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Transcript of Products to services – transformation of the world markets orientation – institute of design...
Stef
an M
oritz
– W
arsa
w 2
011
From product to service
Transformation of the world market’s orientation
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From the industrial society
Significant paradigm shift
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To the networked society
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Outoptimised
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Source: Adaptive Path
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Economic Theory
Taylorism
OrganisationalPsychology
OrganisationalManagement
QualityManagement(Japan)
TotalQualityManagement(USA)
ChangeManagement
SupplyChainManagement
BusinessProcessReengineering
Activity-BasedCosting
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Valu
e fo
r the
org
anis
atio
n
Value for customers
Commodity
Product
Service
Experience
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ExperiencesThings
Shift 01
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UsingOwning
Shift 02
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Outside inInside out
Shift 03
7
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Service Dominant Logic
Transformation of the economy
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Product Culture Remainder
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10 Careers that didn’t exist 10 years ago
1. Bloggers
2. Community managers
3. Green funeral directors
4. Interior redesigners
5. Patient advocates
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http://msn.careerbuilder.com
6. Senior move management
7. Social media strategists
8. User experience analyst
9. Video journalists
10. Virtual business service providers
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Transformation of the economy
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Poland’s GDP
agricultureindustryservices
64%
32%
Source: www.cia.gov 2010
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IBM
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10% services
90% services90% products
10% products
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€ 67.00€ 3,121.00
Gap 01
Producing companies
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Service companies
Investment in research
Source: Birgit Mager
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6%41%
Gap 02
of producing companies see design as integral
13
of service companies see any role of design
Design effort
Source: Design Council UK 2005
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oritz
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Products
Gap 03
14
Productivity
Source: Estimate based on desk research
Gap 04Quality
Service
Products
Service
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Proof point: Flylo check-in
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http://www.youtube.com/watch?v=BOrhMcqx6vw
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“80% of companies believe they deliver outstanding value and a superior customer experience.
8% of their customers agree.”
Source: Bain & Company
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oritz
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35%60%
Gap 05
of new service introductions fail
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of launched services are removed from the market after a short period
Failure
Source: Cooper & Edgett 1996 / Stevends & Burley 2003
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oritz
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EXAMPLEService Design for cars
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From owning to using
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From owning to using
$100M
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SERVICE DESIGN
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Experience prototyping with human empathy beyond products.
SERVICE DESIGN
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Services are different
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You have to be there.It happens over time.You don’t own it but use it.
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“The only people that see the bigger picture of any company are their customers.”
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Anders Frostenson 2010
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Anders Frostenson 2010
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www.servicededesigntools.org
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Understanding Thinking Generating Filtering Sensualisation Realising
Finding out and learning
Giving strategic direction
Developing concepts
Selecting the most relevant
Enabling understanding
Making it happen
The six SD collaboration zones
SERVICEDESIGN
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Experience prototyping with human empathy beyond products.
SERVICE DESIGN
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Follow the logic of the customers
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5% 99%!85%?
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Experience prototyping
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Experience prototyping
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Mutual value
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Improve or innovate service experiences
Satisfied Customers
Profitable Enterprises
Lower riskof failure+ +