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2Service Design: 10 Principles
The opportunity to delight customers—to garner their love—
lies in deliveringnot just a quality productbut a quality experience.
3Service Design: 10 Principles
. . . commercial products are best treatedas though they were services.
It’s not what you sell a customer,it’s what you do for them.
It’s not what something is,it’s what it is connected to,what it does.
Flows become moreimportant than resources.Behavior counts.”
—Kevin Kelly
“
4Service Design: 10 Principles
In 2002, IBM boughtPrice Waterhouse’s ITconsulting business
In 2004, IBM sold itsPC business to Lenovo
In 2005, service was 35%of IBM’s income
5Service Design: 10 Principles
In 2007, Philips sold its chip division
Philips then acquired Health WatchHoldings and Lifeline Systems,another health services company
6Service Design: 10 Principles
80% of the US GDP is in service
39% of China’s GDP is in service
Source: Mary Jo Bitner, ASU
8Service Design: 10 Principles
Ways of thinking about service:Pine & Gilmore—stage experience
Beans Roasted and ground Brewed and served Treating yourself to something special
Commodity Goods Service Experience
5¢–25¢ Per Cup 75¢–$1.50 Per Cup $2–$5.00 Per Cup 1¢–2¢ Per Cup
coffee beans > coffee > coffee shop > Starbucks
9Service Design: 10 Principles
Motor
Components Tools System Experience
Appliance Kitchen Cooking
Ways of thinking about service:Rheinfrank and Murrell—define marketspaces
motor > blender > kitchen > dining experience
10Service Design: 10 Principles
Music Listener iPod
Hardware Software Networked Service Marketplace
iTunes iTunes Store Record Companies Artists
MENU
Ways of thinking about service:iPod—integrated system of products and services
DRAM > mp3 player > music sharing service > my music
11Service Design: 10 Principles
Ways of thinking about service:Each step expands our potential
Person Product+ In
terf
ace
+ In
terf
ace
+ In
terf
ace
Service Exchange
MENU
12Service Design: 10 Principles
MENU
User Nikeplus.comiPod Nano (with Receiver)Pressure Sensor
Place the sensor inyour left Nike+ shoe,in the built-in pocketbeneath the insole.
The sensor uses asensitive accelerometerto measure your activity:the number of steps,the rate at which theyare happening, and thetime between them.
As the user runs, iPod nano tellsthem their time, distance, pace,and calories burned (Accordingto your choice of workout) viavoice feedback that adjustsmusic volume as it plays.
In addition to progress reports,voice feedback congratulatesusers when they’ve reached apersonal best—fastest pace,longest distance and time,or most calories burned.
Users can also set a PowerSongfor when they need help with thehome stretch. Press and hold thecenter button at any time hear thepreselected PowerSong.
After the run, the user mayconnect the iPod to their com-puter. iTunes takes over fromthere, automatically syncing allthe run data and sending it tonikeplus.com.
Nikeplus.com keeps stats onevery step. Check the usersspeed, distance, and caloriesburned—by run, by week,or by month.
Nikeplus.com also keeps usersconnected with runners fromevery corner of the web. Usersare encouraged to compete withother runners and compare statson the site.
The sensor thenwirelessly transfersthis data to the receiveron your iPod nano.
Shoe
Apple is a product/service systems companyRecently Apple teamed up with Nike to extend the iPod/iLife systems.
14Service Design: 10 Principles
Reputation =“
How people think of what you offer”
Qualityrespected? liked? loved?dependable? good value?
Reachwell-known? frequently encountered?
Positionrelevance? relation to alternatives?
17Service Design: 10 Principles
A brand exists in our minds
It links a symbol and the things which we associate with it—based on our experience
18Service Design: 10 Principles
symbol
idea
object
Brands are a special type of “sign”
sign = object + symbol + idea
19Service Design: 10 Principles
A product is also a symbol
Both the logo and the product evoke a brand—and its associated experiences
20Service Design: 10 Principles
A brand belongs to no one individualA brand is the sum of a community’s experiences
22Service Design: 10 Principles
3. Sending a message is not enoughIt must be received and understood
23Service Design: 10 Principles
The message I’m sending may not be the one you’re receiving
sender message receiver
24Service Design: 10 Principles
Shannon & Weaver’s model of communicationdescribes technical problems in machine-to-machine communications
Shared Dictionary
DestinationReceiverChannel
Noise Source
Transmitter(sender)
InfoSource Sent
SignalReceived Signal
Noise
MessageMessage
25Service Design: 10 Principles
Don Norman’s concept of the system image
To use a product properly, users must have the same mental model as the designer. But the designer can only communicate via the product, the “system image.”
