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The Service Design Imperative by Nick Leon Service Design is the application of design practice to the other 80% of the economy. It demands new skills, tools and techniques, perhaps even a rethinking of what we mean by design itself. Designing product service systems and the business models that enable them, means crossing boundaries between design disciplines, business and technology. It means changing the processes and practices not only of designers but how firms innovate and organize themselves. This isn’t easy as we share different working practices and cultures, but, it’s essential, for service designers, if we are to collaborate or even lead innovation. Innovative service systems can create rich and integrated customer experiences – delivering real social and economic value, opportunities for self-expression, and bring meaning to peoples’ lives, as well as to the world we share. We live in extraordinary times, a perfect storm faces us; the environment and climate change, an ageing demographic, pressure on resources, rapid urbanization and issues of social and economic exclusion. These systemic issues need a systemic design response and that’s the role of service design if we are ready to take up that challenge and responsibility.
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Commercialising Design Led Innovation Module 2RCA Service Design
Commercialising Design Led Innovation Module 2RCA Service Design
The Service Design ImperativeRedefining Design, Transforming Business, Contributing to a Better World
Dr Nick LeonHead of Service Design, Royal College of Art
Commercialising Design Led Innovation Module 2RCA Service Design
Service Design at the RCABlending design expertise at the RCA with technology, entrepreneurship and business management from Imperial College’s MBA and its world class Department of Computing
Commercialising Design Led Innovation Module 2RCA Service Design
Our take on Service Design• Design that addresses the other 80% of the
economy• Transforming the quality and value of
public services – from healthcare to justice• Delivering innovative customer
experiences that are game changers in the market place
• Translating technological innovation into new levels of user and business value
Commercialising Design Led Innovation Module 2RCA Service Design
Services as a % of US EconomySource: US Bureau of Statistics
1800 1850 1900 1950 2000 20500%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Agriculture
Industry
Services
Coal PoweredIndustrial Revolution
Electrically PoweredIndustrial Revolution
Post - Industrial Revolution powered
by Digital
Commercialising Design Led Innovation Module 2RCA Service Design
A worldwide phenomenonSources: OECD Yearbook
US UK GermanySpain Brazil Mexico Russia India China World0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
% GDP
% GDP
Commercialising Design Led Innovation Module 2RCA Service Design
A Perfect Storm of Technological Change… transforming services
Mobile Internet
Social Media andCollaborative Innovation
Internet of Things
Cloud ComputingBig Data, Analytics
Commercialising Design Led Innovation Module 2RCA Service Design
A Perfect Storm of Social, Cultural and Environmental Issues
Global Warming
Ageing Demographics
Urbanization and Inequality
Natural ResourcesBio-Diversity
Globalization
Commercialising Design Led Innovation Module 2RCA Service Design
The Business Imperative
Commercialising Design Led Innovation Module 2RCA Service Design
IBM Service Evolution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Hardware
19%
Services
59%
Hardware
79%
Services 5%
IBM’s smarter cities not just smarter computers
2008 1988
Commercialising Design Led Innovation Module 2RCA Service Design
IBM and Rolls Royce
IBM Rolls Royce0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Hardware
19%
Software
22%
Services
59%
All otherRevenues
47%
Services
53%
• Rolls offers“Power by the hour” rather than jet engines
• IBM’s smarter cities not just smarter computers
Power by the Hour from Rolls Royce
Commercialising Design Led Innovation Module 2RCA Service Design
Social Imperative
Commercialising Design Led Innovation Module 2RCA Service DesignDowning Street October 2012
Public Sector spend in top 25 nations is 42.8% to 57.9% of GDP
US is 41.7% and ranked 27th
Commercialising Design Led Innovation Module 2RCA Service DesignDowning Street October 2012
Running workshops for the Cabinet Office
Commercialising Design Led Innovation Module 2RCA Service Design
We are working on witness support for the Ministry of Justice as well as Social Services
Commercialising Design Led Innovation Module 2RCA Service Design
Policy
PropositionsProcess
Practice
Alignment: Translating Government Policy into Practice
Commercialising Design Led Innovation Module 2RCA Service Design
