Service Design ProjectAs a part of Circular Economy in Service Design

Elina VartamaNovia University of Applied Sciences

28.10.2020kiertotalousamk.fi

Project Work

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• The project is based on both introduction sections, circular economy and service design.

• The project is a group work, 3-4 students / group.

• The goal is to develop a service concept for a circular economy case (company, organization) that includes a new business model for circular economy.

• The project contains 4 development phases with the application of a selection of service design methods and tools.

• The project follows the process model on the next slide. Each phase is described separately and also the methods and tools that you are supposed to use are described separately. Instructions regarding submission and format are described on the learning platform.

Project Phases, Methods and Tools

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Learning Objectives at Map & Understand phase

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In this first phase you are starting to get an

understanding of the business and operating

environment of the case company, and how the

company is considering environmental, economic, and

social sustainability aspects in their current operations.

Also, you will start gaining the customer/user insight,

learning the customers' (service users) problems and

needs. For gathering the information, you will need to

use several service design methods.

You will start to work with the Service Design Portfolio

and will continue completing it throughout the project.

There are needed canvases and templates available on

the learning platform.

Phase 1Map and UnderstandOutcomes:• Conduct desk research and

interview key stakeholderand customers/users

• Describe current business model

• Get understanding of current customer journey

Methods and Tools at Map and Understand Phase

• Desk research / Company perspective

• Customer grouping

• Customer insights

• Customer journey map (current state)

• Stakeholder map

• Business Model Canvas (current state)

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• Service design methods & tools can be found here:Stickdorn, M., Lawrence, A. and Hormess, M., Schneider, J. 2018.This is service design doing : applying service design thinking in the real world : a practitioner's handbook.Canada: O'Reilly. https://www.thisisservicedesigndoing.com/

• Lean Service Creation Handbook:https://assets.ctfassets.net/pqts2v0qq7kz/4p1lqoP3nqC2OVPg8tsY6C/4ab5eb944c0a6f8aba8eb109f557239a/lsc_031219.pdf

• Business Model Canvas, see website: https://www.strategyzer.com/

Group Assignment at Map and Understand Phase: Step 1

Desk research / company perspective1) Read carefully the case description of the project company:• Which business problem the project company / organization (commissioner) wants to solve?• What is the goal of the project company?• Who are the primary users of the new service concept?• What is the expected outcome from the company's side?Study tools and templates which should be used in this phase.

2) Start gathering information about current situation of the case company business and operational environment and its future development path.• Do the desk research: search information on internet,

newsletters, possibly earlier studies, which the project company has done, and other relevant sources, benchmark corresponding companies and services. You can also contact the project company representative when necessary.

3) Summarize your findings in the Business Objective and Context template. Note: please write in full sentences (no bullet points).

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Sources

Lean Service Creation Handbook: see Futurice’s templates Business Objective and Context Template

https://assets.ctfassets.net/pqts2v0qq7kz/4p1lqoP3nqC2OVPg8tsY6C/4ab5eb944c0a6f8aba8eb109f557239a/lsc_031219.pdf

Group Assignment at Map and Understand Phase: Step 2

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Sources

Lean Service Creation Handbook: see Futurice’stemplate Customer Grouping Canvas

https://assets.ctfassets.net/pqts2v0qq7kz/4p1lqoP3nqC2OVPg8tsY6C/4ab5eb944c0a6f8aba8eb109f557239a/lsc_031219.pdf

Customer grouping

1) Based on your desk research so far, make now the

first assumptions, consider the potential

customer/user groups/segments. Remember,

different customer groups have different needs and

problems.

2) Read the detailed instructions and define who

would be the potential customers/users and why.

Summarize your findings in Customer

Grouping Canvas. Please write in full sentences (no

bullet points).

Group Assignment at Map and Understand Phase: Step 3

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Customer insights

1) After you have done the customer

grouping, it's time to get out, and gather

information about the customers/users

with the help of different (alternative)

methods: interviews, observation, service

safari.

