Service Design Methods, thinking and practice from
the perspective of pan European research,
development and business support consulting
the MEPSS methodology
Cees van Halen
Partners for Innovation / aHa!Group
Info:
www.ahagroup.nl
www.partnersforinnovation.com
www.mepss.nl
Contact:
+31.6.54252484
cees@ahagroup.nl
c.van.halen@partnersforinnovation.com
1
Every day, many people have great ideas....
Less than 1:1.000.000 of these ideas will
reach the marketplace
...what makes the difference?
2
Why is innovation
(perceived as being)
so difficult?
Where lies the complexity?
3
That markets will adopt
• ..how to translate it in terms of markets
and profitable business models?
I am so dissapointed about support
& responses in my organisation
• Be prepared for ‘Not invented here’ responses
• Initially nobody asked for your idea
It is all so complex!
How to have a good idea?
How to plan & cooperate SMART?
• Me, my project, my colleagues, my
company, my clients, my future....?
How to communicate effectively
What is a good idea ?
The world is changing so fast!
• globalisation, new competitors, rapid
innovations
4
Surprise the client !!
•
•
•
Think in: FUNCTION, EMOTION, VALUE, EXPERIENCE
Rethink offers, (A)SIT, strategy canvas
Combine functions: BOS, PSS
Be consistent & disciplined
• work SMART ...Plan-Do-Check-Act....
• Good Project management
Inspire People (AIDA)
• Work together
• Clear Stage – Gate Process
Mindmap: MINDMANAGER
Build a GREAT idea!!
Communicat effective:
Blue ocean strategies
New thinking (3P as opportunity)
• Clean-clever-competitive
• Think global – act local !
5
Innovation is HARD WORK
juggling many balls in the air….
WHAT: idea, product-market-technology
combination
HOW: project, forecasts, market
plan, communication plan
WHO to act – roles, cooperation,
leadership
WHO to address – client, colleague,
management, supplier, stakeholder
6
Prelude
MEPSS… the project
1. Introduction to
MEPSS Project
Product Services Systems (PSS)
Webtool mepss.nl:
7
2. What is a Product Service System (PSS)?
• "A marketable set of products & services capable of jointly
fulfilling a user's needs«
• The underlying principles:
– Shifting business focus from designing & selling physical products only to
selling a system of product & services jointly capable of fulfilling
specific client demands.
– Create unique value proposition
– Minimise inefficiencies in the system by shifting responsibilities among
the lifecycle chain of a product.
8
1. MEPSS
the EU Research Project
Project coordinator:
Partners:
Dalt: francois.jegou@skynet.be
c.van.halen@partnersforinnovation.com Domus Academy: info@domusacademy.it
Econcept: Ursula Tischner,u.tischner@econcept.o
INSEAD: Kai.Hockerts@insead.edu
IÖW: gerd.scholl@ioew.de
Products:
Politecnico di Milano, carlo.vezzoli@polimi.it
– MEPSS Handbook
Pre Consultants: Mark Goedkoop,
Cees van Halen
– MEPSS Webtool
– Scientific Articles
– Events
goedkoop@pre.nl
Ecobilan: Jochen Krimphoff@fr.pwc.com
Sheffield Hallam University: Tim Cooper,
T.H.Cooper@shu.ac.uk
GrAT (Gruppe angepasste Technologie,TU
Wien): Robert Wimmer, rw@grat.at
Zuid-Hollandse Milieufederatie: Wilma Aarts
9
MEPSS Team
Development structure
Carlo
Vezzoli
WORK LINE DESIGN
Mark
Goedkoop
WORK LINE ASSESSMENT
Robert
Wimmer
WORK LINE SUCCESS &
FAILURE FACTORS
10
MEPSS:
A modular methodology in 5 steps
1- Strategic analysis
2 – Exploring opportunities
3 – PSS idea development
4 – PSS concept design
5 – Development and implementation
of PSS project
The approach enables a
company to start up the
process at the stage that is
the most relevant,
depending on the work that
has already been carried
out internally
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Service Systems: Creating
‘Win-Win-Win’ situations
(Cost) Efficiency for the client
Creating Value for client & supplier
Saving the planet
"Being environmentally
responsible makes good business
sense, and, in fact, gives us a
competitive advantage."
Samuel C. Johnson
We partner with our customers to
create solutions to their unique
cleaning and hygiene needs.
Johnson Diversey
12
Prelude
MEPSS… available results
13
PART 1
New Thinking is needed!
New thinking (3P)
Clean-clever-competitive
Think global – act local !
14
The world changes……rapidly !!
