T4.

Seven Thinking
Models for
developing Services

Herman Butale
“Sani”
1.Title Meaning
Seven Thinking Models for
developing Services

Seven dimensions of analysing mobile

internet thinking of products:
 Developing services in marketing:
Developing services involves creating and refining service offerings to meet customer needs and
expectations.

The success of service development depends on a customer-centric approach, a thorough understanding

of the market and competition, and the ability to innovate and continuously improve services.

Mobile marketing is a growing area where service development is particularly important, and it requires
a deep understanding of mobile technologies and customer behavior to create effective and engaging
mobile services;

Internet Thinking (from PC to mobile Internet)

• The Internet thinking refers to the way of thinking that re-
examines the market, user, product, enterprise value chain,
and even the entire business ecosystem against the
background where the mobile Internet, big data, cloud
computing, and so on are constantly developing
• Everyone doing things via the Internet, with Internet
thinking, using the execution capacity of the Internet.
• From the perspective of marketing, changes brought by the
mobile Internet to products are mainly reflected in the
seven dimensions of analysing mobile internet thinking of
products
2. Summary of Content
(Itemized)
 • User thinking focuses on “people” instead of “objects” only: not focusing
on the mechanized production mode, but the users themselves at the time
of product creation;

• It is a thinking model that creates products by mainly centering on the

overall demand of users and meeting the user demand diligently

1. User • It has the following features:

(1) Humanization. The thinking model is based on a specific user, and directly

Thinking shows care, trust, respect, and other humanized elements relating to that
user.
(2) Individualization. This means that it meets user demand, and is not limited
to the popularized demand, but more likely the individualized demand.
(3) Diversification. This means that it meets user demand on multiple levels
and in multiple formats. Product and service are only a material level of
diversification. Diversification is more about culture, feeling, spirit, and
thought.
　　
I. Focusing on the user experience
• User experience is a subjective feeling in the process of using a product by a user.
• User-centered and people-oriented ideas are drawing more and more attention, and user experience is
called the essence of the Innovation 2.0 model.
• In the past, product managers seldom considered the product experience of users, leading to "anti-
human designs."
• With the development of technology and intensification of competition, users have more options in a
product and instinctively select the most humanized design.
• User experience covers the holistic analysis and perspective of how a person feels about using a
system.
• The field of user experience focuses on pleasure and value brought by the system rather than on
performance of the system.
• The exact definition, framework, and elements of user experience are still evolving and innovating.
II. Caring for user needs 　
• We must have found certain needs before defining a product. Then we make a product to meet said needs. So what is need?
• Defining user needs is crucial in developing a product
• Maslow's need hierarchy theory proposed in 1943 divides needs into 5 levels: physiological, safety, emotional, respect, and self-
actualization
• Physiological needs are the most fundamental for survival, including food, shelter, and clothing
• Safety needs include ensuring personal safety and getting rid of threats, include protection against harm, danger, and loss
• Social needs, which consist of love, affection, and belonging.
• Esteem needs, which involves gaining respect from others and developing self-esteem.
• Self-actualization needs are at the top, which involves reaching one's full potential and achieving personal growth.
• In the mobile internet era, a higher need for belief and soul affiliation is also important. This involves a firm belief and execution of
unique truths about everything.
• To identify needs, it is important to distinguish between reasonable and unreasonable demands. It is not necessary to satisfy every
demand of users
III. Enhancing the sense of participation
• Participation is essential for building a successful business, and companies must find ways to involve their customers in decision-making.
• To enhance the sense of participation, companies should focus on building product influence, minimizing participation costs, providing users
with a reason to participate, and creating products that attract user engagement.
• Sense of participation is key to success for MI, Amazon, Bilibili and Baidu
• This involves allowing users to get involved in decision-making
• Users should have a reason to participate in product growth
• Participation creates pride and value for the user
• Actualization of participation depends on product influence, low-cost participation, giving a reason to participate, and product value
• MI's success is partly due to its focus on building a sense of participation among its fans, who feel connected to the brand and invested in its
products.
• Bilibili is an example of a company that has successfully built a pop culture and entertainment community around user participation, using
real-time comments to create a virtual tribal viewing atmosphere. Bilibili is now the largest pop culture and entertainment community of
young people in China. It was created on June 26, 2009 and is also known as “B site”
• Baidu is the world's largest Chinese search engine and takes pride in providing the best and most equitable way for people to find what
they're looking for. Baidu's marketing platform is focused on providing the best Internet marketing solutions for customers, with the goal of
maximizing marketing ROI. Baidu (NASDAQ: BIDU) is the world’s largest Chinese search engine and Chinese website established by Robin Li
in Zhongguancun, Beijing in January 2000 and committed to furnishing people with a “simple and reliable” means of information acquisition
 I. What is socialized thinking?
• Socialized thinking refers to the use of social media platforms to
develop relationships with users and promote products.
• It has become increasingly important in the mobile internet era,
especially for traditional enterprises seeking to enhance social
attributes and functions in their business activities.

