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University of Northumbria 29 th November 2006

University of Northumbria 29 th November 2006. The Development of Service Design from the prospective of UK Design Engineering and Business Management – (Or - I’m a thick engineer designing services) Bill Hollins. Points to be covered:.

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University of Northumbria 29 th November 2006

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  1. University of Northumbria 29th November 2006 The Development of Service Design from the prospective of UK Design Engineering and Business Management – (Or - I’m a thick engineer designing services) Bill Hollins

  2. Points to be covered: • To show the differences and similarities between developing engineering products and services. • To show the results of research into Service Design Management in Britain. • To show a couple of short cases of service design.

  3. I’m Bill Hollins – an engineer that does service design management.

  4. Seventeen 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.

  5. I thought that with my skills I could steer our colleagues in the service sector to greater success!

  6. 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.

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

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

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

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

  11. You can’t manage design without a process The figure around which BS 7000 –3 (2007) is based

  12. Services are more about people(from Live/Work)

  13. I did some RESEARCH into how managers develop new or improve existing services(in short, how they were designed) • (After a pilot) Questionnaires sent to managers operating in the Service Sector in London

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

  15. THE RESULTSA new product strategy document. • Less than one third of respondents had seen a document that outlined a new product strategy within their organisation.

  16. SERVICE DESIGN MANAGEMENTcan be defined as - • THE ORGANISATION OF THE PROCESS FOR DEVELOPING NEW SERVICES • So you need a process • Only 20% had a written design process

  17. 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’. • ‘Attending cocktail parties’ is not an adequate investigation of the market!

  18. 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).

  19. Specifications are the best way to highlight problems, interrelationships and contradictions

  20. The Product Design Specification

  21. 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 ARE THE MOST IMPORTANT. Relatively early in the design activity the decisions taken will commit the operation to costs which will be incurred later

  22. 85% of design management decisions and 85% of finance is committed in the first 15% of the process.

  23. In the first 15% of the process • 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

  24. 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.

  25. THE RESEARCH - 2 • Questionnaires were sent to companies that had previously purchased the British Standard BS 7000 – 3 Guide to Managing Service Design

  26. I found that the words we designers use aren’t recognised by REAL people. Blueprinting. Brand Identity. Brand Architecture. Brand Value. Buy-in. Concept. Core Service. Corporate Identity. Critical Drivers. Data Mining. Design. Design Management. Design Process. Experience prototype. Innovation. Interdisciplinary Team.Internal Customers. Iteration. Launch Champions.Moments of Truth. Pilot Test. Points of Integration. Product Champion. Project Configuration. Robust Design. Scenario. Service. Stage Gateway. Stakeholder. Tangible Evidence. Touch-points. Trigger. Value System. IF THEY DON’T UNDERSTAND THE WORDS HOW CAN THEY UNDERSTAND THE PROCESS?

  27. SO HOW ARE SERVICES DIFFERENT FROM MANUFACTURED PRODUCTS? A lot can be found in the definitions of a service.

  28. ‘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.

  29. BUT ENGINEERS HAVE A LOT OF TECHNIQUES THAT CAN BE APPLIED.

  30. Consider J.I.T. in the service sector – it works better • In manufacturing work-in-progress ties up space and money • But it doesn’t complain. In a service it is people waiting – usually in comfortable surroundings • In manufacturing, the worst type of inventory is finished goods – all the value has been added • In services, people go home

  31. We also know more about- Line of Balance & Value Analysis

  32. We also know more about Quality- here a truly ‘to your door’ minicab service

  33. We engineering designers can be weak when dealing with people. ARE CUSTOMERS HAPPY WITH THE SERVICE THEY GET?

  34. We know that the BIG thing in service design is Blueprinting.This turns a qualitative system into a production line • 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

  35. ‘Striving to be a pleasure to do business with’but applied to internal customers

  36. Started in a shed in December 2000 but growing quite fast

  37. Growth through applying service design to the whole company Cool Logistics have the largest dedicated Design & Qualification Lab in Europe. At 6,500 sq ft the lab has 14 environmentally controlled chambers, 10 of which are ‘walk-in’. They now have plants in England, Scotland and Singapore and the Czech plant will start manufacturing in February 2007

  38. Another great service example

  39. I don’t claim that what I say is absolutely right but it works for me. If you find other ideas that are better then use them

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