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Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
HELLO. I’M BILL HOLLINSHELLO. I’M BILL HOLLINS
Creativity+BusinessCreativity+Business
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.
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.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
SERVICES ARE PRODUCTS
SERVICES MUST BE DESIGNED
THIS DESIGN MUST BE MANAGED
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
Design Management is about Design Management is about organising things:organising things:
ActivitiesActivitiesPeoplePeopleMoneyMoneyTimeTime IdeasIdeas
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
Especially Ideas!!Especially Ideas!!(dealing with creativity)(dealing with creativity)
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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
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.
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
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
‘‘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
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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)
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
OR MORE SIMPLY:OR MORE SIMPLY: Services Services differ from products in five waysdiffer from products in five ways
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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)
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
A simple model for service A simple model for service design:design: MARKETMARKET
SPECIFICATIONSPECIFICATION
CONCEPT DESIGNCONCEPT DESIGN
DETAIL DESIGNDETAIL DESIGN
IMPLEMENTIMPLEMENT
DISPOSALDISPOSAL
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
You can’t manage design without a process
The figure around which BS 7000 –3 (not yet published0
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
Services are more about peopleServices are more about people(Live/work)(Live/work)
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
People are your greatest asset.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
Most services ride on the back of Most services ride on the back of products.products.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
AND THIS IS IMPORTANTAND THIS IS IMPORTANT
INCREASINGLY PRODUCTS INCREASINGLY PRODUCTS RIDE ON THE BACK OF RIDE ON THE BACK OF
SERVICESSERVICES
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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?
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
An innovation is an An innovation is an invention in its first invention in its first
marketable formmarketable form
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
‘‘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.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
The CompaniesThe Companies
TransportTransport CharitiesCharities HealthHealth Banking & Banking &
InsuranceInsurance Public & Private Public & Private
ServicesServices
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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.
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
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?
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
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
Thank you for listeningThank you for listeningPass the message onPass the message on
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
For more info contact Bill For more info contact Bill Hollins:Hollins:
email: [email protected]: [email protected]
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!
Bill HollinsBill HollinsDirection ConsultantsDirection Consultants
Questions ?