7/29/2019 I15.6

1/23

PAGE 1/23

IPAS Deliverable I15.6

Review of Service Design Methods

Version 0.5

Peter J Wild

This report should be cited as

Wild, P.J. (2007) Review of Service Design Approaches. IPASDeliverable I15.6 Report, University of Cambridge, Cambridge.

Minor updates undertaken in June 2009

7/29/2019 I15.6

2/23

PAGE 2/23

CONTENTS

CONTENTS .................................................................................................................. 21 INTRODUCTION..................................................................................................... 32 SOME SERVICE MODELLING AND DESIGN APPROACHES ..................... 4

2.1 SERVICE BLUEPRINTING .................................................................................... 42.1.1 Components of Contemporary Service Blueprinting .................................. 52.1.2 Applications of Blueprinting ....................................................................... 6

2.2 FUNCTIONAL PRODUCTS.................................................................................... 82.3 PRODUCT SERVICE SYSTEMS............................................................................. 102.4 THE JOURNEY TO THE INTERFACE..................................................................... 11

2.4.1 Measurements & Qualities. ......................................................................... 112.4.2 Design Techniques ...................................................................................... 12

3 PHASES OF SERVICE DEVELOPMENT ........................................................... 143.1 INTRODUCTION................................................................................................... 14

4 MISCELLANEOUS APPROACHES ..................................................................... 164.1 HOLLINSTIPS FOR SERVICE DESIGN................................................................ 164.2 SMART SERVICES ............................................................................................... 16

4.2.1 Embedded Innovator ................................................................................... 174.2.2 Solutionist .................................................................................................... 174.2.3 Aggregator .................................................................................................. 174.2.4 Synergist ...................................................................................................... 18

4.3 ORGANISATIONAL ISSUES.................................................................................. 184.3.1

Traits of Successful projects ........................................................................ 19

5 SUMMARY AND CONCLUSIONS ....................................................................... 21REFERENCES ............................................................................................................. 22

7/29/2019 I15.6

3/23

PAGE 3/23

1 INTRODUCTION

A number of authors have written explicitly about methods for the design of

services (e.g. Alonso-Rasgado et al. 2004b, Morelli 2006b); there are modellingapproaches developed that are explicitly associated with services (Polonsky andGarma 2006, Shostack 1982); and others have adapted and merged existingapproaches such as personas into a service design approach (Parker and Heapy 2006).This report surveys a number of such methods / methodologies for the design ofservices.

In section 2, we present a number of service-design approaches. We cover theService Blueprinting and work on approaches such as Functional Products (Alonso-Rasgado and Thompson 2007, Alonso-Rasgado et al. 2004b), Product ServiceSystems (McAloone 2006, Morelli 2006a); and Journey to the Interface (Parker and

Heapy 2006).After this in section 3, we consider how a number of service design methodologies

compare against different stages of the V model.

Finally, in section 5 we report on a number of miscellaneous issues, such asAllmendinger and Lombreglias notion of Smart Services (2005); Hollins guidanceon service design (Hollins 2006), and some consideration of the organisational factorsthat support service development (de Jong and Vermeulen 2003, Edgett 1994).

7/29/2019 I15.6

4/23

PAGE 4/23

2 SOME SERVICE MODELLING AND DESIGNAPPROACHES

2.1 SERVICE BLUEPRINTING

Service Blueprinting was an approach developed by G. Lynn Shostack (Shostack1984). Her 1984 paper discussed the basic principles with the intention ofencouraging thoughtful enquiry and further research (p. 58). Later publicationshave refined the work (Kingman-Brundage 1989 Bitner et al. 2007 Flie andKleinaltenkamp 2004, Sutton and Klien 2003). 1 Service Blueprinting is described ina number of services marketing textbooks; and has been elaborated in Flie andKleinaltenkamp (2004) and Bitner et al. (1992).

Shostacks work was motivated to identify and represent service functions;

benefits; standards and tolerances. An example blueprint can be seen in Figure 1.

Figure 1:- An Example Blueprint (from Shostack 1984, p. 59)

In Figure 1 we see a number of elements that recur across all forms of serviceblueprinting.

Temporal order

Timings

1Both Shostack and Kingman-Brundage remain elusive, having neither a current affiliation or website. Getting

hold of Kingman-Brundages work is also difficult.

7/29/2019 I15.6

5/23

PAGE 5/23

The Line of visibility

Since Shostacks original work there has been evolution of Service Blueprinting.Flie and Kleinaltenkamp (Flie and Kleinaltenkamp 2004, p. 396-8) note three majorstages in the development of Blueprinting.

The first stage of Service Blueprintings development combined the customersview with the service providers view allowing the identification of: 1) customercontact points; 2) the line of visibility; and 3) time and cost information. Theapplication of Service Blueprinting increased effectiveness by: integrating thesupplier and customer views and actions; establishing time frames; analysingprofitability; training employees; modifying service processes; and in creating newservices.

The second stage of Blueprintings development was concerned with visualisingthe organisational structure, such as different employees and departments. Thesedevelopments helped to identify: 1) pitfalls of internal coordination; 2) repeated

actions; 3) costly actions; and 4) showing sources of transaction costs.

The third stage of Blueprintings development was concerned with introducingnew lines that represent: interaction; visibility; internal interaction andimplementation.

