Smart Spaces?
Smart Cities?
City On Demand
Built environment needs its own app store!
Jarmo Suominen
Professor, Service Architecture
Aalto University,...
This is me as a user of my City
[supply driven logic]
My City is taking care of
logistics, marketing
available offerings t...
This is me as a consumer of My City
[market oriented logic]
My City is trying to
understand my demands
trough participativ...
This is me as a participant of My City
[service dominant logic]
Focus is on creating
value together.
Affordances are
devel...
Development of customer orientation
• 4 P’s
- product
- price,
- place
- promotion
• customer as an
object
• logistics
• m...
Symbolic
value
Emotional value
Operational value
Economical value
Technical value
Perceived
Customer Value
Jarmo Suominen ...
What are the architectures for value co
creation?
Lab for Learners | Jarmo Suominen 2014
Dynamic
Emerging
Enabling
Robust
Planned
Implementing
Lab for learners Temple for t...
Instead of maximizing short-term ROI
(Return On Investment)
We focus on maximizing long-term ROC
(Return On Community)
And...
DUMBO | NY
User engagement
23.5.2014 DYICITY Jarmo Suominen DEC 2011 13
Customer value and Service Architecture
The focus is not on products, but on the consumers' value -
creating processes, wh...
Jarmo Suominen | Aalto University 2014 15
Architectures of value co creation
Urban
acupuncture
DOING
DOING
DOING
DOINGDOING
DOING
DOING
DOING
AALTO LOOP
PATTERN REGOGNITION
Case QUT, Brisbane
2014 DYICITY Jarmo Suomin...
CAMPUS WALK
Case QUT, Brisbane
23.5.2014 DYICITY Jarmo Suominen DEC 2011 18
City On Demand
University
Workplace
Hospital
Traditional development:
Each entity includes all the
necessary resources within
its own pre...
Workplace
Shared
New models emerging:
Use of shared resources
like co working platforms is
perceived efficient
Service arc...
Workplace
Distributed
New models emerging:
Use of shared resources
like co working platforms is
perceived efficient
Servic...
Workplace
On Demand
Shared Service
Platforms
Sustainable development:
Organizations could
minimize their footprint by
usin...
30
75
160
310
600
1130
2150
2006 2007 2008 2009 2010 2011 2012
Amount of Service Operators in USA has doubled
every year a...
New Business Opportunities
City On Demand
Internal resources External resources
02.FLEX Shared
School as
community/neighbo...
MIT City Scope
as a platform for value co creation in
urban context
Shanghai scale model
Shanghai Scale Model
28 28Avatar Holotable
SYMBOLIC VALUE
Green campus / path
Jarmo Suominen | Aalto University 2014 29
EMOTIONAL VALUE
Social density / amount of interaction
Jarmo Suominen | Aalto University 2014 30
OPERATIONAL VALUE
Mobility
Jarmo Suominen | Aalto University 2014 31
ECONOMICAL VALUE
Land use and investments
Jarmo Suominen | Aalto University 2014 32
TECHNICAL VALUE
Wind load (building automation and
infra)
Jarmo Suominen | Aalto University 2014 33
Real-Time Data Observatory &
Urban Transformation Simulator
of:
•Movement of people
•Movement of vehicles
•Flow of goods
•...
Market To Market With
Organization centric Solution centric
User demands Customer value
Quantitative metrics Qualitative m...
Sushi
Robust process design
Clear solution space definition
Customer centric choice navigation
Urban App Store
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Smart Retro Meetup Stockholm – Jarmo Suominen, Aalto University

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Smart Retro, a smart city project by Demos Helsinki and it’s distinguished partners, was kicked off in a spirit of enthusiastic co-operation. Smart Retro aims for creating effective business models and tools, which can be used for refurbishing residential areas in smart and sustainable ways. This is one of the presentations held in Smart Retro Meetup.

