Understand the strategic
importance of product and service
design in business
Identify key guidelines for
successful service design
Analyze factors influencing design
choices
Explore design considerations for
products and services
Evaluate the role of environmental
sustainability in design
Examine the impact of technology
on design processes
Understand the significance of
stakeholder involvement in design
Introduction
Product and service design is a critical aspect of
business operations that involves creating and
developing offerings to meet customer needs and
market demands. It encompasses the process of
conceptualizing, planning, and producing goods or
services that align with organizational goals and
customer expectations.
Strategic
Importance
Design plays a crucial
role in cost
management, quality
assurance, time-to-
market, customer
satisfaction, and
competitive advantage.
Guidelines for
Success
Successful design
involves considerations
such as demand
forecasts, cost
projections, and
stakeholder alignment.
Factors
Influencing
Design Choices
Legal, ethical,
environmental, and
technological factors
impact design decisions
Design
Considerations
Focus on customer-
centric approaches,
simplification,
standardization, and
robustness in design.
Back to Agenda
Environmental
Sustainability
Emphasis on
sustainable practices,
life cycle assessment,
and strategies for
reducing, reusing, and
recycling
Technology
Integration
Leveraging
technological
advancements for
innovation and
efficiency in design
processes
Stakeholder
Involvement
Collaboration across
functions,
understanding
stakeholder needs, and
ensuring alignment with
organizational goals.
Effective
Practices
Summarizing key points
and providing
recommendations for
successful product and
service design.
Translating Specifications
into Process Specifications
| Strategic Importance of
| Product and Service Design
. A. Impact on Cost, Quality, and Time-to-Market
. B. Relationship to Customer Satisfaction and
Competitive Advantage
+ C.Involvement of Various Departments in Design
Process
Impact on Cost, Quality, and
Time-to-Market (Cost)
Design decisions directly
influence the cost of producing
goods or delivering services.
Integrating cost analysis into
product design can lead to more
economical production
processes.
Impact on Cost, Quality, and
Time-to-Market ( Quality )
Product and service design plays
a significant role in determining
the quality of offerings.
> Quality function deployment is
an approach used to gather
customer input for design and
improve overall quality.
Impact on Cost, Quality, and
Time-to-Market ( Time-to-market )
Design impacts the time it takes
to bring a product or service to
market.
Designing for innovation and
adaptability can help
organizations respond quickly to
changing market trends.
Product and
service desi
directly influences
customer
satisfaction by
aligning offerings
with customer
wants and needs.
THE RELATIONSHIP
BETWEEN PRODUCT
AND SERVICE DESIGN,
CUSTOMER
SATISFACTION, AND
COMPETITIVE
ADVANTAGE,
Customer
Satisfaction:
Designing products
and services that meet
or eed customer
expectations enhances
satisfaction and
loyalty.
Understanding
customer preferences
and incorporating
them into design
decisions is essential
for driving customer
satisfaction.
THE RELATIONSHIP
BETWEEN PRODUCT
AND SERVICE DESIGN,
CUSTOMER
SATISFACTION, AND
COMPETITIVE
ADVANTAGE,
Customer
Satisfaction:
Personalization, Balancing efficiency and
customization, and personalization in
attention to detail service design is crucial
in design can to avoid depersonalizing
enhance the overall services and negatively
customer impacting customer
experience and perception of quality.
satisf
THE RELATIONSHIP
BETWEEN PRODUCT
AND SERVICE DESIGN,
CUSTOMER
SATISFACTION, AND
COMPETITIVE
ADVANTAGE,
Competitive
Advantage
Designing innovative Design-driven
products and services companies that
that address unmet prioritize custome
customer needs can centric approaches
Effective product
and service design
can provide a
competitive
create a unique selling often outperform
proposition and set a competitors by
delivering superior value
advantage by
differentiating
offerings in the
marketplace.
company apart from
competitors. and exper!
THE RELATIONSHIP
BETWEEN PRODUCT
AND SERVICE DESIGN,
CUSTOMER
SATISFACTION, AND
COMPETITIVE
ADVANTAGE,
Competitive
Advantage
Designing for cost
efficiency, quality,
and time-to-
market can
enhance
competitiveness
and profitability.
Continuous
improvement in design
processes and offerings
can help sustain
competitive advantage
in dynamic markets.
INVOLVEMENT
OF VARIOUS
DEPARTMENT
MARKETING:
Marketing is involved in
refining existing products,
developing new offerings,
and formulating quality
and cost goals based on
market analysis.
Marketing provides insights
into market demand,
customer preferences, and
competitive landscape,
guiding design decisions.
INVOLVEMENT
OF VARIOUS
DEPARTMENT
OPERATION:
Operations collaborate
with other departments to
test prototypes, optimize
production processes, and
ensure quality and cost
targets are met.
Operations teams are
responsible for
manufacturing, service
delivery, and ensuring that
design requirements are
feasible and efficient to
implement.
INVOLVEMENT
OF VARIOUS
DEPARTMENT
ENGINEERING:
INVOLVEMENT
OF VARIOUS
DEPARTMENT
FINANCE AND
ACCOUNTING
Finance and accounting
departments are involved in
setting cost targets,
analyzing financial
implications of design
decisions, and monitoring
budget constraints.
These departments provide
input on cost management,
profitability analysis, and
financial feasibility of design
initiatives.