Patient
Doctor
Health Service
Patients Patients
PatientsPatients Doctor
Specialist
HealthService
Specialist
Orientation: Putting the user right at the centre
…design of new services based on users needs not ministries’ – Francis Maude, 2013
Commercialising Design Led Innovation Module 2RCA Service Design
A New Agenda for Design• Responding to the global challenges we
collectively face• Focusing on product service systems not
just system components or gadgets• Blending deep customer insight with
technological innovation• Generating enterprise value for companies
and their customers as well as for public sector and citizens
Commercialising Design Led Innovation Module 2RCA Service Design
Exploring the Service LandscapeMaterial World
World of knowledge and content
World of Actions
The opportunity: address the “world of actions” with innovative services, share in the creation of content, and increase the overall global value for citizens/customers and the organisations that serve them
Commercialising Design Led Innovation Module 2RCA Service Design
Commercialising Design Led Innovation Module 2RCA Service Design
Service Landscape: EducationMaterial World
World of knowledge and content
World of Actions
Tablets, Projectors,
Course Materials Authored Content
Libraries Media Content
Bought in Services Admissions
Interviews Timetabling
Course Development Authoring
Attendance Monitoring
Teaching Workshops
Assessment Feedback Grades
Validation
How much of the landscape can you cover?How much value can you capture?How much of what the client does, can you do?How much new value can you create for their clients or users?What is the business model – supplier or partner?
Commercialising Design Led Innovation Module 2RCA Service Design
Service Design at the RCA
Commercialising Design Led Innovation Module 2RCA Service Design
23
Sainsbury’s: If you can order on the subway what’s the future of retail superstores….?
Commercialising Design Led Innovation Module 2RCA Service Design
Sainsbury’s: re-inventing how staff interact with 20m customer a week – reassigning from checkout to serving
customers
Commercialising Design Led Innovation Module 2RCA Service Design
Combining in-store café with bakery and a ‘flour bar’ creating personalised mixes of ingredients and recipes
Commercialising Design Led Innovation Module 2RCA Service Design
UK Design Museum – Visitor Experience of the Big Picture
Commercialising Design Led Innovation Module 2RCA Service Design
Co-Creation with Potential Visitors on themes, programmes and delivery models: digital, physical, outreach
Commercialising Design Led Innovation Module 2RCA Service Design
User Centred Design Research – Observation, Ethnography, Interviews, Service Safaris
Commercialising Design Led Innovation Module 2RCA Service Design
Output: a collaborative programme with Universities and industry – the co:studio and wall, a digital platform for
outreach
Commercialising Design Led Innovation Module 2RCA Service Design
NHS: Is technology alone the answer to diabetes? What other services are required and by whom?
Commercialising Design Led Innovation Module 2RCA Service Design
…yesterday I was diagnosed with diabetes, today life tastes bitter
Commercialising Design Led Innovation Module 2RCA Service Design
…we are developing the support service required to transform despair in to a life worth living
Commercialising Design Led Innovation Module 2RCA Service Design
Systemic Solution
Commercialising Design Led Innovation Module 2RCA Service Design
…Telecom and Financial Services in AfricaPhone Charging Service: Only 4% can charge their phone but
for 80%, their livelihood depends on the phone
Commercialising Design Led Innovation Module 2RCA Service Design
Creating a phone charging service currently transforming the lives of 10,000 farmers in Uganda already and will help millions
more
Commercialising Design Led Innovation Module 2RCA Service Design
36
Loowatt: Waterless Sanitation and Energy System
Commercialising Design Led Innovation Module 2RCA Service Design
37
Commercialising Design Led Innovation Module 2RCA Service Design
38
Commercialising Design Led Innovation Module 2RCA Service Design
39
Commercialising Design Led Innovation Module 2RCA Service Design
Goal: Envisage and then enable a holistic and seamless user experience, and create new levels of value not only for the recipient but all the stakeholders involved
Design
DigitalBusiness
The Service Designer: a truly Transdisciplinary role
Commercialising Design Led Innovation Module 2RCA Service Design
Summary• Services are the other 80% of our economy• Digital technology is transforming their delivery and
expectations• Service Design – transformative design• Two perfect storms are colliding
...creating value, designing with values
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