Kuliah Sesi #5

Product and service design

Dr. Zaroni, S.E, M.Si., CISCP, CFMP, CMILT

Certified International Supply Chain Professional

Certified Financial Management Professional
Chartered Member in Logistics & Transport

Kuliah Manajemen Operasi

UPN Jakarta
13 September 2021
Zaroni
zaroni.umn@gmail.com
0812 1234 4693

• Direktur Keuangan PT Pos Logistik Indonesia (2016-Mar 2021).

• Direktur Keuangan PT Harum Jaya Mineral (Apr 2021 –
sekarang).
• Pengurus DPP Masyarakat Ekonomi Syariah (MES) Komite
Perdagangan dan Logistik, DPP Asosiasi Logistik dan
Forwarder Indonesia (ALFI), dan Supply Chain Indonesia,
Board of CILT Branch Indonesia.
• Dosen di Universitas Multimedia Nusantara (Kompas
Gramedia), Universitas Islam Indonesia, UPN Veteran Jakarta.
• Penulis buku.
• Kontributor ahli Truckmagz.
• Pesepeda dan pejalan kaki.
Key topics
• Product decision
• Product life cycle
• Product development stages
• Quality function deployment
• Product design
• Service design
• Service design tools
• Case
Product decision
• The selection, definition, and design of products.
• The objective of the product decision is to develop and implement a
product strategy that meets the demands of the marketplace with a
competitive advantage.
• As one of the 10 decisions of OM, product strategy may focus on
developing a competitive advantage via differentiation, low cost,
rapid response, or a combination of these.
Product Life Cycle, Sales, Cost, and Profit
Cost of
Development
& Manufacture
Sales Revenue
Sales, Cost & Profit .

Profit
Cash flow
Loss
Time

Introduction Growth Maturity Decline

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Product Life Cycles
Introductory Phase. Because products in the introductory phase are still being “fine- tuned” for the market, as are their production
techniques, they may warrant unusual expenditures for (1) research, (2) product development, (3) process modification and enhancement, and
(4) supplier development. For example, when the iPhone was first introduced, the features desired by the public were still being determined.
At the same time, operations managers were still groping for the best manufacturing techniques.

Growth Phase. In the growth phase, product design has begun to stabilize, and effective forecasting of capacity requirements is necessary.
Adding capacity or enhancing existing capacity to accommodate the increase in product demand may be necessary.

Maturity Phase. By the time a product is mature, competitors are established. So high- volume, innovative production may be appropriate.
Improved cost control, reduction in options, and a paring down of the product line may be effective or necessary for profitability and market
share.

Decline Phase. Management may need to be ruthless with those products whose life cycle is at an end. Dying products are typically poor
products in which to invest resources and managerial talent. Unless dying products make some unique contribution to the firm’s reputation or
its product line or can be sold with an unusually high contribution, their production should be terminated.1
 Few Successes
Number

2000 Ideas
1750
Market Design review,
1500 requirement Testing, Introduction
1000
Functional
1000 specifications
500 Product
500 specification
One
100 25 success!
0
Development Stage
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 5-8
Humor in Product Design
As the customer As Marketing
wanted it. interpreted it.

© 1984-1994 T/Maker Co. © 1984-1994 T/Maker Co.

As Operations made it. As Engineering

designed it.

© 1984-1994 T/Maker Co. © 1984-1994 T/Maker Co.

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

 What is a Product?
• Need-satisfying offering of an organization
• Example
• P&G does not sell laundry detergent
• P&G sells the benefit of clean clothes
• Customers buy satisfaction, not parts
• May be a good or a service

PowerPoint presentation to accompany Heizer/Render -

Principles of Operations Management, 5e, and
Operations Management, 7e
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Product Components

Product

Brand Product
Package
(Name) Idea

Physical Quality Service

Features
Good Level (Warranty)

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Quality Function Deployment
• Identify customer wants
• Identify how the good/service will satisfy customer wants
• Relate customer wants to product hows
• Identify relationships between the firm’s hows
• Develop importance ratings
• Evaluate competing products

