NMTL 2014, Oslo Innovations in public transport Service Design Manager Jarno Ekström, HSL
Perspectives of this presentation Design (MA/idbm) Design management User centric design Product design Graphic design (hand) Craft Service design Innovations Services Advertising Service dominant logic Customer value in experience Marketing (MBA/sid)
About innovations
About innovations In general innovation means solving existing problems On the other way round innovation means creating problems for existing solutions Is there a need for our innovation?
About innovations Innovation is the process of making changes to something established by introducing something better and, as a consequence, new. Critical word here is better - compered on what and better for whom?
About innovations World is full of innovations that introduced something better for users or customers because a new technology made it possible.
SMS messages and a plastic bicycle
Changing paradigm in marketing, from products to services
Services or products?
Service Dominant logic In traditional marketing literature perspective of value has been trade-off between service quality and price and also functional qualities like how to maximise customers timesaving and cost-effectiveness. Value has been defined as embedded in services and products by the producer. (Steve Vargo and Robert Lusch, 2004)
Service Dominant logic When in service dominant logic a company can only make value proposition attributes for the customer. The actual value is co-created with the customer. In other words, the customer realizes value when using a service or a product. Customer has a multiple role in both as a co-creator and as a judge of personal service value. (Steve Vargo and Robert Lusch, 2004)
Value-in-use through service experience PROVIDER SPHERE Production (potential value) JOINT SPHERE Value creation in interaction (real value) CUSTOMER SPHERE Independent value creation (real value) Christian Grönroos, Hanken School of Economics, 2013
Service Dominant logic The whole society is a complex system of services Evert Gummesson Stockholm University School of Business, 2012
The most important innovation in public transport therefore is
a customer
Self evident? We are super customer centric company 80% to 8 % (Bain & Company Survey 2005) In reality many hidden barriers blocks being customer centric Waterfall model We are all customers so why you keep talking about them We cannot listen every customer there is millions of them
The need for customer centric thinking (doing) in HSL
Customer centric thinking in HSL HSL biggest challenge in near future as an organisation is to make a change from production centric thinking into customer centric thinking Former Chairman of HSL Executive Board Tatu Rauhala 2012 In HSL new strategy 2025 customer has a core role and customer centric thinking is one of the HSL values Co-operation, on-going development environmental responsibility
Up dates ahead in infrastructure Ring Rail Line => 2015 Rail road connection to Helsinki Air port Metro Western extension to Espoo Automation metro Network of trunk buss routes 2020 more than 10 routes
Up dates ahead in back office systems Ticketing and Information system 2014 Renewing the current travel card system by the end of 2015 Implementation of real-time information in the whole region Renewal of the fare and ticketing system 2017 From municipality borders to distance basics pricing model
Huge challenges ahead in customer experience! Even bigger opportunity to make a HUGE leap in our customer experience
To tackle these challenges in customer experience, we will use service design
Service design in HSL Vital to gain understanding about the nature of services and service development process Role of service design agency as a coach than problem solver
Service design in HSL Service design team Transport services Passenger services Public transport planning Marketing and Communication Service design team is composed by 1-2 representatives from each HSL department Mission is to co-ordinate, to inform and especially to pass on gathered (SD) knowledge back to each department Transport systems Finance and Administration Knowledge going to each department
Service design in HSL Service design project team Marketing and Communication Transport services Passenger services Public transport planning Finance and Administration Transport systems SD project team expands according to the needs of a project in question Project team can be in responsible of a total service development project or it may produce for example customer insight as a supporting data Knowledge going to each department
Why service design? 1. Design methods are also a tool in changing the mind set of an organisation Design thinking and especially co-design (co-creation) Service design is a one tool in implementing HSL strategy bottom up, learning by doing 2. Better services, better customer experience and more value for our customer
Thank you! jarno.ekstrom@hsl.fi