Mastering Service for the Future of Things · and others a service. BUT: its key constraint is...

49
Mastering Service for the Future of Things Irene CL Ng Professor of Marketing & Service Systems Director, International Institute for Product & Service Innovation Chairman and Chief Economist, HAT Foundation Find me on my HAT hatcentral.hubofallthings.net Compete Through Service Symposium Arizona State University 27 October, 2016

Transcript of Mastering Service for the Future of Things · and others a service. BUT: its key constraint is...

Page 1: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

MasteringServicefortheFutureofThings

IreneCLNgProfessorofMarketing&ServiceSystems

Director,InternationalInstituteforProduct&ServiceInnovation

ChairmanandChiefEconomist,HATFoundation

FindmeonmyHAThatcentral.hubofallthings.net

CompeteThroughServiceSymposiumArizonaStateUniversity

27October,2016

Page 2: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Weliveininterestingtimes

Page 3: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

BEFOREWETALKSERVICE…..Part1

Page 4: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Let’stalkaboutthings

Page 5: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Specifically,howdigitizationandconnectivityischangingtheworldofthings

Page 6: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

ImpactofDigitization&Connectivity

“TheyAUGMENT ourcapabilities.Thegreaterweareaugmented,themoreeffectivewecanliveourlives,thegreaterthemarketdemand.”

Wehavesuperpowers

Thethingaboutthings(1)

Page 7: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

ImpactofDigitization&Connectivity

“Theygiveusfreedomofproperty- theyallowustouse,experience, constrainedonlybyourselvesandthelaw- positiveliberty- theyallowustogiveourselvesandothersaservice.BUT:itskeyconstraintisACCESS.Thegreaterourabilitytoaccessourthings,themorefreedomswehaveforuseandexperience.”OwnershipvAccess

Digitizationandconnectivitymadephysicalthingsaccessibleondemand,incontext,wherever.

OwnershipANDAccess.

Thethingaboutthings(2)

Page 8: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

ImpactofDigitization&Connectivity

“Theyprovidestandardisation thatmakespossibleforfirmstoproducethemtoscaleandthereforebeviableingettingtheseproductstous.Thebenefitofstandardisation comeswiththedisadvantageofRIGIDITY- thereisverylittlevarietyinitsformandstructure.Thegreaterthestandardisation,thebetteritconformstoeconomiesofscale.Butthenarrowthemarketsegment.ScalabilityvCustomization.

DigitizationandConnectivitymadeanitemreconfigurableafterstandardization.

ScalabilityANDCustomization

Thethingaboutthings(3)

Page 9: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

ImpactofDigitization&Connectivity

“TheyareTEMPLATEOFBEHAVIOURS.Howweexperiencethem,usethem,bewiththem,bewithoutthem- theyembedthemselvesintoourcultureandlifestyles.Thegreaterthefreedomofbehaviours,thewiderthemarketsegment”

DigitizationandConnectivitygiveconsumersmorefreedomswithaconnectedproduct

Thethingaboutthings(4)

Page 10: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

ImpactofDigitization&Connectivity“TheyareSOCIALLY

CONNECTEDtootherthings.Breadwithbutterandtoaster.Teawithmilk,Washingmachinewithclothes.Wemayhaveboughtthemseparately,butweusethemtogether.Thegreaterwecancoordinateourthings,themoreeffectiveistheconsumer.”

DigitizationandConnectivitygiveconsumersEffectivenessfromCommunication,Coordinationbetweenpeopleandthings

Thethingaboutthings(5)

Page 11: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

ImpactofDigitization&Connectivity

“TheyarenotPERSONALIZABLEaftertheyleavethefactory.MassCustomizationandpostponementcanonlygosofar.Thegreateraproductcanbepersonalized,thebiggerthemarket.”

Personalizationtocontext

Thethingaboutthings(6)

Page 12: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for
Page 13: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for
Page 14: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for
Page 15: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Letmegiveyouanexample

Sensor

Urineanalysisasaservice

Page 16: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Informationisleakingouteverywhere

dataisubiquitous

Page 17: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Redrawingboundariesofmarketsacrossphysical,socialandcyberspaces

Howdowepayfortrainjourneysagain?

Page 18: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Weneedtodesign&innovatebetterintheworldofthings

Wecandothatbymasteringservice

Page 19: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

WorkingwithUKgovernmentoninnovationofthings:theBusinessModelInnovationWheel

https://innovateuk.blog.gov.uk/2016/09/28/innovation-beyond-things-and-widgets/

Page 20: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

ServiceintheFutureofThings

Page 21: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Serviceistheco-creationofvalueforoutcomes/benefits/value-in-use

CO-CREATEDVALUEthatishigherthanproposed Enhance

Realise

PeaceofmindEntertainment

Love

RESOURCES

RESOURCES????