2) Summarize the findings in Insight canvas.

Sources

Lean Service Creation Handbook: see Futurice’s template Insight Canvas

https://assets.ctfassets.net/pqts2v0qq7kz/4p1lqoP3nqC2OVPg8tsY6C/4ab5eb944c0a6f8aba8eb109f557239a/lsc_031219.pdf

Group Assignment at Map and Understand Phase: Step 4

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Customer Journey Map

Based on the desk research and gathered

customer insights create a Customer Journey

Map (current state) and describe and visualize

how the customers are using the service

currently. Analyse the service periods and touch

points. You can also add the customer’s

emotional journey and mark possible pain

points and/or good aspects on the map.

Sources

Stickdorn, M., Lawrence, A. and Hormess, M.,

Schneider, J. 2018.This is service design doing :

applying service design thinking in the real

world : a practitioner's handbook. Canada:

O'Reilly. https://www.thisisservicedesigndoing.com/

Group Assignment at Map and Understand Phase: Step 5

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Sources

Stickdorn, M., Lawrence, A. and Hormess, M., Schneider, J. 2018.This

is service design doing : applying service design thinking in the real

world : a practitioner's handbook. Canada: O'Reilly.

https://www.thisisservicedesigndoing.com/

Stakeholder mapping:

http://www.professionalacademy.com/news/stakeholder-mapping-

marketing-theories

Stakeholder map

1) Create a map of stakeholders that are involved with the service and the customers’ experience. Ask yourself

• who are the people or organizations who will influence your product or service?

• who will influence the customer experience?

Other stakeholders may come to mind, but if they do not pertain to the focus of the map, leave them out for now.

2) Define the meaning of the three circles on the template. Choose a scale to categorize the stakeholders. Two examples:

• Generic grouping: internal, connected, external• Level of importance: essential, important or interesting to the

project

Sketch the stakeholders on the Stakeholder Map according to your ranking.

Group Assignment at Map and Understand Phase: Step 6

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Sources

Business Model Canvas, see website: https://www.strategyzer.com/

Stickdorn, M., Lawrence, A. and Hormess, M.,

Schneider, J. 2018.This is service design doing :

applying service design thinking in the real world : a

practitioner's handbook.Canada: O'Reilly.

https://www.thisisservicedesigndoing.com/

Business Model Canvas (current state as-is)

Describe the company’s current business model

based on the brief and your desk research. Use

a Business Model Canvas template. How is the

company considering environmental, economic, and

social sustainability aspects in their current

operations?

• Based on your research, you have created a Stakeholder map and case company’s BMC as-is, analyzed gathered data and visualized a Customer Journey Map, describing how a potential customer is acting at the moment.

• As a summary, in this phase your team need to return the following outcomes of the desk research including current state analysis and a summary of interviews:

1) Business objective and context (LSC canvas)

2) Customer Grouping (LSC canvas)

3) Customer Insight (LSC canvas)

4) Customer Journey Map (current state of a customer’s journey)

5) Stakeholder map (key stakeholders related to the case)

6) Business Model Canvas (current state)

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At the end of the Map and Understand Phase

Learning Objectives at Forecast and Ideate Phase

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The aim in the second phase of service design

process is to utilize information collected in the

previous Map and Understand-phase to provide

more insight and understanding of users’

current and future needs. The second phase will

forecast potential changes in the operational /

business environment and create different

scenarios based on the identified, existing

trends. Based on the collected information in

this phase new potential solutions will

be ideated by using creative ideation and

brainstorming methods.

