veryday academy masterclass service design oct 6 2014

D E L I V E R I N G C U S T O M E R E X P E R I E N C E V A L U E / V E R Y D A Y . C O M

Welcome to Veryday Academy™

| 06 October 2014 | Service Design Conference 2014 | Masterclass | Stockholm | @byveryday @madlenelin @gbrlsthlm 2

| 06 October 2014 | Service Design Conference 2014 | Masterclass | Stockholm | @byveryday @madlenelin @gbrlsthlm 3

Creating Value with Service

Design

| 06 October 2014 | Service Design Conference 2014 | Masterclass | Stockholm | @byveryday @madlenelin @gbrlsthlm 4

Creating value originates in taking all perspectives (meaning the internal stakeholders, the brand, the organization and the end customer) into account , puing the end customer in focus. By being empathic to people, going from detailed to holistic thinking and protoping the visions and ideas, we can create valuable and meaningful services.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 5

New Paradigm of Value Creation

80% of companies believe they deliver outstanding value and

a superior customer experience.

8% of their customers agree. Source: Bain & Company

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 6

7

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 7

Significant paradigm shist From the industrial socie To the networked socie

1 | Client Name & Context (Change in "Insert/Head & Footer") | 2008-04-28

Age of Manufacturing

Age of Distribution

Age of Information

Age of The Customer

Forrester Outside In: The Power of Puing Customers at the Center of Your Business

Mass manufacturing boosts industrial powerhouses.

Global connections make distribution key.

Connected PCs benefit those who control information.

Empowered buyers demand a customer focus.

Ford, RCA, GE, Boeing, P&G, Sony Walmart, Toyota, UPS, CSX Microsost, Google, Dell, Capital One

Southwest Airlines, Amazon, USAA, ...

1900–1960 1960–1990 1990–2010 2010–?

Source of dominance and differentiation

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 8

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 9

Significant paradigm shist From Industry led development To Customer led development

Gross Domestic Product

hps

://w

ww.

cia.

gov/

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 10

GDP - composition, by sector of origin: agriculture: 0.7% industry: 21% services: 78.3% (2012 est.)

1% 21%

78%

Agriculture Industry Services

| 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz

Growing share of the economy

e.g. JAPAN

CIA

Wor

ld Fa

ctbo

ok

10.0% AGGRICULTURE

43.9% INDUSTRY

46.1%

CHINA

71.4%

1.2%

27.5%

SERVICES

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 11

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 12

+ Customer Centrici + Customer Focus = Competitive advantage = Loyal satisfied customers = Higher profit margins

Valu

e fo

r the

org

anis

atio

n

Value for customers

Commodi

Product

Service

Experience

Added value win-win through co-design.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 13

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DELIVERING VALUE

RE-IMAGINE OPTIMIZE

Reduce cost with improved customer experience

Reduce churn and increase life-time value

Innovation of new business models and offerings

Reduce risk, time to market and cost

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 14

EXPAND

New or beer services for todays customers

New customers through improving todays service

Gap in quali and productivi Services are far behind products when it comes to productivi, failure and quali.

Products Productivi

Quali

Services

Products Services

60% of new service introductions fail

6% 41% of product companies see design as integral

of service companies see any role for design

€ 67.00 Service companies

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 15

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm

The only people that see the bigger picture of any organization or brand are

the customers. 16

What is needed is a new approach to

create value.

NEED BETTER IMAGES

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 17

Please write down one key challenge

you are facing.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 18

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm

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Some common Challenges

Stay engaged and relevant over time with the end customer

Get all internal stakeholders to understand the value of Service Design

Know how to identi unmet needs

Get “unstuck” - get out of “business as usual” and try something different Sort out the data that is relevant to act on Scaling

Know what bales to pick, you can’t be best at everything

01. 02. 03. 04. 05. 06. 07.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm

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The Opportuni

Customer Experience is the next frontier for differentiation, value creation and growth.

Everything is more connected and complex than ever. New customer expectations arise and cross boundaries.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm

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1.  Everything is more connected and complex than ever

2.  New expectations across boundaries

3.  Easy to loose focus through distraction and disruption An accelerating storm of change

Digital Mobile

Social

Big data

The eye of the storm

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 22

Wearables

Internet of everything

Your First Point of Differentiation

The customer

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 23

Why can´t they remember what I like from time to time?

