Product-Service Business Concept Design:
Real-world Case of
a Small Furniture Manufacturing Firm
Yong Se KIM
Sungkyunkwan University, Korea
Product-Service Systems
Product-Service Systems
People First !
INNOVATION
Service-Dominant Logic
E3 Value Concept
Value
Economic
Value
Ecological
Value
Experience
Value
Extrinsic
Value
Functional
Extrinsic
Social
Intrinsic
Value
Emotional
Active
Reactive
Intrinsic
Social
Epistemic
Service Design
[Y. S. Kim]
Service Design Process
Modeling Diversity of Values (E3 values)
▌ Activity Design with consideration of Various Context Elements
▌ Service Interaction Design with care on Touchpoints
▌ Stakeholder Experiences Assessment and Management
▌
Evolutionary Development of Service Designing
Product-Service Systems (PSS) Design Project
Supported by Korean Ministry of Knowledge Economy
2008 - 2013
▌Theme
▌Integrated
Design + Product-Service Systems + Intelligence
▌Research
▌PSS
Design Strategy Design
▌PSS Design based on Use Information
▌PSS Design Process Innovation
▌Intelligent PSS Design Framework
Manufacturing
Industry
Design
Consulting
Companies
PSS Design Process Innovation
PSS Design Framework
Product
Product-Service Systems
5
Design Support Tools for PSS
P12
P10
P
s
V1
P2
Product
P1
P3
P
V2
P
P6
P8
P7
Product-Service Systems
P13
V2
P5
PSS Concept Detailing
Life-Cycle Step
Modeling
P
P1
P
Function-Activity Mapping and PSS Concept Generation
s
P
P1
P3
P2
P3
s
P4
P
Stakeholder Activity Design
V3
s
s
V1
P2
P1
P5
P12
P11
s
P4
Product
P5
PSS Function Modeling
P7
P10
P3
P
P4
Requirement Identification and Value Targeting
V3
P12
P5
P12
P11
P4
P2
P6
P8
P13
s
s
Product-Service Systems
PSS Concept Prototyping
Activity Modeling
Service Blueprint
E3 Values
Economic Value Ecological Value
Experience Value
Extrinsic
Functional
Intrinsic
Extrinsic
Social
Emotional
Active
Intrinsic
Social
Epistemic
Reactive
Requirement
Modeling
PSS Scenario
Generation
Service Blueprint
With Functions
Stakeholder
Modeling
PSS Function Modeling
Service Design Software
http://servicedesignsoftware.com
Product-Service Systems Design Software
Customer Experience
Sampling and Analysis
Biz Model
Generation & Evaluation
Design for Affordance
Framework
Activity Modeling and
Service Blueprint
PSS Function
Design System
Manufacturing Servitization Support Framework
Supported by Korean Ministry of Industry, Trade and Energy
2013 - 2016
Manufacturing
Servitization
Support
Framework
ProductService
Systems
Design
Strategy
PSS System
Double-Deck Servitization Process
Servitization Process
▌
High-Level Strategy and Low-Level Product-Service System Design
Servitization Process
▌
Small Furniture Company Top Plan DNC
Top Plan DNC Business Positioning
▌
▌
▌
경기도 남양주시 화도읍 가곡리
설립: 2007년, 매출액: 20억원 내외, 직원수: 15명 (생산 10, 디자인 3, 총무/관리 2)
사업 개요: 가구 디자인/설계, 가공/조립, 도색, 설치
주요상품 : 패션 브랜드 매장에 사용되는 주문형 디스플레이 가구 (진열장)
핵심역량 : 신속 현장 세팅 공정, 디자인 및 시공, 신속 제작 (필요시 매장에 직접 설치)
니즈: 비수기를 활용한 디자인 인력(대표 포함 4명)의 역량 활용에 대한 니즈 강함
Business Context Diagnosis of Top Plan DNC
▌
Fashion Store Furniture Manufacturer
Value themes
Service Space of Personalized DIY
Service Space of Personalized DIY
SSPP
SSPc
Furniture Choice
Delivery
SSPC
SSCp
Personalized DIY DIY Education
SSCC
Community
Expert Advice
Service Brand Identity
“Make Your Own Customized Happiness”
Journey Map
Service Blueprint of Personalized DIY
Prototyping
Context-specific Experience Sampling and Analysis
Context-Specific
Experience
Sampling &
Analysis
Experience Evaluation
▌
Color Selection
Experience Evaluation
▌
Color Selection
Fun
Familiarity
Proud
Learning
Customized
Experience Evaluation of the Second Prototyping
Experience Evaluation of the Second Prototyping
Fun
Familiarity
Color
Selection
Smoo
thing
Proud
Learning
Smoo
thing
Customized
Smoo
thing
Color Selection