PricewaterhouseCoopers
15
15
Complex relationships
RTD INSTITUTES
UNIVERSITIES
ADVISERS
NGO’s
CIVIL
SOCIETY
POLICYMAKE
R
INDUSTRY
ASSOCIATIONS
GOVERNMENTS
DE MARKET
CHAINS
PRODUCERS
OFFER –
FUNCTION (PSS)
CLIENT
16
Stakeholders relations
New Value Sets
Company value: ‘As Perceived & Future oriented’
Reputation
Core
competences
Knowledge
Strategy
Leadership
Value
Brands
Systems
Processe
s
Stock Value
Intrisic Value
Information
supply
Time
18
Increasingly strong operational integration
between the actors of the value chain ...
Business-to-Consumers
Verticales Market
Places
Verticales Market
Places
Business-to-Business
Horizontales Market
Places
Horizontales Market
Places
Suppliers
Products
CPG
Information
Retailers
Consumers
Raw material
and packaging
Transport / delivery
Material Flow Management
VALUE CHAIN INTEGRATION
19
Internet is changing the business
THINK E-Business
Sustainable
Sourcing
Company
Marketing
Catalog
Management
Customers
Prod Dev
Procurement
Suppliers
Sales / Marketing
Sales
Order Mgmt
Procurement
Supply Chain
Production
Direct-to-Consumer
Distribution
Cust Svce
Support Processes
Collaborative
Product
Design - DfE
Consumer
involvement
20
Sustainable business models:
answer to new challenges
21
Many NEW Global Sustainability Issues
– Global governance
– Corporate governance & accountability
– Sustainable Management and conservation of natural
resources
– Climate Change (Inconvenient Truth – Al Gore)
• See www.makemarketswork.com – conference section
– Accessibility of water & energy
– Changing sustainable production & consumption
pattern
– Trade & sustainable development
22
Sustainability – Risk Management as driving forces for innovation
SD Continuum: Opportunities and Risks
Compliance
Prevention
Operating
Performance
Strategic
Initiatives
23
People-Planet-Profit impact on company?
3P-metrics needed: towards practical indicators (MEPSS)
24
..Translate to Corporate strategy PYRAMID
ACTION LAYERS
Vision
Ambition
Strategy
Setting objectives & KPI-s
Prepare for Action
Action
Communication
Plan
Act
Check
Do
25
Pro-active, holistic thinking
Scenarios and systems
Market
Pull
Vision
Goal Setting
Backcasting
Tech.
Push
Forecasting
Business level
Product level
Technology
level
Time
Projects
level
26
PART 2
Ideation..!!
What is a good idea ?
That markets will adopt
How to have a good idea?
and how to translate it in terms of markets
and profitable business models?
27
IDEATION
MEPSS
IDEATION
BOS
28
MEPSS: A modular
methodology in 5 steps
1- Strategic analysis
2 – Exploring opportunities
3 – PSS idea development
4 – PSS concept design
5 – Development and implementation
of PSS project
The approach
enables a company
to start up the
process at the stage
that is the most
relevant, depending
on the work that has
already been carried
out internally
29
Thinking in terms of:
System analysis:
Offer:
Interaction:
Assessment:
Tool
?
Tool
Tool
Tool
?
Tool
Tool
30
SystemMap
31
OfferingDiagram
32
InteractionTable
33
Sustainability Assessment
34
BOS - Blue Ocean Strategies
= PSS thinking ‘re-invented for marketeers’
1- Strategy Canvas
2 –Four Action Framework
Eliminate, Raise, Reduce, Create
3 – Formulating BOS
Building a Unique PSS offer
4 – Executing BOS
Excellent book !!
Chan Kim
Renée Mauborgne
35
Blue Ocean Strategies – Value Innovation
1. STRATEGY CANVAS
1- Strategy Canvas
Unique BOS  Value Innovation
2 –Four Action Framework
3 – Formulating BOS
4 – Executing BOS
36
Find unexpected NEW Blue Ocean offer
2. FOUR ACTION FRAMEWORK
1- Strategy Canvas
2 –Four Action Framework
3 – Formulating BOS
4 – Executing BOS
Four actions (canvas):
1. Eliminate
2. Raise
3. Reduce
4. Create
37
Reconstruct Market Boundaries
3. FORMULATING BOS
1- Strategy Canvas
2 –Four Action Framework
3 – Formulating BOS
4 – Executing BOS
Six Path Framework (learn & combine):
1. Look across alternative industries
2. Look across strategic groups within industries
3. Look across the chain of buyers
4. Look across complementary product/service offerings
5. Look accross functional or emotional appeal to buyers
6. Look across time
Focus on the BIG PICTURE
Drawing Strategy Canvas
•Visual awakening
•Visual exploration
•Visual strategy fair
•Visual communication
38
Blue Ocean Strategies
4. EXECUTING BOS
Find a TIPPING POINT strategy
1- Strategy Canvas
2 –Four Action Framework
Eliminate, Raise, Reduce, Create
3 – Formulating BOS
Building a Unique PSS offer
Four organisation hurdles:
1. Cognitive
-
4 – Executing BOS
2.