2.1.1 COMPONENTS OF CONTEMPORARYSERVICEBLUEPRINTINGBitner et al. (2007) describe blueprinting as being composed of five key features

Customer Actions

Onstage Contact (employee actions)

Backstage Contact (employee actions)

Support Processes

Physical Evidence

Depending on the flavour of blueprinting used, there are a number of lines ofinteraction. Shostacks original form included just one, Bitner list three and Flie andKleinaltenkamp (2004), a further two. The five forms are outlined below.

Line of Interaction: separates customer and supplier interaction.

Line of Visibility: denotes what customers see.

Line of Internal Interaction: separates front and back office capabilities.

Line of order penetration: separates activities that are independent anddependent on customers.

Line of implementation: separates planning, management, control, andsupport activities.

Flie and Kleinaltenkamp (2004) provide an example blueprint for that makes useof these lines. Figure 2 replicates this.

7/29/2019 I15.6

6/23

PAGE 6/23

Figure 2:- Blueprint of a simplified process for acquisition (from Flie and Kleinaltenkamp 2004,figure 3)

2.1.2 APPLICATIONS OFBLUEPRINTINGBlueprinting has been adopted within the marketing and engineering communities

(Boughnim and Yannou 2005). There has been some application outside of thesefields (Flie and Kleinaltenkamp 2004, Polonsky and Garma 2006)

The following papers report on the use of Blueprinting:

Bitner, M.J., Ostrom, A.L., and Morgan, F.N. (2007) Service Blueprinting: A Practical Tool for Service Innovation.Innovation in Services Conference, Berkeley, April 26-28.

Boughnim, N., and Yannou, B. (2005) Using Blueprinting Method for Developing Product-Service Systems. ICED05,15th International Conference on Engineering Design, Melbourne, August 15-18.

Flie, S., and Kleinaltenkamp, M. (2004) Blueprinting the service company: Managing service processes efficiently.Journal of Business Research, 57 (4), pp. 392-404.

Kingman-Brundage, J. (1989) The ABC's of service system Blueprinting: Designing a winning service strategy.Proceedings of the 7th annual Services Marketing Conference,

Kingman-Brundage, J. (1992) The ABCs of service system blueprinting. Lovelock, C. (Ed.) Managing services:Marketing, operation sand human resources. Prentice-Hall. pp. 96-102.

Laws, E. (1998) Conceptualizing visitor satisfaction management in heritage settings: an exploratory blueprintinganalysis of Leeds Castle, Kent. Tourism Management, 19 (6), pp. 545-554.

Morelli, N. (2006) Developing new product service systems (PSS): methodologies and operational tools. Journal ofCleaner Production, 14 (17), pp. 1495-1501.

Polonsky, M.J., and Garma, R. (2006) Service Blueprinting: A Potential Tool for Improving Cause-Donor Exchanges.Journal of Nonprofit & Public Sector Marketing, 16 (1-2), pp. 1-20.

Sutton, D., and Klien, T. (2003) Enterprise Marketing Management: The New Science of Marketing. Hoboken: JohnWiley.

Box 1:- Sources that have used Service Blueprinting

There is no known conceptual or empirical comparison of Service Blueprintingwith other methods for mapping processes or analysis of tasks (e.g., IDEF, BMPN).There are no known studies on the efficacy of Service Blueprinting or its perceived oractual usability by end users of a service.

7/29/2019 I15.6

7/23

PAGE 7/23

A number of other papers suggest the use of blueprinting within servicemethodologies (e.g., Alonso-Rasgado and Thompson 2007, Alonso-Rasgado et al.2004a, Alonso-Rasgado et al. 2004b, Mller and Blessing 2007). Bitner et al. (2007)outlined a set of insights into the application of Service Blueprinting. Box 2 outlines

these insights.PROVIDING A PLATFORM FOR INNOVATION

Blueprinting provides a common representation for all stakeholders, to participate in the process. People are ableto gain insights into how their roles fit into the integrated whole. Overall, this supports organisational vision.

RECOGNIZING ROLES AND INTERDEPENDENCIES

The process of blueprinting can generate insights into roles and interdependencies. By representing customeractions, the service designers can identify events when the customer experiences service quality. This can revealstrengths and weaknesses, and can demonstrate areas where the overall process is let down by one factor, despite

others being strong.2

FACILITATING BOTH STRATEGIC AND TACTICAL INNOVATIONS

Bitner et al. (2007) report that Service Blueprinting is generally well received at all levels of an organisation thatadopts it, and can be used for high and low level modelling of services.

TRANSFERRING AND STORING INNOVATION KNOWLEDGE

Service blueprints act as a knowledge representation that can be stored and replicated relatively easily. This canbe shared and modified by various stakeholders.

DESIGNING THE MOMENTS OF TRUTH

Service Blueprinting through the representation of touchpoints between customers and suppliers allows theinvestigation of such moments-of-truth. Decisions about how the traditional split between front and back officeoperations can be examined in the light of customer experience. Whether changes in such practices, whilst goingagainst expectation can be considered innovative can also be examined.

CLARIFYING COMPETITIVE POSITIONING

Service blueprinting allows the comparison of actual / desired service design with those of the competition.

Box 2:- Insights for Service Innovation Practice (after Bitner et al. 2007)

Shostack and Kingman-Brundage (1991), suggested a life cycle for the applicationof Service Blueprinting.

The approach is essentially a spiral model (c.f., Boehm 1988, Bullinger et al. 2003)for service development. The application of such a spiral model allows thedevelopment of initial, albeit intermediate models at an earlier stage in the servicedesign process than would happen if following a sequential model.