Phase 2Forecast and IdeateOutcomes:• Uderstanding of users’

current and future needs • Trend analysis• Persona• New potential solutions (id

eas) to be tested in the phase 3

Methods and Tools at Forecast and Ideate Phase

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Ideation:Stickdorn, M., Lawrence, A. and Hormess, M., Schneider, J. 2018.This is service design doing : applying service design thinking in the real world : a practitioner's handbook.Canada: O'Reilly. https://www.thisisservicedesigndoing.com/

Persona canvas of Design a Better Business: https://designabetterbusiness.com/2017/09/21/step-into-the-shoes-of-your-customers-with-the-persona-canvas/

Value Proposition Canvas:https://designabetterbusiness.com/2017/10/12/how-to-really-understand-your-customer-with-the-value-proposition-canvas/

Value Proposition Canvas explained:https://www.youtube.com/watch?v=aN36EcTE54Q

Circular Business Model Canvas: https://www.ellenmacarthurfoundation.org/assets/design/Business_Model_Canvas_Final.pdf

https://www.circulardesignguide.com/

1) Trend analysis

2) Persona

3) ideation

4) Value Proposition Canvas

5) Circular Business Model Canvas

6) Idea Card

Group Assignment at Forecast and Ideate Phase: Step 1

Trend Analysis

Identify the main trends affecting your identified customer/user groups. You may utilize e.g. Sitra’s megatrend cards in Sitra/Megatrends. To summarize the results you can use the trend canvas by Toolshero.

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Sources

Consumer Trend Canvashttps://www.toolshero.com/marketing/consumer-trend-canvas/

Sitra Mega Trendshttps://www.sitra.fi/en/news/here-they-are-the-most-important-trends-of-the-2020s/

Group Assignment at Forecast and Ideate Phase: Step 2

Personas

Personas help you learn about your potential

customers / users. By using personas, you will gain

empathy and insight into the problems your potential

customers / users face. Personas also help you to stay

grounded in the needs and goals of your target

customers/users.

Use a persona template to summarize useful

information on your customers/users. Create 1-2

personas. You can use the persona canvas of Design a

Better Business or some other template.

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Sources

Persona canvas of Design a Better Business or some other template

https://designabetterbusiness.com/2017/09/21/step-into-the-shoes-of-your-customers-with-the-persona-canvas/

Group Assignment atForecast and Ideate Phase: Steps 3 and 4

Ideation

This step we do during the next contact session.

1) Brainstorm and ideate together to find new ideas

for the service.

2) Describe 2-3 most potential ideas in the Value

Proposition Canvas

Value Proposition Canvas

Value Proposition Canvas is intended for the development of products or services customers are really waiting for, and the focus is on the customer and his expectations. Fill an own canvas for each persona.

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Sources

Value Proposition Canvas

https://designabetterbusiness.com/2017/10/12/how-to-really-understand-your-customer-with-the-value-proposition-canvas/

Value Proposition Canvas explained:

https://www.youtube.com/watch?v=aN36EcTE54Q

Group Assignment at Forecast and Ideate Phase: Steps 5 and 6

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Sources

Circular Business Model Canvas

https://www.ellenmacarthurfoundation.org/assets/design/Business_Model_Canvas_Final.pdf

https://www.circulardesignguide.com/

BMC with environmental impacts

Analyse the environmental impacts of the service and continue filling the business model canvas from the previous phase with these additions.

Idea Card

Describe the 2 - 3 most promising ideas into the idea card.

Idea Card

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Name of the Idea:

Description of the Idea: What Circular Business Model Does the IdeaRepresent?

How does the Idea Promote Circular Economy?

Value for the End User: Opportunities:

Value for the Project Owner: Possible Risks and Threats:

As a summary, at the end of this phase your team need to return the following:

1) Trend analysis

2) Persona

3) ideation

4) Value Proposition Canvas

5) Circular Business Model Canvas

6) Idea Card

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At the end of the Forecast and Ideate Phase

Learning Objectives at Model and Evaluate phase

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In this third phase you are finding out if the developed service proposals are working as you thought. The idea is to gather insights from (potential) customers about the service concept - what is working well and what should still be improved. In this phase it is important to concretize outcomes by visualization.

