04 pss concept development


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  • Product/Service systems clearly are attractive in a number of dimensions for many companies. This prompts the question of how to identify and develop the promising solutions effectively and efficiently. During this presentation I will present overall considerations as well as concrete tools that can assist your company at different stages to cover the different aspects that constitutes profitable PSS.
  • A concept can be defined as an ideawithin a context. PSS concepts areproposals for a carefully integratedchain of product and service offerings,which describe a holistic solution to theuser’s needs, where the combination ofproduct and service elements is chosenon the basis of the best possible way tosolve the problem. The PSS concept willdescribe the most important featuresand requirements of the final offering.
  • ANALYS, DEFINE, CONCEPTUALISE and EVALUATE are four phases that appropriately sums up the development process of PSS.The development of PSS concepts entails manyof the activities applied the in general development of technicalproducts, but there are some new ways of working and approachingthe value creation process.ANALYSE MARKET and CAPABILITIES: This first outer phase should result in a clear overview of the market, the need, the currentecosystem and the PSS providing company’s own capabilities, relevant to solvingthe need.DEFINE focus and set goals:Is the phase that should result in a focused PSS description, sufficiently delimited tofulfil the needs of the customer, and a basic specification for the emerging PSS,including tangible goals for the final PSS design.CONCEPTUALISE This phase should result in a number of PSS concepts, ideally described to the samelevel of detail, prototyped to an extent where they can be tested, and prioritised bymeans of a systematic selection process.IMPLEMENT and EVALUATEFinally the chosen PSS solution must be implemented forthe customer. A close follow-up and evaluation is necessary in order totest and adjust the PSS solution when experienced in use, where the evaluationcycles should be short and flexible in the early implementation. The advantageof the producer being present whilst the PSS is in operation (as opposed to atraditional product scenario) is that close improvement cycles can be achieved.
  • From our observations of industrial PSS practice, a successful product/service-system concept needs to address and incorporate four fundamental dimensionsVALUE PROPOSITIONThe starting point for the conceptualisation of PSS solutionsis the Value proposition. The value for different stakeholders mustbe encapsulated within the value proposition, in order to support thedevelopment of robust PSS concept.USER ACTIVITY CYCLEThe very essence of PSS is to provide the user with the solution to their need, as directly,efficiently and conveniently as possible. From a PSS perspective it is not enoughto simply convince the customer to purchase a product and find out how thiswill satisfy their needs themselves, as customer contact and relations extendwell into, and often beyond, the use phase of the product,OFFERING LIFE CYCLEIn order to be able to provide the best possible combined solution thatconstitutes a complete PSS, an in-depth knowledge of the whole life cycle ofthe product is necessary, spanning from the production throughout allfurther interactions with the customer, users and other stakeholders, duringand after its useful life. Similarly the service offerings must be understood thoroughly from different perspectives to ensure quality and consistency.ECOSYSTEMIn order to function and to create value, product/service-systems closelyintertwine with customers, actual users, partners and many other stakeholders.The collection – or community – of related stakeholders that have internal andexternal influences on each other is known as an ecosystem. The realisation ofthe importance of the ecosystem to PSS prompts the need for extensive insightinto both the current ecosystem and also the ability to model and evaluatelikely changes to it.Refer to man for examples?Provide examples for each
  • 100+ tools (new, application of existing or adaption of existing for PSS)Preceeding research projects
  • A:PSS audit matrix is a new strategictool to assessyour services and products in terms of modularity and complexity. It is based on questionaries and once completed, it helps to identify critical areas for improvement and to evaluate your PSS strategy and parameters to align the portfolioaccordingly.B-E I will go into further details withF: Total Cost of Ownership Chart is a tool adapted to the maritime industry that assists in the important aspect of PSS design, to broaden the view of the value creation process, to a wider spread in the valuechain.G: Value Strategy Canvas is a standard business tool to visualizethe value proposition with respect to user needs, as well as costs.It is very appropriate for strategically align your of PSS offerings to competitors and own portfolio and prioritising the user needs focus on.H: PSS Configurator combines the experiences from the PROTEUS consortium and its partners into a comprehensive catalogue of already applied offerings.I: PSS Morphologydescribes the anatomy of PSS concepts. Unlike the practical PSS Configurator, the PSS Morphologyis a strategic tool, challenging the user to evaluate and decide on strategic aspects of a PSS designJ: PSS Concept Evaluatoris a simple tool tailored for addressing typical aspects of PSS concepts and stimulate the conceptualisation process.K: Design for PSS is the last tool that delves into how focused attention on the product can support profitability and effectiveness of the total PSS.
  • This tool maps the interactions betweenstakeholders relevant toyour company, a PSS concept or more specifically a single product or offering.The figure shows the ecosystem of the maritime network. The most commonrelationship between the suppliers is a regularcustomer/supplierrelationship(A) it can be studied in full size in WB1 where other relations are further explainedInsights gained by this tool ensure that important aspects are identifiedand can be taken into account when developing new offerings and solutions
  • The User Activity Cycle (UAC) is used to identify activities and associated needsof the user and to identify new business opportunities. This tool consists ofthree phases. The first, PRE, describes all user activities and associated needs,prior to using the offering. The second phase, DURING, details the activitiesthat are carried out by the user during use. Finally, the activities that the userincurs after the product has fulfilled its purpose are described in the POSTphase. A comprehensive needs cycle for a typical shipowner is presented here and can be further studied in figure 5 of Workbook 1.
  • Eachphysicalproductexperiencesa number of life phases, startingwhen the raw materials are extracted and processed, proceedingthroughmanufacturing into an actual product. After sales, the product enters its usephase and at some time in the future it will be disposed of. Using new rawmaterials or better still, recycling/reusing the old product, a new productmay be produced, hence the notion of a lifecycle.Mappingthe life cycle provides valuable insights that are easilyshared in the project team and tend to give rise to new ideas and explorationof new business opportunities.
  • This tool maps the life cycle of physicalproducts from the perspective of the manufacturer, whereas the tools UserActivity Cycle and Service Blueprint (next tool) apply the perspective of theuser, mainly.In combination all 11 tools cover 4 dimensions throughout the phases of the developmnt
  • I wouldlike to present to you the PSS configurator. Its a Webbased configurator with an in-builtlogicthatwill guide the PSS design, by affinitiesbetween the offerings. Takingtwo steps back, to our last congerenceFulloverview of all the offeringswe had seen in the maritime industry
  • ApplyingdifferentrulesWe madeexcelbeexcel - supportingourmapping by a set of threerules, we did ouraffinitymapping, whichwethen did through an affinitymappingthrough a ”expert panel”
  • Someofferingsnaturallycomplementseachother,whileothersmayevenbecounterproductiveifcombined.
  • Nowthese looks likethis
  • Scrolingowerwith the mouse, the differentofferingswillenlargenlikethis… (condition-basedmaintenance)
  • Nowthese looks likethis
  • And likehere, remotemonitoring and operation
  • Summing up each of the 11 fit into one or more of the phases
  • The details of this can be found in the PSS TOOL BOOK which is workbook number 4 that I am happy to present for you today. The intention with this workbook is to equip the reader for the process of developing actual concepts of successful Product/Service-Systems (PSS). Inside this book you will find alleleven tools described that canbe applied both individually and in combination with each other as well as the structured PSS conceptualisation framework and proposal for a step by step process to make you familiar with the tools and ensure some solid first PSS concepts.Enjoy the book and do play with the configurator at the PC just outside during the breaks!
  • 04 pss concept development

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