Product design is the process of creating
a new product to be sold by a business
or enterprise to its customers.
 It is concerned with the efficient and
effective generation and development
of ideas through a process that leads to
new products.
 Product designers conceptualize and
evaluate ideas, making them tangible in
a more systematic approach.

› The no. of various activities or actions that
need to be performed to deliver a
service completely to a customer.
OR
› The process, a customer goes through to
receive a service completely.
E.g. buying a life insurance plan, Applying for a degree
program in University, a Club Membership, a Hotel stay,
Hiring services of a stock broker etc.

Product Design is most important
consideration for customers in many
industries, e.g. automobiles, electronics,
clothing, furniture, fashion accessories etc.

Design of Product or service is a source of
competitive advantage for companies.
› E.g. Apple’s i-Phone, i-Mac and i-Pad
› BMW in automobiles
› Ralph Lauren in clothes
› Kenwood in electronics

Approaches to Product Design:
› In-house Development
 R&D departments
 Apple design it products in Atlanta in its design
& development facilities and manufacture
final products in manufacturing units at
Taiwan.
› Outsourcing or Off-shore design contracts
› Contract manufacturers
 Toyota corporation uses 300 vendor who
produce components or parts for their cars,
e.g. body parts, plastic and leather parts etc.
Please see page 114
(book-2- Chase)for details
 Research & Planning
Front End
Planning
 Idea Generation
Screen ideas against new service strategy
 Concept Development and Evaluation
Test concept with customers and employees
 System-level Design
Design Specifications
 Service/Prototype Development
Producing working model for tests
Implementation
 Testing and Refinement
Test service and product for conformance
 Final approval for Manufacturing & Commercialization


Customer related Dimensions
› User friendliness
› Ease of use
› Safety
› Ease of maintenance
Technical Dimensions
› Product Architecture
 Length, width & breadth
 Appearance & styling
 Aesthetic appeal
 Weight

All Services are intangible and process
oriented.

It is difficult to describe, define and
communicate the service,
e.g. a customer who had taken a roller coaster ride cannot
describe the service clearly.

When services are delivered over a long
period, they become more complex and
even more difficult to describe.
e.g. a two year degree program, a week stay at a resort etc.


Developing new services is a challenge, because
service is a intangible and perishable, and consist
of a Process.
Guidelines for New service development:
 Involve customers and employees before designing a
service.
e.g. Marriot corporation is known to involve its guests in the
design of it’s hotel rooms to ensure that the furnishings suit the
guests.
 Service development must be based on facts not
opinions.
 Consider all aspects of the service design and analyze
the influence and role of every function for service
delivery.
E.g. Metropolitan Life Insurance company uses a crossfunctional team comprising experts from Marketing,
operations, Administration, information systems and Claims for
full scale development of new services.
A service blueprint is a picture or map that
accurately portrays the service system so
that different people involved in the service
delivery can understand and deal with
positively.
 Used to develop single interpretation of
service system among different service
delivery personnel.
 A service blueprint visually display the
services with all it’s important processes and
procedures altogether.
 Useful at design phase of service.

CUSTOMER ACTIONS
line of interaction
“ONSTAGE” CONTACT EMPLOYEE ACTIONS
line of visibility
“BACKSTAGE” CONTACT EMPLOYEE ACTIONS
line of internal interaction
SUPPORT PROCESSES
CONTACT PERSON
CUSTOMER
(Back Stage) (On Stage)
Truck
Packaging
Forms
Hand-held
Computer
Uniform
Customer
Calls
Customer
Gives
Package
Driver
Picks
Up Pkg.
Deliver
Package
Customer
Service
Order
Dispatch
Driver
SUPPORT
PROCESS
Receive
Package
Airport
Receives
& Loads
Fly to
Sort
Center
Load on
Airplane
Sort
Packages
Fly to
Destination
Unload
&
Sort
Load
On
Truck
CUSTOMER
CONTACT PERSON
(Back Stage) (On Stage)
SUPPORT
PROCESS
Hotel
Exterior
Parking
Arrive
at
Hotel
Cart for
Bags
Desk
Elevators Cart for
Registration Hallways Bags
Papers
Room
Lobby
Key
Give Bags
Check in
to
Bellperson
Go to
Room
Greet and
Process
Take
Registration
Bags
Receive
Bags
Room
Menu
Amenities
Bath
Sleep
Shower
Call
Room
Service
Deliver
Bags
Take Bags
to Room
Registration
System
Delivery
Food
Tray
Food
Appearance
Receive
Food
Deliver
Food
Eat
Bill
Desk
Lobby
Hotel
Exterior
Parking
Check out
and
Leave
Process
Check Out
Take
Food
Order
Prepare
Food
Registration
System