Roadmapping Product Service Combinations


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A lecture given at the study Master Integrated service engineering about roadmappig product service combinations, like internet of things. This lecture is divided in three parts (1) technology roadmapping and technology forecasting (2) business roadmapping (3) roadmapping for product service combinations.

This lecture aims to give guidelines for innovators developing product service combinations, like internet of things.

This lecture is based on several influential scientfic article about roadmapping. The two main articles are:

Technology roadmapping—A planning framework for evolution and revolution
Robert Phaal*, Clare J.P. Farrukh, David R. Probert
Technological Forecasting & Social Change 71 (2004) 5–26

Technology roadmapping for technology-based product–service integration:
Youngjung Geum, Sungjoo Lee, Daekook Kang, Yongtae Park J. Eng. Technol. Manage. 28 (2011) 128–146

For more information please contact me.

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  • What basis?—The selection of a generic strategic approach (e.g., cost leadership,differentiation or focus)Fig. 1. Technology management framework[12], showing technology management processes (identification,selection, acquisition, exploitation and protection), business processes (strategy, innovation and operations),highlighting the dialogue that is needed between the commercial and technological functions in the business tosupport effective technology management.
  • Technology directly enables the integrationof products and services, directly infused inthe process of integration.Dell customization- Even the individual product or service is nottechnology-embedded; the integration canbe realized by the technology
  • Technology directly enables the integrationof products and services, directly infused inthe process of integration.Dell customization- Even the individual product or service is nottechnology-embedded; the integration canbe realized by the technology
  • 1 The technology-based maintenance service includes informing of the product’s state, changing filter and disinfecting the internal and external parts, achieved by the information system to systematically manage the service.2
  • The main advantage of suggested structure arguably lies in the strategic planning of product–service integration, representing the technological role toward the effective integration. Especially, by emphasizing the role of technology, this structure is systematically organized to capture the full scaleof technology-originated product–service integration.Firstly,Fig. 5(a) refers to the case of ‘‘technology as a direct enabler’’. Since the technology directlyenables integration of products and services, the product layer and the service layer are placedadjacently, representing the close relations in integration opportunities. Here, the technology isapplied to the virtual and integrated features of product and services, fostering the integrativeprocess.Since the technology is applied to the integrative features of products and services, sometimes avirtual layer might be incorporated to represent the integrative opportunities of product–serviceIntegrationig. 5(b) represents the case of ‘‘technology as an indirect enabler’’ where technology is individuallyapplied to the products and service, making the technology-based intermediates between productsand services. Therefore, the technology layer is located at the middle of two different domains:product layer and service layer, acting as an interfacing point. Even it is not clearly mentioned that it isa case of technology-enabled product–service integration, the literature has taken the form ofintegrated roadmap with product layer and service layer (An et al., 2008; Abe et al., 2009).Abe et al.(2009)illustrates the business model for impaired walking support system, considering the businessas a kind of service concept. Reflecting the scenarios for impaired walking support system, productsand services are identified and visually planned as a form of ‘‘integrated strategic roadmap (ISRM)’’.Anet al. (2008)provides the case example of mobile communication service as a form of product–serviceintegration, as it involves a device and a large array of applications and services. Even the technology isnot directly mentioned, this structure also locates the products and services at the same level
  • Fig. 5(c) shows the case of technology acting as a ‘‘servitization mediator’’. Since the technology-embeddedproduct provides the chance of servitization,mainevolutionpathexistsfromtechnology toproduct, and finally to service. Therefore, the hierarchy of integrated roadmap follows thisevolutionary state of product–service integration: technology-product–service.Fig. 5(d)which is a case of ‘‘technology as a productizationmediator’’ provides the similar structurewith servitization mediator except the location of the product layer and service layer. Since this typeimplies the technology-originatedproductizationcase, the technology layer affects to the service layerfirst, and then, the service is evolved to the product. Relevant examples can be found in the previousliterature. Kameoka (2005)suggests a new type of strategic roadmap, adding a service layer on theproduct layer. InNakamura et al. (2006), a strategic roadmap for the businesses using the electronictags is suggested with the market/customer, business/services, infrastructure, technologies, andregulation layer. The infrastructure layer denotes the service infrastructure which involves not onlythe hardware and software infrastructures but also the knowledge and functions required forproviding services.