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Manufacturability and
Value Engineering
• Benefits:
• reduced complexity of products
• additional standardization of products
• improved functional aspects of
product
• improved job design and job safety
• improved maintainability of the
product
• robust design

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

 Environmentally
Robust design
friendly design

Issues for

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Product Value analysis
Time-based
competition

Development
Computer-aided
Modular design
design
 Product design is the combination
of manufacturing capabilities with
product and business knowledge
What is to convert ideas into physical and
product and usable objects.
service design
in operation Service design is the coordination
and combination of people,
management? communication, and material
components to create quality
service.
 The creation of products with new or
different characteristics that offer
new or additional benefits to the
customer.
Product
design Product development may involve
modification of an existing product or
its presentation, or formulation of an
entirely new product that satisfies a
newly defined customer want or
market niche.
 Product design

Product design provides a comprehensive understanding of what the final product would look like,
feel like, what tasks and with what tools it will solve.

Appearance;
Formally, product design can be divided into three
Functionality;
fundamental components:
Quality.

Of course, to create a successful, competitive product, you will need to carefully work out all these
three points: an attractive, modern appearance; a convenient functionality that allows users to cope
with their pain points (or achieve certain goals); maximum availability, high performance, and
security.
Product designer
• A product designer is responsible for
the user experience of a product,
usually taking direction on the
business goals and objectives from
product management.
• Although typically associated with the
visual/tactile aspects of a product,
product designers can sometimes also
play a role in the information
architecture and system design of a
product as well.
 • While companies can always
benefit from a product designer,
they play a particularly important
role during key stages of the
product development.
Product • During the initial design and proof-
of-concept phase, they can
designer translate the goal of the product
into a functional user experience
and provide requirements feedback
regarding what must be in place for
users to achieve their goals.
What are the Key Responsibilities
of a Product Designer?
• Product designers may be asked to operate at both very high-
level design (such as designing the overall system or
information architecture) and very granular details (pixel-
specific mockups or CSS templates).
• Regardless of what they’re working on, the user experience is
front-and-center for their work.
• Product designers have a number of artifacts they may deliver
as part of their job, including but limited to:
• Prototypes
• Wireframes
• Mockups
• User Journey Maps
What are the steps in product design?

• The steps in the product design process include:

• Brainstorming.
• Defining the Product.
• Conducting the User Research.
• Sketching.
• Prototyping.
• Compiling Specifications.
• Producing the Factory Samples.
• Sample Testing.
• Starting the Production/Development
• Providing Quality Assurance
 How to Evaluate Product Design?
• To obtain an objective assessment of the resulting product design, we recommend using
a SWOT analysis. It implies answers to questions in four directions, in particular:
• What are the advantages of your product? (how valuable the implemented
functions are for the target audience, how easily can this value be conveyed to
consumers, which of users’ problems does it solve, with what indicators would you
measure the success of your idea, how strictly were the deadlines upheld, etc.).
• What are the disadvantages of your product? (is there ways to somehow improve
your idea, what your team lacks for its implementation, what can serve as an
obstacle for its successful promotion to the target audience, what are the
disadvantages of your idea from the point of view of the target audience, etc.).
• What are the possibilities for the promotion of your product? (how easy it will be
to promote it on the market, what are its competitive advantages, what promotion
channels would be the most viable, how successful will it be in the long term, etc.).
• What are the possible threats to the successful promotion of your product?
(would the disadvantages of the product create notable risks for its promotion,
what financial problems you may encounter, are there any competing products
that cannot be outperformed easily, etc.).
How to Improve Your
Design Process?

