Smart Retro Meetup Stockholm – Jarmo Suominen, Aalto University

•1/3 working in 3rd places,

Smart Spaces?

Smart Cities?

City On DemandBuilt environment needs its own app store!

Jarmo Suominen Professor, Service Architecture Aalto University, ARTS, Architecture

MIT Medialab Sa+P

Massachusetts Institute of Technology

This is me as a user of my City[supply driven logic]

My City is taking care of logistics, marketing available offerings to me trough various channels.Focus is on distribution and delivery of goods to market.My city is planning what is good for me. I am using my City

This is me as a consumer of My City[market oriented logic]

My City is trying to understand my demands trough participative processes. Offerings are developed based demand, focus is on product, price, place and promotion.My city is asking what is good for me.

This is me as a participant of My City[service dominant logic]

Focus is on creating value together. Affordances are developed based value proposition and I am an active participant identifying what is valuable for meMy city is asking to do it together.

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Development of customer orientation

• 4 P’s - product - price, - place - promotion• customer as an object

• logistics• marketing

channels• distribution• goods to market

• value proposition• value co-creation• service• relational • customer

involvement• customer as an active participant

Lähde: Lusch 2007Jarmo Suominen | Aalto University 2014

Jarmo Suominen | Aalto University 2014

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Symbolic value

Emotional value

Operational value

Economical value

Technical value

Perceived Customer Value

Focus on the identity and brand, value proposition

Focus on customer experience, emotions, redemption

Focus on operations, practices and processes

Focus on economics, investments ROI

Focus on infrastructures, technologies and solutions

What are the architectures for value co creation?

04/11/2023 Lab for Learners | Jarmo Suominen 2014

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DynamicEmergingEnabling

RobustPlannedImplementing

Lab for learners Temple for teachers

Instead of maximizing short-term ROI(Return On Investment)

We focus on maximizing long-term ROC(Return On Community)

And institutionalizing ROL(Return On Luck) accelerating Serendipity

DUMBO | NY

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User engagement

DYICITY Jarmo Suominen DEC 2011

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Customer value and Service ArchitectureThe focus is not on products, but on the consumers' value -

creating processes, where value emerges for consumers, and is perceived by them.


Customer value


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Architectures of value co creation

Urban acupuncture

DOING

DOING

DOING

DOINGDOING

DOING

DOING

DOING

AALTO LOOP

PATTERN REGOGNITIONCase QUT, Brisbane

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CAMPUS WALKCase QUT, Brisbane

DYICITY Jarmo Suominen DEC 2011

City On Demand

Service architecture | J Suominen | 2014

University

Workplace

HospitalTraditional development:Each entity includes all the necessary resources within its own premises

InhouseInternal resourcesInternal use


Workplace

SharedNew models emerging:Use of shared resources like co working platforms is perceived efficient

Internal resourcesExternal and internal use

University

Hospital


Workplace

Distributed

New models emerging:Use of shared resources

like co working platforms is perceived efficient

External resourcesInternal use

University

Hospital


Workplace

On Demand

Shared Service Platforms

Sustainable development:Organizations could minimize their footprint by using professionally operated shared resources

Eternal and Internal resourcesExternal and internal use

University

Hospital

Service architectures for value co creation

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30 75160

310

600

1130

2150

2006 2007 2008 2009 2010 2011 2012

Around 3 million people is using co working platforms in USAnow

Amount of Service Operators in USA has doubled every year after 2006.

Jarmo Suominen | Aalto 2013

FIX, minimize fixed costsFLEX, maximize flexibilityFLUX, optimize interaction

04/11/2023 Lab for Learners | Jarmo Suominen 2014

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New Business OpportunitiesCity On Demand

Internal resources External resources

02.FLEX SharedSchool as community/neighborhood center, access facilities like gym and art class, services like training or couching

Internal use

Externaluse

04.FLEX On DemandSchool as service, run by service operations using shared resources, optimizing its own footprint, demanding service operator

01. FIX In houseSchool as a resource for educational purposes, including all necessary resources and services within its own premises

03. ADD DistributedUsing external resources for enabling education and community objectives

MIT City Scopeas a platform for value co creation in urban context

Shanghai scale model

Shanghai Scale Model

2828Avatar Holotable


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SYMBOLIC VALUEGreen campus / path


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EMOTIONAL VALUESocial density / amount of interaction


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OPERATIONAL VALUEMobility


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ECONOMICAL VALUELand use and investments


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TECHNICAL VALUEWind load (building automation and infra)


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Real-Time Data Observatory &Urban Transformation Simulator of:

•Movement of people•Movement of vehicles •Flow of goods•Energy flows •Wind flows •Solar access and shadows •Personal data and payment flows •Food networks •Urban lighting •Livability•Productivity•Disease•Crime•Creative output

CityScope, Changing Places Group, MIT Media Lab


Market To Market With

Organization centric Solution centric

User demands Customer value

Quantitative metrics Qualitative metrics

One way information Symmetrical knowledge

Static solution Dynamic solution

Added value Redeemimg value proposition

Value exhange Customer relationship

Maximizing profit Optimizing value

From supply driven to service dominant solutions

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Robust process designClear solution space definition

Customer centric choice navigation

Urban App Store

Smart Retro Meetup Stockholm – Jarmo Suominen, Aalto University

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