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April 25, 2006

Panel: Service Innovation and Design

Tuesday, 04/25/2006 16:30-18:00

http://www.chi2006.org/sessiondetail.php?sessionid=2413

Panel format:
3 cases of service innovation and design
2 discussants
Q&A from audience

Jeanette Blomberg from IBM Almaden Research Center and Shelley Evenson from Carnegie Mellon University are the organizers and panel chairs.

The three cases discussed are Maggie Breslin—The Mayo Clinic—Healthcare Delivery, Mark Jones—IDEO—Retail Banking, and Paulien Strijand-Yahoo!-Yahoo! Answers.

The panel discussants are Mary Jo Bitner and Terry Winograd.
Mary Jo is Professor of Marketing and PETsMART Chair in Services Leadership. She also serves as the Academic Director of the Center for Services Leadership at ASU.
Terry's focus is on human-computer interaction design, with a focus on the theoretical background and conceptual models. He directs the teaching programs in Human-Computer Interaction. and HCI research in the Stanford Interactivity Lab.

Introduction
New designs are underlined with service design and 75% of workforce is based on service. Service is thought to be understudied and we anticipate more funds for service design.

Case 1
Maggie Breslin from Mayo Clinic talks about a service case. She works at the SPARC innovation clinic. This is a story about decision making process for doctor/patient consulting. In the current model the patient makes a decision after she leaves the doctors office and after she cannot gain any more knowledge from the doctor.
Three factors affect the decision making process. The clinician brings medical knowledge, practice experience, and clinical preferences. The patient is the only one who knows about their lifestyle and preferences. In this environment, the space has not changed much, there is a ritual, and there are very few tools to help foster the communication.
Through a prototype based process they gathered research evidence. Showed cards with information to patients and found that they were interested but was not very helpful. Patients wanted to look at comparisons, but designers felt wary because they were afraid of introducing biases. The second prototype was called narrative cards, which explained side effects, etc. Patients were still interested but felt there was too much text to read and still wanted to compare. Prototype number 3 was a decision board with medications on top and on the left were effects such as side effects, weight gain effects, etc. This was very successful. The patients were asked to put the items in order based on importance. However, they still felt there were still too much text to read.
The final prototype was issue cards. The cards are 5 diabetes issues. Patients gravitated towards weight change and daily lifestyle change. The cards promote more questions and encourages discussions but are not enough to give patients confidence in making a decision. There was a noticeable change in body language.
The next step was the clinical trial, where a randomized number of physicians conducted consultants with and without the decision aid over 3 mos, 6 mos, and 1 yr. She found that patients who used the decision aid were 3 times more likely to stick to the recommended lifestyle.

Case 2
Mark Jones from IDEO is the lead for Service Design and Innovation for Chicago. He talks about the redesign of customer retail banking. The client was a local bank that grew in the midwest. Their issues were that while they had a loyal customer based they were aging. Customers were rate shopping for loans, and their cross selling processes were not working. Their goal was to attract younger base of customers and create a new banking experience.
Through looking at in-home observation, competition, all stakeholders in bank (online, call center, ATM, tellers, loan officers, etc) they found 4 big opportunities areas:
-Customers thought of 1st source as local
-Loyalty was created through bonding with bankers
-Tellers wanted to do more
-Routine banking is disconnected from non-routine banking

They then created 5 design principles:
-Make transitions simple
-Be honest
-Make banking personal
-Behave like community
-Make banking tangible

Through workshops they involved all stakeholders at multiple levels and got a read on how far you could stretch the bank. They then role played and showed how it is to interact in a bank. Organized ideas around design principles were then put in a series of concepts to give a single experience versus a random experience. Next they developed full-scale mock-ups to make the experience more of a reality. Scenarios were created to communicate the new customer experience. For example through a shared banking space, the banker and customer are looking at a screen together. Renderings were created as well to show a very full picture of the service experience.
The bank opened a pilot branch after 15 mos. It had side-by-side banking, and daily surveys showed that 90% loved it and bankers reported more rapport with customers, but technology and process integrated issues remained. There is also a free service area for internet use, fax, etc. There are no rope queuing for friendlier environment. There are community donations which shows that the bank is still a part of the community.

