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Transformation by Design: The Three Ideas Driving Organisational Change Service design has captured imaginations beyond the design sector because it neatly packages a set of ideas and an approach to management that’s well suited to organisations looking to change. Three major transformations are underway: the shift from business to customer-centricity; from product to services development; and a change in mindset from solely analytical to imaginative approaches to improvement and innovation. Even with solid management practices in place to focus organisations on quality and efficiency, organisations still work hard to win and keep customers. Their challenges span business activities from leadership and culture to the design of experiences. The need to transform is very real and organisations are again looking to the market for ideas. This presentation introduces Engine’s perspective on the three transformations, expands on the challenges and importantly, sets out the role of design in helping organisations transform.
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Three!Transformations!
www.enginegroup.co.uk
James Samperi | Director
The ideas driving organisational change
Service design has captured the imagination beyond design
BUSINESS!CENTRIC!
CUSTOMER!CENTRIC!
!
PRODUCT!DEVELOPMENT!
SERVICE!DEVELOPMENT!
ANALYTICAL!APPROACHES!!
IMAGINATIVE!APPROACHES!
BUSINESS!CENTRIC! CUSTOMER!
CENTRIC!
IT’S QUANTIFIED AND IT’S IMPACT IS KNOWN WE KNOW WHAT’S WORKING AND WHAT ISN’T.
CX Measurement
CHALLENGE: Trying to understand the current service & what of it customers actually value
CX Strategy + Design
TARGET EXPERIENCE IS DEFINED IN WHAT WAY DO WE CHANGE AND WHAT DOES THAT CHANGE LOOK AND FEEL LIKE?
CHALLENGE: Navigating the tension between the business model and the customer experience
DESIGN TO DRIVE VALUE!
1. Retention 2. Life-time value 3. Advocacy
CX Strategy + Design + Delivery
EXPERIENCE IS MANAGED WE UNDERSTAND HOW TO DELIVER A QUALITY EXPERIENCE AND MEASURE THE RESULTS
DEPTH & DIMENSIONS!Quality Build of service elements.
Performance Capabilities of system
Impact The outcomes
Customer Experience
• Usability, utility, brand expression
• User errors, satisfaction, service recovery
• Retention, advocacy, take-up
Service Architecture Propositions
Service Organisation
• Benchmarking teams, coaching and management
• Utilisation of resources against targets
• Take-up of training. Level of commitment to new projects. Skills acquired by individuals.
RETAIL HOURS UP
SALES UP
SATISFACTION R AT I N G S U P
50%!RETAIL VISITS UP 8.1%!
16.5%!AVERAGE SPEND UP
£18!4.5%!
EVIDENCE IS GATHERED WE’RE MAKING AN IMPACT
SECTOR AWARDS BEST DIGITAL INITIATIVE
PRODUCT!DEVELOPMENT!
SERVICE!DEVELOPMENT!
CHALLENGE: Changing the relationship with customers and building service capabilities
Not just the"experience but delivery"
New service capabilities"
Develop new businesses
not just products"
Shift to longer-term"relationships"
Service role
ProPoSiTioNS
PeoPleProceSSeS ProDUcTS
JoUrNeYS & eXPerieNceS
PlATForM reQUireMeNTS
PriNciPleS Service MoDel
The 9 elements of service design
STAFF
D E S I G N PROGRAMME
2yrs!PRODUCTION
300k!1000+!
LOCATIONS
100!
ANALYTICAL!APPROACHES! IMAGINATIVE!
APPROACHES!
CHALLENGE: Once is cool, doing it again is even cooler. So embedding the approach is critical.
CX CAN’T BE A ‘MAGIC WAND’!
TARGET OPERATING MODEL (TOM) How the organisation believes the service should work
CUSTOMER EXPERIENCE
THE ‘TO BE’ SERVICE AND EXPERIENCE
CUSTOMER EXPERIENCE
INTEGRATED DEVELOPMENT!
CHANGE REQUIREMENTS Target operating model (TOM)
THE ‘TO BE’ SERVICE AND EXPERIENCE
EXPERIENCE REQUIREMENTS Target customer experience (TCE)
THE ‘TO BE’ SERVICE AND EXPERIENCE
ASQ RATING 2012
SATISFACTION R AT I N G S U P
14%!
BEST IMPROVED!
PASSENGER NUMBERS
^13%!
Service design is… The application of empathic design thinking and practices to business change.
www.enginegroup.co.uk
Service design will become… An integrated management practice within best-in-class organisations.
www.enginegroup.co.uk