 Close gaps in perception
Face-to-face with problems, clients
Political
-
3.
Silencing Devils Leveraging Angels
Don’t fight alone
Motivational
-
4.
Kingpins, Fishbowl and brake-down into bits
Resources:
-
Cold  Hot Spots
39
PSS and BOS: Leadership models !
TARGET GROUP FOR PSS AND BOS
strategies
Laggards
Peleton
Leaders
Niche-players
40
40
PART 3
BUILD & IMPLEMENT
Be consistent & disciplined
• work SMART ...Plan-Do-Check-Act....
• Good Project management
• INSPIRE PEOPLE (AIDA)
• Work together...
• Work according to Stage-Gate
41
MAIN STRUCTURE = Stage Gate
Secured embedding of project team with organisation
Two layer decision making
1- Strategic analysis
2 – Exploring opportunities
3 – PSS idea development
4 – PSS concept design
5 – Development and
implementation of PSS project
42
Phases in MEPSS model –
a closer look
43
MAIN STRUCTURE:
PROCES – based on Stage Gate model
Anchoring the organisation &
stakeholders (commitment)
Management
DECISION LEVEL
DESIGN LEVEL
Project
44
MEPSS structure
Monitoring phase
Start here
Assessment
Success
and
failure
Strategic assessment of opportunities
PSS Developing phase
or start here
Scenario development
or start here
PSS idea development
or start here
PSS design
or start here
Monitoring PSS after introduction
Design
45
PART 4
PEOPLE, people, people, people,
people
INSPIRE PEOPLE (AIDA)
•
•
Work together...
Work according to Stage-Gate
Learn to communicate effective:
New methods
New ICT tools
e.g. Mind Mapping software: MINDMANAGER
46
AIDA
1. AWARENESS
2. INTEREST
3. DESIRE
4. ACTION
47
Circles and Drivers
Inspire
People
Awareness
Inner
Circle
‘SURROUNDING
GROUPS’
Outer Circle
‘DECISIONMAKERS’
‘PROJECT TEAM’
TRUST
Communicate
Success
Inspired People
have a personal drive
48
Communication – MindManager
49
Mind Mapping powers innovation by new
communication models
• Organising thoughts of people
• Mind Mapping is a creativity and innovation engine.
– Ideas can be visualised and translated into concepts and projects.
– Stakeholders can express their support for these concepts/ideas.
• Mind Mapping contributes to a better structure of the discussion
– Increase of transparency and clarity
– To support decision making and making discussions more action based.
• Connecting people
– Mind Mapping stimulates the interaction between people
• AIDA into ACTION
– Co-design – Open innovation model:
– stakeholders will learn to appreciate ideas and co-operate in innovation process.
50
Organic working – holistic, no silos !
New holistic, more organic and open models
based on Mind Mapping software
Tradional software
Segmented in functional pillars
Create / Ideas
Old domain
of Mind
Mapping
Build / Organize
Word
Databases
Present
PowerPoint
Web Pages
Act upon
Project
management
software
Outlook
Domain of
Mind Mapping software
51
Communication – use MindManager
• Learn more:
– www.ahacoaching.nl
– Examples:
• Mind Mapping at National Innovation Event:
– www.ahagroup.nl/ipe
• Mind Mapping at Climate Conference
– www.makemarketswork.com (ahaprojects.nl/mmw)
..or contact cees@ahagroup.nl
52
Communication
MEPSS webtool
• 2 types of tools:
– Tools to visualise :
• these tools are used for 2 purposes, to allow team members to
visualise the results of their thinking process and to trigger
further thinking. They are useful to use during workshops. The
main visualisations are the System Map, the Functionality
Diagram and the Interaction Map and run all along the
methodology.
– Tools to support decision making:
• these tools help assess and define different dimensions of the
PSS solution, namely success and failure factors and the 3
dimensions of sustainability issues. They require a certain
amount of information gathering and work and are applied
outside workshops
53
1- Strategic analysis
Main outputs from the phase:
•
1. Prepare a system map, the list of
•
variables (active/passive) and the
characteristics of the variables
•
2. Prepare a document that sums up
•
the current system (SWOT,
market study and opportunities,
•
consumer behaviour, product’s
strengths/weaknesses)
3. Prepare a list of the key strategic
drivers of the business
•
Our competences
Our key stakeholders?
What do my clients expect?