• Study your customers thoroughly

• Do not be afraid of problems
• Plan your budget to the maximum
What are the 5 aspects
of service design?
• There are five major aspects of service
design.
• These are:
• service solutions,
• management information systems
and tools,
• technology
and management architectures
and tools,
• processes and measurement
systems.
 People
• This refers to the people, skills and
competencies involved in the provision of IT
services

What are the Products

• This refers to the technology and management
four P's of systems used in IT service delivery

service Processes

design? • This refers to the processes, roles and activities

involved in the provision of IT services
Partners
• This refers to the vendors, manufacturers and
suppliers that are used to assist and support IT
service provision
A service design experience often involves multiple
channels, contexts and products

• Marc Stickdorn and Jakob Schneider, authors of This is Service Design Thinking, identify
five key principles—for service design to be:
• User-centered – Use qualitative research to design focusing on all users.
• Co-creative – Include all relevant stakeholders in the design process.
• Sequencing – Break a complex service into separate processes and user journey
sections.
• Evidencing – Envision service experiences to make them tangible for users to
understand and trust brands.
• Holistic – Design for all touchpoints throughout experiences, across networks of users
and interactions.
How to Do Service Design Best

• First, identify these vital parts of any service encounter:

• Actors (e.g., employees delivering the service)
• Location (e.g., a virtual environment where customers receive the
service)
• Props (e.g., objects used during service delivery)
• Associates (other organizations involved in providing the service – e.g.,
logistics)
• Processes (e.g., workflows used to deliver the service)
How to Do Service Design Best
• You’ll need to define problems, iterate and address all
dimensions of the customers’, users’ and business needs
best in a holistic design. To begin, you must empathize with
all relevant users/customers. These are some of the most
common tools:
• Customer journey maps (to find the customers’
touchpoints, barriers and critical moments)
• Personas (to help envision target users)
• Service blueprints (elevated forms of customer journey
maps that help reveal the full spectrum of situations where
users/customers can interact with brands)
 • That means you should accommodate your users’/customers’
environment/s and the various barriers, motivations and feelings
the complete experience they’ll have. Here are some core considerations:
Remember to design for
• Understand your brand’s purpose, the demand for it and the
ability of all associated service providers to deliver on promises.
• The customers’ needs come ahead of the brand’s internal ones.
• Focus on delivering unified and efficient services holistically—as
opposed to taking a component-by-component approach.
• Include input from users.
• Streamline work processes to maximize efficiency.
• Co-creation sessions are vital to prototyping.
• Eliminate anything (e.g., features, work processes) that fails to
add value for customers.
• Use agile development to adapt to ever-changing customer
needs.
CASE STUDY
• SHEPTYTSKY CENTER
Indoor Navigation

About the Client

Much-anticipated Andrey Sheptytsky Center is an innovative modern
educational center, which provides advanced opportunities for study,
collective work and research projects. It’s open for students and
teachers of Ukrainian Catholic University, as well as everyone eager to
learn and grow.
The new information-resource Center simultaneously combines various
functions: it is a world-class humanities library, as well as a modern
educational center. The ground floor of the library is devoted to public
creativity. The main features of the new library are flexibility and
openness, as they play a great role in its design and structure.
Project summary
Duration:
2 months

Team:
Art-director
Graphic Designer

Location:
Ukraine, Lviv
CASE STUDY
SHEPTYTSKY CENTER
Indoor Navigation

About the Project

Distinct modern architecture of Sheptytsky Center was created
by Stefan Behnisch. The main idea of his work was to combine
modern architecture and traditional ukrainian visuals, such as
classic ukrainian embroidery.
Our team was asked to create integral visual design for all
navigation inside the building, including information points and
decoration elements. In our work we tried to extend and
develop the aesthetics, created by Stefan’s team, as well as
keep the navigation system design clear, functional and
effective for all kinds of visitors.
• Creative Process
As the opening was already announced and
all the work needed to be done quickly, we
took an iterative approach.
While developing UX design for navigation
system this time, we tried 3 different
concepts to find the most suitable one for
very different audiences: students,
teachers, guest speakers, foreigners. We
were working on the interior side while the
building was being constructed, so we at
the first stages we working mostly with
sketches, renders and our imagination:)
Final Design
As the final concept was chosen,
we focused on designing each
single item, such as icons, pointers,
door signs, floor numbers,
decorative elements and more. In
general our team delivered more
than 150 design layouts. Designing
a navigation system for visitors was
quite a challenge for us, since we
are mostly focused on UX/UI
design and branding, so our team
paid additional attention to
polishing every single detail and
testing all designs in real life
before sending them to
production.
• Final Design
Final Design
 • Final Design

