1. University of Northumbria 29 th November 2006 The Development of Service Design from the prospective of UK Design Engineering and Business Management – (Or - Im 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 differences and similarities between developing engineering products and services. To show the results of research into Service Design Management in Britain. To show the results of research into Service Design Management in Britain. To show a couple of short cases of service design. To show a couple of short cases of service design.

3. Im 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? 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. 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. 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 Activities People People Money Money Time Time Ideas Ideas

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

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

12. You cant manage design without a process The figure around which BS 7000 –3 (2007) is based

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

14. 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 (After a pilot) Questionnaires sent to managers operating in the Service Sector in London

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

16. THE RESULTS A new product strategy document. Less than one third of respondents had seen a document that outlined a new product strategy within their organisation. Less than one third of respondents had seen a document that outlined a new product strategy within their organisation.

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

18. Market Research Market Research Almost half do NO research for new services prior to their development. Almost half do NO research for new services prior to their development. Many rely on me too development or even on customer complaints. Many rely on me too development or even on customer complaints. Attending cocktail parties is not an adequate investigation of the market! Attending cocktail parties is not an adequate investigation of the market!

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

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

21. The Product Design Specification

22. 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 100% 0% Percentage of final product cost committed by the design Percentage of design costs incurred Start of the design activity Finish of the design activity

23. 85% of design management decisions and 85% of finance is committed in the first 15% of the process.

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

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

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

27. I found that the words we designers use arent 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. 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 DONT UNDERSTAND THE WORDS HOW CAN THEY UNDERSTAND THE PROCESS?

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

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

31. Consider J.I.T. in the service sector – it works better In manufacturing work-in-progress ties up space and money In manufacturing work-in-progress ties up space and money But it doesnt complain. In a service it is people waiting – usually in comfortable surroundings But it doesnt 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 manufacturing, the worst type of inventory is finished goods – all the value has been added In services, people go home In services, people go home

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

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

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

35. 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 Plot the route that customers/patients go through when using the service Also plot what is going on in parallel Also plot what is going on in parallel Find the critical path through these Find the critical path through these Re-evaluate process Re-evaluate process Redefine the process with enhancing ideas Redefine the process with enhancing ideas

36. Striving to be a pleasure to do business with but applied to internal customers

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

38. 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

39. Another great service example

40. I dont claim that what I say is absolutely right but it works for me. If you find other ideas that are better then use them