Why is it always so difficult to find my way to what I want!

It would be great if I could know more about this before I decide to buy it!

I want to know that they have the products I want in store.

People perspective (Employees, clients, customers, users)

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 24

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CRM

Governance

Supply Chain

Database

Portfolio Management

Loyal Program

Regulations

LEAN

Forecasting

Investment Planning

Business Process Optimization

SOX

Rightshoring

Channels

Integrated Marketing Solution

Core Competency

Diversi

Alignment

Streamline

6Sigma

The corporate world is a different world

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 25

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 26

Building and scaling culture [in organizations] is the secret to innovation.

Jeff Gothelf

“

Click to edit Master title sle Process Operating

Model Technology Leadership & Culture Employees

Legislation CSR

Strategy

Customer Experience Journey

Business Operations

Bridging the gap

|| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm

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Your Second Point of Differentiation

Company Organization

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 28

Your Third Point of Differentiation

Systemic Solutions

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 29

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 30

A service ecology a is process we use to establish a systemic view of the service and context we will operate in. We map service ecologies in order to map actors affected by a service and the relationships between them.

Source: Live I Work

“

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60

31 | 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 31

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 32

Inspiring examples

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 33

Searching for a flight to go to…this conference for instance.

Old fashioned look and feel

Booking flow is very limited

Traditional A to B approach

The Kayak service on the other hand offers a vastly beer experience. You can choose very simply what your parameters are and get the best options at the best price.

Walking in the customers shoes

When you have to storyboard something, the more realistic it is, the more decisions you have to make. Brian Chesky

“To shape the future of Airbnb, CEO Brian Chesky used storyboards to map existing and future customer journeys.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 35

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 36

Progressive Insurance ‘Immediate Roadside Assistance’ creates a fantastic care and support experience as well as brand awareness. It also reduces possibilities for fraud and legal issues, both significant costs that can be drastically reduced which goes beyond funding the great experience.

Great experience can reduce costs

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|| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm

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Service Design

Methodology to help improve or innovate service experiences that result in

more satisfied customers and more profitable enterprises.

Serv

ice D

esig

n – 

Prac

tical

acc

ess

to a

n ev

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005

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 38

Find ways to do something about it 03.

Imagine and dream up a beer future 02.

01. Curiosi what people need and want

SERVICE DESIGN

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 39

You don’t own it but use it 03.

It happens over time 02.

01. You have to be there

SERVICE DESIGN

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 40

SERVICE DESIGN

Experience Protoping 03.

Holistic Thinking 02.

01. Human Empathy

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What is the difference? I N D U S T R I A L S E R V I C E

Produced Performed

Material Immaterial

Tangible Intangible

No involvement Client participation

Ownership Experience

M E T H O D O L O G Y

Journey

System design

For All Senses

Co-creation

Service blueprint

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 41

Scale & Sustain

Explore

Sense Making

Engage

Bring to Life

Learn

Fabric™

Collaborative, modular, interconnected and iterative way of working to systematically design for experiences.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 42

Learn Capturing knowledge about

customers, stakeholders, trends and markets.

Scale & sustain Make it happen, support implementation

and measure outcomes.

Sense making

Map out and set a direction in context of the entire service ecosystem.

Engage Foster essential

participation and buy-in from customers and

stakeholders.

Bring to life Enable understanding through visualizations,

role-play and tangible artifacts.

Explore Protope, test and co-create options,

ideas and solutions together.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 43

Learn Capturing knowledge about customers, stakeholders, trends and markets.

Stakeholder Mapping Customer Journey Mapping Shadowing Contextual Interviews Trends & Market Research

Learn Key Methods:

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 44

*Theory by Daniel Kahneman

Anticipated SelfDecisions based on anticipated memories.

Inspire, motivate, restrict

Experiencing selfEmotions in the present.

Positive, negative, neutral

Reflective Self (The Storyteller)What we take away from the experience. The stories we tell. Changes, significant moments,

endings

Before Experience/Occasion After

Better experience

Worseexperience

Peak-End Rule* Reflected experience based

almost entirely on highs and lows, and how it ended.

