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From product to service
Transformation of the world




                              Stefan Moritz – Warsaw 2011
market’s orientation
Significant paradigm shift

                                                            2




                                                         Stefan Moritz – Warsaw 2011
From the industrial society   To the networked society
Outoptimised
           1900      1910   1920         1930       1940      1950      1960   1970   1980     1990         2000


                                                                                             Supply
                                   Organisational                                            Chain
Economic
                                   Psychology                                                Management
Theory
                                                                                                                              3
                                                    Organisational                       Change
                                                    Management                           Management
             Taylorism
                                                                                              Business
                                                                                              Process
                                                                                      Total   Reengineering
                                                           Quality                    Quality




                                                                                                                           Stefan Moritz – Warsaw 2011
                                                           Management                 Management
                                                           (Japan)                    (USA)
                                                                                              Activity-
                                                                                              Based
                                                                                              Costing



                                                                                                   Source: Adaptive Path
Value for the organisation




                         Commodity
                                     Product
                                                   Service




   Value for customers
                                                               Experience




Stefan Moritz – Warsaw 2011
Shift 01


                              Things
                              Experiences
                                            5




Stefan Moritz – Warsaw 2011
Shift 02


                              Owning
                              Using
                                       6




Stefan Moritz – Warsaw 2011
Shift 03

                               7




  Inside out   Outside in




                            Stefan Moritz – Warsaw 2011
Transformation of the economy

    Service Dominant Logic         8




  Product Culture Remainder




                                Stefan Moritz – Warsaw 2011
10 Careers that didn’t exist 10 years ago
1. Bloggers                  6. Senior move management

2. Community managers        7. Social media strategists                                         9



3. Green funeral directors   8. User experience analyst

4. Interior redesigners      9. Video journalists




                                                                                              Stefan Moritz – Warsaw 2011
5. Patient advocates         10. Virtual business service providers




                                                               http://msn.careerbuilder.com
Transformation of the economy
     Poland’s GDP

                                                    10




                       agriculture
               32%     industry
                       services




                                                    Stefan Moritz – Warsaw 2011
     64%


                         Source: www.cia.gov 2010
IBM
                     10% products
                                    11



  90% products
                     90% services




                                    Stefan Moritz – Warsaw 2011
      10% services
Gap 01
Investment in research

                                                                    12




    € 3,121.00                  € 67.00




                                                                    Stefan Moritz – Warsaw 2011
Producing companies      Service companies



                                             Source: Birgit Mager
Gap 02
Design effort

                                                                                13




          41%                            6%




                                                                                Stefan Moritz – Warsaw 2011
of producing companies see   of service companies see
design as integral           any role of design


                                               Source: Design Council UK 2005
Gap 03         Gap 04
Productivity   Quality

Products       Products                                             14




Service        Service




                                                                    Stefan Moritz – Warsaw 2011
                          Source: Estimate based on desk research
Proof point: Flylo check-in

                                             15




                                             Stefan Moritz – Warsaw 2011
http://www.youtube.com/watch?v=BOrhMcqx6vw
“80% of companies believe they
 deliver outstanding value and a                    17




 superior customer experience.




                                                    Stefan Moritz – Warsaw 2011
 8% of their customers agree.”
                           Source: Bain & Company
Gap 05
Failure

                                                                                    18




            60%                     35%




                                                                                    Stefan Moritz – Warsaw 2011
of new service       of launched services are
introductions fail   removed from the market
                     after a short period

                            Source: Cooper & Edgett 1996 / Stevends & Burley 2003
EXAMPLE
Service Design for cars




                          Stefan Moritz – Warsaw 2011
From owning to using




Stefan Moritz – Warsaw 2011
Stefan Moritz – Warsaw 2011
Stefan Moritz – Warsaw 2011
Stefan Moritz – Warsaw 2011
Stefan Moritz – Warsaw 2011
Stefan Moritz – Warsaw 2011
From owning to using


                              $100M




Stefan Moritz – Warsaw 2011
SERVICE DESIGN




Stefan Moritz – Warsaw 2011
SERVICE DESIGN
Experience prototyping   with human empathy   beyond products.




                                                                 Stefan Moritz – Warsaw 2011
Services are different
You have to be there.
It happens over time.          25



You don’t own it but use it.




                               Stefan Moritz – Warsaw 2011
“The only people that
 see the bigger picture   26




 of any company are




                          Stefan Moritz – Warsaw 2011
 their customers.”
Anders Frostenson 2010
                                  27




    Stefan Moritz – Warsaw 2011
Anders Frostenson 2010
                                  27




    Stefan Moritz – Warsaw 2011
Stefan Moritz – Warsaw 2011
www.servicededesigntools.org




                               Stefan Moritz – Warsaw 2011
The six SD collaboration zones

                                                  SERVICE
                                                  DESIGN                                                    30




                                                                                                            Stefan Moritz – Warsaw 2011
Understanding        Thinking        Generating             Filtering   Sensualisation      Realising




Finding out and   Giving strategic   Developing         Selecting the     Enabling       Making it happen
    learning         direction        concepts          most relevant   understanding
SERVICE DESIGN
Experience prototyping   with human empathy   beyond products.




                                                                 Stefan Moritz – Warsaw 2011
32




85%?   5%                    99%!