“It is possible to say much about architecture, its philosophy,

but a good university is based on an idea, the concepts of
teaching, and architecture can help in this matter. And in order
to understand how to design such a building, it is necessary to
feel where its idea lies, the philosophical vision and mission of
the university.”

Stefan Behnisch, main architect

 • Project Name: Airport Experience - Commercial Journey Vision
Case Study
• Category: Professional, Commercial
• Service Design Award 2017, nominated project for Professional Award
Essense: Service Design • Organisation: Essense
Airport Experience - • Clients: Schiphol Group - (Amsterdam Schiphol Airport) and Britta M. Sluis -
Manager Consumer Marketing
Commercial Journey • Website: http://essense.eu/clients/schiphol/
Vision • Company site: http://essense.eu/
Case Study

Essense: Service Design Airport Experience - Commercial Journey Vision

• This project by Dutch company
Essense is a finalist for the Service
Design Award 2017 in the category of
Professional, Commercial work.
• Essense worked closely with the
Consumer Marketing team at Schiphol
Group (Amsterdam Schiphol Airport)
to develop a customer experience
vision for all touch-points of the entire
passenger journey across digital and
physical channels, from buying a
ticket to boarding a plane.
1. Process and Output
Essense worked with Schiphol Group Marketing team between
July 2016 and January 2017 to develop a customer experience
vision for all commercial touch-points of the entire passenger
journey across digital and physical channels (omni-channel).

1.1 Framing: building on existing insights

An existing basic ‘passenger journey’ analysis (with emotion
curve) was used as starting point for this project. This only
covered the customer’s current emotional experience and
therefore triggered the need for identifying new service
scenarios as it lacked actionable insights for identifying new
commercial opportunities.