However, there are a range of service design activities that need to undertakenprior to and after Service Blueprinting. To consider these in more depth we examineservice design methodologies, starting with the Functional Products approach in

section 2.3.

2Pereyra (2007) for example notes the distinction between two touch points, one being a website with

high usability, and the second being the actual customer services department, with badly motivated and

un-knowledgeable staff.

7/29/2019 I15.6

8/23

PAGE 8/23

Figure 3:- Life cycle for the Application of Service Blueprinting (after Shostack and Kingman-Brundage 1991)

2.2 FUNCTIONAL PRODUCTS

The term Functional products was first used in Brnnstrm et als ICED paper(2001). Later work provided an expanded vision of functional products and haveoutlined an FP methodology (Alonso-Rasgado and Thompson 2007, Alonso-Rasgado et al. 2004a, Alonso-Rasgado et al. 2004b).

Within the FP approach service systems are defined as all actions that arerequired to ensure that a certain function is provided to a customer. The service is atotal support system that includes: actions on hardware (remanufacture, spares

provision, on-site work); decision-making, forecasting; operations planning, datacollection storage; intellectual property (education of users and suppliers) (p.518).

The work is largely synthetic, with Alonso-Rasgado et al. (2004b) drawing on a lotof material from services marketing and other areas. We provide an outline of theapproach.

The FP methodology is composed of five stages (2004b, p.519), each of whichundertakes a number of other activities: 3

1) CONCEPT CREATION FOR THE SERVICE SUPPORT SYSTEM

3Somewhat confusingly, a later paper has reduced the number of stages to three, (Concept Development, Systems

Design and Testing and Implementation). The bulk of the paper outlining this rapid approach to service design

replicates material found in the previous paper.

7/29/2019 I15.6

9/23

PAGE 9/23

From the work presented (e.g. Alonso-Rasgado and Thompson 2007, Alonso-Rasgado et al. 2004a, Alonso-Rasgado et al. 2004b), Concept Creation embraces fiveactivities: 1) Collect Voice of Customer; 2) Requirements Ranking; 3) ConceptGeneration; 4) Concept Selection; and 5) Concept Creation.

Given their importance these are relatively poorly documented in the work.

2) IDENTIFICATION OF REQUIRED SUBSYSTEMS

The activities within this phase concern the identification of the specificcomponents that go to make up the design and the interaction between them (p. 524).

This phases primary concern is to outline the architecture of the FunctionalProduct. Alonso-Rasgado et al see four key subsystems for an FP: Operationsplanning; hardware maintenance and remanufacture; data storage and decision-making; and service processing.

Figure 4:- Example of the four core subsystems (after figure 4 Alonso-Rasgado et al. 2004b)

In addition to the four core subsystems, additional subsystems can be added to theservice system. The authors suggest Education/training; Design MaintenanceDevelopment; and Performance Improvements.

3) INTEGRATION OF THE SUBSYSTEMS THAT TOGETHER WILLPROVIDE THE SERVICE

After concepts have been developed, and subsystems have been identified effortneeds to made to integrate the subsystems. Which comes down to choosing thecombination of hardware and service to provide the best solution for all partiesinvolved(p. 526). These options range from high risk (novel hardware and service)to low risk involving known hardware and services.

4) MODELLING OF THE PROPOSED SERVICE SYSTEM

In their discussion on service modelling Alonso-Rasgado et al cover a range ofmodelling approaches such as molecular modelling, Service Blueprinting and SADT.As an afterthought to this review, is the assertion that The main reason for modellingis to test the functionality of a service system (p. 530).

7/29/2019 I15.6

10/23

PAGE 10/23

5) TESTING AND IMPLEMENTATION

The testing and implementation phase of the FP process takes the documents,concepts models etc from the previous phases and in some way test them. Alonso-Rasgado et al. (2004) draw on a number of sources for how to carry out this activity.

After Murphy and Robison (1981), testing of a new service concerns whether auser of a service understands three things: 1) understanding the idea of the proposedservice; 2) whether they react favourably to it; and 3) feel that it offers benefits thatanswer needs.

In turn Shostack (1984) suggested that implementation should be undertakenthrough three phases: 1) of the operation plan; 2) of the communication strategy; and3) market introduction.

Once the service system is actually implemented this opens up the opportunity foractual testing rather than conceptual testing.

No case studies on the application of the Functional Products methodology haveappeared in the literature, nor is there is not any tutorial material.

2.3 PRODUCT SERVICE SYSTEMS

The term Product-service systems seems to have first appeared in 1999 withpublication of Goedkoop et als report (1999). Although Shostack (1977) profferedthe term Marketable offerings for combinations of products and services. Severalpapers have outline tentative methodologies, although many others manage to discussthe notion without any explicit case study of their suggested methodologies (e.g.,Christof et al. 2007, Cook et al. 2006, Manzini et al. 2001, Maussang et al. 2007,Shehab and Roy 2006).

Morelli presented one of the first case studies in service design, focusing on atelecommunications centre for mobile workers. Morelli offers simple definition of aPSS as a marketable set of products and services capable of jointly fulfilling a usersneed(p. 74). In his 2003 paper 6 phases are essential to the development of a PSS,by 2006, he had reduced this list to 3; it is not clear how the previous activities wrapinto this newer structure. In turn, McAloone and colleagues (McAloone 2006,McAloone and Andreasen 2002, Tan and McAloone 2006, Tan et al. 2007) haveundertaken case studies in PSS and he has also been involved in teaching PSS designto design students (McAloone 2006).