Key technological trends
Today's system in terms of
people, planet, profit
other strategic issues at
stake?
54
1 – Strategic analysis (overall)
Main objectives: To find the innovation process direction with the help of a general overview of the
strategic issues at stake (stakeholders, regulation, boundary conditions, technologies, business
culture,etc…)
Actors involved: Key decision makers (Top management), External expert +
moderator, Key stakeholders if feasible
Main outputs:
System analysis:
Offer:
Interaction:
Assessment:
Tool
?
Tool
Tool
Tool
?
Tool
Tool
55
2 – Exploring opportunities (overall)
Main objectives : To generate a panorama of contrasted scenarios and related sustainable PSS
ideas.
Actors involved : Internal project team initially carrying out the project; Representatives from main
stakeholders (or related competencies if the stakeholders have not already been identified);PSS
design support (internal if available or consultants); Project manager facilitating the workshop.
Main outputs :
System analysis:
Offer:
Interaction:
For each scenario
For each scenario
For each scenario
Assessment:
Tool
?
Tool
Tool
Tool
?
Tool
Tool
56
2 – Exploring opportunities
Process to follow: Suggested format for this phases consists in a
workshop to brainstorm on possible PSS solutions and its follow-up work.
Preparatory
phase
Workshop
Follow-up
work
Main activities:
Main outputs from the
phase:
Brainstorming to generate potential ideas for
PSS solutions based on :
A list of potential PSS ideas
• Generation of intuitive promising tentative
ideas
•Identification of promising scenarios
Orientated towards sustainable solutions
and customer needs
57
2 – Exploring opportunities (questions)
What are main PSS scenarios to guide me into the future?
Where are untapped opportunities?
What are the PSS ideas that could be developed?
Which set of evaluation criteria for PSS should be used
according to the company's priorities?
Do the ideas generated bring about an improvement with
regards to environmental/social impacts and how?
58
3 – PSS idea development
1.
2.
3.
4.
5.
6.
What does each PSS solution generated really offer
(functionality, perceived value)?
What are the main actors involved and how should the PSS
interact with the client for each solution (overall)?
What are the platform boundaries and how should the PSS
system look like for each solution (overall)?
What PSS solution is the best to start working on?
What are the investment requirements for each solution?
How do the ideas generated bring about an improvement with
regards to environmental/social impacts?
59
3 – PSS idea development (overall)
Main objectives: To shape the selected PSS ideas in more depth (make final
selections in case of multiple PSS ideas)
Actors involved: Transversal team of representatives from the company
(development teams and assessment experts)
Main outputs:
System analysis:
Offer:
Interaction:
Assessment:
Tool
?
Tool
Tool
Tool
?
Tool
Tool
60
D18-SystemMap
61
3 – Example
PSS idea development
62
3 – PSS idea development
63
3 – PSS idea development
Terminal
Value
Happiness
Instrumental
Value
Self
respect
Psycho-social
Consequences
Functional
Consequences
Abstract
Attributes
Concrete
attributes
Social
acceptance
Personal
expression
Long
lasting
Mode
of use
Clean
(-able)
Expensive
per kg,
not per m²
Decoration
Good
consience
Careful
Make
durable
Colour
spectrum
Trust
Engagement,
belonging
Renew,
change,
restyle
X
Aesthetic,
Function,
colour
Natural
Healthy
Nice
smell
Product specification
natural paint
64
4 – PSS concept design (overall)
Main objectives : To develop the detailed functionalities of the PSS selected, model
the system and make check on its viability and sustainability
Actors involved : Internal transversal team (representatives from the appropriate
department of the company), External experts, Key stakeholders
Main outputs :
System analysis:
Offer:
Interaction:
Assessment:
Tool
?
Tool
Tool
Tool
?
Tool
Tool
65
List of MEPSS tools
66
List of Assessment Tools
A1-Inventory of sustainability indicators
A2-System dynamics
A3- Property rights analysis
B1-System map
B2-Virtue matrix
B3-Screening LCA
B4-Screening profitability
C1-Full LCA for PSS
C2-Full life cycle costing
C3-Total cost assessment
C4-E2 Vector
67
List of Design Tools
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Scenario workshop input format
Scenario building tool
System map
AddPosters
Interaction story-board guidelines
OfferingDiagram
InteractionTable
Use case
Guidelines, criteria and radar for the environmental
sustainability
Guidelines, criteria and radar for the socio-ethical and
economic sustainability
Sustainability criteria and guidelines:overview table
Generic guidelines for successful and sustainable PSS
SWOT for analysing the existing system/situation/market
68
Communication – MEPSS webtool
• Learn more:
www.mepss.nl
Or contact: c.van.halen@partnersforinnovation.com
69