The Product and Service Design Management Processes

1. The Product and Service Design Management Processes Chapter 4

2. Learning Points • To show the differences and similarities between developing products and services. • To show what you should emphasize to increase your chances for success. • To show the results of research into Service Design Management in Britain.

3. Ever Thought ‘Design’? Rather than thinking of a good idea and then just doing it, why not ‘design’ it? • Services are more effective (and profitable) if their development is managed through a logical ‘design’ process.

4. Design Management is about organizing: • Activities • People • Money • Time • Ideas

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

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

7. SERVICE DESIGN MANAGEMENT • The Organization of the Process For Developing New Services • Rule - You need a process can be defined as:

8. But this model ended with ‘sell’. Later models ended in ‘disposal’. Stuart Pugh introduced ‘Total Design’ in 1981

9. The first model of ‘Total Design’

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

11. Definition of Total Design Total Design is a multidisciplinary iterative process which starts with a market need or idea, continues through implementation and improvement stages and includes disposal.

12. 85% of design management decisions and 85% of finance is committed in the first 15% of the process. WHERE MANAGEMENT SHOULD FOCUS • The early stages of the design process are where the main management decisions are made and the majority of finance committed.

13. What has to be managed in design? • 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.

14. 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?

15. 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

16. Measuring design success The main measure of new product success is profitability All other measures are secondary

17. Research into the management of new services in Britain • (After a pilot) questionnaires were sent to managers operating in the Service Sector in London – the companies: • Transport • Charities • Health • Banking & Insurance • Public & Private Services

18. The results of this research • About half the respondents had a reasonable idea or definition for design and innovation. What is design? What is innovation?

19. A new product strategy document. • Less than one third of respondents had seen a document that outlined a new product strategy within their organization. • Only 20% had a written design process

20. Written specifications are the key controlling documents • Less than half the respondents had seen a specification in the past seven years • (and most of those who had, described an inadequate document).

21. Market Research • Almost half do NO research for new services prior to their development. • Many rely on ‘me too’ development or even on ‘customer complaints’.

22. The Conclusions from the Research • Service design is still not managed in an organized manner. • As such, most service organizations 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.

23. There needs to be parameters around the services to be developed. DESIGN BOUNDARIES

24. What is Project Management? • Allocation of resources, time, people & materials • Managing a set of activities intended to produce a specific output with a definite beginning & end. The activities are interrelated and must be brought together in a particular order based on precedence relationships. • Goal driven

25. Design Management is a bit like project management but: • It starts earlier • It looks at whether the idea is right for the business and the market • There is more creativity • It ends later right through to termination and disposal • It views the products and services further into the future

26. The BIG thing in service design is Blueprinting • Plot the route that customers/patients go through when using the service • Also plot what is going on in parallel • Find the ‘critical path’ through these • Re-evaluate process • Redefine the process with enhancing ideas

27. SUMMARY OF KEY POINTS • Services must be designed and this design must be managed. • Design is Total Design and design management is the organization of the process for developing new services. • The design process can be used to organise activities, concurrencies, people, finance and time. • The early stages of the design process are low cost and this is where design managers should concentrate their effort. • The main measure of product and service success must be financial. • Blueprinting is an effective way to develop a service.