veryday academy masterclass service design oct 6 2014
DESCRIPTION
This is Veryday’s take on creating value with service design as it was shared at a masterclass in connection with the Service Design Conference in Stockholm, October 2014. Creating value originates in taking all perspectives (meaning the internal stakeholders, the brand, the organization and the end customer etc) into account, putting the end customer in focus. By being empathic to people, going from detailed to holistic thinking and prototyping the visions and ideas, we can create valuable and meaningful services. At Veryday we have developed Fabric as our collaborative, modular, interconnected and iterative way of working to systematically design for experiences.TRANSCRIPT
D E L I V E R I N G C U S T O M E R E X P E R I E N C E V A L U E / V E R Y D A Y . C O M
Welcome to Veryday Academy™
| 06 October 2014 | Service Design Conference 2014 | Masterclass | Stockholm | @byveryday @madlenelin @gbrlsthlm 2
| 06 October 2014 | Service Design Conference 2014 | Masterclass | Stockholm | @byveryday @madlenelin @gbrlsthlm 3
Creating Value with Service
Design
| 06 October 2014 | Service Design Conference 2014 | Masterclass | Stockholm | @byveryday @madlenelin @gbrlsthlm 4
Creating value originates in taking all perspectives (meaning the internal stakeholders, the brand, the organization and the end customer) into account , puing the end customer in focus. By being empathic to people, going from detailed to holistic thinking and protoping the visions and ideas, we can create valuable and meaningful services.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 5
New Paradigm of Value Creation
80% of companies believe they deliver outstanding value and
a superior customer experience.
8% of their customers agree. Source: Bain & Company
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 6
7
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 7
Significant paradigm shist From the industrial socie To the networked socie
1 | Client Name & Context (Change in "Insert/Head & Footer") | 2008-04-28
Age of Manufacturing
Age of Distribution
Age of Information
Age of The Customer
Forrester Outside In: The Power of Puing Customers at the Center of Your Business
Mass manufacturing boosts industrial powerhouses.
Global connections make distribution key.
Connected PCs benefit those who control information.
Empowered buyers demand a customer focus.
Ford, RCA, GE, Boeing, P&G, Sony Walmart, Toyota, UPS, CSX Microsost, Google, Dell, Capital One
Southwest Airlines, Amazon, USAA, ...
1900–1960 1960–1990 1990–2010 2010–?
Source of dominance and differentiation
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 8
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 9
Significant paradigm shist From Industry led development To Customer led development
Gross Domestic Product
hps
://w
ww.
cia.
gov/
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 10
GDP - composition, by sector of origin: agriculture: 0.7% industry: 21% services: 78.3% (2012 est.)
1% 21%
78%
Agriculture Industry Services
| 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz
Growing share of the economy
e.g. JAPAN
CIA
Wor
ld Fa
ctbo
ok
10.0% AGGRICULTURE
43.9% INDUSTRY
46.1%
CHINA
71.4%
1.2%
27.5%
SERVICES
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 11
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 12
+ Customer Centrici + Customer Focus = Competitive advantage = Loyal satisfied customers = Higher profit margins
Valu
e fo
r the
org
anis
atio
n
Value for customers
Commodi
Product
Service
Experience
Added value win-win through co-design.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 13
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DELIVERING VALUE
RE-IMAGINE OPTIMIZE
Reduce cost with improved customer experience
Reduce churn and increase life-time value
Innovation of new business models and offerings
Reduce risk, time to market and cost
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 14
EXPAND
New or beer services for todays customers
New customers through improving todays service
Gap in quali and productivi Services are far behind products when it comes to productivi, failure and quali.
Products Productivi
Quali
Services
Products Services
60% of new service introductions fail
6% 41% of product companies see design as integral
of service companies see any role for design
€ 67.00 Service companies
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 15
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm
The only people that see the bigger picture of any organization or brand are
the customers. 16
What is needed is a new approach to
create value.
