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	<title>Touch Points by Steve Finikiotis &#187; service redesign</title>
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	<link>http://ospreyvision.com/blog</link>
	<description>The Customer Experience Across Markets</description>
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		<title>Re-thinking On-Board Services</title>
		<link>http://ospreyvision.com/blog/2008/05/22/re-thinking-on-board-services/</link>
		<comments>http://ospreyvision.com/blog/2008/05/22/re-thinking-on-board-services/#comments</comments>
		<pubDate>Thu, 22 May 2008 19:50:46 +0000</pubDate>
		<dc:creator>Steve</dc:creator>
				<category><![CDATA[Airline]]></category>
		<category><![CDATA[How Cool?]]></category>
		<category><![CDATA[Innovation]]></category>
		<category><![CDATA[Service design]]></category>
		<category><![CDATA[What's Next? (WILD CARD)]]></category>
		<category><![CDATA[airline service design]]></category>
		<category><![CDATA[customer experience management]]></category>
		<category><![CDATA[in-flight]]></category>
		<category><![CDATA[inflight]]></category>
		<category><![CDATA[luxury brand]]></category>
		<category><![CDATA[on-board]]></category>
		<category><![CDATA[service redesign]]></category>
		<category><![CDATA[starwood]]></category>

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		<description><![CDATA[In an Executive Traveler wiki titled, “Blue Skying It,” Ross Klein, President and CEO of Starwood’s Luxury Brands (including W Hotels), is quoted as saying, “Airlines are in the hospitality industry, although they don’t think they are,” he comments. “Flight is extraordinary, but airlines view it as ordinary.”
Klein says, “When I think of air travel, there is [...]


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			<content:encoded><![CDATA[<p>In an <a href="http://www.executivetravelmagazine.com/">Executive Traveler</a> wiki titled, “<a href="http://www.executivetravelmagazine.com/page/Blue+Skying+It?t=anon">Blue Skying It</a>,” <a href="http://www.starwoodhotels.com/corporate/profile_detail.html?obj_id=0900c7b9808a3f93">Ross Klein</a>, President and CEO of <a href="http://www.starwoodhotels.com/luxury/index.html">Starwood’s Luxury Brands </a>(including W Hotels), is quoted as saying, “Airlines are in the hospitality industry, although they don’t think they are,” he comments. “Flight is extraordinary, but airlines view it as ordinary.”</p>
<p>Klein says, “When I think of air travel, there is a conditioned response that it is going to be bad,” and adds, “We’ve forgotten it is a social occasion. I can’t think of any acknowledgement of that by the airlines today.”</p>
<p>He’s so right.  He’s probably someone the industry should tap to help redesign on-board service programs.  In fact, bringing experts from analogous fields like hospitality is a great place to start when rethinking services.  Successful restauranteurs can also bring a lot of practical insight.  Of course, we&#8217;d have to bring designers and artists to the party.</p>
<p>I like the concept of tapping experts from a variety of fields and disciplines outside the industry &#8211; along with customers &#8211; to come with distinctive alternatives that make the on-board experience more enjoyable.</p>


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		<title>Design-minded Virgin America</title>
		<link>http://ospreyvision.com/blog/2008/05/11/design-minded-virgin-america/</link>
		<comments>http://ospreyvision.com/blog/2008/05/11/design-minded-virgin-america/#comments</comments>
		<pubDate>Sun, 11 May 2008 17:48:55 +0000</pubDate>
		<dc:creator>Steve</dc:creator>
				<category><![CDATA[Airline]]></category>
		<category><![CDATA[Innovation]]></category>
		<category><![CDATA[Problem solving]]></category>
		<category><![CDATA[Service design]]></category>
		<category><![CDATA[customer experience management]]></category>
		<category><![CDATA[design-minded]]></category>
		<category><![CDATA[roger martin]]></category>
		<category><![CDATA[rotman]]></category>
		<category><![CDATA[service re-design]]></category>
		<category><![CDATA[service redesign]]></category>
		<category><![CDATA[university of toronto]]></category>
		<category><![CDATA[Virgin America]]></category>

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		<description><![CDATA[Before launching their operation, Virgin America set out to create a distinctive customer experience to differentiate their brand.  They succeeded by creating a breakthrough on-board service product about which I commented in an earlier post.
VA’s success stems from their attitude that the customer is at the center of their universe.  They relied on service design [...]