The SystemImage
Designer’sConceptual
Model
User’sMentalModel
27Service Design: 10 Principles
Feedback is the basic process of learning
goal
evaluationeffect
perception
action
29Service Design: 10 Principles
Internally at the Service Interface Externally
Service Self-diagnostics(current and logitudinal)
Customer Interaction(individual and aggregate)
Individual Comments(e.g., word-of-mouth)
Amplified Comments(e.g., blogs, press)
Services must continuously monitor their operationmaintaining existing standardsidentifying quality problems and setting new standardsrecognizing and exploiting new opportunities in a changing environmentbuilding a culture dedicated to using feedback
----
30Service Design: 10 Principles
5. Conversation builds meaning—creates understanding, agreement, action
Noise
“Call”Intended
Message 1
ReceivedMessage 1
Receiver/SenderParticipant B
Sender/ReceiverParticipant A
Signal 1
Channel
Signal 2
ReceivedMessage 2
“Response”Intended
Message 2 Maysuggest
Comparisonmayconfirm
May suggest a response
Shared Experiencee.g., Language
October 25, 2004 | Developed by Paul Pangaro and Dubberly Design Office
31Service Design: 10 Principles
Human communication is more complex than machine communication
32Service Design: 10 Principles
shared environment
overlappingexperience
person A
perception perception
perception
evaluation evaluation
person B
interface
action action
goal goal
Conversation involves interlocking feedback loops—enabling consensual coordination of goals and actions
34Service Design: 10 Principles
6. Services are intangibleand unfold through time
Designers and managers need mapsto “see” services as “wholes”
User
Context
Setting (Servicescape)
Service System
Interface (Front-end, “on-stage”) Back-end (“back-stage”)
Touchpoint
Touchpoint
1 2
3
1 2
3
1 2
3
Touchpoint
Activity / Journey / PerformanceElements
35Service Design: 10 Principles
Sets of resources composed into interfacesmake up a service system.
Based on Gupta, Vajic—L. Suchman, and J. Lave
Stage Awareness Consideration Selection
Potentialaudience
Interestedprospects
Actualcustomers
Pool size
Time
37Service Design: 10 Principles
The conventional sales cycle funnels prospects to a purchase
Measure
What seller watches
Research stage
Recognition score + # of inquiries
Reputation + quality scores
Sales $ + % repeat purchases
Usability scores + maintenance records
Net promoter + satisfaction scores
# of unexpected uses of product
Action
What seller does
Sales stage
Publicize + advertise
Inform + educate
Close + transact
Service + support
Reinforce + reward
Listen + adopt
Goal
Where seller wants buyer “to be”
Adoption stage
Aware of seller + offering
Understand features + benefits
Interact + decide to try
Increase use + effectiveness
Advocate + influence others
Suggest changes + additions
38Service Design: 10 Principles
An updated sales cyclebuilds on the goal-action-measurefeedback loop
connect & attractcapture the user’s
imagination
orienthelp users navigate
the world
interactbecome a part of
user’s lives
extend & retainpromise moregood things
advocate“you just have
to try this”
39Service Design: 10 Principles
The experience cycle emphasizes building relationships
in the large
in the middle
in the small
40Service Design: 10 Principles
The experience cycle works in the large and in the small
AdvertisingiPod advertising. Billboards. TV. A silhouetted figure against a colorful background. The white earbuds and cord identify it from far away.
StoreThe giant backlit apple and silver/glass backdrop lets you know you are in a different kind of place.Upon entering you find the iPods among the store’s displays.
ProductYou listen/watch. You are in your place wherever you are with this product—it creates your surround. (It is about the experience after all.) And everyone knows it by your identifying white cords.
SharingBuy music for friends. Share playlists on local-area networks, which can be fairly large in libraries or universities. I show off my toys where ever I go. (People smile and often ask about them.) I become an extension of the store.
Software + servicesiTunes helps withmanaging music collections, buying songs through the iTunes store, and transferring data onto the iPod. Once I have my stuff in there—I don’t want to move to any other platform. I buy the phone that integrates iPod into my communication world, or the Touch that extends my iPod experience to calendars, web browsing, and mail.
In the largeMultiple touch-pointsacross the life of a product
connect & attract
orient
interactextend & retain
advocate
41Service Design: 10 Principles
Apple store experience cycle: In the largeMultiples touch-points across the life of a product
Busy locationsApple locates flag-ship stores in high-traffic areas like Market Street in SF, Michigan Avenue in Chicago, and 5th Avenue in NY. It also locates mini stores (as narrow as 15 feet) in malls. Both strategies expose Apple products directly to people who wouldn't otherwise see them.
Simple layoutThe stores display relatively few products in an open even sparse layout, so that visitors can easily find what they're looking for. A greeter stands at the door, and plenty of trained staff are available throughout the store to answer questions.
Test driveVisitors can test most of Apple's products in the stores. There's even a special area for kids and internet access. Recently, Apple has begun to replace cash registers with mobile check-out devices, an effort to eliminate check-out lines.
