Presented by: Bob Cooper President Thinking Outside In Identifying New Service Revenue Opportunities

Presented by:Presented by:

Bob CooperBob CooperPresidentPresident

Thinking Outside InThinking Outside InIdentifying New Service Revenue Identifying New Service Revenue

Opportunities Opportunities

Where are we, right Where are we, right now?now?

About MeAbout Me

journalist, technical writer, marketer, journalist, technical writer, marketer, interactive multimedia designer, entrepreneur, interactive multimedia designer, entrepreneur, CEO CEO

fundraiser, fire-jumper, strategist, advisor, fundraiser, fire-jumper, strategist, advisor, coachcoach

service designer service designer

Workshop AgendaWorkshop Agenda

How can you use service design to identify new How can you use service design to identify new sources of revenue within your existing sources of revenue within your existing business?business?

Our 3X3 ModelOur 3X3 Model

Case studiesCase studies

Think and share exercisesThink and share exercises

Realtime designRealtime design

Why look for new Why look for new services?services?

new revenuenew revenue

flexible and adaptableflexible and adaptable

low capital requirementslow capital requirements

easy to launcheasy to launch

high margin (when done right)high margin (when done right)

Cooper’s RulesCooper’s Rules

Where there is mystery, there is margin.Where there is mystery, there is margin.

Create value and money will follow.Create value and money will follow.

The first wave of any technology is alway The first wave of any technology is alway overhypedoverhypedbut the second wave is always but the second wave is always underestimated.underestimated.

What goes around, comes around.What goes around, comes around.

Our ProcessOur Process

DefineDefine

DiscoverDiscover

SynthesizeSynthesize

AnalyzeAnalyze

DesignDesign

BuildBuild

LaunchLaunch

Service Design - 3X3 Service Design - 3X3 ModelModel

whatwhatbusinessbusiness

needsneeds


needsneeds

what what humanshumans

wantwant

whatwhattechnolotechnolo

gygyenablesenables


gygyenablesenables

sweet spotsweet spot

Time-based opportunitiesTime-based opportunities (1-Dimensional) (1-Dimensional)

Depth-based Depth-based opportunities opportunities (2-Dimensional)(2-Dimensional)

Intersecting opportunities Intersecting opportunities

(3-Dimensional)(3-Dimensional)

First: Understand Your First: Understand Your “Core”“Core”

What is your “end game?”What is your “end game?”

What do YOU need?What do YOU need?

What do YOU want?What do YOU want?

What are YOU really good at?What are YOU really good at?

What do YOU enjoy doing?What do YOU enjoy doing?

What business are YOU REALLY in?What business are YOU REALLY in?


needsneeds


needsneeds

What Are Your Assets?What Are Your Assets?PeoplePeople

Information Information

KnowledgeKnowledge

TechnologyTechnology

RelationshipsRelationships

ProximityProximity

ProcessProcess

Other?Other?

Hidden, taken-for-granted, disdained... Hidden, taken-for-granted, disdained...

