SDS2021 workshop The design of Smart Services

SDS2021 workshop
The design of Smart Services
Prof. Dr Shaun West (shaun.west@hslu.ch)
Dr. Jürg Mayerhofer (juerg.meierhofer@zhaw.ch)

Smart Services | Prof. Dr. Shaun West and Dr Jürg Meierhofer
Smart Services
…your view…
5 mins
What makes Smart
Services ‘smart’?

Introduction
The problem and the purpose
To demonstrate the value of the framework based on a real case
We will provide you with a
framework to support the
development,
implementation and
acceptance of smart
connected services
To provide you with a framework that you can reuse and adapt
Purpose
How do we design and develop ’smart services’
Problem

Introduction
Arthur Vs The Nutrimatic Drinks Dispenser (Hitchhikers Guide to the Galaxy)
https://youtu.be/eAswvg60FnY
Smart Services?

This is a rapidly evolving and challenging environment
Introduction
It’s where technology meets business
Business
Technology
Pull
Push

They represents a major change from the traditional approaches
What makes Smart Services ‘smart’
Smart products, smart services and the smart factory
Intensity of connected processes
Level
of
interconnectivity
low high
high
low
Smart factory
Traditional
production
Smart products
and smart
services
Hybrid
innovation and
new business
models
Based
on:
R.
Obermaier,
Industrie
4.0
als
unternehmerische
Gestaltungsaufgabe,
Springer,
2016.

Roughly half of the companies consider this shift important
Introduction
The shift to new digitally-enabled value propositions and business models
Intensity of connected processes
Level
of
interconnectivity
low high
high
low
Smart factory
Traditional
production
Smart products
and smart
services
Hybrid
innovation and
new business
models
Traditional world
Customer demands
the service,
maintenance, repair,
spare parts
New world
Consulting, customization,
condition monitoring,
predictive maintenance,
performance optimization
Specific challenges!

This requires a change in thinking
Introduction
From products to connected systems
Page 14
“The increasing capabilities of smart, connected products not only reshape
competition within industries but expand industry boundaries. […] A tractor
company, for example, may find itself competing in a broader farm automation
industry” (Porter & Heppelmann, 2014).
Figure 5 illustrates this IIoT phenomenon: the capability to control devices remotely makes them
“connected” and consequently, part of the IIoT. Connectivity enables communication amongst
products, thus forming product systems. Again, data exchange between several product systems
creates a larger instance, referred to as a system of systems.
Figure 5: Smart connected products redefining industry boundaries (Porter & Heppelmann, 2014)
https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

The potential for value creation increases as you move towards optimization and autonomy
Introduction
Capabilities of smart, connected products
Page 13
Capabilities
Porter & Heppelmann (2014) see information technologies more and more becoming an integral part
of traditionally physical products, building up to the development of an Internet of Things as described
above. The “connectivity” and “smartness” of such products enable new capabilities and can,
therefore, help to increase their value. The following paragraphs will first describe the possible
capabilities and further how connected products lead to a redefinition of industry boundaries.
The following four-stage model used by Porter & Heppelmann (2014) describes how capabilities build
on each other. While each capability has the potential to increase a product's value on its own, and to
achieve a higher level of maturity, the capabilities from the previous level are needed to follow this
evolution.
Figure 4: Capabilities of Smart, Connected Products (Porter & Heppelmann, 2014)
I. Sensors and external data sources are essential elements to enable product monitoring.
Besides the product´s condition and external conditions, the product’s operation and general
usage are elements to be monitored, stored, and used to send alerts and notifications in case
https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

Introduction
We live in a complex work of many actors and many machines
Service Design Thinking
A new approach to deliver:
... the right information,
... at the right time,

Value is built on the strategy of a company and data can be the enabler
When does data become valuable?
Who is
responsible
to define
and assess
the value of
data?
Value is…
• …defined by the ’customer’
• …linked to a specific business case
• …dynamic and future oriented

Smart Services framework based on Service Dominant Logic
Major
dimensions
Key characteristics
Score
Worst Best
Service
Ecosystem
Flexibility & integrity
No flexibility, no additional
integration
Open system built on a flexible
and integrity architecture
Shared view
Limited understanding today,
no future view
Clear shared view, today and in
the future
Actor roles Not defined Multi-roles
Architecture closed Open and secure
Service
Platform
Modular structure No
Highly modular, with 3rd
party
integration
Rules of exchange Poorly defined Clearly defined
Value
Co-creation
Value creation between
actors
One-way, single-actor Two-way, multi-actor
Interactions between diverse
actors
Two actors Multi-actor
Accommodation of roles Two roles only Multi-roles/ multi-actor
Resource integration Single resource Integration of many resources