Designthephysicalforco-creation,designforconnected

use

Page 22: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Thiscameraisavailablesoitisaresourcein

context

Thiscamerais

not

Thingsbecomemorevaluableincontextbecausetheyenableresourcesforvaluecreation

ServiceisContextual

Designthephysical

productforContext

Page 23: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Serviceisexperience

DesignforExperience:

brand,channel&interaction

Page 24: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

ServiceunderstandsthetradeoffsinValue,Viability&Variety

DesignforModularity

Cyber

Physical

Social

Human

Page 25: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Serviceunderstandstransactions

40yearsofrevenuemanagement,pricinganddemandmanagement,spot,advanced,in-servicetransactions

Page 26: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Butevenforservice,weneedtodobetter

• ThereismuchworktodoontheInternet

TheInternetisabouttochange,toputindividualsbackinfocus

Page 27: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Part2

TheInternet

Page 28: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

BringingserviceapproachestotheInternet

• TheInternethasn'tbeenagreatsystemtoputindividualsfrontandcenterofservice– OurrelationshipsontheInternetareratherfraught,somemaycallitexploitativee.g.Forwarduseofdata,solddata

– Directrelationshipsbetweenindividualsandcorporationdon'tseemtobeverysymmetricanddonotworkwell

Page 29: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

TheInternethasn'tbeenagreatsystemforservicemarketseither

• Companiesthatwanttoprovideaservicetoconsumershavetobuildalot,intermsoflinkagesandinteractionswithindividuals.

• Todoanapp,youeitherhavetobuildalltheplumbingtoholdpersonaldata,contentandassetsbeforeyouhavetocreateaservicefortheindividualOR

• youbuilditonananothercorporation'splatform,withawholelotofprivacyissuesOR

• youbuildittolinkdataownedby3/4companieswhocanchangethetermsofengagementatanytime

Page 30: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

HowaboutanInternetPlatformforUS– thecustomer

• Imagineifalotoftheplumbingisdone– andtheindividualownshisownInternetplatform– wehaveourownservers,data,

assets,content,andallshareabletobuildnewservices

– wecouldmakeaB2CworldintoaB2Bworld

– Andcompaniescanfocusonservice,ratherthanplumbing

– ANDTHERELATIONSHIPISDIRECTWITHTHECUSTOMER,notacompanyholdingthecustomer'sdata

Page 31: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

OurrecentarticleonScientificAmerican…

http://blogs.scientificamerican.com/guest-blog/what-the-apple-versus-fbi-debacle-taught-us/

Andthentheissueofcustodialrights…

Page 32: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

https://youtu.be/Li2U-MJsnEA

IntroducingtheHAT

Page 33: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

http://hatdex.org

DesignedEcosystemforMulti-sidedMarketofPersonalDataandNewEconomic&BusinessModels

£1.7mUKResearchCouncilfunding£140kcommunity&startupfunding

UniversityofWarwickUniversityofEdinburghUniversityofSurreyUniversityofWestEnglandUniversityofCambridgeUniversityofNottinghamUniversityofExeter

4platforms3.5years2startups30partners

Page 34: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Demo:HAT

Page 35: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

TheHATCommunity

http://hatcommunity.org

Page 36: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for
Page 37: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for
Page 38: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for
Page 39: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for
Page 40: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for
Page 41: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

TheInternetgrowsup:Data andContentcanfinallybecomeaService

Worldwideweb

Selfwideweb

• Match• Personalizedoffers• Personalizedthings• Recommendations• Cognitiveassistance• Recall• Computation• Synchronised

personaldata• Nudges/prompts• Behavioral

assistance

HaveyougotyourHATyet?http://hubofallthings.com

Page 42: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Part3

CivilLiberties

Page 43: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Whatdidyoudothefirsthalfhouronwakingupthismorning

Wearestartingtobehavealike,inthenameofefficiencyandconvenience.

• 30yearsago– ahugevariety

• Today– 64%ofuscheckourphonesortablets

Page 44: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

Thingsshapeus

• typeofsocietytowhichwewishtobelongtoisinherentlyshapedbythethingswemake.

Page 45: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

This...stuff'?Oh.Okay.Isee.Youthinkthishasnothingtodowithyou.Yougotoyourclosetandyouselect...Idon'tknow...thatlumpybluesweater,forinstancebecauseyou'retryingtotelltheworldthatyoutakeyourselftooseriouslytocareaboutwhatyouputonyourback.Butwhatyoudon'tknowisthatthatsweaterisnotjustblue,it'snotturquoise.It'snotlapis.It'sactuallycerulean.Andyou'realsoblithelyunawareofthefactthatin2002,OscardelaRenta didacollectionofceruleangowns.AndthenIthinkitwasYvesSaintLaurent...wasn'titwhoshowedceruleanmilitaryjackets?….thenceruleanquicklyshowedupinthecollectionsofeightdifferentdesigners.Andthenit,uh,filtereddownthroughthedepartmentstoresandthentrickledondownintosometragicCasualCornerwhereyou,nodoubt,fisheditoutofsomeclearancebin.However,thatbluerepresentsmillionsofdollarsandcountlessjobsandit'ssortofcomicalhowyouthinkthatyou'vemadeachoicethatexemptsyoufromthefashionindustrywhen,infact,you'rewearingthesweaterthatwasselectedforyoubythepeopleinthisroomfromapileofstuff.