NEED BETTER IMAGES
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 17
Please write down one key challenge
you are facing.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 18
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm
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Some common Challenges
Stay engaged and relevant over time with the end customer
Get all internal stakeholders to understand the value of Service Design
Know how to identi unmet needs
Get “unstuck” - get out of “business as usual” and try something different Sort out the data that is relevant to act on Scaling
Know what bales to pick, you can’t be best at everything
01. 02. 03. 04. 05. 06. 07.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm
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The Opportuni
Customer Experience is the next frontier for differentiation, value creation and growth.
Everything is more connected and complex than ever. New customer expectations arise and cross boundaries.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm
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1. Everything is more connected and complex than ever
2. New expectations across boundaries
3. Easy to loose focus through distraction and disruption An accelerating storm of change
Digital Mobile
Social
Big data
The eye of the storm
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 22
Wearables
Internet of everything
Your First Point of Differentiation
The customer
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 23
Why can´t they remember what I like from time to time?
Why is it always so difficult to find my way to what I want!
It would be great if I could know more about this before I decide to buy it!
I want to know that they have the products I want in store.
People perspective (Employees, clients, customers, users)
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 24
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CRM
Governance
Supply Chain
Database
Portfolio Management
Loyal Program
Regulations
LEAN
Forecasting
Investment Planning
Business Process Optimization
SOX
Rightshoring
Channels
Integrated Marketing Solution
Core Competency
Diversi
Alignment
Streamline
6Sigma
The corporate world is a different world
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 25
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 26
Building and scaling culture [in organizations] is the secret to innovation.
Jeff Gothelf
“
Click to edit Master title sle Process Operating
Model Technology Leadership & Culture Employees
Legislation CSR
Strategy
Customer Experience Journey
Business Operations
Bridging the gap
|| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm
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Your Second Point of Differentiation
Company Organization
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 28
Your Third Point of Differentiation
Systemic Solutions
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 29
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 30
A service ecology a is process we use to establish a systemic view of the service and context we will operate in. We map service ecologies in order to map actors affected by a service and the relationships between them.
Source: Live I Work
“
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60
31 | 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 31
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 32
Inspiring examples
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 33
Searching for a flight to go to…this conference for instance.
Old fashioned look and feel
Booking flow is very limited
Traditional A to B approach
The Kayak service on the other hand offers a vastly beer experience. You can choose very simply what your parameters are and get the best options at the best price.
Walking in the customers shoes
When you have to storyboard something, the more realistic it is, the more decisions you have to make. Brian Chesky
“To shape the future of Airbnb, CEO Brian Chesky used storyboards to map existing and future customer journeys.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 35
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 36
Progressive Insurance ‘Immediate Roadside Assistance’ creates a fantastic care and support experience as well as brand awareness. It also reduces possibilities for fraud and legal issues, both significant costs that can be drastically reduced which goes beyond funding the great experience.
Great experience can reduce costs
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|| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm
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Service Design
Methodology to help improve or innovate service experiences that result in
more satisfied customers and more profitable enterprises.
Serv
ice D
esig
n –
Prac
tical
acc
ess
to a
n ev
olvin
g fie
ld, 2
005
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 38
Find ways to do something about it 03.
Imagine and dream up a beer future 02.
01. Curiosi what people need and want
SERVICE DESIGN
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 39
You don’t own it but use it 03.
It happens over time 02.
01. You have to be there
SERVICE DESIGN
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 40
SERVICE DESIGN
Experience Protoping 03.
Holistic Thinking 02.
01. Human Empathy
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What is the difference? I N D U S T R I A L S E R V I C E
Produced Performed
Material Immaterial
Tangible Intangible
No involvement Client participation
Ownership Experience
M E T H O D O L O G Y
Journey
System design
For All Senses
Co-creation
Service blueprint
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 41
Scale & Sustain
Explore
Sense Making
Engage
Bring to Life
Learn
Fabric™
Collaborative, modular, interconnected and iterative way of working to systematically design for experiences.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 42
Learn Capturing knowledge about
customers, stakeholders, trends and markets.
Scale & sustain Make it happen, support implementation
and measure outcomes.
Sense making
Map out and set a direction in context of the entire service ecosystem.
Engage Foster essential
participation and buy-in from customers and
stakeholders.
Bring to life Enable understanding through visualizations,
role-play and tangible artifacts.
Explore Protope, test and co-create options,
ideas and solutions together.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 43
Learn Capturing knowledge about customers, stakeholders, trends and markets.
