SERVICE DESIGN performed by either the employee,

user, or customer, throughout the

What is Service Design? service (ex: enrolment procedure)
3. Props - Refers to the physical or
● The activity of planning and digital artifacts including products
organizing a business’s resources that are needed to perform the
(people, props, and processes) in service successfully. (e.g. physical
order to space, digital environment:
○ (1) directly improve the website, socmed pages, and
employee’s experience, objects like digital files and
and physical products)
○ (2) indirectly, the
customer’s experience. Service Design Blueprint

Two Parts of Service Design

Components

1. Frontstage Components include:

● Channels
● Products
● Touchpoints
● Interfaces

2. Backstage Components include:

● Policies
● Technology
● Infrastractures
● Systems
Principles of Service Design
Objective of Service Design

● The objective of service design is 1. Human-centered - consider the

to formulate both frontstage and experience of all the people
backstage strategies that meet the affected by the service.
customers’ needs in the most 2. Collaborative - stakeholders of
relevant way whilst remaining various backgrounds and functions
economic (or sustainable) for the should be actively engaged in the
service provider. Ideal services are service design process.
considered to be user-friendly and 3. Iterative - service design is an
competitive within their market. exploratory, adaptive, and
experimental approach, iterating
Components of Service Design toward implementation.
Three main components of Service Design 4. Sequential - the service should be
1. People - They are the individuals visualized and orchestrated as a
who may be directly affected by sequence of interrelated actions.
the service. This component 5. Tangible and Sustainable - a
includes anyone who creates and project needs to include
uses the service. (may include fundamental research, co-creation
fellow customers that you will and prototyping to evidence actual
encounter throughout the service business value.
as well as your partners) (e.g. 6. Holistic - services grounded
employees, customers, partners) through stakeholders with different
2. Processess - It is any workflows, backgrounds and perspectives,
rituals, procedures, that are being that ultimately meet their needs.
Benefits of Service Design ● This is a wider category of objects
that serve multiple purposes within
1. Surfacing Conflicts the service environment.
2. Fostering hard conversations ● Signage can dictate directions or
3. Reducing redundancies with a instructions, or simply
bird’s eye view communicate a brand name.
4. Forming relationships. Logos, artifacts, and color are
included in this category.
THE SERVICESCAPE
Aspects of Servicescape: Ambient
What is servicescape? Conditions
● “The environment in which the ● This refers to a number of often
service is assembled and in which tangible elements in a service
the seller and customer interact, environment including sound or
combined with tangible noise, temperature, light, music,
commodities that facilitate odor or smell, and even air quality.
performance or communication of
the service.” (Booms & Bitner, Elements of Servicescape
1981) ● Facility Exterior
● “Demonstrates the relationship ○ Landscape
between the physical ambience ○ Exterior design
and place and its impact on service ○ Surrounding environment
delivery and perception.” ○ Parking
● Servicescapes are uniquely ○ Signage
designed by each business to ● Facility interior
create an atmosphere that aims to ○ Music
enhance their customer’s ○ Layout
experiences, and ultimately have ○ Equipment
an impact on their behavior. ○ Air quality temperature
○ Interior design
Aspects of Servicescape: Spatial ● Others
Layout and Functionality ○ Virtual servicescape
● Space and function refers to the ○ Brochures
spatial layout of a service ○ Employee dress
environment, how easy or difficult it ○ Billing statement
is to navigate, and how functional it ○ Web pages
is. (The type of furniture and ○ Uniforms
equipment used in the space also ○ Reports
play a part in building the ○ Stationary
servicescape space.) ○ Business cards
● It is about the way you arrange the
furnishings, equipment and Roles of Servicescape
machinery, their shape and size ● Facilitator - act as a facilitator to
and of course, the spatial help people in their surroundings
relationship which exists among ● Package - helps to convey the
them. internal image through its outward
● Functionality is about the ability of appearance
the items to accomplish customer ● Socialiser - act as a perfect
satisfaction. socializer between both customers
and employees
● Differentiator - act as a
Aspects of Servicescape: Signs, differentiator by separating designs
Symbols, and Artifacts of a company from its competitor
Types of Servicescape Environment:
Lean Servicescape