El MariachiEl Mariachi

81 minute feature film81 minute feature film$7,000 budget$7,000 budget

1. Sin City 3 (2011) (in production) 2. Sin City 2 1. Sin City 3 (2011) (in production) 2. Sin City 2 (2010) (pre-production) 3. Shorts (2009) (post-(2010) (pre-production) 3. Shorts (2009) (post-production) 4. Planet Terror (2007) 5. Grindhouse production) 4. Planet Terror (2007) 5. Grindhouse (2007) (2007) 6. The Adventures of Sharkboy and Lavagirl 3-D 6. The Adventures of Sharkboy and Lavagirl 3-D (2005) 7. Sin City (2005) 8. Ten Minute Film (2005) 7. Sin City (2005) 8. Ten Minute Film School: Big Movies Made Cheap (2004) School: Big Movies Made Cheap (2004) 9. Ten Minute Cooking School: Puerco Pibil (2004) 9. Ten Minute Cooking School: Puerco Pibil (2004) 10. Ten Minute Flick School: (2004) 11. Inside 10. Ten Minute Flick School: (2004) 11. Inside Troublemaker Studios (2004) 12. Once Upon a Time Troublemaker Studios (2004) 12. Once Upon a Time in Mexico (2003) 13. Spy Kids 3-D: Game Over in Mexico (2003) 13. Spy Kids 3-D: Game Over (2003) 14. Del Castillo: Live (2003) 15. Spy Kids 2: (2003) 14. Del Castillo: Live (2003) 15. Spy Kids 2: Island of Lost Dreams (2002) 16. Spy Kids (2001) Island of Lost Dreams (2002) 16. Spy Kids (2001) 17. The Faculty (1998) 18. Ten More Minutes: 17. The Faculty (1998) 18. Ten More Minutes: Anatomy of a Shootout (1998) 19. The Robert Anatomy of a Shootout (1998) 19. The Robert Rodriguez Ten Minute Film School (1998) 20. From Rodriguez Ten Minute Film School (1998) 20. From Dusk Till Dawn (1996) 21. Four Rooms (1995) 22. Dusk Till Dawn (1996) 21. Four Rooms (1995) 22. Desperado (1995) 23. Roadracers (1994) (TV) 24. Desperado (1995) 23. Roadracers (1994) (TV) 24. "Rebel Highway" (1 episode, 1994) 25. Mariachi, El "Rebel Highway" (1 episode, 1994) 25. Mariachi, El (1992) 26. Bedhead (1991)(1992) 26. Bedhead (1991)

Robert RodriguezRobert Rodriguez

Fresh EyesFresh Eyes

Receptionist: “Director of First Impressions”Receptionist: “Director of First Impressions”

Consultants = New PerspectiveConsultants = New Perspective

Be willing to plan how to burn down your Be willing to plan how to burn down your businessbusiness

What If?What If?

Why Not? Why Not?

Exercise: Exercise: What are all the assets you have?What are all the assets you have?Which are taken for granted?Which are taken for granted?Who would be interested in Who would be interested in those/that?those/that?

Example:Example:CHCCHC

TechnologyTechnology

The great seducerThe great seducer

Technology matters less and less...Technology matters less and less... and more and more and more and more

CommoditizationCommoditization

Integral to everything, but shouldIntegral to everything, but shouldnot be the driver!not be the driver!


gygyenablesenables


gygyenablesenables

And yet...And yet...

Certain technologies have (and will) Certain technologies have (and will) fundamentally change thingsfundamentally change things

BroadbandBroadband

StorageStorage

MobileMobile

Geo-LocationGeo-Location

PervasivenessPervasiveness


gygyenablesenables


gygyenablesenables

Exercise: Exercise: How can/will broadband connectivity How can/will broadband connectivity change your business?change your business?

Example:Example:OTMOTM

Customer ChainCustomer Chain

Consists of Consists of

Multiple TouchpointsMultiple Touchpoints

InteractionsInteractions

ExperiencesExperiences

Person to PersonPerson to Person

Person to MachinePerson to Machine

Machine to Machine Machine to Machine


wantwant


ServiceServiceServiceService


ServiceServiceServiceService

ExperiExperienceence


InteraInteractionctionInteraInteractionction






















RestaurantRestaurantMealMeal

RestaurantRestaurantMealMeal

ChoosiChoosingng

ChoosiChoosingng

SearcSearchh

SearcSearchh

DemaDemandnd

DemaDemandnd

PositioPositioningning

PositioPositioningning

GoingGoingGoingGoing

OrderiOrderingng

OrderiOrderingng

EatingEatingEatingEating

LeavinLeavingg

LeavinLeavingg

ReservReservationation

ReservReservationation

ParkiParkingng

ParkiParkingng

SignaSignagege

SignaSignagege

MenuMenuMenuMenuTimeliTimelinessness

TimeliTimelinessness

WaiteWaiterr

WaiteWaiterr

SatisfiSatisfieded

SatisfiSatisfieded

PayinPaying Billg BillPayinPaying Billg Bill

Food Food PrepPrepFood Food PrepPrep

CleanlCleanlinessinessCleanlCleanlinessiness

Then, Talk With Then, Talk With CustomersCustomers

Sounds simple, right?Sounds simple, right?