Within this section, we try to integrate the activities that these researchers suggest

as essential for the development of a PSS.

7/29/2019 I15.6

11/23

PAGE 11/23

Phase /Researcher

VALUEPROPOSITION

ACTORANALYSIS

ENVISAGEMENT REQUIREMENTSSPECIFICATION

OUTLINE OFARCHITECTURE

McAloone2006

Create aproduct lifegallery

Sketch theActorNetwork

Identify andSketch theConsumerActivity Cycle

Identify the functionalunit provided by theproduct

Carry out an Analysis,Diagnosis, Focussing,and Goal Settingexercise

Describe thenecessaryphysical artefacts

Morelli 2006a IdentifyActors

Envisage ProductService System(Use Case andScenarios)

Represent theStructure(Blueprinting)

Morelli 2003 Valueproposition

MarketAnalysis(Similar andRelatedServices)

Definition ofPSS

StakeholdersMarketAnalysis(UserAnalysis)

Use CaseDevelopment

FunctionalRequirements

TentativeArchitecture

Table 1:- Synthesis of Design Activities with PSS papers (after McAloone 2006 Morelli 2006aMorelli 2003)

Overall, despite the buzz around the notion of PSS, there are few validatedprescriptive methods to work with, a view echoed by another review of PSS (Baineset al. forthcoming). McAloones paper, whilst describing a seemingly rich approachis didactic, and does not appear to have been developed with practitioners in mind.Morelli has only reference to one case study, that of a telecentre.

Overall, given the paucity of methods and methodologies associated with the termProduct Service System we have to conclude that it is an idea within academia thathas so far failed to realise a truly pragmatic outcome.

2.4 THE JOURNEY TO THE INTERFACE

DEMOS (Parker and Heapy 2006) has published a length pamphlet on the natureof service design in public services. Much of the ethos was covered in deliverableI15.5 (Review of Service Design Definitions). Here we outline some of the designtechniques that are discussed in the work.

Many of the techniques are well documented within other bodies of work (e.g.Preece et al. 2002), our focus here is on the Design Techniques and Measurements &Qualities, starting with the latter.

2.4.1 MEASUREMENTS &QUALITIES.EXPERIENCE METRICS

Experience metrics should be derived from users and enable organisations todesign and measure the performance of a service against customers / clients values,rather than just those values held by the organisation and its staff. As such,

experience metrics are not measures of high-level outcomes but of the quality of theexperience at the interface.

7/29/2019 I15.6

12/23

PAGE 12/23

EXCELLENCE PROFILES

These go beyond job descriptions and describe service roles as aspirations, values,and behaviours. It is argued that they can then be used to guide staff to deliver aquality service. For Parker and Heapy, excellence is the ability to understand

practically what it means to do your job well. Experience profiles are designed toenable organisations to distribute the accountability for excellent service amongstpeople, and are an open resource accessible to anyone in the organisation.

MY-METRICS

Targets are always criticised for creating unintended consequences, howeverParker and Heapy argue that it is not the targets themselves, but the focus of saidtargets. By explicitly labelling some targets My-metrics service designers canprovide a powerful counterpoint to other operational measures.

2.4.2 DESIGNTECHNIQUESSERVICE ENVIRONMENTS

A service environment encompasses all spaces and places in which service iscarried out. Viewing buildings as places in which service is performed can be avaluable conceptual step to make for designers, rather than thinking in abstract terms,design can focus around how the physical environment can provide a setting forservice execution.

PERSONAS

Organisations can use personas to experiment with how they might interact withthe service. Personas are an approach most commonly associated with Cooper (1999)

and are essentially are fictitious character created to represent different user typeswithin a user group for product or service. Parker and Heapy argue that in the contextof service design Creating real people can really animate discussions and enableservice providers to engage emotionally as well as rationally with their users. Themethodology of personas can also be used to better understand the experiences andneeds of staff (p. 106).

PROTOTYPING

Because personal and organisational needs are complex services should respond tothat complexity rather than avoiding it or trying to drive it out. Prototyping adesign is a common practice in a number of design fields. The less tangible nature ofservices can make it harder for designers and clients to visualise / consider that natureof a service or service concept. Enactment or prototyping of the elements of a servicecan help remedy this. In addition trying to get a complex service such as health careor engine availability right first time is difficult and prototypes can help the learningcycle.

RELATIONSHIP MAPS

For Parker and Heapy the main components of services touchpoints, systems andresources which are instantiated through the relationships between individuals,communities and organisations. It is essential that the critical relationships betweenpeople are mapped. Through this process, opportunities emerge to make changehappen (p.108). They offer no specific techniques but the developed form of Service

Blueprinting (see section 2.1) would allow designers and service users to visualisesuch relationships.

7/29/2019 I15.6

13/23

PAGE 13/23

However, the concepts of section 2.4.1 whilst novel and appealing have fewconcrete examples available. Whilst the concepts appear in the main body of parkerand Heapys pamphlet, they are generally alluded to, rather than explained in anydepth.

