The document discusses the transformation from a product-based economy to a service-based economy. It notes that companies are shifting from selling products to selling experiences and from ownership models to usage models. It also highlights gaps that currently exist between product-focused companies and service-focused companies in areas like investment in research, design efforts, productivity, quality, and failure rates of new offerings. The document advocates for the use of service design approaches and tools to help companies better design services and customer experiences.
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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
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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
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Management Management
(Japan) (USA)
Activity-
Based
Costing
Source: Adaptive Path
4. Value for the organisation
Commodity
Product
Service
Value for customers
Experience
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5. Shift 01
Things
Experiences
5
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6. Shift 02
Owning
Using
6
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7. Shift 03
7
Inside out Outside in
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8. Transformation of the economy
Service Dominant Logic 8
Product Culture Remainder
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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
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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
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64%
Source: www.cia.gov 2010
11. IBM
10% products
11
90% products
90% services
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10% services
12. Gap 01
Investment in research
12
€ 3,121.00 € 67.00
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Producing companies Service companies
Source: Birgit Mager
13. Gap 02
Design effort
13
41% 6%
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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
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Source: Estimate based on desk research
15. Proof point: Flylo check-in
15
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http://www.youtube.com/watch?v=BOrhMcqx6vw
16. “80% of companies believe they
deliver outstanding value and a 17
superior customer experience.
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8% of their customers agree.”
Source: Bain & Company
17. Gap 05
Failure
18
60% 35%
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of new service of launched services are
introductions fail removed from the market
after a short period
Source: Cooper & Edgett 1996 / Stevends & Burley 2003
34. The six SD collaboration zones
SERVICE
DESIGN 30
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Understanding Thinking Generating Filtering Sensualisation Realising
Finding out and Giving strategic Developing Selecting the Enabling Making it happen
learning direction concepts most relevant understanding
40. Mutual value
Improve or innovate service experiences
35
Satisfied
+ Profitable
+ Lower risk
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Customers Enterprises of failure
41. Thank you! 36
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st_moritz stefan@plusMoritz.com