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eDay2010 Philips

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eDay2010 Philips

  1. 1. Service Design at PhilipsTowards providing experiences<br />Mark Hartevelt, Hugo Raaijmakers<br />Philips Design<br />16 September 2010<br />
  2. 2. 2<br />Introduction Philips <br />
  3. 3. 6<br />Philips focuses at four key priorities<br />Aging population<br />Rise of emerging markets<br />Climate change, need for sustainable development<br />Increased consumer empowerment<br />
  4. 4. Philips' focus on Health and Well-being <br />
  5. 5. 5<br />Introduction Philips Design <br />
  6. 6. 6<br />6<br />Create valueProduct, interaction<br />
  7. 7. Communicate valueOnline, packaging, print, point of sale<br />
  8. 8. Integrate valueService Design<br />Service design<br />sociologists<br />human factors specialists<br />psychologists<br />anthropologists<br />interaction designers<br />project managers<br />innovation consultants<br />visual trend analysts<br />brand consultants<br />online designers<br />visual communication designers<br />product designers<br />
  9. 9. Partners in innovation<br />9<br />
  10. 10. 10<br />What’s Happening?<br />
  11. 11. Product manufacturing industries start including services<br />
  12. 12. 12<br />TomTom<br />Initial business<br />Service Design businessopportunities<br />Link to Petroleum brands<br />Fuel prices<br />Speed cameras<br />HD traffic<br />Map sharing<br />Routes<br />Voices<br />Audio<br />books<br />Points of interest<br />iPhone…<br />Hotel bookings<br />Link to Hotel brands<br />Link to Apple<br />
  13. 13. 13<br />Nike +<br />Initial business<br />New businessopportunities<br />
  14. 14. 14<br />Fiat<br />Initial business<br />New businessopportunities<br />
  15. 15. 15<br />Apple<br />Initial business<br />New businessopportunities<br />Apps…<br />
  16. 16. Customers expect their products to be . . . <br /><ul><li> connected (products,content,communities)
  17. 17. upgradable
  18. 18. payable through usage</li></li></ul><li>17<br />Where's Philips <br />with services?<br />
  19. 19. Lighting<br />Lumileds, Lighting controls, Street sensors<br />Incubators<br />DirectLife, <br />Philips' product services today<br />Consumer Lifestyle<br />Net TV, GoGear, PhotoframeStreamium,<br />Healthcare<br />Maintenance, Raytel, Lifeline, <br />
  20. 20. Still less than<br />15%<br />of Philips revenues <br />comes from services,of which the majority care services.<br />19<br />
  21. 21. 20<br />Service Design <br />at Philips<br />
  22. 22. Human centered approach<br />Focus on the overall customer experience<br />
  23. 23. 22<br />Our focus..<br /><ul><li>Consumer centric
  24. 24. Part of core proposition
  25. 25. Based on product data
  26. 26. Revenue generating
  27. 27. Connected</li></li></ul><li>23<br />Slide not available<br />
  28. 28. Slide not available<br />Mapping and visualizing the Customer Journey<br />
  29. 29. Defining the Eco-system<br />
  30. 30. Mapping and visualizing the Business Model<br />
  31. 31. Designing product & service combinations<br />
  32. 32. 28<br />And how can Service Design help Philips…<br />
  33. 33. Slide not available<br />By building propositions <br />that are really customer centric<br />
  34. 34. By introducing new innovative business models<br />
  35. 35. By introducing rapid prototyping with customers<br />
  36. 36. 32<br />Key Learning's sofar<br />
  37. 37. 33<br />Key Learning’s<br /><ul><li>Intrapreneurial attitude
  38. 38. Innovate in standing organization
  39. 39. Top management sponsorship
  40. 40. Involve the right competencies
  41. 41. Early business involvement
  42. 42. Service implementation</li></li></ul><li>
  43. 43. 35<br />Situation at Philips<br />Philips is product manufacturer<br />120 years of experience with product development<br />95% of all Philips output is products<br />Services is a fairly new area for Philips<br />No services culture yet within Philips<br />Little to none service competencies available<br />Rapid change of customer expectations in the market<br />Rapid creation of large and powerful digital eco-systems<br />Product centric mindset, technology push<br />
  44. 44. 36<br />How should <br />Service Design <br />help?<br />
  45. 45. 37<br />Solution:<br />Change management program<br />Creating awareness of the potential of Service Design & Services<br />Building internal partnerships with marketing, IT and RD&I<br />Running cross sector pilots<br />Attracting new talent: multidisciplinary T-Shaped staff<br />Training of current staff<br />Developing new competences<br />
  46. 46. 38<br />Customer trends, mega trends<br />
  47. 47. New competitors are entering our Business domains with Product Service propositions<br />39<br />
  48. 48. 40<br />Eco systems provide value for customer and business<br />product service combination<br />Business Value<br /><ul><li>Barrier to competition
  49. 49. Two-way communication
  50. 50. High retention ratio
  51. 51. Recurring revenue’s
  52. 52. Higher Brand Engagement
  53. 53. Real-time insight generation
  54. 54. Unique differentiation
  55. 55. Open innovation with partners</li></ul>Customer value<br /><ul><li>Personalized value
  56. 56. Unique experience
  57. 57. Convenience
  58. 58. Enhanced product functionality
  59. 59. Seamless user experience
  60. 60. Pay per value</li></li></ul><li>41<br />Aging population<br />The number of people aged over 60 will double from 500 million today to 1 billion by 2015<br />Emerging markets<br />99% of future population growth will be in emerging markets;Emerging economies are expected to account for 2/3rd of global GDP by 2016 <br />Empowered consumers<br />Consumers are increasingly focused on their Health and Well-being and look for products that fit their lifestyle<br />Climate change and sustainable development<br />19% of global electricity consumption is used for lighting; Energy efficient lighting can save 40%...or 600 power stations worth of energy<br />

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