7/29/2019 I15.6

14/23

PAGE 14/23

3 PHASES OF SERVICE DEVELOPMENT

3.1 INTRODUCTION

It would appear that discussion of life cycle phases cannot be undertaken withoutreference to the Waterfall Life cycle. As the names suggest the life cycle of adesigned entity (whether hardware, software or service) can be conceptualised as aseries of discrete events that lead into each other. Somewhere the notion of awaterfall life cycle become solidified as being a prescription for successful design ,despite it being rejected by the first person to introduce and discuss it (see Royce1970). 4

Since then a number of other life cycle models have evolved: including the spiralmodel (Boehm 1988); star model (Hix and Hartson 1993); and incremental delivery

(Gilb 1988).We can make a number of observations on life cycle models.

:- iteration between stages is generally necessary;

:- iteration maybe more likely as services tend towards being more intangible,variable etc.

:- there maybe recursive relationships between stages, for example there maybe awhole series of design activities to support the operation and maintenance of aproduct.

By drawing upon the V-model (V-Modell XT: Part One Fundamentals of the V-

Modell 2004, Sage and Armstrong 2000), we have a model that has the recogniseddesign and development phases, but also has acknowledgement of these issues.

The V-model is chosen to structure comparison for three reasons: a) it hasconsiderable crossover with other phased models; b) the approach covers projectmanagement issues as whole. We focus on the stages presented by Sage andArmstrong (2000) as a text that remains well used and accessible.

Requirements and Specification

Preliminary Conceptual Design

Logical Design and Architecting

Detailed Design and Testing

Operational Implementation

Operational Test and Evaluation

Operation and Maintenance

Table 2 compares the service design methodologies of a number of authors withthe phases of the V-Model. The columns covering approaches by Edvardsson and

4Royce's original waterfall modelled the following phases: 1) Requirements specification; 2) Design; 3)

Construction; 4) Integration; 5) Testing and debugging; 6) Installation; and 7) Maintenance

7/29/2019 I15.6

15/23

PAGE 15/23

Olsson (1996) and Bullinger et al. (2003) are not covered in any depth in this report,but are included to give a flavour of the structure of other approaches. The middletwo columns are covered in section 2.2.

Bullingeretal.

2003

Requirements

Analysis

Ideageneration

Concept

Development

Implementation

MarketLaunch

Post-Launch

Interview

Alonso-Rasgado

an

dThompson

20

07

Co

ncept

Sy

stemDesign

Te

sting&

Im

plementation

Alonso-Rasgado

etal.2004b

ConceptCreation

Identificationof

subsystems

Integrationof

subsystems

ModellingService

Systems

TestingService

Systems

Implementation

Edvardsson

an

dOlsson

19

96

Service

Concept

Development

Service

System

Development

Service

Process

Development

V-Model

REQUIREMENTS

AND

SPECIFICATION

PRELIMINARY

CONCEPTUAL

DESIGN

LOGICAL

DESIGN

AND

ARCHITECTING

DETAILED

DESIGN

AND

TESTING

OPERATIONAL

IMPLEMENTATI

ON

OPERATIONAL

TESTAND

EVALUATION

OPERATION

AND

MAINTENANCE

Table 2:- Comparison of Stages of the V-Model against Service Design Methodologies

7/29/2019 I15.6

16/23

PAGE 16/23

4 MISCELLANEOUS APPROACHES

4.1 HOLLINSTIPS FOR SERVICE DESIGN

Hollins Service Design guide for the design council (see Hollins 2006) includes arange of tips for effective design of services. Box 3 summarises his tips.

Design is a total process

Design begins with an idea rather than a concept

Identify which stages can be undertaken concurrently

Use specifications to control the design process

Use BS7000

Failure for services is the same as products

Consider wider measures than profitability alone

Eliminate potential failures ASAP and pursue potential successes

People buy benefits, align these with the service and its marketing

Use blueprints with touchpoints, use wider issues of experience

Customers who are queuing may not come back

Train those who do the job

Service quality has five identifiable parameters

Box 3:- Summary of Hollins Top Tips for Service Design

4.2 SMART SERVICES

Allmendinger and Lombreglia (2005) present four kinds of smart services forconsideration by manufacturers and service suppliers. Their argument centres ongoing beyond the kinds of upkeep and upgrades you may be bundling with your

products, both in their value to customers and in their cost efficiency to you (p. 131).

They provide the exemplar of Heidelberger Druckmaschinen, who installed

monitoring equipment on their installed printers and found "it could providemaintenance much more cost effectively (p.132)." They go on to say that "with itsmachines communicating continuously over the Internet, relaying information abouttheir status between the print shops and Heidelberg's regional and global technicalsupport specialists, the company has the access and insight to optimize printing

performance in customers' shops (ibid).

Allmendinger and Lombreglias (2005) concern is to learn from those companiesthat are further along the path to smart services. To do this they outline the nature ofsmart services and outline four forms of smart services; the Embedded Innovator; theSolutionist; the Aggregator; and the Synergist.

The biggest differentiator between smart services and previous services offeringsis that the use of connectivity and awareness technologies allows pre-emptiveservicing. Evidence can be gathered that a device machine product etc., is about to

7/29/2019 I15.6

17/23

PAGE 17/23

fail, allowing intervention before this happens. This creates a new value forcustomers, that of not being surprised by unexpected breakdowns. In addition to thismanufacturers gain unprecedented feedback about their product in use.

Allmendinger and Lombreglia suggest a number of uses for smart services and

these are summarised in Box 4.

