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Dr Andrea Siodmok
Head of Design Knowledge
Future challenges for
service companies

#1 Global changes
#2 The creative economy
#3 Goods and services
#4 The bottom line
#1 Global changes
industrial   creative
production   consumption
Big ideas
big ideas      small ideas
                 Small ideas




                               Flash mob/the Hoff
leisure society   24/7 work
$35   $480




             x7.5 m cap $19 - $146bn
$200   $1
diversity   scarcity
350
9   36   100-160
Global
creative
imperative
#2 The creative economy
‘Industrial economy’
Production focused
Design of things
Standardised
“Less is more”
Form follows function
‘Creative economy’
Consumption focused
Design of experiences
Co-designed
‘More has costs’
Value follows experience
A journey of an
iconic design in a
multicultural world…
Cambodia
Seoul
Morocco
Ohio
Kuwait
Prague
Tokyo
Bagdad
Bangkok
Nepal
Outer Space
Texas
Why do people love their
ipods?
i-pod                        i-tunes
(Apple Designers)            (Apple Customers)
Modernist box                Bundled services
Not up-gradable              Customised content
Minimal customisation        1 bn downloads
Built and shipped by Apple   Built and adapted by
                             customers
#3 Goods and Services
In the west we are seeing a shift in the
value chain, from physical commodities
that support basic needs, to carefully
cultivated experience-led services that
anticipate latent desires.
What is a service?
“any activity or benefit that one party can
give to another that is essentially
intangible and does not result in the
ownership of anything”
                                Philip Kotler
Cost

         Services




         Goods


  1994        2004
Cost

         Inflatory




          Deflatory


  1994         2004
Some thoughts on Service Design
Design for the
                                 service sector
                                 finance
                                 retail
                                 airports
                                 hospitals
                                 police
                                 health
                                 education



Photo by David Mansell - Demos
Service design skills
holistic design
prototyping
multi-stakeholder
co-designing
complex problems
formal and informal
design interventions
The ‘front-end’ design of services
£427.20
£427.20
£4,444.20
“Design shapes ideas to
become practical and
attractive propositions for
users or customers.” Cox Review
The ‘back-end’ design of services
       (service provision and delivery)
Efficiency in labour intensive services
        Development of agile services
                    Lean consumption
                          UCD to PCD
# User centred design = Understanding
needs of the user that is not you (Customers)

# Business centred design = Understanding
needs of the business decision makers that are not
you (Design Leadership)

# Provider centred design = Understanding
the needs of the service providers that are in at the
delivery end (Stakeholders)

# Designer centred design = understanding
needs of design that are beyond all of the above
www.designcouncil.org.uk/
Service Design Network 02 Nov06 Copy
Service Design Network 02 Nov06 Copy
Service Design Network 02 Nov06 Copy

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Service Design Network 02 Nov06 Copy