Cees van Halen Partners for Innovation / aHa!Group

Service Design Methods, thinking and practice from the perspective of pan European research,

development and business support consulting

the MEPSS methodology

Cees van Halen

Partners for Innovation / aHa!Group

Contact:+31.6.54252484

cees@ahagroup.nlc.van.halen@partnersforinnovation.com

Info:www.ahagroup.nl

www.partnersforinnovation.comwww.mepss.nl

Every day, many people have great ideas....

Less than 1:1.000.000 of these ideas will reach the marketplace

...what makes the difference?

Why is innovation (perceived as being)

so difficult?

Where lies the complexity?

How to have a good idea?• ..how to translate it in terms of markets

and profitable business models?

The world is changing so fast! • globalisation, new competitors, rapid

innovations

What is a good idea ?

That markets will adopt

I am so dissapointed about support & responses in my organisation

• Be prepared for ‘Not invented here’ responses• Initially nobody asked for your idea

How to plan & cooperate SMART?• Me, my project, my colleagues, my

company, my clients, my future....? It i

Build a GREAT idea!!• Think in: FUNCTION, EMOTION, VALUE, EXPERIENCE

• Rethink offers, (A)SIT, strategy canvas

• Combine functions: BOS, PSS

Be consistent & disciplined • work SMART ...Plan-Do-Check-Act.... • Good Project management

Surprise the client !!

Blue ocean strategies

New thinking (3P as opportunity)• Clean-clever-competitive • Think global – act local !

Inspire People (AIDA)• Work together• Clear Stage – Gate Process C

HOW: project, forecasts, market plan, communication plan

Innovation is HARD WORKjuggling many balls in the air….

WHAT: idea, product-market-technology combination

WHO to act – roles, cooperation, leadership

WHO to address – client, colleague, management, supplier, stakeholder

Prelude MEPSS… the project

1. Introduction to

MEPSS ProjectProduct Services Systems (PSS)Webtool mepss.nl:

2. What is a Product Service System (PSS)?

• "A marketable set of products & services capable of jointly fulfilling a user's needs«

• The underlying principles: – Shifting business focus from designing & selling physical products only to

selling a system of product & services jointly capable of fulfilling specific client demands.

– Create unique value proposition

– Minimise inefficiencies in the system by shifting responsibilities among the lifecycle chain of a product.

1. MEPSS the EU Research ProjectProject coordinator:

Cees van Halenc.van.halen@partnersforinnovation.com

Products: – MEPSS Handbook– MEPSS Webtool– Scientific Articles– Events

Partners:

Dalt: francois.jegou@skynet.beDomus Academy: info@domusacademy.it Econcept: Ursula Tischner,u.tischner@econcept.orgINSEAD: Kai.Hockerts@insead.eduIÖW: gerd.scholl@ioew.de Politecnico di Milano, carlo.vezzoli@polimi.itPre Consultants: Mark Goedkoop, goedkoop@pre.nlEcobilan: Jochen Krimphoff@fr.pwc.comSheffield Hallam University: Tim Cooper, T.H.Cooper@shu.ac.uk GrAT (Gruppe angepasste Technologie,TU Wien): Robert Wimmer, rw@grat.atZuid-Hollandse Milieufederatie: Wilma Aarts

MEPSS TeamDevelopment structure

WORK LINE DESIGN

Carlo Vezzoli

WORK LINE ASSESSMENT

Mark Goedkoop

WORK LINE SUCCESS & FAILURE FACTORS

Robert Wimmer

MEPSS: A modular methodology in 5 steps

The approach enables a company to start up the process at the stage that is the most relevant, depending on the work that has already been carried out internally

1- Strategic analysis

5 – Development and implementation of PSS project

2 – Exploring opportunities

3 – PSS idea development

4 – PSS concept design

(Cost) Efficiency for the clientCreating Value for client & supplierSaving the planet

"Being environmentally responsible makes good business

sense, and, in fact, gives us a competitive advantage."

Samuel C. Johnson

Service Systems: Creating ‘Win-Win-Win’ situations

We partner with our customers to create solutions to their unique cleaning and hygiene needs.

Johnson Diversey

Prelude MEPSS… available results

PART 1New Thinking is needed!

New thinking (3P)Clean-clever-competitive

Think global – act local !

The world changes……rapidly !!

