Even if you are selling a product, it is providing a service to the customer which is the reason for him/her to buy it. Every business is a service business. Thus, it becomes extremely important to understand a service system. By understanding a service system, it allows one to create a better or a new service, make customers happy and make more profits!
A service is provided by a service provider. There are a number of offerings in a service. These offerings are provided to the customer through a range of interactions, which are called touchpoints. A customer may not interact with all the touchpoints. Every customer would interact with the touchpoints differently. The touchpoints he interacts with, the quality of the touchpoints, the synchronisation amongst the various touchpoints, all of these factor affect the value that the customer gets.
For example, when you subscribe for a caller tune on your mobile phone, this facility is an offering by the mobile service provider. The way you get informed about the service, the interface with the service, the agent that helps you with the service, etc. are the touchpoints of the service. Each of them should gel well to provide you a smooth experience of getting and using a caller tune for your mobile phone. When the caller tune is as per your want, it is easy to subscribe or edit, you feel that you have received something of value.
Recession refers to decline in a country’s gross domestic product (GDP) growth for two or more consecutive quarters of a year. A recession is also preceded by several quarters of slowing down.
The global economic slowdown started in late 2007 with the emergence of sub-prime losses in the United States. It further tumbled down with the risky loans and over-priced assets. This lead to the crash in stock market, companies shutting down, people losing jobs and therefore led to less spending in the market which spiraled into further downfall of the world economy.
In India the effect came as the sensex crashed while the foreign investment started to withdraw and dwindle. The real estate sector got affected severly. The common man suffered as jobs were lost, exports decreased and the common man’s confidence in the market reduced. Comparitively, India has been one of the few countries least affected by the recession as it’s GDP fell from 9% average of the past four years to only 6.7% in 2008-09.
To summarise the global recession affair, it was the mismatch between the wealth and money. Wealth means an asset or experience which is valuable to us and money is the means to get it. There was more money and less wealth for that money in the market. Due to which, the fluidity of wealth reduced. The transformation of wealth into money and vice-versa reduced.
This phenomenon affected everyone. Let’s see how we can use it to our best.
Pros of Recession
Cons of Recession
Design is the answer
When the winds of change blow, some people build walls, others build windmills.
Design with it’s inherent nature of understanding the context first and creating something for its future is the ideal solution to the current problem of recession. An analysis of the situation at a systems level today can avoid any future mistakes to cause similar situations. Design arms one with such tools to gauge the system, understand the people in the system and creatively solve the problem. Design also considers the consequences of our actions on our planet and it’s people. Thus, design is emphatic at it’s very core.
With it’s multi-disciplinary approach, design can create new solutions to problems of today and the future. Against the popular misguided notion of design creating more junk than useful things, with design we can reduce any excess production and costs, create better products and services with fewer and better resources, create larger markets through better products and services, streamline processes, motivate the workforce, understand the user and thus lead the economy towards recovery. The reiterative process of design would make sure that constant feedback is included into the system for constant improvements and allows quick adaptability.