Status applications capture and report on the operation, performance, and usage of a given product or theenvironment being monitored.

Diagnostics applications enable a product to self-optimize or allow a service person to monitor, troubleshoot, repair,and maintain devices.

Upgrade applications can augment the performance of a given product. They can prevent problems with versioncontrol, technology obsolescence, and product failure.

Control and Automation applications coordinate the sequenced activity of several products. They can also causedevices to perform one off, discrete actions.

Profiling and Behaviour Tracking applications monitor variations in the location, culture, performance, usage, andsales of a product. These applications can create more customized or predictive responses for end users.

Replenishment and Commerce applications monitor consumption of a device and buying patterns of the end user.

These applications can initiate purchase orders or other transactions when replenishment is needed.

Location Mapping and Logistics applications track and optimize the service support system for a device. Theseapplications also support supply chain and sales activities.

Box 4:- What a Connected Device Can Do (adapted from Allmendinger and Lombreglia 2005, p.133)

Overall, smart services are a way of adding intelligence to products viaawareness and connectivity. Controversies aside about the nature of machineintelligence, the following four forms of smart services are suggested; the EmbeddedInnovator; the Solutionist; the Aggregator; and the Synergist.

4.2.1 EMBEDDEDINNOVATORWith this strategy, the product is enhanced to aid service and this is the most

product-centred of the four strategies, and Allmendinger and Lombreglia suggestedthat customers would still perceive the product to be the primary source of value.There may also be an expectation that they continue to receive support that they areused to such as warranties and service as there is a tradition that the product is soldwith these as a package.

4.2.2 SOLUTIONISTWithin this strategy, the single product remains a key component of the product-

service offering. However, the scope of activities associated with the product areexpanded, value is added through these additional activities. Allmendinger andLombreglia list 13 activities associated with an MRI scanner, and note that only fourare medical matters and the remaining 9, are, potential profit and value opportunities.

4.2.3 AGGREGATORThe aggregator is one of two strategies that are business opportunities that cannot

be undertaken by a single manufacturer. An aggregator strategy is needed when aproduct collects data but this needs to be aggregated with other data from otherproducts. It is only when a number of potentially disparate devices are connected that

value can be created. Whilst it is possible to monitor a single device for issues suchas power consumption few people would worry about a single desk lamp. But a

7/29/2019 I15.6

18/23

PAGE 18/23

system that offered the opportunity to monitor power wastage across a home,community or workplace would be of value to many. A key issue is deciding whethera manufacturers product acts in a central or peripheral role. Investment in dataprocessing and warehousing is likely to accompany the application of this strategy.

4.2.4 SYNERGISTThe Synergist is the second of the two strategies that cannot be undertaken by a

single manufacturer. Overall, the synergist strategy is defined as one where you setout to create a product that can contribute valuable data or functionality to otherconnected products (p. 144). Allmendinger and Lombreglia point to the lightingballasts and controls division of Philips which is creating a group of companies thatprovide products capable of generating common information.

4.3 ORGANISATIONAL ISSUES

There is a growing body of work on Organisational Issues in relation to servicedevelopment (de Jong and Vermeulen 2003, Edgett 1994, Edvardsson and Olsson1996, Froehle and Roth in press, Johne and Storey 1998, Scheuing 1989, Silvestroand Silvestro 2003). To give a flavour of this work we present a summary of a studyby Edgett (1994), which represents one of the most rigorous studies undertaken.

Edgett applied a questionnaire composed of 78 questions (in 11 categories) each on a7-point likert scale ranging from strongly disagree (1) to strongly agree (7). Thequestionnaire was applied to 148 projects within financial services of which 78 wereconsidered successes and 70 failures. Figure 5 provides one summary of the data,overall there were significant differences in answers between successful projects andunsuccessful projects (47 at p 0.05 level, all others at 0.01 or 0.0001 level.

Figure 5:- Differences in scores between successful and un successful projects (after figure 1Edgett 1994)

7/29/2019 I15.6

19/23

PAGE 19/23

4.3.1 TRAITS OF SUCCESSFUL PROJECTSEdgett concludes his paper by suggesting a number of successful traits. Box x

summarises these for the 11 categories of questions.

ORGANIZATIONAL A high level of coordination exists among the people and departments involved;

People involved in the project know why they are involved and what benefits the project will bringto the company;

Project members are well qualified for their tasks and display high levels of commitment andenthusiasm;

There is high awareness within the company that the new service is being developed, backed upwith a strong marketing case;

There is strong and visible senior management support.

RESOURCE ALLOCATION

Sufficient financial resources are allocated during the development phase;

Enough time and effort is spent on the actual design and development of the new service to ensure

that product features are what the consumer wants; The market launch receives strong support in the form of time, money and people.

FORMALIZATION

Have development processes which became more formal as the projects progressed;

Have a well established idea-screening process in place to determine which new

ideas will be given the go-ahead;

Have a system in place to ensure that branch staff are well trained and committed to selling thenew service.

PRELIMINARY ASSESSMENT & DESIGN TESTING (MERGED)

Conduct a market assessment early in the process;

Develop a clear understanding of who is the target market;

Determine early whether the project is technically feasible;

The market and technical assessment are properly funded with enough time allocated to get the jobdone properly;

Thorough testing is conducted to ensure the new service does what it has been designed to do.

MARKET RESEARCH & MARKET POTENTIAL (MERGED)

Have a good, solid understanding of the type of information required before conducting anyresearch;

Develop clear, objective measures before conducting the actual research;

Have a firm understanding of the potential size of the market.

