Multiple-channel business model Bridging service innovation in China Abstract: Since the 1960s, design has shifted from manufacturing, market, and now to a customer-focused era. We have undergone the Industrial Age and the Information Age, and now are at the “Smart Age”. In western worlds, these three ages were iterated one after another. However in China, this evolution was accelerated by “joint innovation”. In this intersected age, neither just having online nor offline model can fix the issues that we have in user experience and service. With this, we witness service design with multiple-channel business model emerging in front of people’s eyesight. Innovation: At this great SDN event, Cathy and Xue will provide a glimpse of the unique characteristics of service innovation process in china for guests from all parts of the world through interaction and co-creation. With their 13 years of abundant project experience, they hold a deep interpretation and sharp sense of connections and challenges among industries. Additionally, they have gained a wealth of insight on trends and road paths in China while rubbing shoulders with many industry leaders. No doubt their sharing will amaze the audience and ignite a round of heated discussion.

1. 1

2. 2

3. Xue
Volunteer
&
Engaging
With
Communi4es
3

4. 4
25-­‐FOLD
GDP
increase
and
600M+
people
moved
out
of
poverty
since
1980
Reflec4ng
its
record-­‐breaking
urbaniza4on
and
industrializa4on,
China
is
changing
fast！
3.8
Trillion
RMB($600
billion),
40
%
global
e-­‐commerce
market
＞USA
+
EU
by
2017
700M
internet
users
in
China

5. Hello!
ShiTing
China
from
the
industrial
powerhouse
to
service
powerhouse
5
“Made
in
China
2025”
ini4a4ve
－China’s
most
comprehensive
and
ambiPous
industrial
plan
to
upgrade
China’s
manufacturing

6. 9
Key
Tasks
To
Focus
On
6
Guiding
an
$11
trillion
economy
with
1.4
billion
people
onto
a
new
path
is
an
unprecedented
challenge.
(Produced
by
China.org.cn)
/
Improving
manufacturing
innovaPon
/
Strengthening
the
industrial
base
/
Enforcing
green
manufacturing
/
Advancing
restructuring
of
the
manufacturing
sector
/
InternaPonalizing
manufacturing
/
IntegraPng
informaPon
technology
and
industry
/
Fostering
Chinese
brands
/
PromoPng
breakthroughs
in
ten
key
sectors
/
Promo4ng
service-­‐oriented
manufacturing
and
manufacturing-­‐
related
service
industries

7. Industrial
Age
Informa4on
Age
Smart
Age
？
Change
is
powered
by
the
“Convergence
of
Ages”
7
China
West

8. Great
example
is……
8

9. It
is
helping
them
to
transi4on
from
bricks
and
mortar
to
O2O(online
to
offline).
Wechat
is
accelera4ng
change
for
small
business
9

10.
State-owned
Enterprises
(SOEs)
国有企业
MulPnaPonal
Companies
(MNC)
国际公司
Medium-­‐sized
Enterprises
(SMEs)  中小企业
The
Government
政府
But,
How
About
Transi4on
for
Larger
Organiza4ons?
10

11. • From
Making
Goods
into
delivering
Service
that
provide
goods
W h y
S e r v i c e
D e s i g n ?
During
the
‘Convergences
of
Ages’,
we
believe
‘Service
Design’
is
a
good
bridge
to
help
transform
China’s
Tradi4onal
Industries
&
Businesses
11

12. OUR
EXPERIENCE
During
13
years,
we
have
had
a
great
opportunity
to
work
across
many
industries.
Copyright by CBi China Bridge Ÿ 2016
Finance
Healthcare
Retail
Public
service
AutomoPve
EducaPon
CPG
(Consumer
Packaged
Goods)
12

13. Transforming
businesses
is
never
easy.
A
Recent
McKinney
global
leadership
survey
famously
found
that
only
3
in
10
change
efforts
succeed.
Only
30%
of
companies
succeed!
13

14. The
reality
is
successful
change
is
more
about
MINDSETS
-­‐
Not
budgets
AN
IBM
STUDY
HAS
IDENTIFIED
THAT
THE
BIGGEST
ROADBLOCKS
TO
CHANGE
ARE
PEOPLE
FACTORS.
14

15. In
China,
for
tradi4onal
business
there
are
big
gaps
in
both
“Mindsets
&
Culture”.
对 于 传 统 行 业 服 务 设 计 的 引 入 存 在 文 化 差 异
GAPS when using Service Design
15

16. Values
Chinese
Model
of
Thinking
Western
Model
of
Thinking
Philosophy
哲学 Confucius,
etc.
孔子 Plato,
etc.
柏拉图
Society
社会 CollecPvist
集体主义 Individualist
个人主义
Order
秩序 Hierarchy
阶级 Equality
平等
Decision
决策 Authoritarianism
权威 DemocraPsm
民主
CommunicaPon
沟通 Implicit
communicaPon
含蓄 Direct
communicaPon
直接
Method
方法 Study
学习 Research
研究
Value
价值 Family
家庭 Self
自身
Measurement
criteria
评估标准 Harmony
&
Balance
和谐平衡 Results
结果
Interpersonal
RelaPons
关系 Co-­‐dependence
共存 Independence
独立
Way
of
CreaPon
创造方式 Individual’s
talent
个人才华 CollaboraPon
团队协作
Structure
结构 Curvilinear
曲回 Linear
线性
Founda4ons
of
China
&
Western
Value
Systems
16