Experience Continuum

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 45

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 46

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 47

Every service has a bill. Every service has an interface. But the way you transition in between those things is where the brand of the service can live; in-between experiences can be designed.

Source: Live I Work

“

Bring to life Enable understanding through visualizations, role-play and tangible artifacts.

Customer Story Videos Acting out Experiences Customer Journey Mapping Market & Trend Research Collaborative Analysis

Bring to life Key Methods:

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 48

Engage Foster essential participation and buy-in from customers and stakeholders.

Invite, Involve, Listen Ok to start small (in your silo) Top down and boom up Iterate and workshop Co-create

Engage Key Methods:

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 49

Sense making Map out and set a direction in context of the entire service ecosystem.

Mapping Clustering Set targets Scenarios Ecosystems Business Case

Sense making Key Methods:

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 50

Explore Protope, test and co-create options, ideas and solutions together. .

Experiment Protope Speed Dating Role Play Co-creation

Explore Key Methods:

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 51

Scale & sustain Make it happen, support implementation and measure outcomes.

Enabling Staff to Act Service Blueprints Training Pilots Measurements

Scale & sustain Key Methods:

Researcher

Designer

Experience Strategist

Project Manager

Senior Manager

Experts

Quick and hassle free communication between stakeholders needed.

Easy to use online tools, displaying continuous progress and results of the project.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 52

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 53

Measure?

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 54

Not everything that can be counted counts, and not everything that counts can be counted.

Albert Einstein

“

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Behavioral metrics Eg Sharing frequency, שme spent

Business metrics Increase revenue, Market share

Subjective metrics NPS, SUS, Subjective satisfaction

What people pay for

What people do/use

What people say/think

CX

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 55

Experience Index Drive service development around robust & meaningful metrics

1. Business Context 2. Success Definition 3. Measures Selection

What impact are we hoping to achieve overall?

What does success look like?

Which KPIs are most relevant for us?

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 56

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 57

The Challenges

The pursuit of implementing the service design approach successfully in the organization requires

the right leadership and culture change – however outputs as well as outcomes are worth the effort.

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 58

KEY CHALLENGES

Uncertain of specific outcomes 03.

Geing out of old ways of working and thinking 02.

01. Collaboration across departments

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 59

6 Practical שps

Creating mutual value by providing great customer experiences requires focus, passion and teamwork. Here are six tips to help you lead the way forward.

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Leading to great experiences

1.  Empathy – Spend time with customers to get a feeling for their latent needs

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 60

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Leading to great experiences

1.  Empathy – Spend time with customers to get a feeling for their latent needs 2.  Envision – Create a shared sense of purpose and future vision

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 61

Click to edit Master title sle

Leading to great experiences

1.  Empathy – Spend time with customers to get a feeling for their latent needs 2.  Envision – Create a shared sense of purpose and future vision

3.  Engage – Involve people, work agile and adapt to the environment

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 62

Click to edit Master title sle

Leading to great experiences

1.  Empathy – Spend time with customers to get a feeling for their latent needs 2.  Envision – Create a shared sense of purpose and future vision

3.  Engage – Involve people, work agile and adapt to the environment 4.  Empower – Support the organization to deliver and exceed expectations

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 63

Click to edit Master title sle

Leading to great experiences

1.  Empathy – Spend time with customers to get a feeling for their latent needs 2.  Envision – Create a shared sense of purpose and future vision

3.  Engage – Involve people, work agile and adapt to the environment 4.  Empower – Support the organization to deliver and exceed expectations 5.  Experience – Build, share and leverage knowledge

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 64

Click to edit Master title sle

Leading to great experiences

1.  Empathy – Spend time with customers to get a feeling for their latent needs 2.  Envision – Create a shared sense of purpose and future vision

3.  Engage – Involve people, work agile and adapt to the environment 4.  Empower – Support the organization to deliver and exceed expectations 5.  Experience – Build, share and leverage knowledge

6.  Evaluate – Measure what maers and make the tough choices

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 65

Thank you!

| 06 October 2014 | Veryday Academy | Service Design Conference 2014 | Stockholm | @byveryday @madlenelin @gbrlsthlm 66

Twier @byveryday @madlenelin @gbrlsthlm