Case 3
Paulien Strijand from Yahoo! is the Senior Director of User Experience Design. She works mostly with products which she thinks exist in their own right. She will talk about Yahoo! Answers which is an online Q&A community. Premise is based on collective knowledge is more powerful. The design process is iterative and user centered. The prototype used the metaphor of a knowledge tree where it grows with added knowledge. Through testing found that users were confused on what the leaves and branched were all about. Through results got Ask/Answer browse which is the current product. There are many differences for Yahoo! Answers such as brand, and customer focus through extensive use of Wizard of Oz where they learned about users on live products. This product is also international and has a community and engages people. There is a leader board where you can see points and people who have answered the most number of questions. There is also an issue of quality and community members need to feel safe and trusted. This is accomplished through Best Answer Voting, Peer Review, and Minimizing Abuse.

Discussant 1
Mary Jo Bitner is a professor at Arizona State University where she focuses on service management themes, customers, and competing through services. When working across industries she found challenges in service innovation. There is a real case for service innovations.
-Cost case-bottom line improvements
-Revenue focus-attract and retrain customers

When going into services she finds that there is a need for new tools for new service development process. She found that she needs to not only talk to customers but also employees. Also it is challenging to test concepts with employees. A lot of the work she has done is in asking people to significantly change their whole behavior patterns.

Discussant 2
Terry Winograd talks about a shift of a point of view. He says you need to think about overall experience with users with service design as other piece in shift of view. You also need to think about broad group of stakeholders. Here there is a tremendous emphasis on multiple stakeholders. Situated environments are also very important for service design. You also need to think about the extension-of where you are going beyond. The important question is how do you implement service design-what are the steps-where are there opportunities.


Q & A

Q: What skill set and background does your team have?
-User research, interaction designer, depending on client can bring in more people, etc.
-Ethonographer, marketing, pr, interaction designer, etc.
-Researcher, anthropologist, designer, coordinator, etc.

Q: How much of services are design and how much are grown?
-Everything is in some sense design.
-She works a lot with B to B services and the design methods that are talked about today aren’t really used. There isn’t a lot of times a good common understanding. She thinks there are incredible opportunities for people who understand the human aspects.
-It’s so integrated, it’s hard to say. So design is an important part, but you need organic growth. As designers it is our jobs to watch and see.
-Service areas in general have entropy over time, and it takes a lot of energy and effort for the company to maintain it. Organizations need a wholistic view of getting people together on same track.
-She says it is more grown. She really focuses on observing changes that are needed. It’s really about hypothesis-if I do this, it changes this. There is a design aspect but more of an act of growing.

Q: When do designer finish? Where is the hand-over point?
-Designers cannot own everything, so it is vital to bring people over from the beginning, so they know what’s going on. As a team, we develop ideas together, but clients need to know what’s going on as well.
-Many ideas and concepts are almost easier to deal with in small service setting than large business. If you’re a big firm like IBM it’s very hard to implement new services.

Q: How much of service design is a form of process design?
-Process design is a way of capturing a process, so it is a part of service design. Service design in general is about what you tell your friends, why you went there in the first place, so it’s bigger.
-Process is relatively confined. The better a process works, it really guides you down a path. Whereas service is about what people do with it and how do they interpret it

-There is a tension around how much do we want to standardize and be able to predict, control cost, save money
and how much do we want to help them. There is a trade-off there with the issue of standardization vs personalization.

-We really didn’t know what people wanted when we started Yahoo! Answers. It turns out people are doing it for many different reasons. Some want points, some want to show off, some are concerned with their identity, etc.

Posted by sv10 at April 25, 2006 04:12 PM

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