europe.

Weaknesses:
On the downside, Brecon Furniture have high manufacturing costs as
all assembly and 50% of component manufacture is based in Wales.
There is little scope for cost reduction on the UK manufacturing
side of the business. Meanwhile competition is increasing as larger
multinational manufacturers with foreign production bases are
driving prices down. In addition, Brecon Furniture faces a new
competitive threat from office solutions provided by companies such
as IKEA, whose products are now of higher quality than before.

20

design consultants
Brecon Furniture have an established and
deserved reputation for quality that comes
from the high standards they employ at
their manufacturing facility in Mid Wales.
Quality in manufacturing can be mirrored
by quality in service, but only if a company
understands and supports its customer-
facing staff — as Brecon Furniture found
out to their advantage.

With new and large competitors closing Assisting organisations to become more
in, Brecon’s management team knew that service focused
they had to avoid competing on price,
and that they risked losing competitive
advantage on quality as the standard of
their competitors’ products increased.
They identified ‘service value’ as an
opportunity to remain distinctive, to
evolve their brand in the light of new
entrants and to retain share at the mid-
volume, premium end of the market.

Through Design Wales they invited a
service design consultancy located in
the region to organise a series of open
workshops with Brecon’s employees to
explore how they could add ‘service value’
to their products.

Many of the staff that serve Brecon’s Developing organisational structures
customers directly were invited. The that support staff who have direct
furniture delivery agents, not normally contact with customers
included in management decisions,
identified ‘help and advice with
installation’ as a major customer need.
open workshops 21

Research with customers carried out by Identifying new opportunities for
the service designers after the workshop innovation by looking at the whole
confirmed this. The management team system of service delivery
agreed that this was a real opportunity.

Delivery agents and the service designers
worked to develop a training package
— and to train themselves — in providing
advice to customers on installation. The
new ‘Total Delivery’ service was designed
and prototyped through the Brecon
Furniture website with the help of the
designers. This meant that management
could carefully monitor and control
the number of customers requesting Managing risk through service
the service, and ask for their feedback prototyping
anonymously on-line.

With feedback from customers very
positive, and direct sales through the
website up, Brecon Furniture were
confident in the delivery agents as a
vital source of customer intelligence – as
well as a means to add ‘service value’.
Brecon began to apply their own tried
and tested approaches to quality to the
‘Total Delivery’ service. They integrated
customer feedback from the delivery Designing the experiences that
agents into the service development customers have of customer-facing staff
process and held
bi-monthly meetings between designers
and delivery agents.
Helping internal teams to interpret
In one such meeting the agents reported their brand into new services and
that customers, becoming used to help customer experiences
generating ideas 22

with installation, were commenting
that they wished they had asked Brecon
Furniture more questions in advance of
placing their order. As Brecon already
had significant expertise in ergonomic
and human factors design, they realised
that they could also assist (and profit
from) offering customers office design and
layout services to match their furniture
product portfolio.
Generating ideas, modelling, visualising
During the following year, sales and and specifying new services
delivery agents were trained to offer
advice to customers to determine their
requirements. Brecon developed expertise
in advising on storage, the design of
furniture solutions for flexible and
multi-use spaces, and in the commercial
analysis required to justify investing in
quality.
Developing service brands

With a reputation for manufacturing
quality and a new reputation for service,
Brecon Furniture’s new ‘Total Office’
service proved very popular. Brecon
Furniture’s expertise in translating
human factors research into office
environments, combined with their
ability to design, supply and install office
furniture, has won them new, larger
contracts. The company now plans to
extend their ‘Total Office’ service to a
growing number of smaller customers by
opening retail stores in three of the UK’s
fastest-growing small-business districts,
with customer service specialists as
managers. planning environments 23

04
service: examples
Business context:
Green Taxis is a very small start-up company in Cardiff, Wales’
largest city. The company wants to operate Cardiff’s first eco-taxi
service with a fleet of hybrid petrol/electric vehicles. They aim to
have 10 cars within 12 months.

4.3 Green Taxis

Using service innovation and design Strengths:
to overcome the barriers to entering a The company’s principal target market are corporate clients
well-served market with a new idea. interested in demonstrating their corporate social responsibility
through the use of environmentally-friendly services. It is intended
that a relationship can be developed with corporate clients so that
the majority of fares are paid for on account. In addition, Green Taxis
want to target the public who want to book a taxi for travel around
the city with the minimum impact on the environment.

