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SDNC13 -Day2- Service Design for Networked Business Models by Aldo de Jong & Abby Margolis


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Service Design for Networked Business Models by Aldo de Jong & Abby Margolis - Claro Partners

With increased connectivity, networks at both a global and local level are growing rapidly whilst new communities can develop and flourish through digital channels. These allow for resources to be shared, swapped, borrowed and traded; bearing a new economy that favours access over ownership. This is a dramatically different user experience context that demands a transformation of our approach to service design. In this session we will share findings from our global research that explored the experiences and opportunities involved in moving from an ownership economy to one built on access and sharing. We will present
guidelines for creating value exchange networks and share some tools we’ve developed for creating networked services and business models in the access economy.

Published in: Design, Business, Technology
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SDNC13 -Day2- Service Design for Networked Business Models by Aldo de Jong & Abby Margolis

  1. 1. Service design for networked business models Service Design Network Conference, Cardiff, 2013 Aldo de Jong, Co-Founder, Claro Partners
  2. 2. Share  your  thoughts?   @claropartners   #sharingeconomy   #sdn13  
  3. 3. Claro  helps  corpora7ons   and  startups  to  navigate   disrup1ve  shi3s  in   society  and  business   Michael   Elisabeth   Mwenge   NL   USA   Congo   Rich   USA   Megan   UK   Mercè   Spain   Aldo   NL   Mandy   Lebanon   Abby   USA   Jiri   Belgium   Gunes   Turkey  
  4. 4.   We  deliver  business  innova1on   and  service  design  in  the   context  of  disrup1ve  shi3s:   Ownership           Services  delivered   by  companies       Big  data  and     aggregated     resources         Internet  of   informa7on  and   people     Access       Services  enabled   through  networks       Small  data  and   personalised   experiences       Internet  of  Things   Request our point of view paper on each of these topics at
  5. 5. The  basis  of  our  thinking:  two  6-­‐month  global  open-­‐innova1on  projects   USA UK DENMARK SPAIN INDIA CHINA JAPAN BRAZIL 46  Stakeholder  interviews   99  Ethnographic  sessions   39  Expert  interviews,     plus  secondary  research   Business  Perspec7ve  +  People  Perspec7ve  +  Systems  Perspec7ve   Collabora7ve  and  individual  workshops  with  the  par7cipa7ng  companies  
  6. 6. The  burden  of  ownership  is  challenging  the  consump1on  economy   +   JOY     OF  OWNERSHIP   BURDEN     OF  OWNERSHIP     -­‐   TIME   Acquisi1on   Use   Post-­‐use  
  7. 7. The  sharing  economy  emerges  from  communi1es  of  exchange.   Trust  between  strangers  is  a  new  currency.   EXCHANGE   MY  STUFF   YOUR  STUFF  
  8. 8. Networked  business  models  are  disrup1ng  tradi1onal  ways  of  doing  business   GiffGaff  has  only  34   employees  and  the   average  response  7me  to   a  customer  problem  is   under  90  seconds   At  its  peak,  Encarta  had   62,000+  ar7cles.   Its  highly  centralised   control  contributed  to  its   failure   As  of  May  2011,   Wikipedia  had  3.5m+   ar7cles  in  English,  and   18m  in  all  its  261   languages   Microso3  has  35.000   engineers  and  designers   who  build  solu7ons   based  on  understanding   customer  needs   50.000  Quickbase  users   exchange  soXware   solu7ons  and  knowledge   with  people  like  them  
  9. 9. We  call  them  Par1cipatory  Service  Networks  (PSN)   A  system  where  value  is  co-­‐ created  and  exchanged  in  a   distributed  way  by  a  network   of  par7cipants.     •  Networked  business  models   •  Value  exchange  networks   •  Collabora8ve  consump8on   •  P2P  services   •  Bo>om-­‐up  value  exchange   •  Sharing  economy   •  User-­‐generated  content   etc.    