 ● Designing this type of environment organization. It involves analyzing
is straightforward and includes the performance of the services,
fewer interactions, elements, and identifying opportunities for
spaces between employees and improvement, and making
customers. decisions about which services to
provide, how to package them, and
Types of Servicescape Environment: how to price them.
Elaborate Servicescape
The process of service portfolio
● Designing this type of management typically involves the
servicescape requires teams that following steps:
are skilled in their work and are
fully aware of the corporate vision ● Service definition
and desired outcome. This ● Service Analysis
includes multiple spaces, ● Service Strategy
elements, and interactions
between employees and ● Service Design
customers. ● Service Transition
● Service Operation
Functions of Servicescape:
● Image, differentiation, and
Demand Management
positioning
● Demand management in a service
● Facilitating service encounter and
business involves a company’s
increasing productivity
processes and strategies to
balance supply and demand for its
services. It is essential because it
SERVICE STRATEGY
helps companies ensure they have
enough resources to meet
What is a Service Strategy
customer demand while minimizing
● A service strategy is a key aspect the costs associated with
of service management that overproduction or underproduction
focuses on developing and
implementing strategies to deliver Key Strategies that Service Businesses
effective and efficient services that can use to Manage Demand:
align with an organization’s overall
● Forecasting
business objectives. It involves
● Pricing
identifying the services that an
● Capacity management
organization should offer,
● Promotions and marketing
determining the target market for
● Service differentiation
these services, and developing a
plan to deliver them.
Financial Management
Types of Service Strategy
● Financial management is crucial
1. Service Portfolio Management for any type of business, including
2. Demand Managament service businesses. Service
3. Financial Management businesses provide intangible
4. Business Relationship goods or services to their
Management customers, and their success is
5. Service Level Management primarily determined by their ability
to satisfy their customers’ needs
Service Portfolio Management and expectations. Financial
management in a service business
● Service portfolio management is involves managing the financial
the process of managing a resources of the business in a way
collection of services offered by an
 that helps it achieve its goals and 1. Service level agreement (SLA)
objectives. negotiation and definition involves
agreeing on the scope of services
Key aspects of Financial Management to be provided, the performance
in a Service Business: levels that will be delivered, and
the metrics that will be used to
● Revenue Management measure performance.
● Cost Management 2. Service level monitoring involves
● Budgeting monitoring service performance
● Cash Flow Management against the agreed-upon SLAs and
● Financial Analysis and Reporting identifying any areas of
non-compliance.
Business Relationship Management 3. Service level reporting involves
producing regular reports on
● Business Relationship service performance to
Management (BRM) is a strategic stakeholders, including customers
and collaborative approach to and senior management.
managing and improving the 4. Service level review involves
relationships between a business regularly reviewing service
and its customers, partners, and performance against the SLAs and
suppliers. BRM aims to establish identifying opportunities for
and maintain mutually beneficial improvement.
relationships that can help achieve 5. Service level improvement involves
the business’s objectives. improving service performance to
ensure that SLAs are met or
BRM involves several key activities: exceeded
● Understanding the needs and Service Strategy Examples
goals of the different stakeholders,
suppliers, and customers ● Personalization (ex: Netflix)
● Building and maintaining ● Self-service (ex: self-check-out
relationships kiosk)
● Facilitating communication ● 24/7 Support (ex: chatbots, call
● Identifying opportunities center, and customer service
● Managing risk hotlines)
● Transparency (ex: providing pricing
Service Level Management info to customers
● Proactive support (ex: identifying
● Service level management (SLM) potential issues before the risks
is a process within IT service occur)
management (ITSM) that is
responsible for setting, monitoring,
and improving the level of service
that IT delivers to its customers.
SLM is concerned with defining
and agreeing upon service level
agreements (SLAs) with customers
and then monitoring and reporting
on performance against those
SLAs.

The SLM Process typically includes the

following steps: