PurposeThis paper aims to deepen the understanding of the service design concept by critically analyzing the existing servitization literature. The paper’s main purpose is to structure service design and offer a clear understanding of how it should be applied.Design/methodology/approachA systematic literature review was conducted within servitization literature to understand the evolution of the service design concept. The authors use service design pillars (i.e. user-centered, co-creative, sequencing, evidencing and holistic) as a theoretical framework to explain how service design should be effectively incorporated into the servitization journey.FindingsThe findings expose a discordant interpretation of the pillars underpinning service design, revealing a paradoxical comprehension that jeopardizes its practical advancement within the servitization literature. The authors propose that service design should first be seen holistically, then target user-centered practices for sequencing service development steps, and finally, co-creating with partners to make the service evident to users. Furthermore, the authors contextualize service design within contemporary and traditional service-related issues such as servitization innovation, customer experience, service-dominant logic, service ecosystems and digital transformation.Originality/valueThis research pinpoints the service design concept’s shortcomings in the servitization literature. The study promotes a critical reflection on the service design concept and its current application, providing avenues for future research.