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IOT	SUPPORTING	SERVITIZATION	BY	TRANSFORMING	DATA	
INTO	INFORMATION	INTO	KNOWLEDGE
Mario	Rapaccini,	Shaun	West	&	Petra	Müller-Csernetzky
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
Context
-Servitization,	provision	of	advanced	services	and	PSSs	(Baines	et	al.	2011)
-Digitisation of	manufacturing	firms,	raise	of	industrial	internet	applications	(Annunziata	and	Evans	2012)
-Smart connected products	(Porter	and	Heppelman 2014)
-Installed	based	information management (Auramo &	Ala-Risku 2005)
Data-driven	decisions,	design	of	complex	PSSs
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
The	Problem
Technik & Architektur
Complex	ecosystem	with	many	actors	and	different	needs,	
perspectives	and	value	expectations
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
Objectives
How	can	data	collected	from	installed	base	generate	
valuable	knowledge	for	the	design	process?	
How	can	design	teams	collaborate	and	share	information,	
deliver	insights,	identify	their	interdependencies	and	how	
their	decisions	can	affect	the	value	creation	process?	
How	should	data	and	information	coming	from	specific	
product	instances	be	accessed	and	visualised	by	designers?
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
Persona	empathy	maps
Customer	journey
Situational	analysis
Job-to-be-done
Ecosystem visualization
Dr Shaun West (HSLU)
Dr Meierhofer Jürg (ZHAW)
The	Approach
Data-to-knowledge-to-action bases	on	the	
Data-Information-Knowledge-Wisdom	(DIKW)	hierarchy	(Rowley	2007).	
Focus	is	on:	
1) handling	the	right	data;	
2) elaborating	and	integrating	these	data	to	create	information;	
3) delivering	the	right	information	to	the	right	actors	at	the	right	time	and	in	the	right	form;	
4) facilitate	and	support	that	each	actor	can	produce	insights	that	are	relevant;	and	finally,	
5) evaluate	how	the	actions	can	affect	value	creation	in	the	ecosystem’s	processes.
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
The	Approach
Value	creation	dynamics	and	stakeholders’	analysis	should	be	grounded	on:
Service	Science	(Maglio &	Spohrer 2008)	and	SDL	(Vargo &	Lusch 2004,	2008)
Using	methods,	such	stakeholders’	maps	and	customer	journey’s	maps/service	blueprints,	
value	creation	can	be	visualized	and	understood	as	an	interactive	process.
An	initial	screening	is	necessary	to:	
1) identify all	actors	that	participate	in	the	value	ecosystem;	
2) analyse what	they	do	and	what	they	expect	from	the	PSS.
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
The	Value	of	Visualization:	personas	model
We	suggest	– as	our	original	contribution	(1)	– to	integrate	in	the	design	process	persona	models
to	have	a	virtual	representation	of	the	needs,	characteristics	and	expectations	(pains/gains)	of	
each	actor	(Hara	et	al.	2009,	Pirola et	al.	2014).	
The	benefits	that	persona-based	models	(personas)	bring	to	the	design	process:	
- facilitate	needs-finding	and	user-centered	design,
- avoid	self-centeredness,
- embrace	social	implications,	
- are	basis	for	collaboration	and	co-design	(collective	personas).
Persona-based	models can	improve	our	ability	to	form	a	sound	vision	of	people	and	needs.	
This	can	lead	to	a	greater	sense	of	involvement	and	understanding	of	reality.
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
Avatars	can	be	employed	to	create	a	digital	representation	of	resources	that	are	input	to	and	output	
from	value	creation	processes.	Services	should	be	viewed	as	value-oriented,	resource	integrating	
interactive	processes	(comply	with	UST).	
The	Value	of	Visualization:	avatars
We	suggest	– as	our	original	contribution	(2)	– to	use	avatars to	have	a	digital	representation	of	the	
PSS	equipment,	with	the	relevant	status	information	(Wuest	et	al.	2015,	Cassina	et	al.	2009).	
The	benefits	that	avatars	bring	to	the	design	process:	
- facilitate	shared	understanding	of	value	creation	as	a	resource-integrating	process,
- focus	on	design-decision	centered	on	usability	(i.e.	goods	are	mechanism	for	prividing	services),
- show	the	“journeys”	(i.e.	changes	to	equipment	and	people	status)	of	“operant”	and	“operand”	
resources
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
The	Validation
Aviation	Industry	(Oliver	Stoll,	Anzai Kenji)
Position Number	of interviews Topic
Aircraft	mechanic	1 2 Process	&	equipment
Aircraft	mechanic	2 3 Process	&	equipment
Head	of	Ops support	/	Pilot 1 Process	&	equipment
Head of	centre	of	competence	
excellence
5 Process	& system
Head	of	system	support services 1 Process	& system
Services 1 Process	&	customer	relations
Digitalization senior	expert 2 Equipment	&	process
Lean	manager 2 Process	&	System
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
The	Airline-Ecosystem
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
The	Validation
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
The	Key	Discussion	Points
Does the use of personas models (collective and individual)	
facilitate data-driven design	of PSSs?
Does the use of avatars help focusing on	value-oriented	
interactions and visualisation of the service system?
Could the proposed framework release opportunities for IoT-
enabled servitization of	manufacturers,	by	transforming	IB	data	
into	information	and	knowledge?
The	Spring	Servitization Conference	2017	– TRANSFORMING	DATA	INTO	INFORMATION	INTO	KNOWLEDGE	– Rapaccini /	West	/	Müller-Csernetzky
Create	&	test	prototypes	
value	propositions
Persona	empathy	maps
Customer	journey
Situational	analysis
Job-to-be-done

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