From'DevilwearsPrada'(20thcenturyFox,2006)

Page 46: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

ServiceandtheFutureofThings

• Theneedtodesignhuman-centricecosystems,markets,offeringsetc.inthefutureofThings

• Service researchandpracticecommunityhasalwaysputhumanbeingsinthefrontandcentreofthedesignofmarkets,offeringsandotherecosystems

• aworldwhereourchoicesandbehaviourswillberestrictedby'wonderful','amazing'butrigidproductsandsystemscreatedinthenameofefficiencyandconvenience. Wewillbehavethesame,wewillberobotsofconvenience.

• Wethinkwehavefreewillandchoiceswheninfact,ourconsiderationsetshavealreadybeenlimitedbypeoplewhohavenotunderstoodtherearedifferentwaystodesign

Page 47: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

KeyTakeaways

• Thingsarebecomingaserviceexperience:impactondesign,innovationandmarkets

• TheInternetisreshapingitselftobeaserviceplatform:withdigitalassetaggregators(HAT).toenablebetterdata,connectivityandcontenttobeaservice(andworkwiththings!)

• Thethingswemakeshapethesocietywelivein.Ourbehavioursaretemplatesoftheproducts/servicesweuse.Wehavearesponsibilitytomakethattemplateasliberatingandfreeaswecan

Page 48: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

http://Innovorsa.com/press

Page 49: Mastering Service for the Future of Things · and others a service. BUT: its key constraint is ACCESS. The greater our ability to access our things, the more freedoms we have for

MAYYOURFUTUREBE BRIGHT.

THANKYOU

GETYOURHATON.HUBOFALLTHINGS.COM


Freedoms Phoenix

Freedoms Phoenix

Access of all things for disabled

Access of all things for disabled

Litigating Religious Freedoms

Litigating Religious Freedoms

FREEDOMS CHAMPION

FREEDOMS CHAMPION

Site Access and All Things Accessible

Site Access and All Things Accessible

Celebrating Our Freedoms

Celebrating Our Freedoms

Are Africans’ freedoms

Are Africans’ freedoms

Celebrating America's Freedoms

Celebrating America's Freedoms

The Care Guy - WordPress.com · “All rights are freedoms (liberties). They include the freedom to do things, to make choices for example. They also include freedom from things like

The Care Guy - WordPress.com · “All rights are freedoms (liberties). They include the freedom to do things, to make choices for example. They also include freedom from things like

Outline: What are rights and freedoms History of Rights and Freedoms

Outline: What are rights and freedoms History of Rights and Freedoms

Sweet Freedoms

Sweet Freedoms

Mobile Access to All Things Academic

Mobile Access to All Things Academic

Aboriginal freedoms right

Aboriginal freedoms right

FIVE FREEDOMS - ASPCA ProfessionalFIVE FREEDOMS 1. Freedom From Hunger and THirsT by ready access to fresh water and diet to maintain health and vigor. 2. Freedom From discomForT by

FIVE FREEDOMS - ASPCA ProfessionalFIVE FREEDOMS 1. Freedom From Hunger and THirsT by ready access to fresh water and diet to maintain health and vigor. 2. Freedom From discomForT by

FCA pension freedoms data collection exercise: analysis ... pension...Customer access to pension freedoms 3.2 In the first three months following the introduction of the new pension

FCA pension freedoms data collection exercise: analysis ... pension...Customer access to pension freedoms 3.2 In the first three months following the introduction of the new pension

Driving Freedoms - Motorists

Driving Freedoms - Motorists

Pension freedoms: transfers from defined benefit pension ... · 1.1 The pension freedoms 5 1.2 Access for members of DB schemes 6 Pension freedoms consultation 6 1.3 Requirement to

Pension freedoms: transfers from defined benefit pension ... · 1.1 The pension freedoms 5 1.2 Access for members of DB schemes 6 Pension freedoms consultation 6 1.3 Requirement to

The 5 freedoms

The 5 freedoms

8.C&G.1.4 Analyze access to democratic rights and freedoms among various groups.

8.C&G.1.4 Analyze access to democratic rights and freedoms among various groups.

Freedoms and Responsibilities1

Freedoms and Responsibilities1