1 Creative Service Design

1. Some reflections on the group exercises- ‘service- scenario of red.dot design product’ 2. Snapshot on Industry Structure & Production Network 3. What is ‘Creative Brief’ 2

Were you talking about the ‘product’ or ‘service’? Do you really understand your ‘products’? To what extent you integrate the ‘product’ and ‘service’ What ‘services’ you need to sell those products? Some reflections on your group exercises 3

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5 Horizontally and vertically integrated corporation Diversification, specialisation, legislation Operational decentralisation, strategic centralisation Business diversification (1): spin-offs, acquisitions, mergers Business diversification (2): out-sourcing, sub-contracting TOP DOWN MODEL Market/ Technology Regulatory/ Labor factors

6 Specialist provider Contracts, outsourcing Strategic alliances Clusters, critical mass Virtual organisation, co-operative strategy, co-branding Dependency Loyalty Trust BOTTOM UP MODEL Bottom-up re-integration Piore and Sabel’s thesis of ‘the second industrial divide’ (1984) Due to economical, political and market shocks, the mass production system has been in crisis since the 1970s.

 Handy’s shamrock: recognising that most of the organisation’s work takes place outside the organisation  Virtual organisation model: not an organisation but a brand 7 From Hierarchy to Networks -Individualised, specialised, complex models of organisation -Networks of specialists collaborating on projects - post-Fordist model -The Power of Network Charles Handy: Understanding the Changing Organization

 Where are you now? (situational analysis)  Where do you want to go? (vision / mission)  What are the obstacles / promises on the way there? (SWOT analysis, competitor analysis, market analysis)  How do you get there? (Action/Business Plan)  What market are you in? What market do you want to be in? How do you get there?  Environmental analysis  Competitor analysis  Market analysis  Differentiation and positioning 8

 Distinguish between strengths, weaknesses (internal), opportunities, threats (external) – positive and negative aspects of same phenomenon!  Make Use of PEST/ STEP or similar to identify key external/environmental variables  Prioritise opportunities and threats in relation to strengths and weaknesses 9

10 political economic social technological e.g. Economic growth Interest rates Exchange rates Inflation rates e.g. Taxation policy Employment laws Environmental regulations Trade restrictions and tariffs Political stability e.g. Population growth rate Age distribution Health awareness Career aspirations Response to new technology e.g. R&D activity Automation Technology incentives Rate of technological change

11 Industry Competitors 5. Rivalry Among Existing Firms Suppliers Potential Entrants Buyers Substitutes 1.Threat of 4. Bargaining Power of Buyers 3. Threat of substitute Products or Services 2.Bargaining Power of Porter(1980) Competitive Strategy

12 high low high VARIABLE 1 VARIABLE 2 identify competitive position for your product / service/ brand Price Localization

13 emergence growth maturity / decline Market size Time Increasing competition and market complexity

 What market are you in? Emerging/Growing/Mature?  What are the different actions for different markets?  What is distinctive about your business, product or service?  How can you reinforce your distinctive position and make it a basis for sustainable competitive advantage?  How will market, business and competitive position evolve over time? 14

 Differentiation is the act of designing a set of meaningful differences to distinguish the company’s offer from competitor’s offers.  Positioning is the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds. Philip Kotler, Marketing Management, p

‘Good oral communication skills involve the ability to exchange ideas with colleagues, to brief others and to make clear and relevant contribution to discussion.’ (Design Council 2007) 16

 A document required in preparing for creative production, ie. advertising, marketing, design projects etc. Who writes creative brief ?  Client  Sometimes together with account executive  Art-director for designers and copywriters  Every decision-makers in the creative production  Individual exercise! 17

 The objective  The target audience/consumers  The message theme  The support  The constrains 18

Reading  Uzzi, B., and Dunlap, S. (2005) How to Build Your Network. Harvard Business Review.Dec. 83(12):53-60 – Reading Group 4 Group exercise:  Group project warm-up presentation: Group 3-4  Each group has 15 mins for presentation mins for Q+A  Please note that this is a working-in-progress presentation toward your mid-term presentations, yet pls try to cover the following headings: ◦ What type of service business you are developing? What’s the service/products you would like to offer? ◦ What’s the profile of your target customers? ◦ What’s your initial understanding of its current market(s)? New York StartUP! Business Plan Competition ◦ ◦