hello. i’m bill hollins

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Bill Hollins Bill Hollins Direction Direction Consultants Consultants HELLO. I’M BILL HELLO. I’M BILL HOLLINS HOLLINS Creativity+Busin Creativity+Busin ess ess

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HELLO. I’M BILL HOLLINS. Creativity+Business. Eighteen years ago, I was teaching design management on the MBA when a student said :. ‘ Why do you keep talking about the design of cars when we all work in the service sector?’ That started me looking at how to design services. - PowerPoint PPT Presentation

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Page 1: HELLO.  I’M BILL HOLLINS

Bill HollinsBill HollinsDirection ConsultantsDirection Consultants

HELLO. I’M BILL HOLLINSHELLO. I’M BILL HOLLINS

Creativity+BusinessCreativity+Business

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Bill HollinsBill HollinsDirection ConsultantsDirection Consultants

Eighteen years ago, I was Eighteen years ago, I was teaching design management teaching design management on the MBA when a student on the MBA when a student

saidsaid:: ‘‘Why do you keep talking about the design Why do you keep talking about the design

of cars when we all work in the service of cars when we all work in the service sector?’sector?’

That started me looking at how to That started me looking at how to design services.design services.

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Bill HollinsBill HollinsDirection ConsultantsDirection Consultants

At that time the majority of At that time the majority of people working in the service people working in the service

sector thoughtsector thoughtthat design was about d-grade that design was about d-grade celebrities painting walls awful celebrities painting walls awful

colourscolours To be honest, there are many who To be honest, there are many who

still think that it is!still think that it is! In engineering they may do design badly but at In engineering they may do design badly but at

least they know what it is.least they know what it is.

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I design services and over the years I I design services and over the years I have written threehave written three books on the subject.books on the subject.

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SERVICES ARE PRODUCTS

SERVICES MUST BE DESIGNED

THIS DESIGN MUST BE MANAGED

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Bill HollinsBill HollinsDirection ConsultantsDirection Consultants

Design Management is about Design Management is about organising things:organising things:

ActivitiesActivitiesPeoplePeopleMoneyMoneyTimeTime IdeasIdeas

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Especially Ideas!!Especially Ideas!!(dealing with creativity)(dealing with creativity)

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Total Design (to me) isTotal Design (to me) is::

A multidisciplinary iterative process that takes A multidisciplinary iterative process that takes an idea and/or market need forward into a an idea and/or market need forward into a

product or service. Design ends with product or service. Design ends with disposal.disposal.

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WHAT IS SERVICE DESIGN?WHAT IS SERVICE DESIGN?

Service design can be both tangible Service design can be both tangible and intangible. It can involve artefacts and intangible. It can involve artefacts and other things including and other things including communication, environment and communication, environment and behaviours. behaviours.

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LIKE PRODUCTS, THE EARLY STAGES OF THE PROCESS OF SERVICE DESIGN ARE THE MOST

IMPORTANT.

Relatively early in the design activity the decisions taken will commit the operation to costs which will be incurred later

100%

0%

Percentage of final product cost

committed by the design

Percentage of design costs

incurred

Start of the design activity

Finish of the design activity

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Bill HollinsBill HollinsDirection ConsultantsDirection Consultants

85% of design 85% of design management decisions management decisions and 85% of finance is and 85% of finance is

committed in the first 15% committed in the first 15% of the process.of the process.

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Bill HollinsBill HollinsDirection ConsultantsDirection Consultants

In the first 15% of the processIn the first 15% of the processis the MANAGEMENTis the MANAGEMENT

We do the main Market Research We do the main Market Research

We then need specifications.We then need specifications.

3 out of the 4 main reasons for product 3 out of the 4 main reasons for product and service failure are rooted in poor and service failure are rooted in poor Market Research and poor Market Research and poor SpecificationsSpecifications

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WHY DO NEW SERVICES FAIL?

Products and services to fail for the same reason (although product failures are often more ‘dramatic’

–In practice, these reasons overlap

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‘‘If you think good design is expensive, If you think good design is expensive, look how much bad design costs.’look how much bad design costs.’

Martyn Denny, Sales and Marketing Director, Martyn Denny, Sales and Marketing Director, Aqualisa, 2002Aqualisa, 2002

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So how do you define So how do you define success?success?

It brought good publicity to theIt brought good publicity to the

organisation.organisation.

The customers liked it.The customers liked it.

It will bring a smile to the faces ofIt will bring a smile to the faces of

children.children.

We won awards for it.We won awards for it.

It is a flagship product.It is a flagship product.

We show it on all our publicity. We show it on all our publicity.

It was a technologicalIt was a technological

breakthrough.breakthrough.

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By all means have these - butBy all means have these - but

THE MAIN MEASURE OF THE MAIN MEASURE OF

SUCCESS HAS TO BE SUCCESS HAS TO BE

FINANCIALFINANCIAL

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THE DEFINITION OF A SERVICETHE DEFINITION OF A SERVICE Service: Service: Result of at least one activity, performed at the interface Result of at least one activity, performed at the interface

between the supplier and customer, which is generally intangible between the supplier and customer, which is generally intangible [adapted from BS EN ISO 9000:2005][adapted from BS EN ISO 9000:2005]

Service: Service: a) Any activity or benefit that one party can give to another that is a) Any activity or benefit that one party can give to another that is

essentially intangible and does not result in the ownership of essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical anything. Its production may or may not be tied to a physical product. product.

bb) a set of functions offered to a user by an organization) a set of functions offered to a user by an organization cc) result generated by activities at the interface between the supplier ) result generated by activities at the interface between the supplier

and the customer and by supplier internal activities to meet the and the customer and by supplier internal activities to meet the customer needscustomer needs

NOTE 2 The supplier or the customer may be represented at the NOTE 2 The supplier or the customer may be represented at the interface by personnel or equipment.interface by personnel or equipment.