To achieve this, Schiphol Group hired Essense for defining a

MAPPING THE CUSTOMER JOURNEY - ESSENSE
clear vision for commercial service scenarios based on
customer insights in the context of the entire customer
journey. We proposed to frame the full journey context,
identifying commercial opportunities and defining relevant
commercial scenarios, enhanced with a visual and tangible
vision on the desired customer experience across all touch-
points.
Complementing the Mapping these core areas over the different phases of the passenger
passenger journey journey provided a holistic view / journey perspective and thereby
curve, Essense mapped also created shared ownership of the customer experience between
Schiphol’s three core the 3 marketing stakeholders.
service areas to the Then the ‘AS-IS’ customer journey was completed by adding
phases of the actionable findings; consisting of pain-points, needs and
passenger journey: 1. improvements retrieved from desk research related to the
Parking, 2. Plaza (retail touchpoints the traveller currently interacted with. All insights were
and services prior to then clustered into recurring themes: Time: How much time do I
security) and 3. See have left?, Findability: Where can I find what?, Expectation: What
Buy Fly (retail and can or should I do? and Ease: What can help me to feel unburdened?
services after security),
By visualizing this all onto one poster, making it tangible and
which were all three
scannable, it helped us provide the client with a better
developing their own
understanding of their “commercial playing field”: touch-points and
propositions and
possible ‘service’ solutions related to journey phases (‘core areas’),
customer interactions
that could be used to relieve current customer pain points.
separately at the time.
1.2 Empathy: a service-design way of working to
bring focus and direction
While defining the ‘AS-IS customer journey’, existing
insights and learnings were validated and enriched
through a two-day ‘service safari’ at Schiphol
Airport with the respective client ‘area experts’.
This approach helped both Essense and the client
to develop a holistic understanding of passenger’s
experience and the ecosystem at the airport,
bringing our findings from the AS-IS journey to life.
This also included additional learnings about the
context and commercial playing field (such as
parking competitors near the lounge, external
security personnel, etc.) that we would have missed
without the Safari. To ensure focus and reduce
complexity / noise, we limited the scope to Dutch
leisure travellers and their relevant touch-points
regarding products and services.
This service safari also clearly showed Essense that there
was little synergy between the three core airport areas.
For example: When hopping on the shuttle bus from long-
term parking to the airport, a parking video was shown
(on repeat) of the parking lot you just came from.
There was no promotion / mention of what to expect at
the airport where people were heading to (e.g.
promotions for Plaza nor See Buy Fly). Desk research had
indicated that Dutch leisure travellers were stressed in
this part of the journey and therefore receptive to helpful
information (e.g. Can I still buy pain killers? Is this before
or after security? How long is the que at the check-in gate
so I know I can still get there in time or not?, etc.. ). This
shows that there was no journey experience yet, but 3
silo experiences.
1.3 Co-creation: Commercial These sessions were done in two parts. During the first part
scenarios participants were asked to draw their customer journey and to
highlight pleasure and pain points. The second part consisted of
Enhancing the ‘AS-IS journey’ with a method called conceptual design proposals, where
in-context findings and observations participants were exposed to a total of 18 statements (concept
enabled Essense to formulate a scenarios) that incorporated both ‘AS-IS’ findings as well as
number of commercial moments of concept mock-ups (in some cases paper prototyped) that were
truth in relation to the customer assumed to match their customer needs. Participants were
needs. asked to respond to these statements both based on experience
Essense involved a total of 20 as well as on the customer journey they just created. Not just
passengers in 5 co-creation sessions for validation but also for inspiring cocreation building on the
to validate these needs and (latent) need.
moments of truth, to then build on
these and work out relevant
commercial scenarios with them.
Our client stakeholders were also asked to (passively) participate in these
sessions, which they described as a ‘positive confrontation’ of which services and
values Schiphol Airport was associated with by passengers. For example, none of
the participants knew it was possible to buy products when departing and pick-up
when arriving, or passengers claimed Schiphol retail was expensive while our
client assumed they were cheaper than other retails shops.
1.4 Holistic mindset: from silo thinking to horizontal service solutions
After validating and fine-tuning the customer insights and co-creating relevant service scenarios, we formulated the
customer needs explicitly per phase (yellow row) and defined 14 commercial focus points (lightblue row) that we
mapped on these phases and customer needs.

This was also the moment where the client These were then reviewed and
stakeholders started thinking less in ‘silos’ (their core discussed in a client-workshop
areas), but more in how the different areas could with all involved stakeholders /
support each other in the journey mindset. For domain experts. Essense
example: Insights had shown that passengers are facilitated this workshop and this
concerned about having or getting groceries at home really showed that the
when coming back from holidays. stakeholders were now taking
Yet they also wanted to go home as soon as possible ownership over the insights and
or did not want to have a hassle with their luggage, so scenarios as they had attended
they were not inclined to stop at ‘Plaza’ to get their the co-creation sessions. They
groceries. To address this, the client suggested to discussed the importance of
offer getting groceries while waiting for your luggage certain commercial focus areas
to arrive (e.g. a ‘breakfast’ box vending machine). Or with examples they had heard
an idea that groceries were even collected for you directly of their customers, which
and placed in your car once picked up from one of was a great way for internalising
Schiphol’s parking lots or even valet parking. customer insight.
1.5 Context: bringing service scenarios to life
Service scenarios as described above were all gathered and clustered to
three commercial pillars, that together with the commercial focus areas,
customer needs and commercial touch-points formed the customer
experience vision. These customer experience pillars were defined as:
Guide Me, Relieve Me and Excite Me.

