42629 lecture 2 pt4

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Product/Service Orientation …

Product/Service Orientation
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  • 1. Product/Service OrientationThomas J. Howardthow@mek.dtu.dkMain Contributions from: Tim C. McAloone, Niki Bey & Krestine Mougaard Unless otherwise stated, this material is under a Creative Commons 3.0 Attribution–Share-Alike licence and can be freely modified, used and redistributed but only under the same licence and if including the following statement:“Original material created for the PROTEUS project and adapted for course42629, Innovation and Product Development Department of MechanicalEngineering, DTU”
  • 2. In your teams discuss the following scenario: “You have been developing and selling microwave ovens for many years and have seen profits steadily falling due to increase competition. How could you add a service dimension to your business and what market segment would you target?2 Material provided by Tim C. McAloone and adapted for course 42629, 2012 Innovation and Product Development Department of Mechanical Engineering, DTU
  • 3. Product/Service Orientation PRODUCT USE RESULT • Product related • Product lease • Activity management service • Product renting • Functional unit • Product related • Pay per service unit consultancy PRODUCT SERVICE ORIENTATION ORIENTATION Based on Tukker & Tischner 20063 Material provided by Tim C. McAloone and adapted for course 42629, 2012 Innovation and Product Development Department of Mechanical Engineering, DTU
  • 4. Product/Service Orientation4 Material provided by Tim C. McAloone and adapted for course 42629, 2012 Innovation and Product Development Department of Mechanical Engineering, DTU
  • 5. Product Life & User Activity Cycles PRODUCT’S LIFE CYCLE RAW MATERIALS MANUFACTURE MAINTENANCE INSTALLATION TRANSPORT ASSEMBLY DISPOSAL SALES USE Tan, A., McAloone, T.C., Andreasen, M., “What happens to integrated product development Models with product/service-system approaches?”, The 6th Integrated Product Development workshop, 2006 SUPPORT OF CUSTOMER’S ACTIVITIES CUSTOMER’S ACTIVITY CYCLE5 Material provided by Tim C. McAloone and adapted for course 42629, 2012 Innovation and Product Development Department of Mechanical Engineering, DTU
  • 6. Strategies of Service Design Customer Business Product life activity supporting Product use services services services services •Training •Consulting •Supplies •Maintenance •Planning •Financing •Installation •Repair •Designing •Managing •Auxiliary input •Spare parts •Specifying •Partnering •Upgrade Product •Warranty •Operating •Outsourcing •Disposal •Measuring Design for Serviceability [Dewhurst 1994] Design for Supportability [Goffin, 2000][Takata et al. 2004] Design for Service [Harrison, 2006]6 Material provided by Tim C. McAloone and adapted for course 2012 42629, Innovation and Product Development Department of Mechanical
  • 7. Strategies for Service Design7 Material provided by Tim C. McAloone and adapted for course 2012 42629, Innovation and Product Development Department of Mechanical
  • 8. Designing a PSS We need to adopt new approaches for making substantial changes: – For the end-user: o New patterns of usage, lifestyle, purchasing and flexibility – For the producing company: o Maintain contact, supply, maintenance, upgrading, disposal, and recycling of the product o See utilisation of the product as the delivered service o Realise new ownership patterns such as renting, leasing, service- contracts, etc. o Identify new markets and greater share by re-defining core business – For society: o Increased product efficiency (due to the producing company having increased liability for-, insight into- and ownership over the product) o A closer relationship between social needs and the products that industry supplies (due to the voice of the customer being louder and clearer than before)8 Material provided by Tim C. McAloone and adapted for course 2012 42629, Innovation and Product Development Department of Mechanical
  • 9. PSS can be an effective way to bring suppliers closer to customers while responding more to the customer’s real needs. Services should be integrated into the design of products where valuable.9 Material provided by Tim C. McAloone and adapted for course 2012 42629, Innovation and Product Development Department of Mechanical
  • 10. Questions ?10 Material provided by Tim C. McAloone and adapted for course 2012 42629, Innovation and Product Development Department of Mechanical
  • 11. ExerciseIn your project teams, try to synthesise at least 3 PSS business configurations that for you business ideas.Try to consider what, where, when and how your customers would pay for your offerings.11 Material provided by Tim C. McAloone and adapted for course 2012 42629, Innovation and Product Development Department of Mechanical