2.Socialized II. How important is socialized thinking?

Thinking • The benefits of socialized thinking include establishing brand

reputation and value, creating greater value for consumers and
improving sales performance, enhancing operation efficiency, and
improving morale and creating a company culture.
• However, the biggest obstacle for socialized enterprises is getting
management at all levels to understand its significance.
III. Social networks & word-of-mouth marketing

• Word-of-mouth marketing applied to mobile internet marketing

• High success rate and credibility

• Social media is the main battlefield of brand marketing in the era of mobile internet

• Social media breaks traditional acquaintance world relied on by word-of-mouth

• Allows for more widespread influence and discussion about products and services
Tips for word-of-mouth marketing in China:
1. Get endorsement from authoritative media and celebrities to build trust and trigger action among consumers.
2. Optimize search marketing by ensuring that positive information about your products appears on the homepage when consumers
search for them.
3. Provide quality services to customers to transform them into fans who will speak positively about your brand and generate more
income for your business.
4. Encourage people to leave comments and feedback on your brand and products to promote word-of-mouth communication.
5. Respond to negative comments and feedback in a timely and appropriate manner to show that your company cares about its
customers and is committed to providing high-quality products and services.
6. Use social media and other online platforms to engage with customers and build relationships with them.
7. Offer incentives and rewards to customers who refer others to your brand or products, such as discounts or free gifts.
8. Build a strong brand identity and reputation through consistent messaging, high-quality products and services, and positive
customer interactions.
9. Use customer feedback to improve your products and services and address any issues or concerns that customers may have.
10. Keep up with trends and changes in the market to stay relevant and competitive in the industry.
  Product extremity is the precondition for
successful mobile marketing.
 We may start from mottos of some famous
entrepreneurs to understand the concept of
extreme thinking. Steve Jobs’s motto is “Stay
Hungry, Stay Foolish”. Lei Jun, CEO of MI

3. Extreme advocates that “to do extremity means to drive

yourself crazy and others to death”

Thinking  Extreme thinking refers to the idea of pushing

oneself and others to the limit to achieve
exceptional results
 This concept is crucial for mobile marketing
success.
I. Craftsman's spirit
 Companies can achieve product extremity through the cultivation of the craftsman's
spirit, which involves dedication, modesty, adherence to principles, and continuous
improvement.
 The craftsman's spirit is essential for long-term success and enables enterprises to
produce high-quality products that meet stringent requirements.
 Successful companies have adhered to the craftsman's spirit and extreme thinking,
resulting in long-term survival and continuous innovation.
II. Best services, another form of marketing
 Best thinking means to achieve the ultimate for products and services and provide the
best user experiences that are far beyond their expectations.
 In competitions of the era of mobile Internet, the winner
takes all. Only extreme good can win over the consumers and their loyalty.
 Behind the best product, there are enormous efforts and inputs. Every piece of such
product is thoroughly tempered.
III. Simplicity, another name of extreme good

 Simplicity is a crucial concept in product design and marketing.

 Google's simple homepage design has proven successful in attracting users due to its
ease of use and convenience.
 Achieving simplicity requires highlighting what is essential and visually indicating high-
priority tasks.
 A simple appearance can imply a complex and precise inside.
 Simplicity is not crudeness, and it requires time, money, and energy.
 Simple guidance can create complex and delicate systems through evolution
4.Big Data
Thinking  Big Data refers to large and rapidly growing sets of
data that require new processing modes.
 Big Data is characterized by 5Vs: Volume, Velocity,
I. What is big Variety, Value, and Veracity (accuracy
&truthfulness).
data?  The strategic significance of big data lies in the
professional processing of meaningful data.
 Big data processing can add value and improve the
processing capability of an industry
II. Big data are essentially the estimate on the direction of product development

 Big data estimates the possibility of events through mathematical algorithms applied to
meaningful data
 Decisions often based on feelings and personal experiences can lead to errors
 Big data provides a more reliable basis for decision-making by minimizing uncertainty
 Many areas currently dependent on human judgment will be changed by big data in the
near future
III. What composes the value chain of big data?