These pillars were deliberately formulated in a snappy manner in

order to make them accessible and easily memorable within the
entire Schiphol organisation, not only for the stakeholders
Essense was working with directly. Per pillar, Essense developed a
holistic commercial scenario boards (see above) across channels,
phases and services. These scenarios were scored on commercial
KPI’s (e.g. NPS, shop intention) and rated on design principles (e.g.
omni-channel, inform proactively, enhance digitally).
1.6 Impact: Customer experience pillars as integral part of the
roadmap
Once the experience strategy was in place, Essense facilitated
the roadmap definition by bringing commercial and customer
experience objectives together. This was done by defining and
mapping marketing activities to pillars. The pillars are now used
to bring focus to the marketing roadmap.
•Project Name: Airport Experience -
Commercial Journey Vision
•Category: Professional, Commercial
•Service Design Award 2017, nominated
project for Professional Award
•Organisation: Essense
•Clients: Schiphol Group - (Amsterdam
Schiphol Airport) and Britta M. Sluis - Manager
Consumer Marketing
•Website: http://essense.eu/clients/schiphol/
•Company site: http://essense.eu/
Service Design Tools
• Personas
• Narrate the different types of users,
based on clusters of behaviours and
needs.
• Also called
• Human Archetypes, Behavioural
Archetypes, User Profiles
Each persona is a reference model
representative of a specific type of users.
Technically, they can be called behavioural
archetypes when they focus on capturing
the different behaviours (e.g. “the
conscious chooser”) without expressing a
defined personality or socio-demographics.
The more the archetypes assume a realistic
feeling (e.g. name, age, household
composition, etc.), the more they become
real personas, fully expressing the needs,
desires, habits and cultural backgrounds of
specific groups of users.
Value Proposition Canvas

• Describe the value offered by the What is it?

service in simple words The value proposition canvas is a framework that helps
designers ensure that there is a fit between the product-
• Also called service idea and the market. It gives a detailed look at the
• Value Orientation, Onliness Statement relationship between customer segments and value
• Use it to propositions, highlights roles involved, pains and gains and
how the service eventually matches with the proposition
• Validate and strenghten a concept
solution before moving forward with and its pain relievers and gain creators.
development.
• Remember to
• Look at gains as hidden
ambitions and goals (not simply
the opposite of pains).
Business Model Canvas
• Plan and understand in advance the What is it?
business model and constraints of the The business model canvas is a synthetic chart providing an
service you are designing. overview of the service in terms of value proposition,
• Also called infrastructure, types of customers and financial model. It
helps understand what activities are needed in order to
• Product/Market Fit
build and deliver a service, and identify potential trade-
• Used it to offs.
• Describe, design, challenge and pivot your
business model.
• Remember to
• Focus on the big picture, also the smallest
details come with a cost.
Offering Map
• Describe what benefits a service What is it?
The goal of the offering map is to clarify what the service provides
can bring to its users to the users, detailing the value proposition into more specific
• Used it to clusters of features. There’s not a standard model for this tool: the
• Shape and explain the service model to an offering could be described with words, images or through a simple
expert audience. graph. As services grow in complexity, the offering map can also
become more articulated, showing distinct macro-areas of offer,
• Remember to and then narrowing them down into more specific areas and
• Flash it out from the user perspective: what can functions.
the service organization do for them?
References
• Operations management, Sustainability and Supply Chain
Management, Heizer, Render, and Munson, 12th edition, Pearson,
2017
• Operations And Supply Chain Management: The Core, Jacob & Chase,
Fifth Edition, McGraw-Hill Education
Learn More about Service Design
• Learn all about service design by taking our course: https://www.interaction-
design.org/courses/service-design-how-to-design-integrated-service-experiences
• Here’s an insightful piece putting the rise and power of service design in
perspective: https://boagworld.com/digital-strategy/service-design/
• Discover more about service blueprinting here: https://trydesignlab.com/blog/what-is-service-
design/
• Read this eye-opening piece exploring more areas of service
design: https://articles.uie.com/service-design-thinking/
• See Uber in a strictly service design context: https://medium.com/@kzynakamura/uber-service-
design-teardown-c5777a9a9527