The conventional wisdom is that digital is the future of everything—even the future of service design. Service design professionals increasingly report that digital is the primary channel they’re working in. And companies are looking to service designers to maximize how high-cost service and support can be made cheaper and more efficient through self-serve digital channels. But service design is more complex than merely designing a digital product. It requires mobilizing front-line staff and customers, redesigning organizations, shifting culture, and improving how knowledge is shared—the hard, messy, human stuff. Yet many service design professionals still lack those skills, and new entrants into the service design field are seizing the opportunity. This talk will give a data-centric snapshot of the state of service design today and examine what skills will be increasingly essential for service designers in the future.
5. 80%
70%
60%
50%
40%
30%
20%
10%
0%
1965 1975 1985 1995 2005 2015
Source: US Bureau of Economic Analysis
SERVICES
GOODS
(And with each recession services grow.)
GOODS AND SERVICES AS % OF GDP
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.015%
10%
5%
0%
-5%
-10%
-15%
% CHANGE GDP
6. FINANCE, INSURANCE, REAL ESTATE
PROFESSIONAL & BUSINESS SERVICES
EDUCATION, HEALTH CARE, AND SOCIAL ASSISTANCE
1965 1975 1985 1995 2005 2015
25%
20%
15%
10%
5%
0%
Though most of the growth is in just a handful of industries.
Source: US Bureau of Economic Analysis
8. Which may explain why service design often lags other fields.
0
20
40
60
80
100
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
UX
CX
SD
Source: Google Trends
100%
80%
60%
40%
20%
% OF INTEREST OVER TIME AS INDICATED BY GOOGLE SEARCHES
9. “We see a growing corporate recognition of the benefits of service
design and design thinking in general, largely driven by extended
service ecosystems being developed around products, the connected
consumer’s omnichannel expectations, and the rise of digital self-
service.”
— US-BASED AGENCY
This raises lots of questions in the field.
This raises lots of questions in the field.
11. But big differences remain
between service design and other
forms of design.
12. TANGIBLEINTANGIBLE
Source: Storey, Chris, Pinar Cankurtaran, Paulina Papastathopoulou, and Erik Jan Hultink. "Success Factors for Service Innovation: A Meta‐Analysis."
The Journal of Product Innovation Management 33.5 (2016): 527-548.
Experience innovation is not heterogeneous.
13. TANGIBLEINTANGIBLE
Source: Storey, Chris, Pinar Cankurtaran, Paulina Papastathopoulou, and Erik Jan Hultink. "Success Factors for Service Innovation: A Meta‐Analysis."
The Journal of Product Innovation Management 33.5 (2016): 527-548.
Experience innovation is not heterogeneous.
ProductsServices
14. TANGIBLEINTANGIBLE
Source: Storey, Chris, Pinar Cankurtaran, Paulina Papastathopoulou, and Erik Jan Hultink. "Success Factors for Service Innovation: A Meta‐Analysis."
The Journal of Product Innovation Management 33.5 (2016): 527-548.
Experience innovation is not heterogeneous.
Tacit
Services
Delivered via interpersonal
communications
Explicit
Services
Delivered via technology
Products
Delivered via tangible goods
15. TANGIBLEINTANGIBLE
Source: Storey, Chris, Pinar Cankurtaran, Paulina Papastathopoulou, and Erik Jan Hultink. "Success Factors for Service Innovation: A Meta‐Analysis."
The Journal of Product Innovation Management 33.5 (2016): 527-548.
Great service design looks different in different industries.
Tacit
Services
Delivered via interpersonal
communications
Explicit
Services
Delivered via technology
Products
Delivered via tangible goods
PROFESSIONAL SERVICES
HOSPITALITY
TRANSPORTATION
HEALTHCARE
BANKING
INSURANCE
TELECOMMUNICATION
UTILITIES
MANUFACTURING
CONSTRUCTION
AGRICULTURE
MINING
16. Tacit
Services
1. Absorptive Capacity
2. Organizational Design
3. Service Innovativeness
4. Internal Communication
5. Launch Proficiency
6. Innovation Strategy
TANGIBLEINTANGIBLE
Source: Storey, Chris, Pinar Cankurtaran, Paulina Papastathopoulou, and Erik Jan Hultink. "Success Factors for Service Innovation: A Meta‐Analysis."
The Journal of Product Innovation Management 33.5 (2016): 527-548.
And success is driven by different factors.
Explicit
Services
1. Knowledge Integration
2. Cross-Functional Integration
3. Market Orientation
4. Synergistic Strategy
5. Proficient Ops & Delivery
6. Environmental Uncertainty
Products
1. Product Advantage
2. Market Orientation
3. Launch Proficiency
4. Dedicated Human Resources
5. Predevelopment Task
Proficiency
6. Innovation Resources, Market
Research, Team Climate
17. 51%
37%
50%
24%
FUZZY FRONT-END
INNOVATION
PHYSICAL AND FACE-
TO-FACE DESIGN
DIGITAL EXPERIENCE
DESIGN
ORGANIZATIONAL
CHANGE
BUSINESS SYSTEMS
CONSULTING
Source: Forrester’s Q3 2015 Global Service Design Agency Online Survey
Service design entails many different things.