 Big data companies can be categorized based on the source of value: data, skills, and
thinking.
 Companies with their own massive data can extract value and generate new ideas, such
as Alibaba Cloud and Tencent.
 Some companies are founded based on data but may not be optimal at extracting value
or generating new ideas, such as Twitter.
 Technology-based companies specialize in consultation, technology supply, or analysis,
such as Teradata.
 Companies with massive data may authorize its use to other companies for value
extraction.
  The entrance to mobile internet is characterized
by humanism, evolution, and openness.
 An ecological circle is formed with an open mind at
5. Open its root.
 Opening your mind can lead to changes on Earth.
Thinking  Apple encourages music fans to "select, edit and
burn.“ Self-makers can "select, modify, and create.“
 Open-mindedness leads to 3D scanning, CAD
formula modification, and 3D printing
 I. Traffic Priority
 Traffic priority refers to the system of prioritizing certain types of internet traffic over
others in order to optimize network performance.
 Internet traffic is essential for information spreading and deals.
 Traffic means mass, and mass means component.
 A huge traffic means a great value for a company.
 Free early-stage services can bring revenue through further transformation.
 A sufficient number of users is required to guarantee a great purchasing power.
 Tencent's QQ chatting application owns hundreds of millions of users, which generates
income from Q-coins and varied memberships.
II. Crossover Cooperation

 Crossover cooperation: integrates and extends unrelated elements based on connection

between industries, products, and consumers
 Breaking down traditional marketing thinking patterns, seeking non-industry partners,
and achieving coordination among brands of different categories
 Cross-border marketing increasingly important for enterprises with ambiguous industry
boundaries
 Examples of cross-border cooperation, including between CrossFire and Zippo and luxury
brands opening cafes and restaurants
 Importance of having users to oppress other enterprises
 Need for businesses to adapt and carry out reform in the face of changes in people's
lifestyles.
  Micro-innovation, or continuously making minor
improvements with user experience in mind, is key to the

6. Micro- success of internet applications.

 Utilizing micro-innovation can give companies an

Innovation advantage in the market by implementing highly

demanded functions that competitors are unwilling to
realize due to a lack of impressive technology.

Thinking  Micro-innovation is exemplified in the 360 Browser, which

continuously makes minor improvements to make it easier
for users who are not good with computers.
 Developing plug-ins, such as the E-Bank plug-in, with user
experience in mind can improve the usefulness of the plug-
in for users who may have ignored warnings or found it
difficult to use.
 Micro-innovation is a strategy that can have a great effect
over time, with minor improvements accumulating to make
a significant impact.
I. Product life cycle
 Product life cycle (PLC) is the market life of a product, from entrance to elimination.
 PLC theory proposed by Raymond Vernon includes exploration, growth, maturity, and senility.
 Philip Kotler provides a diagram of the product life cycle that includes limited life, different sales stages, fluctuating
profits, and different strategies for different stages.
 Outdated theories that bad-mouthed products and brands are being challenged in the era of mobile internet.
 Continuous innovation is necessary for survival and growth in the industry.
 Technical advancements are shortening the product life cycle, and products are in continuous evolution.
 A complete product life cycle consists of R&D and market development, growth, maturity, and instability stages.
 Innovation is the only way to maintain growth in the stability stage.
 A product may die, but innovation never will
II. Product Iteration

 Product iteration is important for success in the Internet era

 Rapid iteration and continual error testing is necessary for success
 Failure should be accepted as a natural part of the process and an inclusive culture
should be established
 Traditional business thinking makes fastness impossible
 The Internet era is characterized by trotting and rapid iteration with decisions made on a
weekly basis
III. Overturning innovative thinking

 China Merchants Bank (CMB) is the first joint-stock commercial bank in China completely held by an enterprise entity.

 CMB has a net capital of more than CNY 290 billion and total capital of more than CNY 4.4 trillion.

 CMB has set up 113 brands and 943 sub-branches in over 110 cities across mainland China, 1 branch-level specialized institution, 1 representative office, 2,330 self-service banks, and branches and
representative offices in other countries.

 In March 2013, CMB launched the credit card WeChat customer service.

 In July of that year, CMB launched the first “WeChat Bank” in China, which extends the scope of business from credit card services to all-customer comprehensive services including debit card and
credit card.

 The WeChat platform provides the functions of transfer, cellphone charging, appointment, etc.

 The WeChat service of CMB nearly replaced 90% of the conventional customer service functions of the bank and greatly relieved the stresses of customer service.

 Within just two months, the number of WeChat followers of CMB exceeded one million.

 The WeChat official account of CMB topped the list of seven WeChat accounts officially recommended by WeChat.

 As of the end of March 2014, CMB WeChat had served over 10 million users. The number of WeChat friends exceeded 8 million.