  • Fig. 5(e) is a case of ‘‘technology as a product facilitator’’. In this type, technology and service areapplied directly to the product, making the product as more diversified and collaborative form ofintegration. Thus, the service layer is located at the centre of the layers, enabling the product layer andthe technology layer be more effectively incorporated.Similarly, the composition ofFig. 5(f), a service facilitator, is the same asFig. 5(e), except the layercompositionof product and service. Even it is notmentioned as the exact term‘‘integration’’, there hasbeen relevant concepts with the product facilitator or the service facilitator, illustrated in severalroadmaps. Wells et al. (2004)suggested a roadmap for e-commerce to capture and share thetechnology intelligence for products and services, using the technology layer, the access device layer,and the mobile service layers as the core layers for e-commerce roadmap.
  • Roadmapping Product Service Combinations

    1. 1. Roadmapping voor Product-ServicesystemsThe product service integrated roadmapLecturer: drs. Ir. J.R. Helmus
    2. 2. 2
    3. 3. As a master of integrated service engineering you might be interested in the Product Development Management Association 3
    4. 4. lateral thinking is my passion 4
    5. 5. Product-service Innovation for Elderly project 2012District Nurse /Home Care Fragile elderly Content Monitoring cocreation communication finance General practitioner Family care Cicada Innovation 2012 5
    6. 6. 25-3-2013Example of a future vision What if your thermostat didn’t need you…
    7. 7. Objectives for this lecture After this lecture you will be able to: Understand the basics of roadmapping Understand the differences between the various ways of roadmapping develop a roadmap for product service combinationsStructure of this lecture• different types of roadmaps• Technology versus business roadmapping• Technology roadmapping in short• Traditional Business roadmapping•Connection between technology and business roadmapping•business roadmapping for Product-Service combinations
    8. 8. What is roadmapping?“What kind of activitietsdo we need to startup todayto soon have the availability ofTechnology, knowledge andCompetences to create theproducts and Services oftommorrow?
    9. 9. There is a lot of buzz about the same concept Identification, selection, acquisition, exploitation and protectionTechnology roadmapping—A planning framework for evolution and revolutionRobert Phaal*, Clare J.P. Farrukh, David R. ProbertTechnology forecasting and social change, 2004/vol 71 UK accepted 26 May 2003
    10. 10. in different forms and shapes Roadmapping basicsPRODUCT LINE A A1 A2 A3 A4PRODUCT LINE B B1 B2 B3 B4 PRODUCT LINE C C1 C2 C3Philips generic format technology aa technology bb INTERNAL technology pp technology qq TECHNOLOGIES technology xx technology yy technology zz EXTERNAL technology a1 technology a2 TECHNOLOGIES technology p1 technology p2 technology p3 YEAR 1995 1996 1997 1998 1999 2000 2001
    11. 11. yet in basis, there are only two kinds of roadmaps.Technology Roadmapping (TRM) Business Roadmapping (BRM)• Initiated by government or branch • Initiated by a company• Transcending companies • Company specific• Often for cluster/branch/sector • For a company, product of product• Scope: 10-20 year range• Goals: identify need for research and • Scope: approx 5 year priorities for research • Goals: develop a practical planning• No ownership for achieving the companys vision• Not confidential, often public • Company is owner • Confidential
    12. 12. TechnologyRoadmapping The basics