  10. 10. Landscape  of  Alterna7ve  Models   of  Ownership  &  Value  Exchange  >  login   u:  pdfa   pw:  ownership  
  11. 11. The  access  economy  drives  new  business  models        t Rental  fee   Car  use  u  t Payment   Car  u CONSUMER   CAR  USER  
  12. 12. Par1cipatory  Service  Networks  (PSNs)  are  networked  business  models        t Payment   Car  u CONSUMER   CAR  OWNER   Car  use  u      t  Rental  fee CAR  USER  
  13. 13. PSNs  are  difficult  for  tradi1onal  business  to  adopt   PARTICIPATORY  SERVICE  NETWORKS     TRADITIONAL  BUSINESSES   Centralised  value  crea7on   VALUE  CREATION   Decentralised  value  co-­‐crea7on   Command  and  control  chain   CONTROL   Diffusion  of  control   High  on  the  company  side   CAPITAL   INTENSIVENESS   Low  on  the  company  side   Limits  to  scale,  speed  and  localness     AFFORDABILITY   Unaffordable  projects  now   possible   Aims  at  efficient  labour  use   LABOUR   EFFICIENCY   Redundancy  and  flexibility  of  roles   Resource  alloca7on   RESOURCES   Resource  aarac7on   Clear  role  responsibili7es   ACCOUNTABILITY   Diffusion  of  responsibility   Highly  designed  and  planned   DESIGNED  vs.   ORGANIC   Organic  characteris7cs  
  14. 14. Networked  business  models  calls  for  a  shi3  in  approach  to  service  design   1.  Focus  on  the  individual  customer   2.  Design  and  deliver  a  service   3.  Own  a  unique  rela1onship  with  customer   Tradi1onal   service  models   Networked   business  models   1.  Uncover  opportuni1es  in  a  network   2.  Enable  exchanges  to  deliver  service   3.  Iden1fy  your  role  in  the  ecosystem  
  15. 15. 1.  Uncover  opportuni1es  in  a  network   2.  Enable  exchanges  to  deliver  service   3.  Iden7fy  your  role  in  the  ecosystem  
  16. 16. 1.  Uncover  opportuni1es  in  a  network   Individual  customer   What  do  they  need?   Network   What  do  they  need?   What  do  they  have?  
  17. 17. 1.  Uncover  opportuni1es  in  a  network   Key  ques1ons:     •  How  are  people  connected  within  the   network?   •  What  is  their  mo8va8on  to  join?   •  What  are  the  values  exchanged?  
  18. 18. 1.  Uncover  opportuni1es  in  a  network   How  are  people  connected  within  the  network?
  19. 19. ust t of A e circumstances the introduction of money can turn collaborative dynamics 1.  Uncover  opportuni1es  in  a  network   into more competitive ones where structural loops are lost and the What  is  their  mo1va1on  to  join?   course, this competition can be integral network becomes fragmented. Of to the model, but at other times it can limit value exchange to a simple, calculated transaction, especially in cases where the network is dependent upon people’s creativity. TANGIBLE  BENEFIT   SMALL  +  TOKEN-­‐LIKE   SIMPLE,  QUICK   TRANSACTION   pes or m ose) The motivations to join a PSN are very different then the motivations to actively contribute. Initially,
  20. 20. 1.  Uncover  opportuni1es  in  a  network   What  are  the  values  exchanged?   RK odes – or actors pes of value ns can be identified change network. AIM mon, highs the type of d is its reason for pants is crucial for ompany to apply o take advantage ness activates that gh a PSN initially, Connections Knowledge connecting to others sharing knowledge with others “By connecting with each other, we heighten our identity as KoreanAmericans.” “By connecting with each other, we will find out things we want to know about new technologies.” Competencies Resources using skills to create value providing funds/resources to others “By connecting to each other we can trade children’s clothes to save money.” “By connecting with each other, we can learn how to speak each other’s language.” A company can effectively map the value present both within their business and within their wider network (of customers, partners, suppliers) into four loose groups: resources, knowledge, competencies and connections.
  21. 21. 1.  Uncover  opportuni7es  in  a  network   2.  Enable  exchanges  to  deliver  service   3.  Iden7fy  your  role  in  the  ecosystem  
  22. 22. 2.  Enable  exchanges  to  deliver  service   Design  the  service   journey   Design  par1cipatory   services   Single  user  experience   Networked  experience  
  23. 23. 2.  Enable  exchanges  to  deliver  service   Key  ques1ons:     •  How  is  value  exchanged?   •  How  to  design  for  a  networked   experience?   •  How  to  enable  interac8ons  and   exchanges?   •  How  to  encourage  contribu8ons?  
