Service Design Research

From the article: "It is dangerous to take the marketing concepts that apply to products, and try to transfer them to services. Products are tangible; services are not-and that makes a lot of difference in how you market them."

From the article: "This paper describes the outcomes of a one-year pilot research study and outlines the routes for the two-year wider study to follow. The research was prompted by the growing interest in the UK in design and its contribution to business performance, and the need to replace anecdote about 'best practice' in organizing and utilizing design with information about more 'general' practice. After defining design as 'a course of action for the development of an artefact' and suggesting that design activity pervades organizations, the paper describes the methodology used to examine how design is organized. Using matrices to explore the interaction of design with other business functions the report suggests that 'silent design' (that is design by people who are not designers and are not aware that they are participating in design activity) goes on in all the organizations examined, even those which have formal design policies and open design activities. It is the scope and nature of 'silent design', and its conflict and/or cooperation with formal design activity, which will form the basis for the hypothesis on which the wider investigation will be built."

From the article: "A company's competitiveness derives from its core competencies and core products. Core competence is the collective learning in the organization, especially the capacity to coordinate diverse production skills and integrate streams of technologies. First companies must identify core competencies, which provide potential access to a wide variety of markets, make a contribution to the customer benefits of the product, and are difficult for competitors to imitate. Next companies must reorganize to learn from alliances and focus on internal development."

From the article: "In the new economics of service, frontline workers and customers need to be the center of management concern. Successful service managers heed the factors that drive profitability in this new service paradigm--investment in people, technology that supports frontline workers, revamped recruiting and training practices, and compensation linked to performance. The service-profit chain, developed from analyses of successful service organizations, establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity. The authors provide a service-profit chain audit that helps companies determine what drives their profit and suggests actions that can lead to long-term profitability."

From the article: "Lean production is built around the concept of continuous-flow processing--a departure from traditional production systems, in which large batches are processed at each step. Jefferson Pilot Financial (JPF) appointed a "lean team" to reengineer its New Business unit's operations, beginning with the creation of a "model cell"--a fully functioning microcosm of JPF's entire process. This approach allowed managers to experiment and smooth out the kinks while working toward an optimal design. The team applied lean-manufacturing practices, including placing linked processes near one another, balancing employees' workloads, posting performance results, and measuring performance and productivity from the customer's perspective. The results were so impressive that JPF is rolling out similar systems across many of its operations."

From the article: "Most industrial manufacturers realize that the real money isn't in products but in services. Companies such as General Electric and IBM have famously made the transition: A large proportion of their revenues and margins come from providing value-added services to customers. It is not enough, the authors say, just to provide services. Businesses must now provide "smart services"--building intelligence (awareness and connectivity) into the products themselves. Four business models will emerge in this new, networked world. Embedded innovator, solutionist, aggregator and synergist. Woe to the company that takes none of these paths; it'll soon find its former customers locked in--and happily--to other smart service providers."

From the article: "Lean production transformed manufacturing. Now it's time to apply lean thinking to the processes of consumption. By minimizing customers' time and effort and delivering exactly what they want when and where they want it, companies can reap huge benefits. "