Service Design in Venture-as-a-Service

Service Design (SERVD) is the application of range of established and new design tools that are used to identify, define and optimise systems, touchpoints, people’s roles and the ecologies that deliver innovative services.

The Services Sector

In the UK, there has been a massive shift in economic power from manufacturing to services in the past five decades. In 1948, British industry (including manufacturing, oil & gas extraction, and utilities) accounted for 41% of the British economy but by 2013, it was just 14%. At the same time the service sector’s share of the economy has risen from 46% to 79%. (Source: The Guardian ).

Compare the UK’s GDP from services to Europe’s where it is 72%, China has 45%, the USA 71% and worldwide it is 65%. (Source: The Economist)

 Service Design in a Venture-as-a-Model

Increasingly Service Design is being offered by business and transformation consultancies. In the past year 18 months, a number of the world’s leading consultancies have bought creative agencies and now offer Service and UX design as part of a transformation offering. For example, Accenture bought Fjord, Ernst & Young bought Seren, Kinsey bought Lunar and Boston Consulting Group bought S&C to establish BCG Digtial Ventures.

Service Thinking (Ben Reason et al) places people, networks and experiences at the core of how service designers innovate with business stakeholders and technology groups to create new and engaging services. Design Thinking works well when it is used in conjunction with Blue Ocean Strategies in the creation of new ventures. It is noteworthy that Service Design (along with experience design and strategic design) are core offerings in the major transformation groups as they shift from a service-as-a-fee model to venture-as-a-service.

 Service Design is a process of design that is customer-centric and systems orientated that is distinct from user experience design and interaction design but part of a triptych for designing in the experience economy.

Service_design4.fw

As Service Design is a relatively new discipline in design, it is misunderstood and underused by many of companies while services are often poorly planned, badly designed and inefficiently implemented. There is a huge gap between the customer’s and user’s experience of engaging with a service and the organisations.

80% of companies think they offer a superior service, yet only 8% of their customers agree. (Design Council)

Although service design is growing rapidly and is increasingly recognised as an enabler of system and transformational change it lacks visibility.

I was an early adopter of service design, having recognised in the 1990s that an advanced product’s functionality and support systems were both embedded and increasingly distributed and connected through the Internet.

Organisations needed innovation that meant taking a more holistic approach that was concerned with touchpoints (products and apps), environments (retail or civic), systems (networks, eCommerce, etc.) and the organisation (people and culture).

Service Thinking emerged from Design Thinking (Kelly et al) as a way to identify and solve problems systemically in organisations. Livework’s founders Ben Reason, Chris Downs and Lars Löveren worked with IDEO before launching the first Service Design agency in London 2001.

Where to use Service Design

According to the Design Council (UK), Service Design adds significant value when applied in the one or more of the following circumstances:

1. Service design as a methodology with tools to deliver optimised offerings and experiences.

2. Service design as a people-centred process to address specific operational and organisational needs.

3. Service design as a collaborative process that requires a co-design and people focused approach.

4. Service design as a methodology optimise complex systems and interconnected ecologies to create disruptive innovation.


Service Design Tools

As a service designer there are a range of tools that I can utilise, here are a few and for a more detailed list visit the ‘Tools’ section under ‘Services’ in peterfossic.co

ACTOR MAP

An actors map is a diagram representing the relationship of  people and stakeholder called ‘actors’ in a service ecology. It provides a systemic view of a service.  The diagram is built by identifying the actors, touchpoints and high level view of the service. The diagram is built from a specific actor and will feature other actors and touchpoints that are connected to and can influence or interact wth the actor via the service.

BLUEPRINT (SERVICE)

The service blueprint is a tool that describes the operational nature and the characteristics of the system, the actors, context, touchpoints and the interaction model that support and form the service. It is based on flows through the system and uses a standardised graphical technique that displays the process functions above and below the line of visibility from the customers viewpoint, where all the touchpoints and the back-stage processes are documented and aligned to the user experience.

EXPERIENCE PROTOTYPING

This tool involves creating objects or ‘props’ and acting out the interaction model (see above) to explore the way a proposed service concept will work. This approach is also referred to as ‘evidencing’ or ‘body storming’, where the use of models and objects representing touchpoints are to enable designers to take ideas and interact together to assess their usefulness. This process is highly iterative and use ‘rough & ready prototyping’ techniques.

For a more detailed list visit the ‘Tools’ section under ‘Services’ in peterfossic.co

Data, data everywhere…

Today we live and work in the experience economy, where “a company intentionally uses services as the stage, and goods as props, to engage individual customers in a way that creates a memorable event.” Harvard Business Review

To understand your customer and develop a relationship you need data- and lots of it. Data is driving the development of the personalised experience economy. But most companies only have 1% of their customer’s possible data. While some companies have a lot more for example, each day it is estimated that Facebook generates over  1 Petabyte of data.

The vast majority of data about people is held in many different locations and repositories on diverse platforms and form diverse data sets.

Combining this 1% with other datasets through data sharing can provide huge benefits and unprecedented insights into a customer’s wants, needs and behaviours.

Blending Data

Exchanging data can be difficult, entwined in legal issues and fraught with privacy issues! But now there is a start-up that has the solution.

Data Republic has built an efficient and secure platform for exchanging data that has an inbuilt trust framework and an API ecology that makes it the build and connection  process straight froward.

Personalisation is a mantra I’ve heard a lot from various boardrooms and executives over the last three years. It’s a strategy which centres around an old adage that ‘the customer is always right’; ‘give the customer what they want and they will beat a path to your door’, or even better, stay with you for life.

