A good design is not only a matter of aesthetics. When designing a product, many factors have to be considered. For example, how the product is going to be used, and by who. This determines the product functions, form, materials, colors, etc. This requires the ability to understand what the product user is trying to achieve (an outcome, an experience).
The same applies to service design, in which the object to be designed is a process which aims to reach a goal, through the use of products, software applications, information, etc. The challenge is that there are many more people involved in the consumption and delivery of the service, the service relies on collaboration, the service is mostly intangible.
Service Design Thinking is an approach based on a hands-on, user-centric approach to problem definition and idea/solution generation can lead to innovation. This is of utmost importance, as the application of these principles can lead to competitive advantages.
Remember: you only do things that are of value to you in one form or other.
The approach aims at designing services by applying different tools based on 5 principles.
Service Design Thinking should be...
user-centered
co-creative
sequencing
evidencing
holistic