                                           Stefan Moritz – Warsaw 2011
       Follow the logic of the customers
Experience prototyping




                              33




Stefan Moritz – Warsaw 2011
Experience prototyping




                              33




Stefan Moritz – Warsaw 2011
34




Stefan Moritz – Warsaw 2011
Mutual value
Improve or innovate service experiences
                                                   35




    Satisfied
               +    Profitable
                                 +   Lower risk




                                                   Stefan Moritz – Warsaw 2011
   Customers       Enterprises        of failure
Thank you!                          36




                                    Stefan Moritz – Warsaw 2011
st_moritz   stefan@plusMoritz.com
Products to services – transformation of the world markets orientation – institute of design warsaw
Products to services – transformation of the world markets orientation – institute of design warsaw
Products to services – transformation of the world markets orientation – institute of design warsaw
Products to services – transformation of the world markets orientation – institute of design warsaw
Products to services – transformation of the world markets orientation – institute of design warsaw

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Products to services – transformation of the world markets orientation – institute of design warsaw

  • 1. From product to service Transformation of the world Stefan Moritz – Warsaw 2011 market’s orientation
  • 2. Significant paradigm shift 2 Stefan Moritz – Warsaw 2011 From the industrial society To the networked society
  • 3. Outoptimised 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Supply Organisational Chain Economic Psychology Management Theory 3 Organisational Change Management Management Taylorism Business Process Total Reengineering Quality Quality Stefan Moritz – Warsaw 2011 Management Management (Japan) (USA) Activity- Based Costing Source: Adaptive Path
  • 4. Value for the organisation Commodity Product Service Value for customers Experience Stefan Moritz – Warsaw 2011
  • 5. Shift 01 Things Experiences 5 Stefan Moritz – Warsaw 2011
  • 6. Shift 02 Owning Using 6 Stefan Moritz – Warsaw 2011
  • 7. Shift 03 7 Inside out Outside in Stefan Moritz – Warsaw 2011
  • 8. Transformation of the economy Service Dominant Logic 8 Product Culture Remainder Stefan Moritz – Warsaw 2011
  • 9. 10 Careers that didn’t exist 10 years ago 1. Bloggers 6. Senior move management 2. Community managers 7. Social media strategists 9 3. Green funeral directors 8. User experience analyst 4. Interior redesigners 9. Video journalists Stefan Moritz – Warsaw 2011 5. Patient advocates 10. Virtual business service providers http://msn.careerbuilder.com
  • 10. Transformation of the economy Poland’s GDP 10 agriculture 32% industry services Stefan Moritz – Warsaw 2011 64% Source: www.cia.gov 2010
  • 11. IBM 10% products 11 90% products 90% services Stefan Moritz – Warsaw 2011 10% services
  • 12. Gap 01 Investment in research 12 € 3,121.00 € 67.00 Stefan Moritz – Warsaw 2011 Producing companies Service companies Source: Birgit Mager
  • 13. Gap 02 Design effort 13 41% 6% Stefan Moritz – Warsaw 2011 of producing companies see of service companies see design as integral any role of design Source: Design Council UK 2005
  • 14. Gap 03 Gap 04 Productivity Quality Products Products 14 Service Service Stefan Moritz – Warsaw 2011 Source: Estimate based on desk research
  • 15. Proof point: Flylo check-in 15 Stefan Moritz – Warsaw 2011 http://www.youtube.com/watch?v=BOrhMcqx6vw
  • 16. “80% of companies believe they deliver outstanding value and a 17 superior customer experience. Stefan Moritz – Warsaw 2011 8% of their customers agree.” Source: Bain & Company
  • 17. Gap 05 Failure 18 60% 35% Stefan Moritz – Warsaw 2011 of new service of launched services are introductions fail removed from the market after a short period Source: Cooper & Edgett 1996 / Stevends & Burley 2003
  • 18. EXAMPLE Service Design for cars Stefan Moritz – Warsaw 2011
  • 19. From owning to using Stefan Moritz – Warsaw 2011
  • 20. Stefan Moritz – Warsaw 2011
  • 21. Stefan Moritz – Warsaw 2011
  • 22. Stefan Moritz – Warsaw 2011
  • 23. Stefan Moritz – Warsaw 2011
  • 24. Stefan Moritz – Warsaw 2011
  • 25. From owning to using $100M Stefan Moritz – Warsaw 2011
  • 26. SERVICE DESIGN Stefan Moritz – Warsaw 2011
  • 27. SERVICE DESIGN Experience prototyping with human empathy beyond products. Stefan Moritz – Warsaw 2011
  • 28. Services are different You have to be there. It happens over time. 25 You don’t own it but use it. Stefan Moritz – Warsaw 2011
  • 29. “The only people that see the bigger picture 26 of any company are Stefan Moritz – Warsaw 2011 their customers.”
  • 30. Anders Frostenson 2010 27 Stefan Moritz – Warsaw 2011
  • 31. Anders Frostenson 2010 27 Stefan Moritz – Warsaw 2011
  • 32. Stefan Moritz – Warsaw 2011
  • 33. www.servicededesigntools.org Stefan Moritz – Warsaw 2011
  • 34. The six SD collaboration zones SERVICE DESIGN 30 Stefan Moritz – Warsaw 2011 Understanding Thinking Generating Filtering Sensualisation Realising Finding out and Giving strategic Developing Selecting the Enabling Making it happen learning direction concepts most relevant understanding
  • 35. SERVICE DESIGN Experience prototyping with human empathy beyond products. Stefan Moritz – Warsaw 2011
  • 36. 32 85%? 5% 99%! Stefan Moritz – Warsaw 2011 Follow the logic of the customers
  • 37. Experience prototyping 33 Stefan Moritz – Warsaw 2011
  • 38. Experience prototyping 33 Stefan Moritz – Warsaw 2011
  • 39. 34 Stefan Moritz – Warsaw 2011
  • 40. Mutual value Improve or innovate service experiences 35 Satisfied + Profitable + Lower risk Stefan Moritz – Warsaw 2011 Customers Enterprises of failure
  • 41. Thank you! 36 Stefan Moritz – Warsaw 2011 st_moritz stefan@plusMoritz.com