E3 Values for Color Selection Service
Service blueprint
PSS Design
▌
[ServDes 2012]
Framework for PSS Design
Service Blueprint
Stakeholders’ Activities
PSS Function Modeling
Service Blueprint
with Functions
Service Elements
Product Elements
Functions
PSS Design
▌
[ServDes 2012]
Framework for PSS Design
Service Blueprint
Stakeholders’ Activities
PSS Function Modeling
Service Blueprint
with Functions
Service Elements
Affordances
Product Elements
Functions
PSS Design Using Affordances
▌
[ServDes 2012]
Framework for PSS Design with Affordances: Service Driven Approach
Service Blueprint
Stakeholders’ Activities
PSS Function Modeling
Service Blueprint
with Functions
Service Elements
Affordances &
Affordance Features
Product Elements
Functions
PSS Design Using Affordances
▌
Framework for PSS Design with Affordances: Service Driven Approach
Service Blueprint
Stakeholders’ Activities
PSS Function Modeling
Service Blueprint
with Functions
Service Elements
Function-Activity
Interaction Matrix
Affordances &
Affordance Features
Design for Affordance
Product Elements
Functions
PSS Design Using Affordances
▌
[ICED 2011]
Scheme of PSS Representation
– PSS Function & PSS Structure
– PSS Structure: Service elements + Product elements
*Service element
: Stakeholders (SP/SR)
: Activities
*Product element
: Affordance Features
that provide affordances
for activities
ACT
_P
Energy
Energy
Materials
Materials
Service Element
Information
Information
SR
ACT
_R
Service Element Layer
SP
Energy
Energy
Material
Information
SP
Material
Function 1
Affordance 1
Affordance 2
………..
Affordance m
Information
AF22
SR
AFmn
AF11
P1
P2
Product Element Layer
……..
Pn
Product-Element Design for Customized Color Selection
Current Business Model
• B2B
Furniture
Manufacture
Penetration
Indirect Shop
ThruInteriorDesign
Company
Pay per Unit
-1-
Product & Service Engineering Lab, SNU
Customized Furniture (Customer Target Change)
• B2C
Furniture
Manufacture
Customization
Targeting
Premium Customers
interestedin
CustomizedFurniture
Direct
channel
Off-line
Store
Pay per Unit
-7-
Product & Service Engineering Lab, SNU
DIY Experience Provision Service
Furniture
Manufacture
Viral
marketing
Words of Mouth
DIY Experiecne
Service
Experience
shop
Furniture
Making
Customization
Targeting
Premium Customers
interestedin
CustomizedFurniture
Experiences
Direct
channel
Off-line
Store
Pay per Unit
-7-
Product & Service Engineering Lab, SNU
Partnering
Furnriture
Manufacture
Cross
promotion
Words of Mouth
Collaborationwith
PartnerstoPromote
DIY
DIY Experiecne
Service
Camping
Catering
Viral
marketing
Experience
shop
Furniture
Making
DIY MarketingNeeds!
Customization
Targeting
Premium Customers
interestedin
CustomizedFurniture
Experiences
Direct
channel
Off-line
Store
Fixed cost
 InitialCost
Pay per Unit
Variable cost
 ServiceRelated
-7-
Product & Service Engineering Lab, SNU
Servitization Process of a Small Furniture Manufacturer
Business Launching
41
Servitization Process: Design, Development, Operation
Servitization Process: Design, Development, Operation
Design
Design
Development
Launching
Operation ?
Product-Service Business Design Case
44
제조업의 서비스화 지원
프레임워크 개발 컨소시엄
facebook.com/pssinno
yskim@skku.edu
Double-Deck Servitization Process
Manufacturing
Servitization
Support
Framework
ProductService
Systems
Design
Strategy
PSS System
SKKU Service Design Graduate Program
(2013 – )
Product-Service
Systems
Service
Cognition
Value
Model
Service
Activity
Design
Service
Interaction
Service
Communication
Service Management
Service
Experience
Healthcare
Service
Social Innovation
Service
Faculty Members of SKKU Service Design Graduate Program
Information: sdi.skku.edu
Inquiries: dinstitute@skku.edu
SKKU Service Design Graduate Program
yskim@skku.edu
sdi.skku.edu
BK21+