    13. 13. Technology RoadmappingA master of science should be able to develop a vision on future technologies Age, Family History, Living environment, Social connectedness Appearance: Photo , Video, Body imaging Weight: Scales Height, Waist, Hip: Tape Measure, Clothes fit, Lean body mass Temperature: Thermometer (surface, core heat) Body Fat: BMI, Impedance Sensory: Vision, Aural, Tactile Thermal, Taste Heart Rate: Wristband, Breast band, Sticker sensor Activity: Pedometer , Accelerometer, HR, HRR, O2/CO2 Today Psychological & Physical health: HR, HRV, Glucose, Lithium, (…) Fitness: Flexibility, Strength, Endurance Respiratory: FEV Nutrition: Intake, Marco/micro nutrients Sleep: Accelerometer, Electrical Medicine adherence: Sender pill Stress: Breathing rate, BP, Galvanic skin resistance, HRV, Salivary, Cortisol Cardiovascular risk: HRV, BP, arterial plaque, Cholesterol Future Physiological health:For example on Ehealth DNA, Immune status
    14. 14. Technology roadmapExample of a technology roadmap for newspaper related technologies 14
    15. 15. Technology RoadmappingTechnology Roadmapping often results in typical conjoint roadmap based on scientific sources
    16. 16. Technology RoadmappingTiming of technology research and development is crucial for a company’s performanceInnovation matrix for a specific technology A unproven F research problem BUncertainty of technology proven Future G C D understood E Well Missed Current projects opportunity 5 - 10 year 3 - 5 year 1 - 2 year Required time to implement technology
    17. 17. Technology Roadmapping Imagine you are theCEO of the new motion You would like to invest inquick charging infrastructure But there is no market standard yet and there is not enough money to make mistakes 18
    18. 18. Technology Roadmapping Imagine you are theCEO of the new motion You would like to invest inquick charging infrastructure But there is no market standard yet and there is not enough money to make mistakes 19
    19. 19. Technology RoadmappingThe Scurve model helps to gain insight in technology development Ideal timing moment for new technology implementation Performance (e.g.. %efficency/$) New technology DOG Technologie waarde CASH COW Current technolgy STAR QUESTION MARK DOG timeCarefully choose one or more technology performance indicators
    20. 20. Technology Roadmapping Functionality and performance determines the applicability of a technology for your product/serviceExample: proprerties, functionalities and performance indicators for 3D printing methods and other rapidprototyping methods.Whichtechnologyperformanceindicatorswould youuse?
    21. 21. Technology Roadmapping Functionality and performance determines the applicability of a technology for your product/serviceExample: proprerties, functionalities and performance indicators for 3D printing methods and other rapidprototyping methods.
    22. 22. Technology Roadmapping Functionality and performance determines the applicability of a technology for your product/serviceExample: proprerties, functionalities and performance indicators for 3D printing methods and other rapidprototyping methods.
    23. 23. Technology Roadmapping Many research companies publish technology roadmaps or forecasts Bottom up assessment to within value chain to create technology roadmap Sales new technology Purchases new technology equiptes machines equipped machinery roadmaps nieuwe producten Chipmachine producers Chip producersExamples are: Accenture/ mcKinsey/ Batelle/ Rand
    24. 24. Technology Roadmapping Examples of public Dutch technology roadmaps• Elektricity Technology Roadmap Technology Roadmapping (KEMA) – Vision on electricity 2020• “Catalysis, Key to sustainability” – Sector roadmap up to 2010• Nationale Toeleveren & Uitbesteden Agenda (NEVAT) – 4 sector roadmaps for: • Electronics/mechatronics • Automotive • Plastics value chain • Metal industry
    25. 25. Business Roadmappingtraditional Business Roadmapping •The basics •The requirements • factor time in a roadmap • push versus pull • Roadmap input methods • relation with
    26. 26. Business Roadmapping The basic idea of roadmapping is simple Business/ Market Product/ service vandaag Technology/ knowledge/ Competences time Today soon tommorrow“What kind of activitiets do we need to startup today to soon have the availability of Technology, knowledge and Competences to create the products and Services of tommorrow?”