Amazing how many people don’tAmazing how many people don’t

Ethnographic research vs focus groups or Ethnographic research vs focus groups or surveyssurveys

Lots of tools for this...Lots of tools for this...

Understanding Understanding CustomersCustomers• Customer journey mappingCustomer journey mapping

• Ethnographic researchEthnographic research

• Culture huntsCulture hunts

• Participant journalsParticipant journals

• Contextual interviewsContextual interviews

• ShadowingShadowing

• Experience surveyingExperience surveying

• FilmingFilming

• PersonasPersonas

• Empathy toolsEmpathy tools

• Card sortingCard sorting

• Relationship mappingRelationship mapping

• Graphic facilitationGraphic facilitation

• Co-creationCo-creation

• StoryboardingStoryboarding

• Service prototypingService prototyping

• Desktop walkthroughsDesktop walkthroughs

• Service specificationsService specifications

• Service blueprintService blueprint

Ask, Observe, Co-Design!Ask, Observe, Co-Design!

Understanding Understanding CustomersCustomers

What do your customers actually need or What do your customers actually need or want?want?

What do your customers actually What do your customers actually getget? ?

How do they think of you?How do they think of you?

Redefine your market in terms of customer Redefine your market in terms of customer activities and customer outcomes - not activities and customer outcomes - not “products and services”“products and services”

Customer JourneyCustomer JourneyTime-based sequence of logically related activitiesTime-based sequence of logically related activities

ConsumersConsumers

Stage of life (education, career, parenting, Stage of life (education, career, parenting, retiring)retiring)

Specific interest (rock climbing, auto restoration)Specific interest (rock climbing, auto restoration)

Ownership of asset (home, car, camera, Ownership of asset (home, car, camera, motorcycle)motorcycle)

BusinessBusiness

Process (logistics, risk management, HR, finance)Process (logistics, risk management, HR, finance)

Assets (computer equipment, machinery, trucks)Assets (computer equipment, machinery, trucks)

Customer JourneyCustomer Journey

Leads to defined customer outcomesLeads to defined customer outcomes

Retirees want “financial independence”Retirees want “financial independence”

Diners want “good food without the hassle”Diners want “good food without the hassle”

Computer buyers want “higher productivity”Computer buyers want “higher productivity”

Flyers want “to get there on time with a Flyers want “to get there on time with a positive attitude”positive attitude”

Exercise: Exercise: What do your customers What do your customers buybuy from from you?you?What do they ultimately What do they ultimately wantwant??

Example:Example:AvanceonAvanceon

Service Design - 3X3 Service Design - 3X3 ModelModel


needsneeds


needsneeds


wantwant


gygyenablesenables


gygyenablesenables

new service revenuenew service revenue

3X3 Model 3X3 Model

Time-based opportunities (1-Dimensional)Time-based opportunities (1-Dimensional)

Depth-based opportunities (2-Dimensional)Depth-based opportunities (2-Dimensional)

Intersecting opportunities (3-Dimensional)Intersecting opportunities (3-Dimensional)

Time-Based Opps (1-D)Time-Based Opps (1-D)

Add services that come Add services that come beforebefore your your salesale

Why couldn’t Continental offer Why couldn’t Continental offer parking?parking?

Add services that come Add services that come afterafter your sale your sale

Luggage delivery service?Luggage delivery service?