 Consumers can rapidly handle their businesses through WeChat, enjoying efficiency and convenience.

 The WeChat official account is operated based on artificial intelligence interaction, which guarantees point-to-point services and eliminates errors usually occurring in manual services.

 The WeChat official account is the most valuable for CMB regarding cost saving.

 The expenditure of CMB on call services is more than CNY 300 million each year, and the cost for text services is much lower.

 If the WeChat official account undertakes 30% of the business, a total of nearly CNY 100 million can be saved
7. Story  A product story is a “brand story”. In short, it is the cultural

Thinking
connotation given to a product in addition to its functions so as to
enrich the inside information of the brand. a product story
arouses sympathies from consumers in vivid, funny and touching
expressions. Example
 Product story enriches the cultural connotation of a product and
I. What is a enhances the emotional experience of consumers.

product story?  Emotional attributes have become the standard configuration for
an excellent product, in addition to functional attributes.
and II. Why tell  J.K. Rowling's success with her Harry Potter books is an example
of emotional storytelling creating a brand story.
product stories?  Huawei focuses on functionality, while MI emphasizes both
functionality and emotional attributes.
 Emotional products are personalized and become a "charming
person.“
 The integration of marketing with products is crucial for success,
and good products are the best marketing.
III. How to tell product stories
What are some tips for telling a good brand story?

 KISS principle (Keeping it Simple and Stupid) should be applied, making the product or story so simple
that even an idiot can use or understand it.
 Stories of leaders - relate the brand story to the legendary brand founder or entrepreneur.
 The distillation principle - extract complex information into an attractive story.
 Archetypal psychology - use archetypal concepts such as orphan, vagrant, warrior, altruist, innocent,
and magician to create a story that hits human emotions.
 The sense principle - stimulate the senses of humans to understand the world through smell, taste,
hearing, touch, and vision. Use sensational details to make people feel immersive.
It is important to focus on transmitting emotions through the story to make the brand story highly
effective
IV. What kind of product stories to tell

 Good brand stories effectively spread brand concepts and values.

 A good brand story disseminates the core appeal of the brand and leads to voluntary spreading
through multiple channels and means.
 Stories of leaders and founders are often used in brand stories and can create unique genes and a
characteristic brand personality.
 Telling product stories highlights product quality and can be used as a form of propaganda to present
an excellent image.
 In the Internet age, media is everywhere, and enterprises can develop a "private plot" through various
digital channels.
 Brands should focus on creating emotional connections with customers through storytelling to
establish brand loyalty and recognition.
 A good brand story should have a clear message, be simple and easy to understand, and create a sense
of resonance with the audience.
V. No blind imitation in product stories
 "Story marketing" is becoming popular among enterprises
 Many enterprises are blindly imitating others in their marketing stories
 Rushing to hire "masters" for advice and finding stories to match their businesses
 Resulting in unoriginal and unappealing marketing performances
3. Learning & Conclusions
In conclusion, the seven thinking models of developing services are inclusive of;
a) User thinking: This model focuses on understanding the needs, preferences, and behaviors of users. By adopting this model, service developers
can create services that are tailored to their users' needs, and thus increase user satisfaction and engagement.
b) Socialised thinking: This model emphasizes the importance of collaboration and co-creation. By adopting this model, service developers can work
with other stakeholders - such as customers, partners, and employees - to create services that are mutually beneficial.
c) Extreme thinking: This model encourages service developers to push the boundaries and explore unconventional ideas. By adopting this model,
service developers can differentiate their service and create new value propositions that may not have been considered before.
d) Big data thinking: This model involves leveraging large amounts of data to gain insights and inform decision-making. By adopting this model,
service developers can analyze customer behavior and preferences, and use that information to optimize their service.
e) Open thinking: This model emphasizes the importance of openness and collaboration with external stakeholders, such as customers, partners,
and communities. By adopting this model, service developers can gain new perspectives and ideas, and create services that are more responsive to the
needs of the market.
f) Micro innovation thinking: This model involves creating small, incremental improvements to a service over time. By adopting this model, service
developers can continuously improve their service based on customer feedback and changing market conditions.
g) Story thinking: This model emphasizes the importance of storytelling and narrative in creating a compelling service. By adopting this model,
service developers can create a strong brand identity and emotional connection with their users, which can lead to increased loyalty and
engagement.

Overall, these thinking models can provide useful frameworks and approaches for service developers looking to create innovative and user-centered
services that create value for their customers and stakeholders. By adopting these models, service developers can gain new insights and perspectives, and
create services that are differentiated and competitive in the market.
References

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