Weaknesses:
Due to the significant cost for buying a licence to pick up from the
bus, train station and airport, all passengers will need to be pre-
booked. There are 12 other well-established taxi firms operating in
Cardiff. Green Taxis is the only eco-taxi service in the city. This gives
them an advantage but also exposes the risk they are taking, as
there is no sustained demonstration of demand. As they can’t pick up
passengers at the kerbside, they rely on word of mouth, their brand,
and a well-designed experience for their passengers of booking Green
Taxis.

24

design consultants
Understanding the co-productive nature Helping internal teams to interpret
of service branding means working their brand into new services and
closely with customers. This is especially customer experiences
important for a service such as Green
Taxis where their core service offer is
based on selling a ‘lifestyle’ choice rather
than low prices or efficiency. Service
design helped Green Taxis understand
this from the very beginning, making
their approach a model for many new eco-
service companies across Europe.

Initially, the service designers helped
Green Taxis research the environmental
position of large local corporate
organisations. Once they had identified Developing new insights into customers
the most progressive organisations in the and the means to use them
area, they contacted the personnel in
charge of corporate social responsibility to
tell them about the new service.

Prior to the meetings they worked
with the service designers to develop Helping organisations to visualise the
and visualise a range of marketing services they offer and how they offer
propositions they could offer the them
companies. After the meetings they went
away and developed unique, co-branded
service options for the companies. Some
firms opted to sponsor individual taxis,
some wanted a taxi outside their offices at
all times, others decided to use their PR Generating ideas, modelling, visualising
teams to highlight the relationship to the and specifying new services
local media.

customer thinking 25

This carefully co-produced service Identifying opportunities to reduce
branding meant that Green Taxis’ overall costs to serve customers
marketing and PR budget was completely
financed by their customers — with plenty
of profit left over to invest in acquiring
more cars and drivers.

The publicity from the large companies
led new private customers to contact
Green Taxis through their website,
asking how they could be sure of always
getting a Green Taxi. Working with the
service designers again, Green Taxis Working with internal teams and
identified two ways they could help these customers to innovate new services
new customers access the taxi service,
whilst keeping overheads low for the new
company.

First, Green Taxis’ knowledge of green
activities and organisations in the area
meant that they could set up a new
website to promote green initiatives
in Cardiff. The website encouraged
smaller businesses to sign up to the site
to receive tips and ideas on going green
(and profiting from it). The site helped to Designing the opportunities for
build awareness of Green Taxis. Data on customers to provide feedback and to
smaller firms was then used to identify participate
the ‘greenest’ areas of the city, and Green
Taxis began to directly market their
service in these neighbourhoods.

Second, working closely with several Developing new insights into customers
volunteer ‘green users’ who regularly and the means to use them
hired the taxi service for private use,
the service designers helped Green proposition development 26

Taxis identify the barriers for private
individuals using the service. They
discovered that although these customers
would prefer a Green Taxis to a normal
taxi, they weren’t prepared to wait more
than five minutes longer for a Green Taxi
than a normal taxi. They also found that
customers resented having to wait on hold
when booking any taxis by telephone.

Green Taxis worked with the service
Generating ideas, modelling, visualising
designers to design and implement a and specifying new services
service for customers allowing them to
use SMS to indicate their approximate
location to be picked up from (a street
name or a postcode). Provided the
customer is near the city centre, Green
Taxis can then reply by SMS immediately
to reassure them that they will not have
to wait more than five minutes. Green
Taxis can now dispatch a car and call the
customer back within
five minutes.

proposition specification 27

05
References

Academic
Dr Bill Hollins
http://www.wmin.ac.uk/wbs/page-228

Prof. Birgit Mager
http://kisd.de/mager.html?lang=en

Mads Clausen Institute, University of Southern Denmark
http://www.mci.sdu.dk/m/GenInfo/GenInfo.htm

Design Innovation Education Centre (DIEC)
The list opposite details those who http://www.onenortheast.co.uk/page/diec.cfm
are developing and working with Emergence Conference, Carnegie Mellon University
service design and where to find more http://www.design.cmu.edu/emergence/2007/
information and guidance.
Design Management Institute
http://www.dmi.org/dmi/html/index.htm

Established Service Design Consultancies
Engine
http://www.enginegroup.co.uk

Ideo
http://www.ideo.com

live|work
http://www.livework.co.uk

This project has been commissioned by Design Wales
and produced by Engine Service Design.

28

service design

design by engine service design
www.enginegroup.co.uk

Design for service part 2 of 2

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Design for service part 2 of 2