PricewaterhouseCoopers 15

Complex relationships

INDUSTRYASSOCIATIONS

POLICYMAKE

CIVIL SOCIETY

CIVIL SOCIETYNGO’sNGO’s

RTD INSTITUTES UNIVERSITIES

ADVISERS

RTD INSTITUTES UNIVERSITIES

ADVISERS

DE MARKETDE MARKET

GOVERNMENTSGOVERNMENTS

CLIENTCLIENTPRODUCERSPRODUCERSCHAINS OFFER – FUNCTION (PSS)

Stakeholders relations

New Value SetsCompany value: ‘As Perceived & Future oriented’

Intrisic Value

Stock Value Processes

Processes

Information supply

Systems

LeadershipLeadership

Core competences

Brands

Knowledge

Strategy

Reputation

Suppliers CPG Retailers Consumers

Business-to-BusinessBusiness-to-BusinessBusiness-to-ConsumersBusiness-to-Consumers

ProductsProducts

InformationInformationHorizontales MarketPlaces

Horizontales MarketPlaces

VALUE CHAIN INTEGRATIONVALUE CHAIN INTEGRATION

Raw material and packaging

Increasingly strong operational integration between the actors of the value chain ...

Transport / delivery

Material Flow Management

Internet is changing the businessTHINK E-Business

Company

Suppliers

Customers

Support Processes

Sales / Marketing

Supply Chain

Procurement

Direct-to-Consumer

Marketing

Prod Dev

Order Mgmt

Procurement

Production

Distribution

Cust Svce

CollaborativeProduct

Design - DfE

SustainableSourcing

Consumer involvement

Catalog Management

Sustainable business models: answer to new challenges

Many NEW Global Sustainability Issues

– Global governance– Corporate governance & accountability– Sustainable Management and conservation of natural

resources– Climate Change (Inconvenient Truth – Al Gore)

• See www.makemarketswork.com – conference section

– Accessibility of water & energy– Changing sustainable production & consumption

pattern– Trade & sustainable development

Sustainability – Risk Management as driving forces for innovation

SD Continuum: Opportunities and Risks

Compliance Prevention

Operating Performance Strategic

Initiatives

People-Planet-Profit impact on company?3P-metrics needed: towards practical indicators (MEPSS)

Theoretical concept Dimensions Categories Aspects Indicators

Interlinkages

Sustainable Development

..Translate to Corporate strategy PYRAMID ACTION LAYERS

VisionAmbitionStrategy

Setting objectives & KPI-s

Prepare for Action

Action

CommunicationPlanDo

CheckAct

Pro-active, holistic thinkingScenarios and systems

Business level

Product level

Technology level

VisionGoal Setting

Projectslevel

Forecasting Backcasting

PART 2Ideation..!!

How to have a good idea?and how to translate it in terms of markets

and profitable business models?

What is a good idea ?

That markets will adopt

IDEATIONMEPSS

IDEATIONBOS

MEPSS: A modular methodology in 5 steps

The approach enables a company to start up the process at the stage that is the most relevant, depending on the work that has already been carried out internally

Thinking in terms of:

Assessment:Interaction:Offer:System analysis:

SystemMap

OfferingDiagram

InteractionTable

Sustainability Assessment

BOS - Blue Ocean Strategies = PSS thinking ‘re-invented for marketeers’

Excellent book !!

Chan Kim

Renée Mauborgne

1- Strategy Canvas

2 –Four Action Framework Eliminate, Raise, Reduce, Create

3 – Formulating BOSBuilding a Unique PSS offer

4 – Executing BOS

Blue Ocean Strategies – Value Innovation1. STRATEGY CANVAS

1- Strategy Canvas

2 –Four Action Framework

3 – Formulating BOS

4 – Executing BOS

Unique BOS Value Innovation

Find unexpected NEW Blue Ocean offer 2. FOUR ACTION FRAMEWORK

1- Strategy Canvas

4 – Executing BOS Four actions (canvas):1. Eliminate2. Raise 3. Reduce4. Create

Reconstruct Market Boundaries3. FORMULATING BOS

1- Strategy Canvas

4 – Executing BOS

Six Path Framework (learn & combine):1. Look across alternative industries2. Look across strategic groups within industries3. Look across the chain of buyers4. Look across complementary product/service offerings5. Look accross functional or emotional appeal to buyers6. Look across time

