Cees van Halen Partners for Innovation / aHa!Group

1. Service Design Methods, thinking and practice from the perspective of pan European research, development and business support consultingthe MEPSS methodology Cees van Halen Partners for Innovation / aHa!Group Info: www.ahagroup.nl www.partnersforinnovation.com www.mepss.nl Contact: +31.6.54252484 cees@ahagroup.nl c.van.halen@partnersforinnovation.com

2. Every day, many people have great ideas.... Less than 1:1.000.000 of these ideas will reach the marketplace ...what makes the difference?

3. Why is innovation (perceived as being) so difficult?Where lies the complexity?

4. What is a good idea ? That markets will adopt How to have a good idea? • ..how to translate it in terms of markets and profitable business models? It is all so complex! How to communicate effectively 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....? The world is changing so fast! • globalisation, new competitors, rapid innovations

5. Surprise the client !! Blue ocean strategies Build a GREAT idea!! • Think in: FUNCTION, EMOTION, VALUE, EXPERIENCE • Rethink offers, (A)SIT, strategy canvas • Combine functions: BOS, PSS Communicat effective: Mindmap: MINDMANAGER Be consistent & disciplined • work SMART ...Plan-Do-Check-Act.... • Good Project management Inspire People (AIDA) • Work together • Clear Stage – Gate Process New thinking (3P as opportunity) • Clean-clever-competitive • Think global – act local !

6. Innovation is HARD WORKjuggling many balls in the air…. HOW: project, forecasts, market plan, communication plan WHAT: idea, product-market-technology combination WHO to act – roles, cooperation, leadership WHO to address – client, colleague, management, supplier, stakeholder

7. Prelude MEPSS… the project • Introduction to MEPSS ProjectProduct Services Systems (PSS)Webtool mepss.nl:

8. 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.

9. 1. MEPSS the EU Research Project • Project coordinator: • Cees van Halen • c.van.halen@partnersforinnovation.com • Products: • MEPSS Handbook • MEPSS Webtool • Scientific Articles • Events Partners: Dalt: francois.jegou@skynet.be Domus Academy: info@domusacademy.it Econcept: Ursula Tischner,u.tischner@econcept.org INSEAD: Kai.Hockerts@insead.edu IÖW: gerd.scholl@ioew.de Politecnico di Milano, carlo.vezzoli@polimi.it Pre Consultants: Mark Goedkoop, goedkoop@pre.nl Ecobilan: Jochen Krimphoff@fr.pwc.com Sheffield Hallam University: Tim Cooper, T.H.Cooper@shu.ac.uk GrAT (Gruppe angepasste Technologie,TU Wien): Robert Wimmer, rw@grat.at Zuid-Hollandse Milieufederatie: Wilma Aarts

10. MEPSS TeamDevelopment structure Carlo Vezzoli WORK LINE DESIGN Mark Goedkoop WORK LINE ASSESSMENT Robert Wimmer WORK LINE SUCCESS & FAILURE FACTORS

11. MEPSS: A modular methodology in 5 steps 1- Strategic analysis 2 – Exploring opportunities 3 – PSS idea development 4 – PSS concept design 5 – Development and implementation of PSS project 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

12. Service Systems: Creating ‘Win-Win-Win’ situations (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 We partner with our customers to create solutions to their unique cleaning and hygiene needs. Johnson Diversey

13. Prelude MEPSS… available results www.mepss.nl

14. PART 1New Thinking is needed! New thinking (3P) Clean-clever-competitive Think global – act local !

15. The world changes……rapidly !! PricewaterhouseCoopers 15

16. Complex relationships POLICYMAKER RTD INSTITUTES UNIVERSITIES ADVISERS NGO’s CIVIL SOCIETY INDUSTRY ASSOCIATIONS GOVERNMENTS DE MARKET PRODUCERS CLIENT OFFER – FUNCTION (PSS) CHAINS

17. Stakeholders relations

18. New Value SetsCompany value: ‘As Perceived & Future oriented’ 'meta' 'branded' 'knowledge based' 'immaterial/virtual' world Reputation Core competences Knowledge Strategy Leadership Brands Systems Processes Information supply Value Stock Value Intrisic Value Time

19. Increasingly strong operational integration between the actors of the value chain ... Business-to-Consumers Business-to-Business Products Verticales Market Places Verticales Market Places Horizontales Market Places Horizontales Market Places Information Retailers Suppliers CPG Consumers Raw material and packaging Transport / delivery Material Flow Management VALUE CHAIN INTEGRATION

20. Internet is changing the businessTHINK E-Business Catalog Management Sustainable Sourcing Consumer involvement Collaborative Product Design - DfE Company Marketing Suppliers Customers Prod Dev Sales / Marketing Procurement Sales Order Mgmt Procurement Direct-to-Consumer Supply Chain Production Distribution Cust Svce Support Processes