INVOLVEMENT
OF VARIOUS
DEPARTMENT
INFORMATION
TECHNOLOGY
(IT)
IT departments support the
design process by providing
technological solutions,
data analysis, and digital
tools for design
collaboration and
implementation.
IT plays a role in integrating
design specifications with
digital platforms, systems,
and processes to streamline
design workflows and
enhance efficiency.
INVOLVEMENT
OF VARIOUS
DEPARTMENT
HUMAN
RESOURCES
(HR)
HR departments are
involved in recruiting,
training, and developing
talent with the necessary
skills and capabilities to
support product and service
design.
HR ensures that staff
training and reward policies
align with service
expectations and support a
culture of innovation and
collaboration in the design
process.
GUIDELINES
FOR
SUCCESSFUL
PRODUCT AND
SERVICE
DESIGN
CONSIDERATIONS FOR DEMAND
FORECASTS AND COST PROJECTIONS IN
PRODUCT AND SERVICE DESIGN
Demand Forecast
Cost Projections
Integration of Demand
Forecasts and Cost
Projections
THE IMPACTS OF NEW PRODUCT OR
SERVICE INTRODUCTIONS ON AN
ORGANIZATION AND ITS SUPPLY CHAIN
ARE SIGNIFICANT AND CAN INFLUENCE
VARIOUS ASPECTS OF THE BUSINESS.
Organizational Impacts
Supply Chain Impacts
Integration and
Collaboration
NEED FOR A SYSTEMS APPROACH AND
STAKEHOLDER INVOLVEMENT IN DESIGN
PROCESS
Systems Approach Stakeholder Involvement
FACTORS
INFLUENCING
DESIGN CHOICES
7
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OT
ant STE
LEGAL, ENVIRONMENTAL, AND
ETHICAL CONSIDERATIONS
LEGAL CONSIDERATIONS
Compliance
+ Product and service design
must comply with relevant
laws, regulations, and
industry standards to ensure
legal compliance and avoid
potential penalties, lawsuits,
or reputational damage.
Intellectual Property
+ Organizations need to protect
their intellectual property
rights through patents,
trademarks, copyrights, and
trade secrets to safeguard
innovations, designs, and
proprietary information from
infringement or
misappropriation
LEGAL CONSIDERATIONS
Product Liability
¢ Designers must consider
product safety, warning
labels, and instructions for
proper use to mitigate the
risk of product liability
claims, recalls, or lawsuits
arising from injuries,
damages, or defects.
Contractual Obligations:
« Design decisions should align
with contractual agreements,
warranties, and service level
agreements to uphold
commitments to customers,
suppliers, and partners and
avoid disputes or breaches of
contract.
ENVIRONMENTAL CONSIDERATIONS
Sustainability Life Cycle Assessment
+ Organizations should conduct
life cycle assessments to
evaluate the environmental
footprint of products and
services from raw material
extraction to disposal,
identifying opportunities for
improvement and eco-design
strategies.
+ Product and service design
should incorporate
sustainable practices,
materials, and processes to
minimize environmental
impact, reduce waste,
conserve resources, and
promote eco-friendly
solutions.
ENVIRONMENTAL CONSIDERATIONS
Regulatory Compliance
« Designers need to adhere to
environmental regulations,
green certifications, and
eco-labeling requirements
to address climate change,
pollution, waste
management, and other
environmental challenges in
product development.
ETHICAL CONSIDERATIONS
Stakeholder Welfare Transparency and Honesty
+ Organizations should uphold
ethical standards of
transparency, honesty, and
integrity in product and
service design, marketing, and
communication to build trust,
credibility, and long-term
relationships with
stakeholders
+ Ethical design involves
considering the well-being
and interests of all
stakeholders, including
customers, employees,
communities, and the
environment, to ensure fair
treatment, transparency,
and social responsibility in
business practices.
ETHICAL CONSIDERATIONS
Stakeholder Welfare Transparency and Honesty
+ Organizations should uphold
ethical standards of
transparency, honesty, and
integrity in product and
service design, marketing, and
communication to build trust,
credibility, and long-term
relationships with
stakeholders
+ Ethical design involves
considering the well-being
and interests of all
stakeholders, including
customers, employees,
communities, and the
environment, to ensure fair
treatment, transparency,
and social responsibility in
business practices.
STANDARDIZATION AND CUSTOMIZATION ,
ARE TWO CONTRASTING APPROACHES IN 3.
PRODUCT AND SERVICE DESIGN, EACH =
OFFERING UNIQUE BENEFITS AND
CONSIDERATIONS
STANDARDIZATION
STANDARDIZATION INVOLVES THE UNIFORMITY AND CONSISTENCY OF PRODUCTS OR SERVICES BY
RUE COMMON SPECIFICATIONS, FEATURES, AND PROCESSES ACROSS A RANGE OF
ADVANTAGES DISADVANTAGES
COST EFFICIENCY LACK OF VARIETY
02 QUALITY CONTROL:
03 SIMPLIFIED MAINTENANCE
RESISTANCE TO CHANGE
DESIGN LIMITATIONS
CUSTOMIZATION
CUSTOMIZATION INVOLVES TAILORING PRODUCTS OR SERVICES TO INDIVIDUAL CUSTOMER
PREFERENCES, NEEDS, OR SPECIFICATIONS, ALLOWING FOR PERSONALIZED EXPERIENCES, UNIQUE
FEATURES, AND DIFFERENTIATED OFFERINGS.
ADVANTAGES DISADVANTAGES
CUSTOMER SATISFACTION COMPLEXITY AND COST