    27. 27. Business RoadmappingThe requirements for successful roadmapping within an organization are• Being able to develop a vision on the future of the market and environment of the organization• Insight in the competences of the organization• Insight in the portfolio of the organization• Shared ambition for the future• The desire to concretize the vision and strategy of the organization in a practical integral plan &• The ambition and desire to execute this plan!
    28. 28. Business Roadmapping Time connects push versus pull strategies • From where the organization stands now and came from • From market demand to new technology development • From an ambition or a vision on a future market • Mind the short term and long term horizon (mc Kinsey - three horizons)Business/MarketProduct/serviceTechnologies/knowledge/Competences ` past today roadmap future tijd Mind the technology roadmap
    29. 29. Business RoadmappingUsing pre-announcements can help to adjust the disciplines in the roadmap- particularly production versus demand over time‘‘formal, deliberatecommunication before afirm actually undertakes aparticular marketing actionsuch as a price change, anew advertising campaign,or a product line change’’. 32searaysabre-specifications-inside/
    30. 30. Business RoadmappingIt makes it even be possible to finance the scale up processOnline prelaunch orders proved to be effective NPP becameincreasingly popularand efficient in locking customers with the recently, especially in thecompetitive high-preannounced products. techindustries. Examples • Recent well-known examples of NPP include Microsoft’s Windows Vista, officially launched on November 30,2006, • Apple’s iPhone, launched on June 29,2007, • Apple’s iPad, launched on April 3, 2010. • For example, accumulated 1.6 million prelaunch orders for J.K.Rowling’s book ‘‘Harry Potter and the Deathly Hallows’’ two weeks before its launch date (July21,2007), making this book the most preordered product ever for the online retailers. 33
    31. 31. Business RoadmappingTherefore an integral approach is needed to connect the dots in the roadmap • Different aspects and disciplines within the organisation (in layers and sublayers) • Process indicators like : drivers, issues, indicators, milestones • Relation between the layers and process indicators Business/ Markt KNOW WHY Product/ Dienst KNOW WHATTechnologie/Kennis/ KNOW HOWCompetenties KNOW WHEN tijd
    32. 32. Business RoadmappingAt best the relationships between projects and layers are to be made explicit in the roadmap Markt1 Product/2 Service Productie3 proces
    33. 33. Business RoadmappingWhat kind of mistake did google made? 36
    34. 34. Business Roadmapping Several methods can be used to achieve a future planningExamples of methods Hier zie je ook de rol van de• SWOT-analysis technology roadmap verschijnen• portfolioanalysis Possible 2. future• competitor analysis Possible future• market- en trendresearch Possible future• technology assessment• scenario-development 1. 3. Mid term future 4. Short term future 1. Trendanalysis 2. Scenario development 3. Backcasting 4. Roadmapping 5. 5. Portfoliomanagement Now
    35. 35. Business RoadmappingWhat would Apple do with their roadmap when introducing anew product? iPad Mini kannibaliseert verkoop originele iPad AMSTERDAM - De verkoop van de 9,7 inch iPad groeit niet meer. Sinds de komst van de iPad Mini neemt de verkoop van het originele model in Japan en de Verenigde Staten zelfs af. 38
    36. 36. A connection between the technology roadmap and business roadmap can be made Market information Product-Market analysis Product-Technology Roadmap Define Project options evaluation creation targets proposals Technology Assessment Identification of Technology Bron: EIRMA /Phaal et al.
