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Implementing service design in the organisation

In the last decade, service design has witnessed a rapid diffusion, mainly due to an increasing focus of organisations on services and customer experience, building also on the need for businesses to digitalise their commercial offers and core operations. Despite this rapid diffusion, organisations are still struggling to make service design work, to embed it as way of working while proving its impact. You will find some key principles to ensure an effective adoption of service design by large organisations, uncovering common pitfalls and best practices. This presentation was presented by Livework's head of Insight Marzia Arico at the DOERS conference in Budapest.

Implementing service design in the organisation

  1. 1. 1 Liveworkstudio.com London Oslo Rotterdam Sao Paulo Livework Studio © 2018 Liveworkstudio.com London Oslo Rotterdam Sao Paulo Livework Studio © 2018 Implementing Service Design in the Organization DOERS. Conference Budapest 8 March 2018 Marzia Arico @marziaarico
  2. 2. 2 Introduction 18 years, 300 clients, 21 sectors
  3. 3. 3 Introduction Insights from Academia and Practice
  4. 4. 4 Introduction Challenges BUSINESS IMPACT CUSTOMER EXPERIENCE ORGANIZATIONAL CHALLENGE Inside-out Outside-in STRATEGY & INNOVATION IMPLEMENTATION & IMPROVEMENT < >
  5. 5. 5 Introduction The transformative power of service design “Because organizations now operate in an environment of constant change, the challenge is not how to design a response to a current issue, but how to design a means of continually responding, adapting and innovating” (Burns et al., 2006” Burns, Cottam, Vanstone, & Winhall (2006, p.21) ● Service design has a transformative impact on organizations, providing the opportunity to generate lasting changes in organizations’ ability to change and innovate. ● Aiming at not only leaving behind a new solution, but the tools, skills, and organizational capacity for ongoing change.
  6. 6. 6 Introduction Three levels of service design impact on organizations Design of service interfaces and interactions Peripheral to the organization Implementation of new experiences Affecting organizational values, norms, processes and procedures Fostering change and innovation Organizational transformation Junginger and Sangiorgi (2009)
  7. 7. 7 Introduction Sure …
  8. 8. 8 Service Design Adoption Part I
  9. 9. 9 Part I Three elements for service design adoption 1. Awareness of service design principles and practices 2. Dedicated resources 3. Enabling structures
  10. 10. 10 Visualizing Practice #3 Conducting design research Practice #1 Prototyping Practice #4 Experimental Principle #4 Human-centered Principle #1 Co-creative Principle #2 Holistic Principle #3 Service Design Principles and Practices Ideating Practice #2 Transformative Principle #5 Sequencing Practice #5
  11. 11. 11 Part I Awareness of service design principles and practices “You really bring the imagination of the business alive and they can see how things could be better. And that's not just around the user interface, that's definitely around new tools or removing tools, sometimes about changing business processes, or changing the way that information flows between teams” Project Sponsor, Financial Services “It certainly changed the way people thought around servicing customers versus servicing equipments” Project Sponsor, Manufacturing ● It’s done through project work and/or training ● Your objective is not full implementation, aim for small steps that can show short-term impact
  12. 12. 12 Part I Example: Jisc ● Going back to the basics to understand customers and users. ● Focus on a simple outcome that can be used for future work. In this case it was a customer framework and service ecology.
  13. 13. 13 Part I Dedicated resources “The engagement of key stakeholders was a determining factor, being able to get people involved and excited. Then the cross- functionality to be able to bring the right people from the different functions. It cannot be one-sided” Project Sponsor, Engineering ● Start with a small core team, 3-4 people. ● Engage key stakeholders across functions. Co- create and co-own. ● Familiarize, train and grow. ● Avoid evangelizing and over-exciting, it creates a toxic environment.
  14. 14. 14 Part I Example: Kone ● The first customer is the organization. Listen to your organization as you will listen to your customers. ● Tangible outcomes open gates. Have something concrete to show soon. ● Transform the business from within. Excite and empower so that people will preach for you. Business and IT can become design champions. ● Have a physical space, open for anybody to observe and join in. “Excuse me is this where the magic happens?” Senior Manager, Kone
  15. 15. 15 Part I Enabling structures “When you're doing service design work, you're very rarely saying to one person, one team, ‘Can you make this?’ Nearly all the time you find that what you're saying is, ‘We need to bring product managers from a few different groups in the business together because we need to create this new missing piece’ Or ‘You changing this piece requires bits of all the different IT systems to come together in a new way and to experience a new interface’ And it's very difficult to get people collaborating like that from different bits of the business because they don't have to work like that” Project Sponsor, Financial Services ● Service culture ● Clear processes to work with service design ● Cross-department collaboration incentives ● Clear mandate – Leadership support ● Measurement systems to assess the effectiveness of the services. ● Watch out for IT
  16. 16. 16 Part I Example: Gjensidige ● Empowering employees ● Enabling them to find the best solution for the customer depending on the situation ● Providing the right support ● New routines, processes, and measurement systems Example We make the complicated simple What: It is our responsibility that the customer understands us How: Our focus is simplification and added value for the customer Why: Good customer experiences provide increased willingness to buy
  17. 17. 17 Maturity Model Part II
  18. 18. 18 Part II Four stages of service design maturity Familiarizing with SD principles Enacting SD practices Enabling dedicated resources Growing structures Understand Try Learn Embed
  19. 19. 19 A multi layer approach Part III
  20. 20. 20 Part III From macro to micro • Service design gets introduced in an organization that operates under completely different logics. Recognize them and acknowledge them. • Choose how to introduce service design vis-à-vis those existing logic. • Invest into familiarizing with service design principles and practices, securing resources, and growing structures.
  21. 21. 21 Part III Example: Telenor ● Three logics at play: Telco, Digital, Customer ● Two strategies tested: Compartmentalization and enrichment ● Three key activities: 1. Rolled out a Service Design Academy for two years to familiarize actors with service design. 2. Established one pilot project to showcase value in practice. 3. Establishing new processes and practices to work with service design across functions “It’s a huge transformation; it’s a whole mindset” Senior Leader, Telenor
  22. 22. 22 Part III Three Logics Logic of Traditional Telco Logic of Digital Service Provider Logic of Service Design Metaphor Transaction Digital at the center Human at the center Legitimacy Maximizing existing assets Faster time to market Improving customer experience Identity Telco solutions provider Digital service provider Customer-centric service provider Strategy Efficiency Digitalization Servitization Product/Service Conceptualization Products (e.g., subscription plans) Digital services (e.g., apps and web platforms) Human-centric services (e.g., tailored multichannel offers) Key Process Waterfall Lean Service Design
  23. 23. 23 Part III Compartmentalization “It’s an organizational entity and it’s there to protect the designers, to kind of create breathing space for the designers at the beginning until the environment has become less hostile in a way” Director, Telenor
  24. 24. 24 Summary Part IV
  25. 25. 25 Part IV Summary ● Look for the logics at play ● Strategize how to introduce service design ● Three key activities to ensure adoption and increase maturity: 1. Create awareness of service design principles and practices 2. Enable dedicated resources 3. Grow structures General Tips: • Make it tangible asap • Plan small steps towards a long-term transformation. You cannot change your organization overnight. • Start with a small core team • Engage stakeholders throughout the process • Do not evangelize • Create a physical dedicated space open for people to join
  26. 26. 26 Thank you This presentation can be downloaded via: bit.ly/doers18 Contact Marzia Arico Head of Insight, Livework Rotterdam @marziaarico marzia@liveworkstudio.com

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