Stakeholder Mapping Customer Journey Mapping Shadowing Contextual Interviews Trends & Market Research
Learn Key Methods:
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 44
*Theory by Daniel Kahneman
Anticipated SelfDecisions based on anticipated memories.
Inspire, motivate, restrict
Experiencing selfEmotions in the present.
Positive, negative, neutral
Reflective Self (The Storyteller)What we take away from the experience. The stories we tell. Changes, significant moments,
endings
Before Experience/Occasion After
Better experience
Worseexperience
Peak-End Rule* Reflected experience based
almost entirely on highs and lows, and how it ended.
Experience Continuum
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 45
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 46
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 47
Every service has a bill. Every service has an interface. But the way you transition in between those things is where the brand of the service can live; in-between experiences can be designed.
Source: Live I Work
“
Bring to life Enable understanding through visualizations, role-play and tangible artifacts.
Customer Story Videos Acting out Experiences Customer Journey Mapping Market & Trend Research Collaborative Analysis
Bring to life Key Methods:
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 48
Engage Foster essential participation and buy-in from customers and stakeholders.
Invite, Involve, Listen Ok to start small (in your silo) Top down and boom up Iterate and workshop Co-create
Engage Key Methods:
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 49
Sense making Map out and set a direction in context of the entire service ecosystem.
Mapping Clustering Set targets Scenarios Ecosystems Business Case
Sense making Key Methods:
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 50
Explore Protope, test and co-create options, ideas and solutions together. .
Experiment Protope Speed Dating Role Play Co-creation
Explore Key Methods:
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 51
Scale & sustain Make it happen, support implementation and measure outcomes.
Enabling Staff to Act Service Blueprints Training Pilots Measurements
Scale & sustain Key Methods:
Researcher
Designer
Experience Strategist
Project Manager
Senior Manager
Experts
Quick and hassle free communication between stakeholders needed.
Easy to use online tools, displaying continuous progress and results of the project.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 52
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 53
Measure?
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 54
Not everything that can be counted counts, and not everything that counts can be counted.
Albert Einstein
“
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Behavioral metrics Eg Sharing frequency, שme spent
Business metrics Increase revenue, Market share
Subjective metrics NPS, SUS, Subjective satisfaction
What people pay for
What people do/use
What people say/think
CX
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 55
Experience Index Drive service development around robust & meaningful metrics
1. Business Context 2. Success Definition 3. Measures Selection
What impact are we hoping to achieve overall?
What does success look like?
Which KPIs are most relevant for us?
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 56
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 57
The Challenges
The pursuit of implementing the service design approach successfully in the organization requires
the right leadership and culture change – however outputs as well as outcomes are worth the effort.
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 58
KEY CHALLENGES
Uncertain of specific outcomes 03.
Geing out of old ways of working and thinking 02.
01. Collaboration across departments
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 59
6 Practical שps
Creating mutual value by providing great customer experiences requires focus, passion and teamwork. Here are six tips to help you lead the way forward.
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Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 60
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Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs 2. Envision – Create a shared sense of purpose and future vision
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 61
Click to edit Master title sle
Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs 2. Envision – Create a shared sense of purpose and future vision
3. Engage – Involve people, work agile and adapt to the environment
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 62
Click to edit Master title sle
Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs 2. Envision – Create a shared sense of purpose and future vision
3. Engage – Involve people, work agile and adapt to the environment 4. Empower – Support the organization to deliver and exceed expectations
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 63
Click to edit Master title sle
Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs 2. Envision – Create a shared sense of purpose and future vision
3. Engage – Involve people, work agile and adapt to the environment 4. Empower – Support the organization to deliver and exceed expectations 5. Experience – Build, share and leverage knowledge
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 64
Click to edit Master title sle
Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs 2. Envision – Create a shared sense of purpose and future vision
3. Engage – Involve people, work agile and adapt to the environment 4. Empower – Support the organization to deliver and exceed expectations 5. Experience – Build, share and leverage knowledge
6. Evaluate – Measure what maers and make the tough choices
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 65
Thank you!
| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 66
Twier @byveryday @madlenelin @gbrlsthlm