Marc Fonteijn of 31Volts is running an experiment and collecting quotes on service design from various bloggers on this topic. As a follow-up to the definition of service design by the Copenhagen Institute of Interaction Design, Marcel of 31Volts invited me to participate, and here we go:

Service Design is the design of value creating offerings by aligning intangible processes and incorporating tangible products to create remarkable customer experiences.

Some other interesting definitions are:

Good service design is the process of deliberately crafting our experience and delivery of services, to make them more valuable for the people that use and provide them. – Nick Marsh

Service designers work with companies and governments to orchestrate their encounters with people. – Jeff Howard

Read these and other "one liners of service design" at the 31Volts blog.