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			<content:encoded><![CDATA[<p>Before launching their operation, <a href="http://www.virginamerica.com/va/home.do">Virgin America </a>set out to create a distinctive customer experience to differentiate their brand.  They succeeded by creating a breakthrough on-board service product about which I commented in an earlier <a href="http://ospreyvision.com/blog/2008/04/15/a-disruptive-air-transport-model/">post</a>.</p>
<p>VA’s success stems from their attitude that the customer is at the center of their universe.  They relied on <a href="http://en.wikipedia.org/wiki/Service_design">service design</a> – the art and science of devising an environment that enables the customer to enjoy a rich, satisfying experience.  Unfortunately, it’s an approach that has been largely ignored by the industry.</p>
<p>Design-minded managers relentlessly ask: Who is the person we&#8217;re serving, and how can we make their service experience better?  That thinking encourages listening intently to what the customer says along with what isn’t said, but is felt.</p>
<p>Design-mindedness is uncommon in a traditional, operations-centric industry where running an efficient operation is prized above all other endeavors.  That mindset inhibits innovativeness, and too often, the customer is left out of the equation.</p>
<p>As a result, commercial air travel, with some notable exceptions, is perceived as a commodity, i.e. competitors&#8217; services are virtually indistinguishable from each other, and customers tend to buy on price or schedule-convenience alone.</p>
<p>Historically, the major airlines have viewed their central challenge as getting passengers from point A to B as safely and efficiently as possible.  Their organizing principles arise from a linear manufacturing model which hasn’t changed much over time.</p>
<p>The <a href="http://www.mgmt.utoronto.ca/index.html">University of Toronto’s</a> <a href="http://www.mgmt.utoronto.ca/rogermartin/">Roger Martin </a>observes, “The dominant attitude in traditional firms is to see constraints as the enemy and budgets as the driver of decisions&#8230; The traditionalist belief is, “We can only do what we have the budget to do.”</p>
<p>By contrast, design thinkers view their central challenge as solving &#8221;unsolvable&#8221; problems. Design-thinkers venerate the customer, and relentlessly seek novel novel ways of overcoming constraints.</p>
<p>VA’s corporate culture – clearly influenced by <a href="http://www.time.com/time/magazine/article/0,9171,1731888,00.html">Richard Branson’s</a> intense creativity and drive – is customer-driven, encouraging design-inspired choices.  Branson&#8217;s mission for the Virgin group is to make flying fun again.</p>
<p>Recognizing that they’d have to look outside the industry – to Silicon Valley – VA hired software engineers rather than airline vendors. The mix of engineers and process owners led to some interesting choices.</p>
<p>For one thing, they came up with the novel idea of using an open-source (Linux) platform, named <a href="http://www.flickr.com/photos/sutanto/2311315375/">Red</a>, to power a range of nifty features, like touch-screen food and beverage ordering, on-demand media on a high-resultion monitor, and even in-seat chat. Internet connectivity will be available soon. Moreover, Red affords VA the flexibility to support future low, cost innovation.</p>
<p>There are bugs to be worked out. Customers have reported re-boots and other glitches. But, I think VA is well ahead of the innovation curve, and their service platform gives them a clear competitive edge.</p>
<p>How will the industry respond?  Carriers are taking a beating from record fuel prices and reduced demand, and in this cycle, the carriers will be treading water for some time. Under the circumstances, will the U.S. airlines open the door to design-minded, customer-centric thinking? What&#8217;s next is anybody’s guess.</p>


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