Paul McCarney – CEO, Data Republic

Data Republic is a business that is obsessed with data and meta-data and how to create personalised experiences for customers. Paul McCarney and his team have built a service using three principles:

  1. Privacy: Maintain the integrity of individual consumer’s  data and their ‘privacy relationship’ with companies
  2. Security: Data needs to be protected and feel secure, Clients that use Senate (the Data Republic platform) benefit from security and privacy by design.
  3. Governance: The companies clients (Republicans) have complete control over who has access to their data, how and when it can be accessed.

Data Republic have built a world leading data technology platform with a built in trust framework that will enable:

  • Companies to efficiently, safely and ethically exchange data to better serve their customers.
  • Data Analytics Partners to provide clients with higher fidelity insights that can be executed with confidence.
  • Consumers to be confident that their interests are being prioritised and that they have the ability to opt out if they choose.

Data Republic are start-up currently based in Stone & Chalk, a Fintech incubator based in Sydney. Visit their website here

How Apple Is Giving Design A Bad Name

Great piece in FastCoDesign from Donald Norman

“Once upon a time, Apple was known for designing easy-to-use, easy-to-understand products. It was a champion of the graphical user interface, where it is always possible to discover what actions are possible, clearly see how to select that action, receive unambiguous feedback as to the results of that action, and have the power to reverse that action—to undo it—if the result is not what was intended.”

Read the FastCoDesign piece here 

More About WAgile…

As mentioned in a previous post, in the past two years I have started to use a leaner design and implementation process as part of an integrated strategic design and innovation methodology that I refer to as WAgile.

In the past there was a focus on phased approaches to design and implemetation called Waterfall where phases like research, insights design and implementation were completed in sequence – this was typified in Product Design using HCD and Design Thinking.

Then Agile came along and the emphasis shifted to implementation through sprints and a series of ‘drops’ as the product scaled from an MVP. This works well for software products or new app development but it sometimes fails to include a research and insights process or understand how the app is a touchpoint in a larger and distributed service ecology.

Both Waterfall and Agile have strengths, weaknesses and their own merits, but used separately they are limited and flawed.

Wagile

HCD & Contextual Research

Understanding users needs and importantly their desires is key.  Increasingly  ‘wants’ rather than ‘needs’ motivate customers.  For example, customers ‘need’ to text messages but they ‘want’ an iPhone. Customers want a great experience and the social cache of owning a premium brand and awesome products. In short cusotmers are seeking self-actualisation and they are willing pay a premium for it.

To understand ‘wants’ and ‘desires’ we need to intimately know and understand our customers; their attitudes and values. To do this we need to undertake sustained research at the beginning and throughout the early phases of a project through ‘conversations’. However, we need to work quickly and with agility, without over committing resource to design directions that might fail in the market place. 

This is where WAgile becomes attractive.  It takes the best features and benefits of Waterfall and Agile to combine them with HCD and Design Thinking. WAgile is an iterative design and innovation model that employs contextual research driven insights, design thinking, business science and uses sprints to work with agility in cross-functional teams to implement quickly.

At the beginning of the WAgile process I use both contextual inquiry techniques and data analytics to discover who is the ‘customer’ and what are their desires, needs and goals. I balance this with the business needs as we seek new opportunities to disrupt.

This means working closely and dialoging continually with current and potential customers. The process starts with Contextual Inquiry (CI) using ethnographic research augmented with data driven strategies where we use data garnered from customer interactions through owned, paid and social media. Each point of contact with the customer is an opportunity to harvest information and data to gain insights.

User Stories – a common currency

An important tool in the WAgile process are User Stories; the common currency of design. We describe customers tasks and goals through user stories that in turn become features and functions to design and build.

Framing the problem, defining the opportunity areas and designing solutions are based on User Stories. Then workstreams and sprints are forumlated based on MoSCoW principles working with users and the core team. This is part of the continual dialogue and conversation model with customers.

Working sometimes only a day or two ahead of the software developers, the designers use ‘Evidencing’ to bring concepts to life. Evidencing involves creating objects or ‘props’ to act out scenarios and create Rapid Experience Prototypes.  The prototypes explore the way a proposed MVP and design concept will feel and perform. 

By ‘Evidencing’ concepts we can animate and interact with concepts to assess their usefulness in an iterative process with users. This results in tangible evidence (as wells as stills and videos) that enables the core team make early informed judgments about the implications of the design concept.

Based on the outcomes and insights of Evidencing, the user stories are refined and translated into detailed features and specs. The information architectures are refined, wireframes are created, GUI assets are created and coding begins.

WAgile is fast, efficient and enables the user to be involved while the team implements what the user wants.

 

The Most Important Design Jobs Of The Future

Yesterday’s graphic designers are today’s UX designers. Will tomorrow’s UX designers will be avatar programmers, fusionists, and artificial organ designers? Yes, according to the illustrious roster of design leaders we spoke with here.

This is according to the world’s leading design experts in a new piece in FastcoDesign

“Design has matured from a largely stylistic endeavor to a field tasked with solving thorny technological and social problems, an evolution that will accelerate as companies enlist designers for increasingly complex opportunities, from self-driving cars to human biology. “Over the next five years, design as a profession will continue to evolve into a hybrid industry that is considered as much technical as it is creative,” says Dave Miller, a recruiter at the design consultancy Artefact. “A new wave of designers formally educated in human-centered design—taught to weave together research, interaction, visual and code to solve incredibly gnarly 21st-century problems—will move into leadership positions. They will push the industry to new heights of sophistication.”

Please read this fascinating article here…