  24. 24. 2.  Enable  exchanges  to  deliver  service   How  is  value  exchanged?   Short  descrip1on:     RelayRides  is  a  P2P  car  rental   service.  Private  car  owners  to  rent   out  their  cars  for  money,  to  drivers   looking  for  a  close,  and  affordable   way  to  rent  cars.     How  is  the  value  exchanged?   Sketch  out  the  network     Who  is  exchanging  value?   Car  users,  car  owners   and  RelayRides   What  value  is  exchanged?   Car,  money,  members,   insurance   CAR   OWNER   Car  use  u      t  Rental  fee USER  
  25. 25. 2.  Enable  exchanges  to  deliver  service   How  do  we  design  for  a  networked  experience?    t  Rental  fee Car  use  u     USER   DISCOVER   JOIN   USE   EXTEND  
  26. 26. 2.  Enable  exchanges  to  deliver  service   How  do  we  design  for  a  networked  experience?   DISCOVER   JOIN   USE   EXTEND  
  27. 27. 2.  Enable  exchanges  to  deliver  service   How  do  we  enable  interac1ons  and  exchanges?   Trust  in  the     value  exchanged   Trust  in  the     plahorm   Trust  in  other     network  par7cipants  
  28. 28. 2.  Enable  exchanges  to  deliver  service   How  to  encourage  contribu1ons?   CONTRIBUTION"
  29. 29. 1.  Uncover  opportuni7es  in  a  network   2.  Enable  exchanges  to  deliver  service   3.  Iden1fy  your  role  in  the  ecosystem  
  30. 30. 3.  Iden1fy  your  role  in  the  ecosystem   BRAND   BRAND   1:1  rela1onship  with   customer   Branded  experience   Facilitate  rela1onships   among  customers   Brand  facilitates  rela8onships   in  an  ecosystem  
  31. 31. 3.  Iden1fy  your  role  in  the  ecosystem   Key  ques1ons:     •  What  roles  does  the  network  need  to   func8on,  and  who  can  provide  it?     •  How  to  start  and  grow  the  network?   BRAND  
  32. 32. 3.  Iden1fy  your  role  in  the  ecosystem   What  roles  does  the  network  need  to  func1on,  and  who  can  provide  it?   3  OWNER  ROLES   Host   Community   creator     Community   orchestrator   5  NON-­‐OWNER  ROLES   Crowd  gatherer   Builder   Network  enhancer   Conversa1onalist   Beneficiary   in  
  33. 33. 3.  Iden1fy  your  role  in  the  ecosystem   How  to  start  and  grow  the  network?   Emerge   eg.  Look  for  the  right   condi7ons  to  create  a   plahorm  for  exchange   Seed   PSN   eg.  Start  the  network  in  key  places,   with  key  actors  and  the  right   condi7ons  to  grow   Adapt   eg.  Allow  the  network  to   fragment  or  specialise  if  it   needs  to   Nurture   eg.  Encourage  par7cipa7on  and   help  the  network  to  flourish   Weed   eg.  Discourage  or  filter  out   nega7vity  which  could  reduce   par7cipa7on  in  the  network  
  34. 34. Networked  business  models  calls  for  a  shi3  in  approach  to  service  design   1.  Focus  on  the  individual  customer   2.  Design  and  deliver  a  service   3.  Own  a  unique  rela1onship  with  customer   Tradi1onal   service  models   Networked   business  models   1.  Uncover  opportuni1es  in  a  network   2.  Enable  exchanges  to  deliver  service   3.  Iden1fy  your  role  in  the  ecosystem  
  35. 35. Exercise  
  36. 36. Value  proposi1on  template   Design  a  networked  service     Short  descrip1on:     Who  is  exchanging  value?   What  value  is  exchanged?   How  is  the  value  exchanged?   Sketch  out  the  network    
  37. 37. Share  back   @claropartners   #sharingeconomy   #sdn13  
  38. 38. A  toolkit  to  design  a  par1cipatory  service   network  leveraged  by:    
  39. 39. Explore  more:  join  us  for  the  Global  Service  Jam  in  Barcelona!   7-­‐9  March" Strategists, developers and designers all across the world come together in one weekend to explore, create and prototype a service." In Barcelona this is mentored by Claro Partners, their clients and other professionals." Aldo  de  Jong|  Co-­‐Founder   +34  647  857  922  (m)   Send  us  an  email  at     to  be  no7fied  as  soon  as  registra7ons  open