Focus on the BIG PICTUREDrawing Strategy Canvas•Visual awakening•Visual exploration•Visual strategy fair•Visual communication

Blue Ocean Strategies 4. EXECUTING BOS

1- Strategy Canvas

2 –Four Action Framework Eliminate, Raise, Reduce, Create

3 – Formulating BOSBuilding a Unique PSS offer

4 – Executing BOS

Find a TIPPING POINT strategy

Four organisation hurdles:1. Cognitive

Close gaps in perception- Face-to-face with problems, clients

2. Political- Silencing Devils Leveraging Angels- Don’t fight alone

3. Motivational- Kingpins, Fishbowl and brake-down into bits

4. Resources: - Cold Hot Spots

Laggards

TARGET GROUP FOR PSS AND BOS strategies

Peleton LeadersNiche-players

PSS and BOS: Leadership models !

Be consistent & disciplined • work SMART ...Plan-Do-Check-Act.... • Good Project management

PART 3BUILD & IMPLEMENT

• INSPIRE PEOPLE (AIDA)• Work together...• Work according to Stage-Gate

MAIN STRUCTURE = Stage Gate Secured embedding of project team with organisationTwo layer decision making

Phases in MEPSS model – a closer look

Anchoring the organisation & stakeholders (commitment)

DECISION LEVEL

DESIGN LEVEL

MAIN STRUCTURE: PROCES – based on Stage Gate model

Project

Management

MEPSS structure

Monitoring phase

PSS Developing phase

Assess-ment

Success and failure

Design

Scenario development

PSS idea development

PSS design

Strategic assessment of opportunities

Monitoring PSS after introduction

Start here

or start here

Learn to communicate effective:

New methods

New ICT tools

e.g. Mind Mapping software: MINDMANAGER

INSPIRE PEOPLE (AIDA)• Work together...

• Work according to Stage-Gate

PART 4PEOPLE, people, people, people, people

1. AWARENESS

2. INTEREST

3. DESIRE

4. ACTION

Circles and Drivers

Inspire People

Awareness

Outer Circle

InnerCircle

Communicate Success

Inspired People have a personal drive

‘SURROUNDING GROUPS’

‘DECISIONMAKERS’

‘PROJECT TEAM’

Communication – MindManager

Mind Mapping powers innovation by new communication models• Organising thoughts of people

• Mind Mapping is a creativity and innovation engine. – Ideas can be visualised and translated into concepts and projects. – Stakeholders can express their support for these concepts/ideas.

• Mind Mapping contributes to a better structure of the discussion– Increase of transparency and clarity– To support decision making and making discussions more action based.

• Connecting people– Mind Mapping stimulates the interaction between people

• AIDA into ACTION– Co-design – Open innovation model: – stakeholders will learn to appreciate ideas and co-operate in innovation process.

Organic working – holistic, no silos !

Databases

Outlook

PowerPointWeb Pages

Project management

software

Present Act uponBuild / Organize

Domain of

Mind Mapping software

Tradional softwareSegmented in functional pillars

New holistic, more organic and open models based on Mind Mapping software

Old domain of Mind Mapping

Create / Ideas

Communication – use MindManager

• Learn more:– www.ahacoaching.nl– Examples:

• Mind Mapping at National Innovation Event:

– www.ahagroup.nl/ipe• Mind Mapping at Climate Conference

– www.makemarketswork.com (ahaprojects.nl/mmw)

..or contact cees@ahagroup.nl

CommunicationMEPSS webtool

• 2 types of tools:

– Tools to visualise : • these tools are used for 2 purposes, to allow team members to

visualise the results of their thinking process and to trigger further thinking. They are useful to use during workshops. The main visualisations are the System Map, the Functionality Diagram and the Interaction Map and run all along the methodology.

– Tools to support decision making: • these tools help assess and define different dimensions of the

PSS solution, namely success and failure factors and the 3 dimensions of sustainability issues. They require a certain amount of information gathering and work and are applied outside workshops

Main outputs from the phase:

1. Prepare a system map, the list of variables (active/passive) and the characteristics of the variables

2. Prepare a document that sums up the current system (SWOT, market study and opportunities, consumer behaviour, product’s strengths/weaknesses)

3. Prepare a list of the key strategic drivers of the business

• Our competences

• Our key stakeholders?

