"Design Fundamentals" entries

Every (successful) company is a service company

Designers are helping to shape the businesses, products, and services in our changing economy.

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Loosely defined, service is the relationship between consumer and company. There are traditional service companies, such as hotels and transportation companies, and their modern counterparts Uber and Airbnb.

Then there are companies that are changing their identities from product companies to service companies, with varying degrees of success: for example, IBM, morphing from hardware to services, and Adobe, moving its software model to a cloud-based, subscription-based service. Whether you’re new to the game or established, almost any product today must have a service aspect.

Why does this matter — and what does it mean for designers?

Tim O’Reilly wrote a recent piece on how the economy is being shaped by software and connectedness. He explained:

One way to think about the new generation of on-demand companies, such as Uber, Lyft, and Airbnb, is that they are networked platforms for physical world services, which are bringing fragmented industries into the 21st century in the same way that ecommerce has transformed retail.

The evidence is clear: we’re living in an attention economy, with thousands of devices and companies competing for eyeballs. Our products are now connected and smart, and the consumer-product relationship is long term, with data fueling the courtship. It’s no longer enough to have a great product — it needs to be coupled with a great service. Service is at the heart of any user experience, and designers are crafting this experience, forging the connections between products and consumers. Read more…