18. 51%
37%
50%
24%
FUZZY FRONT-END
INNOVATION
PHYSICAL AND FACE-
TO-FACE DESIGN
DIGITAL EXPERIENCE
DESIGN
ORGANIZATIONAL
CHANGE
BUSINESS SYSTEMS
CONSULTING
Source: Forrester’s Q3 2015 Global Service Design Agency Online Survey
Service design entails many different things.
19. 51%
37%
50%
24%
FUZZY FRONT-END
INNOVATION
PHYSICAL AND FACE-
TO-FACE DESIGN
DIGITAL EXPERIENCE
DESIGN
ORGANIZATIONAL
CHANGE
BUSINESS SYSTEMS
CONSULTING
Source: Forrester’s Q3 2015 Global Service Design Agency Online Survey
Service design entails many different things.
20. 51%
37%
50%
24%
FUZZY FRONT-END
INNOVATION
PHYSICAL AND FACE-
TO-FACE DESIGN
DIGITAL EXPERIENCE
DESIGN
ORGANIZATIONAL
CHANGE
BUSINESS SYSTEMS
CONSULTING
Source: Forrester’s Q3 2015 Global Service Design Agency Online Survey
Service design entails many different things.
21. 51%
37%
50%
24%
FUZZY FRONT-END
INNOVATION
PHYSICAL AND FACE-
TO-FACE DESIGN
DIGITAL EXPERIENCE
DESIGN
ORGANIZATIONAL
CHANGE
BUSINESS SYSTEMS
CONSULTING
Source: Forrester’s Q3 2015 Global Service Design Agency Online Survey
This requires service designers to master many skills.
22. Not all service designers do all these in equal measures.
51%
37%
69%
50%
24%
FUZZY FRONT-END
INNOVATION
PHYSICAL AND FACE-
TO-FACE DESIGN
DIGITAL EXPERIENCE
DESIGN
ORGANIZATIONAL
CHANGE
BUSINESS SYSTEMS
CONSULTING
Source: Forrester’s Q3 2015 Global Service Design Agency Online Survey
23. (This difference is the most shocking.)
51%
37%
69%
50%
24%
FUZZY FRONT-END
INNOVATION
PHYSICAL AND FACE-
TO-FACE DESIGN
DIGITAL EXPERIENCE
DESIGN
ORGANIZATIONAL
CHANGE
BUSINESS SYSTEMS
CONSULTING
Source: Forrester’s Q3 2015 Global Service Design Agency Online Survey
27. Facing new
opportunities and new
entrants that challenge
the traditions
and values of classic
service design.
Potentially at risk of
diluting its distinct
value by over-focusing
on digital and
undifferentiated
innovation.
28. Facing new
opportunities and new
entrants that challenge
the traditions
and values of classic
service design.
Potentially at risk of
diluting its distinct
value by over-focusing
on digital and
undifferentiated
innovation.
Offering help that
companies need now
more than ever (even
if they don’t always
know it).
30. What skills will service designers need going forward?
1. Organizational and systems design skills.
31. What skills will service designers need going forward?
1. Organizational and systems design skills.
2. Deep industry expertise or a strong industry orientation (either, or).
32. What skills will service designers need going forward?
1. Organizational and systems design skills.
2. Deep industry expertise or a strong industry orientation (either, or).
3. A market-savvy approach to strategy.
33. What skills will service designers need going forward?
1. Organizational and systems design skills.
2. Deep industry expertise or a strong industry orientation (either, or).
3. A market-savvy approach to strategy.
4. Knowledge management, er, management.
34. What skills will service designers need going forward?
1. Organizational and systems design skills.
2. Deep industry expertise or a strong industry orientation (either, or).
3. A market-savvy approach to strategy.
4. Knowledge management, er, management.
5. Absorptive capacity (partnerships, innovation programs, trends & signals).
35. What skills will service designers need going forward?
1. Organizational and systems design skills.
2. Deep industry expertise or a strong industry orientation (either, or).
3. A market-savvy approach to strategy.
4. Knowledge management, er, management.
5. Absorptive capacity (partnerships, innovation programs, trends & signals).
6. An emphasis on execution.
39. A (Hard Won) Market-Savvy Approach to Strategy
ADAM DOLE
GOKART LABS / BETTER
40. Sensitivity to Tacit vs. Explicit Services
“We thought the act of making
everything transactional was going to
make it more simple for the consumer.
What we learned is it made it more
complex... because we don’t hold their
hand through the process.”
42. Doing great!
1. Organizational and systems design skills.
2. Deep industry expertise or a strong industry orientation (either, or).
3. A market-savvy approach to strategy.
4. Knowledge management, er, management.
5. Absorptive capacity (partnerships, innovation programs, trends & signals).
6. An emphasis on execution.
43. More work needed here.
1. Organizational and systems design skills.
2. Deep industry expertise or a strong industry orientation (either, or).
3. A market-savvy approach to strategy.
4. Knowledge management, er, management.
5. Absorptive capacity (partnerships, innovation programs, trends & signals).
6. An emphasis on execution.
44. Go forth and conquer.
leah@leahbuley.com
@leahbuley