Repeat visitorsApple stores arealmost always busy, often late into the evening. (The 5th Avenue storeis open 24x7.) Many of those visitors are repeat customers.
Genius bar + classesThe genius bar offers on-site service; walk-in or reserve a time online. The theater offers a range of classes, events, and free workshops. $99 a year gets you all the classesyou want, even one-on-one training; one-on-one shopping appointmentsare available, too.
In the middleMultiple touch-pointsin the store experience
connect & attract
orient
interactextend & retain
advocate
42Service Design: 10 Principles
Apple store experience cycle: In the middleMultiples touch-points in the store experience
Museum-style stagingBecause of the sparse layout, it is easy for people to find the product category that they are looking for—differentiation between products is clear—iPods vs. laptops vs. desktops.
Informative signsOnce at a station the information about the product is displayed onsmall cards, so you know what you’re looking at.
Listen to musicPeople can try on the products by playing with them (headsets supplied.)In the ipod section all the colorsare displayed—so you can even try themon with your outfit. A staff member sees you playing, asks if you’d like one.
Connect by mailStaff offers opportunityto receive the receiptby e-mail—so there isanother chance for Apple to touch you via a different channel.
Choose accessoriesThe staff member gathers the item from stock (located near the rear of the store)—and directs you to accessories, cables, cases, etc.,and checks you out right therewith a hand-held device.
In the smallMultiple touch-points within the in-store purchase process
connect & attract
orient
interactextend & retain
advocate
43Service Design: 10 Principles
Apple store experience cycle: In the middleMultiples touch-points within the in-store purchase process
47Service Design: 10 Principles
Meta-Designer interacting withDesigner interacting with User interacting with artifact
53Service Design: 10 Principles
Like most fast food from burgers to noodles to wraps, Starbucks drinks are a platform
Short 8oz
Tall 12oz
Grande 16oz
Venti 20oz
54Service Design: 10 Principles
Starbucks offers almost 200 million variations on latte
Cup type To-go For-here Personal cup
Drink type Warm Iced
Kind of espresso Regular Decaf Half-caf Tea None
Amount of espresso Single Double Triple Quad N shots
Drink size Short Tall Grande Venti
Milk type Non-fat 2% Whole Soy (2 more)
Syrup combinations (Choose from about 15 flavors)
Whipped cream w/ Whip No whip Light whip
Temperature Extra hot Cooler Specific degree Standard (160°F)
Build order Upside down Right-side up Macchiato Otherwise
Long/Short pull Long Short Normal
Amount of foam Dry Wet Normal None
Amount of syrup 1 pump 2 pumps 3 pumps 4 pumps N pumps
55Service Design: 10 Principles
Characterizing platform types
More choicesFewer constraintsHigher granularity
Before system is locked After system is locked
Define a themeCreate a kit of partsAuthor a language
Choose from a menuAdd features
Create variationsAssemble building blocksCreate expressions within a language
RearrangeReconfigureDelete piecesAdd related components
Fewer choicesMore constraintsLower granularity
57Service Design: 10 Principles
In a network, each node enhances the value of the existing nodes by increasing the number of connections
58Service Design: 10 Principles
iPhoneiTunes
Mu
sic Sto
re
iPh
oto
iMovie H
D
iDVD
GarageBand
Keynote
Pages
Mail (web)
iDisk
Homepage
iWeb
Backup
Mai
l
Add
ress
Boo
k
iCal iC
hat
AV
iSyn
c
Saf
ari B
row
ser
Qui
cktim
e Pl
ayer
Mac
into
sh
Windows
iPod
iPod Hi-Fi
iSight
Other Applications
Hardw
are
Future Developments
iLife
iWor
k
.Mac
The iPhone will connect withApple’s existing system of systems.
59Service Design: 10 Principles
As the number of nodes grow, each new node brings an increasing number of new connections
2 nodes1 connection
3 nodes3 connections
4 nodes6 connections
60Service Design: 10 Principles
A simple way to caluculate connections:a square minus one row, divided in half
nodes
connections
2
1
2
4
7
11
16
3
3
5
8
12
17
4
6
9
13
5
10
14
19
6
15
20
7
21
n
18
n²-n2
61Service Design: 10 Principles
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10
Principles of Service Design
Value is in the experienceExperience = Reputation = BrandSending a message is not enoughLearning requires interactionConversation builds meaningServiceS must be seen as wholesExperience is a journeyPractice metadesignBuild PlatformsTake advantage of network effects
62Service Design: 10 Principles
What does all this mean?
The world is changing We need to “think different” We need to adopt an organic-systems view
63Service Design: 10 Principles
Old thinking + New thinking
Product as object + as experience
static + dynamic
node + link
unique + platform
Focus computing + communicating
with + through
Key skills manufacturing + services
product design + interaction design