Time-Based Opps (1-D)Time-Based Opps (1-D)

Add services that Add services that accompanyaccompany your core your core

Rent a GPS unit to people renting Rent a GPS unit to people renting carscars

SupplementSupplement your core with a network- your core with a network-based servicebased service

On-Star / Avanceon / Rock crusherOn-Star / Avanceon / Rock crusher

Provide ongoing Provide ongoing updatesupdates

Most software todayMost software today

customize the core for customers?customize the core for customers?

store the product for customers?store the product for customers?

replace your customer’s inventory-replace your customer’s inventory-control?control?

take over your customer’s low value take over your customer’s low value (no value) processes?(no value) processes?

leverage your leverage your process expertiseprocess expertise??

Depth-Based Opps (2-D)Depth-Based Opps (2-D)

Intersecting Opps (3-D)Intersecting Opps (3-D)

Leverage your Leverage your knowledge, assets, knowledge, assets, brand, experience in brand, experience in other markets other markets

Find the intersections Find the intersections with other customer with other customer journeys in other marketsjourneys in other markets

Could be close or could Could be close or could be far awaybe far away

Intersecting Opps (3-D)Intersecting Opps (3-D)

PurchasingPurchasinga Cara Car

Current Current Market: Market: TravelTravel

Having a Having a BabyBaby

Buying Buying InsuranceInsurance

DeDemanman

dd

DeDemanman

dd

DeDemanman

dd

DeDemanman

dd

CaterinCateringg

CaterinCateringg

ChChoosoosinging

ChChoosoosinging

SeSeararchch

SeSeararchch

DeDemmanandd

DeDemmananddPosPositioitioninningg

PosPositioitioninningg

GoiGoingngGoiGoingng OrOr

derderinging

OrOrderderinging

EatEatingingEatEatinging

LeLeaviavingng

LeLeaviavingng

ReReserservatvationion

ReReserservatvationionPaParkirkingng

PaParkirkingng

SigSignanagege

SigSignanagege MeMe

nunuMeMenunu

TiTimemelinlinessess


WWaitaiterer

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SaSatisftisfiedied

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BillBill

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BillBillFoFood od PrePrepp

FoFood od PrePreppCleCle

anlanlineinessss

CleCleanlanlineinessss

RestaurRestaurant ant

MealMeal

RestaurRestaurant ant

MealMeal

ChChoosoosinging

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SeSeararchch

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DeDemmanandd




derderinging

OrOrderderinging


LeLeaviavingng

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PaParkirkingng

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nunuMeMenunu



WWaitaiterer

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Order Order TakeouTakeout Onlinet Online

Order Order TakeouTakeout Onlinet Online

ChChoosoosinging

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SeSeararchch

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DeDemmanandd




derderinging

OrOrderderinging


LeLeaviavingng

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nunuMeMenunu



WWaitaiterer

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SaSatisftisfiedied


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DeliverDeliveryy

DeliverDeliveryy

ChChoosoosinging

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SeSeararchch

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DeDemmanandd




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LeLeaviavingng

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nunuMeMenunu



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Event Event HostingHostingEvent Event

HostingHosting

ChChoosoosinging

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derderinging

OrOrderderinging


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PeoplPeoplee

PeoplPeoplee

KnowlKnowledgeedgeKnowlKnowledgeedge

AssetsAssetsAssetsAssets ProceProcessss

ProceProcessss

No Patents?No Patents?

No Proprietary Process?No Proprietary Process?

No Products?No Products?

No Problem!No Problem!

ConclusionConclusion

Get outside your box - and look at it with new Get outside your box - and look at it with new eyeseyes

Know what you don’t knowKnow what you don’t know

Talk with and watch your customersTalk with and watch your customers

Aim/Fire, Aim/Fire, Aim/Fire Aim/Fire, Aim/Fire, Aim/Fire

Be 80% right - and keep movingBe 80% right - and keep moving

ThanksThanksEmail: Email: [email protected]

Website & Blog: Website & Blog: www.FrontierServiceDesign.com

mailto:[email protected]

http://www.FrontierServiceDesign.com/

Documents

Presented by: Bob Cooper President Thinking Outside In Identifying New Service Revenue Opportunities