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Design Management in the Service Sector: A Creative Approach

Bill Hollins, a design management expert, delves into the importance of services design, emphasizing its impact on business success. Learn about the critical elements of service design and how it affects market research, specification, and successful product development.

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Design Management in the Service Sector: A Creative Approach

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  1. HELLO. I’M BILL HOLLINS Creativity+Business

  2. Eighteen years ago, I was teaching design management on the MBA when a student said: • ‘Why do you keep talking about the design of cars when we all work in the service sector?’ • That started me looking at how to design services.

  3. At that time the majority of people working in the service sector thoughtthat design was about d-grade celebrities painting walls awful colours • To be honest, there are many who still think that it is! • In engineering they may do design badly but at least they know what it is.

  4. I design services and over the years I have written threebooks on the subject.

  5. SERVICES ARE PRODUCTS SERVICES MUST BE DESIGNED THIS DESIGN MUST BE MANAGED

  6. Design Management is about organising things: • Activities • People • Money • Time • Ideas

  7. Especially Ideas!!(dealing with creativity)

  8. Total Design (to me) is: A multidisciplinary iterative process that takes an idea and/or market need forward into a product or service. Design ends with disposal.

  9. WHAT IS SERVICE DESIGN? • Service design can be both tangible and intangible. It can involve artefacts and other things including communication, environment and behaviours.

  10. 100% Percentage of final product cost committed by the design Percentage of design costs incurred 0% Start of the design activity Finish of the design activity LIKE PRODUCTS, THE EARLY STAGES OF THE PROCESS OF SERVICE DESIGN ARE THE MOST IMPORTANT. Relatively early in the design activity the decisions taken will commit the operation to costs which will be incurred later

  11. 85% of design management decisions and 85% of finance is committed in the first 15% of the process.

  12. In the first 15% of the processis the MANAGEMENT • We do the main Market Research • We then need specifications. • 3 out of the 4 main reasons for product and service failure are rooted in poor Market Research and poor Specifications

  13. WHY DO NEW SERVICES FAIL? Products and services to fail for the same reason (although product failures are often more ‘dramatic’ –In practice, these reasons overlap

  14. ‘If you think good design is expensive, look how much bad design costs.’ Martyn Denny, Sales and Marketing Director, Aqualisa, 2002

  15. So how do you define success? It brought good publicity to the organisation. The customers liked it. It will bring a smile to the faces of children. We won awards for it. It is a flagship product. We show it on all our publicity. It was a technological breakthrough.

  16. By all means have these - but THE MAIN MEASURE OF SUCCESS HAS TO BE FINANCIAL

  17. THE DEFINITION OF A SERVICE • Service: Result of at least one activity, performed at the interface between the supplier and customer, which is generally intangible [adapted from BS EN ISO 9000:2005] • Service: • a) Any activity or benefit that one party can give to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product. • b) a set of functions offered to a user by an organization • c) result generated by activities at the interface between the supplier and the customer and by supplier internal activities to meet the customer needs • NOTE 2 The supplier or the customer may be represented at the interface by personnel or equipment. • NOTE 3 Customer activities at the interface with the supplier may be essential to the service delivery. • NOTE 4 Delivery or use of tangible products may form part of the service delivery. • NOTE 5 A service may be linked with the manufacture and supply of tangible product. (BS7000-10)

  18. OR MORE SIMPLY: Services differ from products in five ways

  19. Services cannot be stored. • Services cannot be easily transported. • Services are intangible. • It is more difficult to measure quality in services. • In services consumption and production occur together. (more on all this later)

  20. A simple model for service design: • MARKET • SPECIFICATION • CONCEPT DESIGN • DETAIL DESIGN • IMPLEMENT • DISPOSAL

  21. You can’t manage design without a process The figure around which BS 7000 –3 (not yet published0

  22. In services they have the people but they do not have the leadership or the direction

  23. Services are more about people(Live/work)

  24. People are your greatest asset.

  25. Most services ride on the back of products.

  26. AND THIS IS IMPORTANT INCREASINGLY PRODUCTS RIDE ON THE BACK OF SERVICES

  27. The service side is where there is great potential • Who would buy pizza without it being delivered? • That leads us to serial service innovations • Greater customer retention • New areas for growth • Remember the Ansoff Matrix?

  28. An innovation is an invention in its first marketable form

  29. ‘It is very easy to be different, but very difficult to be better’.Jonathan Ive, Head of Design, Apple Computer Inc. 2002 Innovation is more easily accepted in the service sector – there is less of an existing infrastructure to shift.

  30. I did some RESEARCH into how managers develop new or improve existing services(in short, how they were designed) • Managers operating in the Service Sector in London

  31. The Companies • Transport • Charities • Health • Banking & Insurance • Public & Private Services

  32. THE CONCLUSIONSFROM THIS RESEARCH • Service design is still not managed in an organised manner. • As such, most service organisations are not in adequate control of their new services • Only 17% had an effective process. • And most of these generated a greater turnover from recently developed services.

  33. What has to be managed in design(products or services). • First, list all the activities to be done in sequence. • Then work out the time for each. • Then the cost for each. • This will give the total time and the total cost for the development.

  34. Then do these activities: • See what activities can be done in parallel. • (Does this reduce the overall time for the design project?) • Then identify who will be involved at each stage of the process. • Now see if there are adequate resources to complete the programme. • Compare the priorities of this with other design projects?

  35. This results in good management • If you have worked out the activities, time, cost, people and priorities – what else is there to managing design? • YOU ARE IN CONTROL

  36. Thank you for listeningPass the message on

  37. For more info contact Bill Hollins:email: direction@mynow.co.uk

  38. Hopefully, you will soon steer your colleagues in the service sector to greater success!

  39. Questions ?

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