BUSINESS/FINANCIAL ANALYSIS & PROJECT UPDATE (MERGED)

A clear understanding of the desired objectives before the business/financial analysis;

A realistic business/financial analysis is conducted;

A review is conducted after the numbers become available to determine the probability of theproject actually achieving its objectives.

MARKET SYNERGY

A superior product;

A good fit with the existing image of the company;

A strong understanding of the consumers wants and needs and how the purchase decision is made;

A strong consumer need for the product;

A high growth market;

Branch efforts which are supportive of the new service.

LAUNCH EFFECTIVENESS

A launch effort which is well planned and coordinated;

Various communication materials ready and in place at the time of launch;

The marketing aspects of the launch targeted correctly and backed up with sufficient resources.

7/29/2019 I15.6

20/23

PAGE 20/23

Box 5:- Summary of Edgetts Recommendations for Successful new service development (Edgett

1994)

7/29/2019 I15.6

21/23

PAGE 21/23

5 SUMMARY AND CONCLUSIONS

This report has attempted to provide the reader with a flavour of the approaches to

service design that are in the literature.

We have covered a number of service-design approaches. Including ServiceBlueprinting, Functional Products, Product Service Systems and Journey to theInterface (Parker and Heapy 2006). We considered how a number of service designmethodologies compare with different stages of the V model. We also reported on anumber of miscellaneous issues, such as Allmendinger and Lombreglias notion ofSmart Services (2005); Hollins guidance on service design (Hollins 2006), and someconsideration of the organisational factors that support service development (de Jongand Vermeulen 2003, Edgett 1994).

A key observation is that there appears to have been little systematic consideration

of what design techniques are needed to specify the elements of a service system. Bythis we mean that no one has worked backwards from the elements of product-servicesystems or Functional Product to the design processes that are needed to generatetheir requirements, specify the design and evaluate the resulting service.

7/29/2019 I15.6

22/23

PAGE 22/23

REFERENCESAllmendinger, G., and Lombreglia, R. (2005) Four Strategies for the Age of Smart Services.Harvard Review of

Business,83

(10), pp. 131-145.Alonso-Rasgado, M.T., and Thompson, G. (2007) A Rapid Design Process for Total Care Product Creation.Journal of Engineering Design, 17 (6), pp. 509-531.

Alonso-Rasgado, T., Thompson, G., and Dannemark, O.J. (2004a) State of the Art in Service Design andModelling. Report, D2.1..4_1, Vivace Project, Manchester.

Alonso-Rasgado, T., Thompson, G., and Elfstrm, B.-O. (2004b) The design of functional (total care) products.Journal of Engineering Design, 15 (6), pp. 515-540.

Baines, T., et al. (forthcoming) State-of-the-art in Product Service-Systems. Proceedings of the I MECH E Part BJournal of Engineering Manufacture,

Bitner, M.J. (1992) Servicescapes: The Impact of Physical Surroundings on Customers and Employees.Journal ofMarketing, 56 (2), pp. 57-71.

Bitner, M.J., Ostrom, A.L., and Morgan, F.N. (2007) Service Blueprinting: A Practical Tool for ServiceInnovation. Innovation in Services Conference, Berkeley, April 26-28.

Boehm, B. (1988) A Spiral Model of Software Development and Enhancement.IEEE Computer, (May), pp. 61-72.

Boughnim, N., and Yannou, B. (2005) Using Blueprinting Method for Developing Product-Service Systems.ICED05, 15th International Conference on Engineering Design, Melbourne, August 15-18.Brnnstrm, O., Elfstrm, B.O., and Thompson, G. (2001) Functional products widen the scope of development

work. ICED01, 13th International Conference on Engineering Design, Glasgow,Bullinger, H.-J., Fahnrich, K.-P., and Meiren, T. (2003) Service engineering: methodical development of new

service products.International Journal of Production Economics, 85 (3), pp. 275-287.Christof, F., Grossmann, J., Schendel, C., Boman, M., and Sakao, T. (2007) Research Tasks and Potentials In

Product-Service-System Development. ICED 07, 28-31 August. Paris.Cook, M.B., Bhamra, T.A., and Lemon, M. (2006) The transfer and application of Product Service Systems: from

academia to UK manufacturing firms.Journal of Cleaner Production, 14 (17), pp. 1455-1465.Cooper, A. (1999) The Inmates are Running the Asylum: The Inmates Are Running the Asylum: Why High-tech

Products Drive Us Crazy and How to Restore the Sanity. SAMS.de Jong, J.P.J., and Vermeulen, P.A.M. (2003) Organizing Successful New Service Development: A Literature

Review.Management Decision, 41 (9), pp. 844-858.Edgett, S. (1994) The Traits of Successful New Service Development.Journal of Services Marketing, 8 (3), pp.

40-49.Edvardsson, B., and Olsson, J. (1996) Key Concepts for New Service Development. The Service IndustriesJournal, 16 (2), pp. 140-164.

Flie, S., and Kleinaltenkamp, M. (2004) Blueprinting the service company: Managing service processesefficiently.Journal of Business Research, 57 (4), pp. 392-404.