NOTE 3 Customer activities at the interface with the supplier may NOTE 3 Customer activities at the interface with the supplier may be essential to the service delivery.be essential to the service delivery.

NOTE 4 Delivery or use of tangible products may form part of the NOTE 4 Delivery or use of tangible products may form part of the service delivery.service delivery.

NOTE 5 A service may be linked with the manufacture and supply NOTE 5 A service may be linked with the manufacture and supply of tangible product. (BS7000-10)of tangible product. (BS7000-10)

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OR MORE SIMPLY:OR MORE SIMPLY: Services Services differ from products in five waysdiffer from products in five ways

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Services cannot be stored.Services cannot be stored. Services cannot be easily transported.Services cannot be easily transported. Services are intangible.Services are intangible. It is more difficult to measure quality in It is more difficult to measure quality in

services.services. In services consumption and production In services consumption and production

occur together. (more on all this later)occur together. (more on all this later)

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A simple model for service A simple model for service design:design: MARKETMARKET

SPECIFICATIONSPECIFICATION

CONCEPT DESIGNCONCEPT DESIGN

DETAIL DESIGNDETAIL DESIGN

IMPLEMENTIMPLEMENT

DISPOSALDISPOSAL

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You can’t manage design without a process

The figure around which BS 7000 –3 (not yet published0

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In services they have the people but they do not have In services they have the people but they do not have the leadership or the directionthe leadership or the direction

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Services are more about peopleServices are more about people(Live/work)(Live/work)

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People are your greatest asset.

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Most services ride on the back of Most services ride on the back of products.products.

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AND THIS IS IMPORTANTAND THIS IS IMPORTANT

INCREASINGLY PRODUCTS INCREASINGLY PRODUCTS RIDE ON THE BACK OF RIDE ON THE BACK OF

SERVICESSERVICES

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The service side is where there is The service side is where there is great potentialgreat potential

Who would buy pizza without it being Who would buy pizza without it being delivered?delivered?

That leads us to serial service innovations That leads us to serial service innovations Greater customer retentionGreater customer retention New areas for growthNew areas for growth Remember the Ansoff Matrix?Remember the Ansoff Matrix?

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An innovation is an An innovation is an invention in its first invention in its first

marketable formmarketable form

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‘‘It is very easy to be different, but It is very easy to be different, but very difficult to be better’.very difficult to be better’.

Jonathan Ive, Head of Design, Apple Jonathan Ive, Head of Design, Apple Computer Inc. 2002Computer Inc. 2002

Innovation is more easily accepted in the service sector – there is less of an existing infrastructure to shift.

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I did some RESEARCH I did some RESEARCH into how managers develop into how managers develop

new or improve existing new or improve existing servicesservices

((in short, how they were designed)in short, how they were designed)

Managers operating in the Service Managers operating in the Service Sector in LondonSector in London

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The CompaniesThe Companies

TransportTransport CharitiesCharities HealthHealth Banking & Banking &

InsuranceInsurance Public & Private Public & Private

ServicesServices

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THE CONCLUSIONSTHE CONCLUSIONS FROM THIS FROM THIS RESEARCHRESEARCH

Service design is still not managed in an Service design is still not managed in an organised manner.organised manner.

As such, most service organisations are not in As such, most service organisations are not in adequate control of their new servicesadequate control of their new services

Only 17% had an effective process.Only 17% had an effective process.

And most of these generated a greater turnover And most of these generated a greater turnover from recently developed services.from recently developed services.

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What has to be managed in designWhat has to be managed in design(products or services).(products or services).

First, list all the activities to be done in First, list all the activities to be done in sequence.sequence.

Then work out the time for each.Then work out the time for each. Then the cost for each.Then the cost for each. This will give the total time and the total cost This will give the total time and the total cost

for the development.for the development.

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Then do these activities:Then do these activities:

See what activities can be done in parallel.See what activities can be done in parallel. (Does this reduce the overall time for the (Does this reduce the overall time for the

design project?)design project?) Then identify who will be involved at each Then identify who will be involved at each

stage of the process.stage of the process. Now see if there are adequate resources to Now see if there are adequate resources to

complete the programme.complete the programme. Compare the priorities of this with other Compare the priorities of this with other

design projects?design projects?

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Bill HollinsBill HollinsDirection ConsultantsDirection Consultants

This results in good managementThis results in good management

If you have worked out the activities, time, If you have worked out the activities, time, cost, people and priorities – what else is cost, people and priorities – what else is there to managing design?there to managing design?

YOU ARE IN CONTROLYOU ARE IN CONTROL

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Thank you for listeningThank you for listeningPass the message onPass the message on

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Bill HollinsBill HollinsDirection ConsultantsDirection Consultants

For more info contact Bill For more info contact Bill Hollins:Hollins:

email: [email protected]: [email protected]

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Bill HollinsBill HollinsDirection ConsultantsDirection Consultants

Hopefully, you will soon steer your Hopefully, you will soon steer your colleagues in the service sector to colleagues in the service sector to

greater success!greater success!

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Questions ?