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In developed nations, around 75% of the economy is in the service sector, and this is where most new jobs are created. In Germany, known for its export prowess, the industrial industries dropped 140,000 jobs in 2010 while the service sector added 330,000 jobs, and private nursing services generate more revenue than the entire German automobile industry.¹ To an increasing degree, we also see that the design of services is becoming a key competitive advantage. Physical elements and technology can easily be copied, but service experiences are rooted in company culture and are much harder to replicate. People choose to use the services that they feel give them the best experience for their money, whether they fly low-cost airlines or spend their money on a first-class experience.

Just as industrial design fueled the introduction of new products to the masses in the industrial economy, good service design is key to the successful introduction of new technologies. Design of new models each year became the recipe for maintaining the success of established products. In the service economy, services can be redesigned on a continuing basis to keep a competitive edge in the market.

Some of the greatest opportunities are found where a business model can be changed from a product model to a service model. A case in point is car sharing, where the business model has changed from selling the car as a product to offering access to the service of mobility.