21. Sustainable business models: answer to new challenges

22. 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

23. Sustainability – Risk Management as driving forces for innovationSD Continuum: Opportunities and Risks Compliance Prevention Operating Performance Strategic Initiatives

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

25. ..Translate to Corporate strategy PYRAMIDACTION LAYERS Vision Ambition Strategy Setting objectives & KPI-s Prepare for Action Action Communication Plan Do Act Check

26. Pro-active, holistic thinkingScenarios and systems Vision Goal Setting Market Pull Business level Product level Tech. Push Technology level Projects level Forecasting Backcasting Time

27. PART 2Ideation..!! What is a good idea ? That markets will adopt How to have a good idea? and how to translate it in terms of markets and profitable business models?

28. 1. 2. IDEATIONBOS IDEATIONMEPSS

29. MEPSS: A modular methodology in 5 steps 1- Strategic analysis 2 – Exploring opportunities 3 – PSS idea development 4 – PSS concept design 5 – Development and implementation of PSS project 1. 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

30. Thinking in terms of: 1. System analysis: Offer: Interaction: Assessment: Tool ? Tool Tool Tool ? Tool Tool

31. SystemMap 1.

32. OfferingDiagram 1.

33. InteractionTable 1.

34. Sustainability Assessment 1. People Planet Profit

35. BOS - Blue Ocean Strategies = PSS thinking ‘re-invented for marketeers’ 1- Strategy Canvas 2 –Four Action Framework Eliminate, Raise, Reduce, Create 3 – Formulating BOS Building a Unique PSS offer 4 – Executing BOS 2. Excellent book !! Chan Kim Renée Mauborgne

36. Blue Ocean Strategies – Value Innovation1. STRATEGY CANVAS 1- Strategy Canvas 2 –Four Action Framework 3 – Formulating BOS 4 – Executing BOS 2. Unique BOS  Value Innovation

37. Find unexpected NEW Blue Ocean offer2. FOUR ACTION FRAMEWORK 1- Strategy Canvas 2 –Four Action Framework 3 – Formulating BOS 4 – Executing BOS 2. • Four actions (canvas): • Eliminate • Raise • Reduce • Create

38. Reconstruct Market Boundaries3. FORMULATING BOS 1- Strategy Canvas 2 –Four Action Framework 3 – Formulating BOS 4 – Executing BOS 2. Six Path Framework (learn & combine): 1. Look across alternative industries 2. Look across strategic groups within industries 3. Look across the chain of buyers 4. Look across complementary product/service offerings 5. Look accross functional or emotional appeal to buyers 6. Look across time • Focus on the BIG PICTURE • Drawing Strategy Canvas • Visual awakening • Visual exploration • Visual strategy fair • Visual communication Mind Mapping !

39. Blue Ocean Strategies 4. EXECUTING BOS 1- Strategy Canvas 2 –Four Action Framework Eliminate, Raise, Reduce, Create 3 – Formulating BOS Building a Unique PSS offer 4 – Executing BOS 2. Find a TIPPING POINT strategy Four organisation hurdles: • Cognitive •  Close gaps in perception • Face-to-face with problems, clients • Political • Silencing Devils Leveraging Angels • Don’t fight alone • Motivational • Kingpins, Fishbowl and brake-down into bits • Resources: • Cold  Hot Spots

40. PSS and BOS: Leadership models ! TARGET GROUP FOR PSS AND BOS strategies Peleton Laggards Leaders Niche-players 40

41. PART 3BUILD & IMPLEMENT • INSPIRE PEOPLE (AIDA) • Work together... • Work according to Stage-Gate Be consistent & disciplined • work SMART ...Plan-Do-Check-Act.... • Good Project management

42. MAIN STRUCTURE = Stage Gate Secured embedding of project team with organisationTwo layer decision making 1- Strategic analysis 2 – Exploring opportunities 3 – PSS idea development 4 – PSS concept design 5 – Development and implementation of PSS project

43. Phases in MEPSS model – a closer look

44. MAIN STRUCTURE: PROCES – based on Stage Gate model Anchoring the organisation & stakeholders (commitment) Management DECISION LEVEL DESIGN LEVEL Project

45. MEPSS structure

46. PART 4PEOPLE, people, people, people, people INSPIRE PEOPLE (AIDA) • Work together... • Work according to Stage-Gate Learn to communicate effective: New methods New ICT tools e.g. Mind Mapping software: MINDMANAGER

47. AIDA • AWARENESS • INTEREST • DESIRE • ACTION

48. Circles and Drivers Outer Circle Inspire People Awareness Inner Circle ‘SURROUNDING GROUPS’ Inspired People have a personal drive ‘DECISIONMAKERS’ TRUST Communicate Success ‘PROJECT TEAM’

49. Communication – MindManager

50. 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.