What is the right…?
Right information
Right time
Right form
Right person
Right action
Value is based on:
• The customer
• The specific
case
• The time
Only when action is taken value is created
Right data
C
M
Y
CM
MY
CY
CMY
K
C
M
Y
CM
MY
CY
CMY
K
C
M
Y
CM
MY
CY
CMY
K

Small firms can do it today
https://www.wurm.de/sites/default/files/videos/wurm-imagefilm_en.mp4
More current examples showing how large and small firms deliver value from Ind4.0

Value proposition for remote monitoring and diagnostics
Problem
- What is the value proposition?
- How and where do system fit?
- Complex supply chain issues
(projects and end users)
Lessons
- Understand all users
- Understand their jobs
- Support operations and maintenance teams
All actor identified with demo dashboards to help describe the customer value proposition

Remote routine maintenance support
Problem
- Customer not doing the work correctly
- Low value callouts for service technicians
- Customer experience was poor
Lessons
- Customer journey mapping for detailed insights
- Prototype solution visually with customer
iPad app with SOP and direct hot-line to OEM with video support

Provide improve customer operations support
Problem
- Customers’ main costs are production costs
- How can customers be made more effective?
- Can improved operational support be provided
over the cloud?
Lessons
- Learn to think like a customer(s)
- The cockpit can replace customer processes
- It can be delivered as a cloud based service
Digital can make the customers’ jobs easier when lean thinking and visuals are combined
Picture pls

What should be the focus?
Create & test prototypes
value propositions
Persona empathy maps
Customer journey
Situational analysis
Job-to-be-done
Ecosystem visualization
This will require a change in approach and an ability to
”see what others see and understand what other understand”

We have many perspectives over the whole lifecycle
We have many different perspectives to take

We’ve been developing a way to help you design Smart Services

The aim of the case workshop

Workshop
The aim is to focus on the problem space and ideate a solution

Workshop
State the purpose or mission
Do you know what drives the businesses?
It is important understand the
business and what’s important for
them.

The potential for value creation increases as you move towards optimization and autonomy
Workshop
Understanding the motivation of the actors
You need to be ready to create
empathy maps for many different
actors in the system. Consider the
both beneficiaries and
stakeholders. You will need
iterations to find everyone!

Do you understand the actors support the equipment?
Workshop
Understanding the machines (avatars) is also important
The machine many not be used as
it was designed. The avatar will
help you better understand how it
is used in operations and looked
after.

Do you know how everyone relates to each other?
Workshop
Understanding the ecosystem
Ecosystem mapping allows you to
see the connections between
different actors, within the firm
and between firms.

Time to work!!
https://bit.ly/3fGMoI5
Use this when you are looking for a fun way for teammates to interact at the beginning of a meeting or workshop.
From the problems you identify in the problem
space place five of them on the grid.
Write a value proposition for 1-3 of the
problems.
Focus on a problem and
build a value proposition
The Problem Space
SHOW AND TELL
A note for the facilitator:
Draw the Problem Space link together the people, process and things,
show the flows and describe the purpose of the system.
Photograph your sketch and post it in one box.
Names!
You can duplicate the sections and extend the mural in case you have more than eight members.
Name Name
Name
Name
Name
Name
Name
Name
As a group, go through each photo
guess who's it is, adding a sticky note
with the person's name. In the end,
each person reveals which photo they
actually added.
Upload your photograph in one of the areas
below and use the sticky notes to label what it
is or what you like about it. Try not to add any
comments that easily give away who the
photograph belongs to.
Show and Tell
Don't add your name near your photo yet!
10 minutes
Timebox the activity using the timer tool.
Use sticky notes to label what it is or what you like about it Use sticky notes to label what it is or what you like about it Use sticky notes to label what it is or what you like about it Use sticky notes to label what it is or what you like about it
Problem Space
Hint: The solution helps [persona/s] to [activity] in order to
[outcome] when [situation].
Value proposition
Satisfaction
Importance
Overserved
Underserved
Served
Where to focus
Problem Space
Value proposition
Satisfaction
Importance
Overserved
Underserved
Served
Where to focus
Problem Space
Value proposition
Satisfaction
Importance
Overserved
Underserved
Served
Where to focus
Problem Space
Value proposition
Satisfaction
Importance
Overserved
Underserved
Served
Where to focus
Problem Space
Value proposition
Satisfaction
Overserved
Where to focus
Problem Space
Value proposition
Satisfaction
Overserved
Where to focus
Problem Space
Value proposition
Satisfaction
Overserved
Where to focus
Problem Space
Value proposition
Satisfaction
Overserved
Where to focus

Feedback

Feedback
Short feedback on each of the concepts
https://youtu.be/kzCr3J0H-Lc

data-innovation.org/index.php/smart-services/

Have a good trip home…

SDS2021 workshop The design of Smart Services

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