Phase 3Model and EvaluateOutcomes:• Visualise the service

concepts• Test the concepts with

potential customers• Develop them further and

validate with potentialcustomers

Methods and Tools at Model and Evaluate Phase

• Prototyping

• Planning the testing

• Test interviews

• Analysis

• Validation

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Lean Service Creation Handbook: see Futurice’s templateshttps://assets.ctfassets.net/pqts2v0qq7kz/4p1lqoP3nqC2OVPg8tsY6C/4ab5eb944c0a6f8aba8eb109f557239a/lsc_031219.pdf

The Five Act Interview guidelines: https://youtu.be/U9ZG19XTbd4

Customer Journey, Service Blueprint and Prototyping methods & tools:Stickdorn, M., Lawrence, A. and Hormess, M., Schneider, J. 2018.This is service design doing : applying service design thinking in the real world: a practitioner's handbook.Canada: O'Reilly. https://www.thisisservicedesigndoing.com/

Flowers E. & Miller M. 2017. Practical Service Blueprinting. Your guide to generating actionable insights for service experiences. www.practicalservicedesign.com

Group Assignment Model and Evaluate Phase: Steps 1 - 3

Prototype

Create first your prototypes (Fake Advertisement or some other method). One for each idea.

Planning the testing

Plan your testing goals - what will you test, testing questions and interview script. Utilize the Five Act Interview guidelines when necessary.

Test interviews

Organize the test interviews. You can interview the same persons as in your first interviews. A good amount of interviews / test is approximately 5-8 people. When you start to get similar reactions and feedback from your interviewees you have reached enough information.

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Sources

Lean Service Creation Handbook: see Futurice’stemplate Fake Advertisement

https://assets.ctfassets.net/pqts2v0qq7kz/4p1lqoP3nqC2OVPg8tsY6C/4ab5eb944c0a6f8aba8eb109f557239a/lsc_031219.pdf

The Five Act Interview guidelines: https://youtu.be/U9ZG19XTbd4

Group Assignment Model and Evaluate Phase: Steps 4 and 5

Analysis

After the interviews write down and make analysis of

your key findings during the testing phase.

• Are your assumptions correct?

• What worked? What did not?

• Did your solution solve the challenges of circular

economy?

• What should be changed?

• What did the interviewees think?• What could be improved?

Validation

Validate your testing - fill in the VALIDATION CANVAS. One for each idea.

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Sources

Lean Service Creation Handbook: see Futurice’stemplate Validation Canvas

https://assets.ctfassets.net/pqts2v0qq7kz/4p1lqoP3nqC2OVPg8tsY6C/4ab5eb944c0a6f8aba8eb109f557239a/lsc_031219.pdf

As a summary, at the end of this phase your team need to return the following:

1) Visualisation of the service concept

2) Results of the interviews summarized in the Validation Canvas

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At the end of the Model and Evaluate Phase

Learning Objectives at Conceptualize and Influencephase

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This is the final phase of this study project. You have been working on ideating your service and now it is time to finalize the concept and present it to decision-makers, e.g. management team of the company, financiers, public authorities, partners, etc.

Phase 4Conceptualize and InfluenceOutcomes:• Final Circular Economy

Business Model• Final Service Concept• Presentation

Methods and Tools at Conceptualize and InfluencePhase

At this phase can use following service

design tools for finalizing and introducing

your service concept.

Finalized:

• Value proposition

• Prototype and Validation results

• Customer personas

• Customer Journey or Service blueprint (choose one)

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• Customer Journey, Service Blueprint and Prototyping methods & tools:Stickdorn, M., Lawrence, A. and Hormess, M., Schneider, J. 2018.This is service design doing : applying service design thinking in the real world: a practitioner's handbook.Canada: O'Reilly. https://www.thisisservicedesigndoing.com/

• Circular Business Model Canvas in Circular Design Guide:https://www.ellenmacarthurfoundation.org/assets/design/Business_Model_Canvas_Final.pdfhttps://www.circulardesignguide.com/