    37. 37. Another example of a innovation process that uses several roadmaps proces 41
    38. 38. PS Roadmapping 25-3-2013Visie IBM Roadmapping for product-service combinatiesTechnology roadmapping for technology-basedproduct–service integration:Youngjung Geum, Sungjoo Lee, Daekook Kang, YongtaePark J. Eng. Technol. Manage. 28 (2011) 128–146
    39. 39. PS Roadmapping43
    40. 40. PS RoadmappingProduct service combinations have different cash flows … 44
    41. 41. PS RoadmappingCash flows for (internet) services
    42. 42. PS RoadmappingProduct service combination have a different cash flow pattern sincedifferent cash flows can be generated from product/service sideThis generates a typical kind of freedom within the roadmap… 46
    43. 43. PS RoadmappingThat is because P/S systems contain several typical elements
    44. 44. PS Roadmapping Example:What’s on this managers mind at the end of each year? Harold Goddijn What are the minimum requirements for my product to be delivered? And what can I deliver later (after sales)? 48
    45. 45. PS RoadmappingThe minumum viable product is a guideline first product release and follow up``
    46. 46. PS RoadmappingDe plek waar de intelligentie en de connectie zit bepaalt de ontwerper
    47. 47. PS RoadmappingTo gain full advantage of this seperation the roadmap should be adjusted Business/ Markt Service Technology (interface) Product Knowledge/ competences time
    48. 48. PS Roadmapping Technology as an enablerTechnology directly enables the integration Technology indirectly enables the integrationof products and services, directly infused in of products and services by being applied tothe process of integration. the both products and services and providing the means for integrationEven the individual product or service is nottechnology-embedded; the integration canbe realized by the technology. Bron: CSI – Bob williams
    49. 49. PS Roadmapping Technology as an mediator Technology mediates the product- Technology mediates the service-originated originated integration, particularly the integration, firstly applied to the service technology-based servitization and the service is productized to provide the more valuable informationBron: Bron: CSI – Bob williams
    50. 50. PS Roadmapping Technology as a facilitator Technology and products are independently Technology facilitates the integration applied to the services, facilitating the of products and services, product–service integration. especially the integration toward Mostly happens in technology-based the product maintenance Bron: CSI – Bob williams
    51. 51. PS RoadmappingQuestion: What kind of role would technology have in the product/service system of Car2Go?
    52. 52. PS RoadmappingDevelopment of the roadmap on macro level (1)
    53. 53. PS RoadmappingDevelopment of the roadmap on macro level (2)
    54. 54. PS RoadmappingDevelopment of the roadmap on macro level (3)
    55. 55. PS RoadmappingQFD / linking grid is the proposed method to connect P/S/T within theroadmap Service features adjusted to customer value drivers Intermediary step from service to technology embedded service Linking the features enables best selection of technology
    56. 56. PS Roadmapping Example of QFD / linking grid Relatie van de eigenschappen Value map en attributen tabel Product eigenschappen Score van concurrentieklantwensen
    57. 57. PS Roadmapping Case 1: Service facilitator heat/cooling instalation in a plantImagine we are a development team of Cofely asked to develop a servicefrom the heating/cooling installation after purchasing it from the plant.How would our roadmap be created? 61
    58. 58. PS Roadmapping Case 2: productization of manual developmentWe are bound to create a tool that automatically develops manuals frominput by users.How would our roadmap be created? 62
    59. 59. PS Roadmapping Case 3: Servitization of ehealth productWe currently produce inhalers for asthma patients. We are able to addtechnology to our product by implementing all kinds of sensors(flow/temp/RH/volume) and develop a service for nurses/patients/family etc.How would our roadmap be created? 63
    60. 60. PS RoadmappingThe end result displayed in a roadmap
    61. 61. PS Roadmapping Homework assignmentPlease be sure to have read and fully understand the scientific articles related tothis lecture before answering the homework assignment questions: 1. Develop a future vision on a technology that will play an important role in service development in the near future? a) What kind of performance indicators are relevant for this technology? b) When will this technology reach the cash cow phase in its life cycle? 2. Define the typical role of technology in the product service system that your company will develop in the near future. 3. Now, develop a roadmap for the product service system of the previous question that contains the specific roadmap adjustments based on the article on of Geum et al. (2011). Note: try to use the proposed methods displayed in Fig 6.
    62. 62. 25-3-2013Jurjen Helmus@JRHelmusJ.R.Helmus@hva.nl0645464751