Froehle, C.M., and Roth, A.V. (in press) A Resource-Process Framework of New Service Development.Production and Operations Management,

Gilb, T. (1988) Principles of Software Engineering Management. Reading: Addison-Wesley.Goedkoop, M., van Halen, C., te Riele, H., and Rommens, P. (1999) Product Service Systems, Ecological and

Economic Basics. Report, PR Consultants, Amersfoort The Netherlands.Hix, D., and Hartson, H.R. (1993) User Interface Development: Ensuring Usability through Product and Process.

New York: John Wiley and Sons.Hollins, B. (2006)About: Service Design. Report, Design Council, London.Johne, C., and Storey, C. (1998) New Service Development: a review of the literature and annotated bibliography.

European Journal of Marketing, 32 (3/4), pp. 184-251.

Kingman-Brundage, J. (1989) The ABC's of service system Blueprinting: Designing a winning service strategy.Proceedings of the 7th annual Services Marketing Conference ,

Manzini, E., Vezzoli, C., and Clark, G. (2001) Product-Service Systems: Using an Existing Concept as a NewApproach to Sustainability.Journal of Design Research, 1 (2),

Maussang, N., Sakao, T., Zwolinski, P., and Brissaud, D. (2007) A Model for Designing Product-Service SystemsUsing Functional Analysis and Agent Based Model. ICED 07, 28-31 August. Paris.

McAloone, T.C. (2006) Teaching and Implementation Models for Sustainable PSS Development: Motivations,Activities and Experiences. Proceedings of Sustainable Consumption and Production: Opportunitiesand Threats, Wuppertal, pp. 119-130.

McAloone, T.C., and Andreasen, M.M. (2002) Defining product service systems. Meerkamm, H. (Ed). Designfor X, Beitrge zum 13 Symposium, Lehrstuhl fr Konstruktionstechnik, TU Erlangen, 10 - 11 October2002. pp. 51-60.

Morelli, N. (2003) Product-service systems, a perspective shift for designers: A case study: the design of atelecentre.Design Studies, 24 (1), pp. 73-99.

Morelli, N. (2006a) Developing new product service systems (PSS): methodologies and operational tools.Journal

of Cleaner Production, 14 (17), pp. 1495-1501.Morelli, N. (2006b) Developing new PSS, Methodologies and Operational Tools.Journal of Cleaner Production,

pp. 1-7.

7/29/2019 I15.6

23/23

PAGE 23/23

Mller, P., and Blessing, L. (2007) Development of Product-Service-Systems - Comparison of Product and Service

Development Process Models. ICED 07, 28-31 August. Paris.Murphy, P.E., and Robison, R.K. (1981) Concept testing services. Donnelly, J. and George, W.R. (Eds).

Marketing of Services: Proceedings Series of the American Marketing Association, Chicago, AmericanMarketing Association. pp. 217220.

Parker, S., and Heapy, J. (2006) The Journey to the Interface. Report, DEMOS, London.

Pereyra, I. (2007) The Difference between Experience Design and Usability. Accessed, Fromhttp://designaxiom.blogspot.com/2007/03/difference-between-experience-design_30.html

Polonsky, M.J., and Garma, R. (2006) Service Blueprinting: A Potential Tool for Improving Cause-DonorExchanges.Journal of Nonprofit & Public Sector Marketing, 16 (1-2), pp. 1-20.

Preece, J., Rogers, Y., and Sharp, H. (2002)Interaction Design. New York: Wiley.Royce, W. (1970) Managing the Development of Large Software Systems. IEEE Wescon, Washington, August

1970. IEEE Press. pp. 328-338.Sage, A.P., and Armstrong, J.J.E. (2000)Introduction to Systems Engineering. Wiley.Scheuing. (1989) A Proposed Model for New Service Development. TheJournal of Services Marketing, 3 pp. 25-

34.Shehab, E.M., and Roy, R. (2006) Product Service Systems: Issues and Challenges. 4th International Conference

on Manufacturing Research (ICMR 2006), Liverpool, 5th-7th September. pp. 7-22.Shostack, G.L. (1977) Breaking Free from Product Marketing.Journal of Marketing, 41 (2), pp. 73-80.Shostack, G.L. (1982) How to Design a Service.European Journal of Marketing, 16 (1),Shostack, L., and Kingman-Brundage, J. (1991) How to design a service. Congram, C.A. (Ed.) The AMA

Handbook of Marketing for the Service Industries. New York: AMACOM. pp. 243-261.Shostack, L.G. (1984) Designing Services that Deliver.Harvard Review of Business, 62 (1), pp. 133-139.Silvestro, R., and Silvestro, C. (2003) New service design in the NHS: an evaluation of the strategic alignment of

NHS Direct.International Journal of Operations & Production Management, 23 (4), pp. 401-417.Sutton, D., and Klien, T. (2003)Enterprise Marketing Management: The New Science of Marketing. Hoboken:

John Wiley.Tan, A., and McAloone, T.C. (2006) Characteristics of Strategies in Product/Service-System Development.

Marjanovic, D. (Ed). Proceedings of the 9th International Design Conference DESIGN 2006,Dubrovnik, May 15-18th. Faculty of Mechanical Engineering and Naval Architecture, University ofZagreb, Croatia. pp. 1435-1442.

Tan, A.R., McAloone, T.C., and Gall, C. (2007) Product/Service-System Development An explorative casestudy in a manufacturing company. ICED 07, 28-31 August. Paris.

V-Modell XT: Part One Fundamentals of the V-Modell. (2004) Report, Technische Universitt Mnchen,Garching.