• Concept & Value Proposition: See Lean Service Creation Handbook:https://assets.ctfassets.net/pqts2v0qq7kz/4p1lqoP3nqC2OVPg8tsY6C/4ab5eb944c0a6f8aba8eb109f557239a/lsc_031219.pdf

• NABC-model:https://youtu.be/iHiLAJGDGt4, https://youtu.be/H0iOtKzzOaQ

Group Assignment at Conceptualize and Influence Phase: Steps 1 - 2

Finalizing the Circular Economy Business Model Canvas

Finalize the Circular BMC for your service concept. Define carefully the social, environmental and economical impacts as well as the positive and negative environmental impacts.

Finalizing the service concept

Finalize the service concept (edit and update the contents in the following if needed) in Service Design Portfolio

a) Finalized value proposition

b) Finalized Prototype and Validation results

c) Finalized Customer personas

d) Finalized Customer Journey or Service blueprint (choose one)

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Sources

• Customer Journey, Service Blueprint and Prototyping methods & tools:Stickdorn, M., Lawrence, A. and Hormess, M., Schneider, J. 2018.This is service design doing : applying service design thinking in the real world: a practitioner's handbook.Canada: O'Reilly. https://www.thisisservicedesigndoing.com/

• Circular Business Model Canvas in Circular Design Guide:https://www.ellenmacarthurfoundation.org/assets/design/Business_Model_Canvas_Final.pdfhttps://www.circulardesignguide.com/

• Concept & Value Proposition: See Lean Service Creation Handbook:https://assets.ctfassets.net/pqts2v0qq7kz/4p1lqoP3nqC2OVPg8tsY6C/4ab5eb944c0a6f8aba8eb109f557239a/lsc_031219.pdf

Group Assignment at Conceptualize and Influence Phase: Step 3

Finalizing the project

1) Return the CE Service Design Portfolio. NOTE! The idea is to combine all four phases of your portfolio, with explanatory text on how the service design process has progressed, and an evaluation at the end.

2) Complete self- and peer evaluation (individual task)

3) Prepare a presentation for the commissioner

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Sources

Customer Journey, Service Blueprint and Prototyping methods & tools:Stickdorn, M., Lawrence, A. and Hormess, M., Schneider, J. 2018.This is service design doing : applying service design thinking in the real world: a practitioner's handbook.Canada: O'Reilly. https://www.thisisservicedesigndoing.com/

NABC-model:

https://youtu.be/iHiLAJGDGt4

https://youtu.be/H0iOtKzzOaQ

References

• Stickdorn, M., Lawrence, A. and Hormess, M., Schneider, J. 2018.This is service design doing : applying service design thinking in the real world:

a practitioner's handbook.Canada: O'Reilly.

• Stickdorn M., Hormess M., Lawrence A. & Schneider J. 2018. Service Design Doing Method Library. Online companion. Sebastopol: O’Reilly.

• Stickdorn, M., Schneider, J. 2012.This is service design thinking: basics, tools, cases: Netherlands: BIS Publishers.

• K.Ojasalo & al article. New Framework: Service Innovation Process grounded on Foresight and Service Design. 2015

• Circular Design Guide https://www.circulardesignguide.com

• Ellen MacArthur Foundation https://www.ellenmacarthurfoundation.org

• Design Forum: http://www.designforum.fi/assets/files/PDF/Ecodesign/EcoDesign_Sprint_esite_.pdf

• Futurice: https://leanservicecreation.com/material/LSC%20Handbook%201.82.pdf

• Circular Business – Collaborate and Circulate (Kraaijenhagen, van Oppen, Bocken)

• Circular Design Guide https://www.circulardesignguide.com

• Ellen MacArthur Foundation https://www.ellenmacarthurfoundation.org

• Sitra www.sitra.fi

• Osterwalder, A. & Pigneur, Yves. The Business Model Canvas. Viitattu 26.1.2020. https://strategyzer.com/canvas/value-proposition-canvas

• Service Design Ideadeck 2016.

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