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Smart Retro Meetup Stockholm – Jarmo Suominen, Aalto University

  1. 1. Smart Spaces?
  2. 2. Smart Cities?
  3. 3. City On Demand Built environment needs its own app store! Jarmo Suominen Professor, Service Architecture Aalto University, ARTS, Architecture MIT Medialab Sa+P Massachusetts Institute of Technology
  4. 4. 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
  5. 5. 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.
  6. 6. 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 me My city is asking to do it together.
  7. 7. 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 7
  8. 8. Symbolic value Emotional value Operational value Economical value Technical value Perceived Customer Value Jarmo Suominen | Aalto University 2014 8 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
  9. 9. What are the architectures for value co creation?
  10. 10. Lab for Learners | Jarmo Suominen 2014 Dynamic Emerging Enabling Robust Planned Implementing Lab for learners Temple for teachers 23.5.2014 10
  11. 11. 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
  12. 12. DUMBO | NY
  13. 13. User engagement 23.5.2014 DYICITY Jarmo Suominen DEC 2011 13
  14. 14. Customer value and Service Architecture The focus is not on products, but on the consumers' value - creating processes, where value emerges for consumers, and is perceived by them. Jarmo Suominen | Aalto University 2014 14 Customer value
  15. 15. Jarmo Suominen | Aalto University 2014 15 Architectures of value co creation
  16. 16. Urban acupuncture
  17. 17. DOING DOING DOING DOINGDOING DOING DOING DOING AALTO LOOP PATTERN REGOGNITION Case QUT, Brisbane 2014 DYICITY Jarmo Suominen DEC 2011 17
  18. 18. CAMPUS WALK Case QUT, Brisbane 23.5.2014 DYICITY Jarmo Suominen DEC 2011 18
  19. 19. City On Demand
  20. 20. University Workplace Hospital Traditional development: Each entity includes all the necessary resources within its own premises Inhouse Service architecture | J Suominen | 2014 Internal resources Internal use
  21. 21. Workplace Shared New models emerging: Use of shared resources like co working platforms is perceived efficient Service architecture | J Suominen | 2014 Internal resources External and internal use University Hospital
  22. 22. Workplace Distributed New models emerging: Use of shared resources like co working platforms is perceived efficient Service architecture | J Suominen | 2014 External resources Internal use University Hospital
  23. 23. Workplace On Demand Shared Service Platforms Sustainable development: Organizations could minimize their footprint by using professionally operated shared resources Service architecture | J Suominen | 2014 Eternal and Internal resources External and internal use University Hospital Service architectures for value co creation
  24. 24. 30 75 160 310 600 1130 2150 2006 2007 2008 2009 2010 2011 2012 Amount of Service Operators in USA has doubled every year after 2006. Jarmo Suominen | Aalto 2013 24 FIX, minimize fixed costs FLEX, maximize flexibility FLUX, optimize interaction
  25. 25. New Business Opportunities City On Demand Internal resources External resources 02.FLEX Shared School as community/neighborhood center, access facilities like gym and art class, services like training or couching Internal use External use 04.FLEX On Demand School as service, run by service operations using shared resources, optimizing its own footprint, demanding service operator 01. FIX In house School as a resource for educational purposes, including all necessary resources and services within its own premises 03. ADD Distributed Using external resources for enabling education and community objectives Lab for Learners | Jarmo Suominen 201423.5.2014 25
  26. 26. MIT City Scope as a platform for value co creation in urban context
  27. 27. Shanghai scale model Shanghai Scale Model
  28. 28. 28 28Avatar Holotable
  29. 29. SYMBOLIC VALUE Green campus / path Jarmo Suominen | Aalto University 2014 29
  30. 30. EMOTIONAL VALUE Social density / amount of interaction Jarmo Suominen | Aalto University 2014 30
  31. 31. OPERATIONAL VALUE Mobility Jarmo Suominen | Aalto University 2014 31
  32. 32. ECONOMICAL VALUE Land use and investments Jarmo Suominen | Aalto University 2014 32
  33. 33. TECHNICAL VALUE Wind load (building automation and infra) Jarmo Suominen | Aalto University 2014 33
  34. 34. 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 La Jarmo Suominen | Aalto University 2014 34
  35. 35. 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 35 Jarmo Suominen | Aalto University 2014
  36. 36. Sushi
  37. 37. Robust process design Clear solution space definition Customer centric choice navigation Urban App Store

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