• What do my clients expect?

• Key technological trends

• Today's system in terms of people, planet, profit

• other strategic issues at stake?

Main objectives: To find the innovation process direction with the help of a general overview of the strategic issues at stake (stakeholders, regulation, boundary conditions, technologies, business culture,etc…)Actors involved: Key decision makers (Top management), External expert + moderator, Key stakeholders if feasibleMain outputs:

Assessment:Interaction:Offer:System analysis:

1 – Strategic analysis (overall)

Main objectives : To generate a panorama of contrasted scenarios and related sustainable PSS ideas.

Actors involved : Internal project team initially carrying out the project; Representatives from main stakeholders (or related competencies if the stakeholders have not already been identified);PSS design support (internal if available or consultants); Project manager facilitating the workshop.

Main outputs :

For each scenario

Interaction:Offer:System analysis: Assessment:

2 – Exploring opportunities (overall)

For each scenario For each scenario

Process to follow: Suggested format for this phases consists in a workshop to brainstorm on possible PSS solutions and its follow-up work.

Preparatoryphase

WorkshopFollow-up

Main activities:

Brainstorming to generate potential ideas for PSS solutions based on :

• Generation of intuitive promising tentative ideas

•Identification of promising scenarios

Orientated towards sustainable solutions and customer needs

Main outputs from the phase:

A list of potential PSS ideas

What are main PSS scenarios to guide me into the future?

Where are untapped opportunities?

What are the PSS ideas that could be developed?

Which set of evaluation criteria for PSS should be used according to the company's priorities?

Do the ideas generated bring about an improvement with regards to environmental/social impacts and how?

2 – Exploring opportunities (questions)

1. What does each PSS solution generated really offer (functionality, perceived value)?

2. What are the main actors involved and how should the PSS interact with the client for each solution (overall)?

3. What are the platform boundaries and how should the PSS system look like for each solution (overall)?

4. What PSS solution is the best to start working on?

5. What are the investment requirements for each solution?

6. How do the ideas generated bring about an improvement with regards to environmental/social impacts?

3 – PSS idea development (overall)

Main objectives: To shape the selected PSS ideas in more depth (make final selections in case of multiple PSS ideas)

Actors involved: Transversal team of representatives from the company (development teams and assessment experts)

Main outputs:

D18-SystemMap

3 – Example PSS idea development

Do not sell paint, but sell

surface

Contracts B2C,B2B

External profit center B2B

Mobile Team B2SME

TerminalValue

InstrumentalValue

Psycho-socialConsequences

FunctionalConsequences

AbstractAttributes

Concreteattributes

Happiness

Self respect

Social acceptance

Good consience

Personalexpression

Careful Engagement,belonging

Makedurable

Renew,change,restyle

Aesthetic,Function,

colourHealthy

Longlasting

Clean(-able)

Deco-ration

X NaturalNicesmell

Modeof use

Expensiveper kg,

not per m²

Colourspectrum

Product specificationnatural paint

4 – PSS concept design (overall)

Main objectives : To develop the detailed functionalities of the PSS selected, model the system and make check on its viability and sustainability

Actors involved : Internal transversal team (representatives from the appropriate department of the company), External experts, Key stakeholders

Main outputs :

List of MEPSS tools

List of Assessment Tools

A1-Inventory of sustainability indicators

A2-System dynamics

A3- Property rights analysis

B1-System map

B2-Virtue matrix

B3-Screening LCA

B4-Screening profitability

C1-Full LCA for PSS

C2-Full life cycle costing

C3-Total cost assessment

C4-E2 Vector

List of Design Tools1. Scenario workshop input format2. Scenario building tool3. System map4. AddPosters5. Interaction story-board guidelines6. OfferingDiagram7. InteractionTable8. Use case9. Guidelines, criteria and radar for the environmental

sustainability10. Guidelines, criteria and radar for the socio-ethical and

economic sustainability11. Sustainability criteria and guidelines:overview table12. Generic guidelines for successful and sustainable PSS13. SWOT for analysing the existing system/situation/market

Communication – MEPSS webtool

• Learn more:

www.mepss.nl

Or contact: c.van.halen@partnersforinnovation.com

Cees van Halen Partners for Innovation / aHa!Group

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