17. We
have
been
challenged
in
recent
years
to
get
leaders
in
China
to
adopt
Service
Design
into
their
businesses.
我 用 了 几 年 时 间 思 考
如 何 影 响 决 策 者 为 服 务 设 计 买 单 
17

18. We
tried
to
apply
the
approach
to
service
design
created
in
the
west…
…but
it
did
not
go
so
well…
18

19. 如 何 直 白 易 懂 、 更 有 连 接 效 果
传 达 服 务 设 计 的 意 义 、 方 法 和 效 果
We
had
to
zoom
out
–
To
find
a
new
way
to
convey
the
value,
meaning,
methodologies
of
Service
Design
in
a
straighqorward
and
easy-­‐to-­‐understand
way…
19

20. 如 何 道 术 结 合
做 更 有 战 略 意 义 的 服 务 设 计
…linking
the
theory
and
prac4ce
to
endow
service
design
with
a
strategic
purpose…
20

21.  五  [wǔ]
21

22.   行  [xíng]
22

23.  五  [wǔ]
行  [xíng]
5
Elements
Wood
–
Fire
–
Earth
–
Metal
–
Water
23

24. Chinese
ancient
philosophy
Wu
Xing:
The
Rela4onships
of
5
Elements
24

25. +
Enhancing:
• Wood
feeds
Fire
• Fire
creates
Earth
• Earth
produces
Metal
• Metal
asracts
Water
• Water
nourishes
Wood
+
Wu
Xing:
The
Rela4onships
of
5
Elements
25

26. Wu
Xing:
The
Rela4onships
of
5
Elements
• Wood
parts
Earth
• Earth
absorbs
Water
• Water
quenches
Fire
• Fire
melts
Metal
• Metal
chops
Wood.
-­‐-­‐
Diminishing:
26

27. How
does
5
elements
relate
to
Business?
We
have
been
developing
our
working
philosophy,
a
combinaPon
of
our
culture
with
a
Western
toolbox.
Using
the
framework
of
Wu
Xing,
we
defined
5
organizaPonal
elements
that
posiPvely
impacts
service
design.
They
are
inter-­‐related.
27

28. Bridging
Eastern
&
Western
Applying
a
Holis4c
Approach
with
Service
Design
28

29. 10
years
ago:
HanLan
Waste
Management
Facility
a
B2G
Business
29

30. Not
In
My
Backyard
(NIMBY)
邻避效应
30

31. Process
20
Million
Kilos
of
waste
everyday
produced
by
17
Million
of
people:
Roughly
the
populaPon
of
the
Netherlands
“Can
you
imagine
what
it
smells
like?”
10
years
later
31

32. 综合环境服务领跑者
An
Integrated
Environmental
Service
Leader
32

33. How
to
grow
when
nobody
wants
you
-­‐
NOT
IN
MY
BACKYARD
(NIMBY)
Strategy:
How
can
the
organizaPon
turn
its
workers,
partners
and
customers
into
believers
and
contributors?
Leadership:
How
to
align
on
a
purpose?
-­‐
company,
customer
and
community?
Culture:
How
to
avoid
internal
conflict
when
delivering
value
across
channels?
Crea4vity:
How
to
enable
value
creaPon
that
uPlizes
different
channels?
Data:
How
can
we
beper
understand
&
uPlize
data
and
informaPon
to
iterate
strategy?
33

34. Innovate
And
Move
Up
The
Value
Chain

35. 35
Video
link:
hpps://vimeo.com/190058374

36. “Please
Grow”
B2G
C
“NIMBY”
36
To
move
beyond
just
government
support.
There
was
a
need
to
transi4on
the
Manufacturing
Driven
Mindset.
Before

37. Open
monitoring
︱
Theme
Park
︱
Social
media
︱
Online
shop
︱
EducaPon
program
︱Community
engagement
To
embrace
communi4es
through
a
Mul4-­‐channel
approach
and
transi4on
to
a
“Service
Mindset”.
B2G
+
C
Future
37

38. 内 部 变 革
产 生 外 部 效 果
Business
Model
Innova4on
38
Make
External
Impact
Through
Internal
Changes

39. 2.
BROAD
EXPERIENCE

Our
extensive
work
in
different
industries,
cross
pollinates
our
ability
to
understand
peoples
needs
and
mindsets.
It
gives
us
a
unique
perspecPve
for
developing
a
broad
range
of
products,
service
and
experiences
that
resonate
in
China
for
Chinese.
1. THE
POWER
OF
COMBINING
CULTURE
WISDOM
+
SERVICE
DESIGN
We
used
philosophy
centered
approach
to
solving
complex
challenges,
defining
strategy
and
transforming
leadership
vision
into
culture,
and
then
ideas
into
business
results.
Front
service
experience
+
Behind
the
scene
39

40. 40

41. 41