improving innovation in small and medium sized firms by using service design tools

Improving innovation in small and medium sized firms by using Service Design tools

Bergamo IPSS Conference, June 2016

Dr Shaun West, Dr Silvio Di Nardo


IntroductionThe problem and the purpose of this paper

To describe how the visual design thinking tools supported the firms development of new product-‐service system based solutions

The results described are based on a prototype process tested in workshops that links together different design thinking tools

To describe a process Service Design tools, of product-‐ and service-‐discovery that has been used in workshops with two Swiss firms

Purpose of this paper

The firms in this study were suck with new product development thinking with limited understanding of the value of services

Problem


IntroductionTraditional approaches to this problem were time consuming and product focused

Fuzzy front end of innovation and Lead User-‐ Captured some tacit and informal aspects-‐ Complex and time consuming for the firms

The firms were getting sucked into the commodity trap

Engineering design-‐ Supported product development-‐ More value when needs were well know-‐ Focused on the tangible aspects-‐ Difficult to integrate the intangible service aspects

exam

ple from

images.goo

gle


IntroductionDesign Thinking approach provides more insight to customer problems

Design Thinking…-‐ is tolerant to failure-‐ embraces risk taking -‐ sharing/supportive learning environment-‐ can help simplify and humanize situations-‐ helps people to deal with ambiguity

But the firms found Design Thinking disjointed

The approach focuses on the user’s experiences, particularly the emotional ones

example from images.google


IntroductionIdentification of the users, customers and stakeholders through ecosystem analysis

-‐ In industrial firms the supply chain is is complex-‐ Identifying the user is very difficult-‐ Design Thinking focuses on the ’user’-‐ Ecosystem mapping helps to find the ’user’-‐ Important to understand the interactions between actors

-‐ A solution demands the customer to be identified

The users can then be ’empathy mapped’

In the complex ecosystems ecosystem mapping can help identify the ’user’



IntroductionIdentification of the users needs through persona analysis and empathy mapping

-‐ Persona analysis and empathy mapping provide ’user’ emotional input

-‐ In workshop provides a visual tool to capture input-‐ Helps everyone to understand the user’s experianceand share the problem

-‐ Gap analysis in empathy mapping provides deeper understanding of the ’user’

The results can be transferred to Osterwalder’scustomer value proposition

Empathy mapping can be effective in a workshop environment to help share a common understanding



IntroductionJob-‐to-‐be-‐done creates understanding into the customers processes

-‐ The ’job’ is considered the fundamental unit -‐ Helps to target the solution to the ’job’-‐ Integrates understanding of customer processes-‐ Import to understand the customer situation-‐ Focuses on the outcome the outcomes

The results can be transferred to Osterwalder’scustomer value proposition

The firms needed to focus on the customer’s jobs not the product

examples from images.google


IntroductionDevelopment of the customer value proposition in a visual form

Customer side (or problem definition)-‐ Defined the empathy maps and job-‐to-‐be-‐done-‐ This captures the tangibles and intangiblesSupplier side (solution formulation)-‐ Brainstorm to find possible solutions-‐ Defines the supplier solution-‐ captured the solution in the more holistic way

Gaps between the two sides of the value proposition are easily identified visually

Using this theory a prototype process was developed



MethodologyA five step approach was used in the workshops

The objective was to create a simple process that could be used within the firm

Customer identification via ecosystem

analysis

Empathy mapping for

(2) key customers

Customer’s job-‐to-‐be-‐

done

Customer value

proposition -‐customer side

Customer value

proposition -‐supplier side


Results and discussionCustomer identification via ecosystem analysis took longer than expected

From the ecosystem maps key ’users’ or customers were identified for further analysis

Findings-‐ The groups were able to sketch their ecosystems-‐ The groups identified key non-‐customer actors-‐ The multiplicity of customer touchpoints identified-‐ Direct vs indirect channels were visualised

Improvements-‐ More time should be given for this activity-‐ improved facilitation needed initially

“… we found clarity with the ecosystem, this is the first time we have seen it drawn out”


Results and discussionEmpathy mapping for the two key customers identify intangibles

The pains and gains could be transferred to the customer side of the value proposition

Findings-‐ Customers considered customers as plural-‐ Creating the empathy maps was initially problematic-‐ Mixed groups ensured active sharing-‐ Pains/gains were quickly identified -‐ Helped the groups to move beyond the price-‐ Learnt more about the intangibles

Improvements-‐ One map for every key actor is required

“… empathy mapping helped us learn that we can really help our customers with the intangible aspects”


Results and discussionCustomer’s job-‐to-‐be-‐done was harder than expected

The customer jobs/tasks could be transferred to the customer side of the value proposition

Findings -‐ Initially complex with many discussions-‐ Limited understanding the customer’s jobs -‐ Jobs core and supporting jobs identified-‐ Customer understanding was improved

Improvements-‐ Visuals for the cradle-‐to-‐grave equipment life-‐cycle-‐ Visuals for customer touchpoints

“… we had never looked at our customer’s job-‐to-‐be-‐done or processes”


Results and discussionCustomer value proposition – customer and supplier sides

Working on the customer side in isolation fostered a customer centric approach

Findings-‐ Groups focused on the customer’s problem-‐ Initial draft completed very efficiently -‐ Discussions of the current situation and their improved customer understanding took place

Improvements-‐ Segmentation for different actors is needed

“… we always focus on the tangible aspects of the goods and services we provide”


Results and discussionCustomer value proposition – customer and supplier sides

New solutions were identified and compared with the customer side

Findings -‐ Some groups returned to their standard offers -‐ Matching of pains/pain relievers and gains/gain makers took place automatically

-‐ Open gaps were closed once they were pointed out

Improvements-‐ Important to have the customer side close by-‐ A visual to support where value is create is required-‐ A focus on customer willingness to pay is needed

“…we have marketable concepts after only one day”


Results and discussionSummary of findings from the workshops

The tools supported creativity and problem solving to create ideas for new product-‐service systems

Findings -‐ Focused on the customer 80% of the time-‐ Removed silo-‐thinking-‐ Shared the customer problems (tangible/intangible)-‐ Groups moved beyond making products ’better’-‐ Realised that they were providing ‘peace of mind’-‐ Allowed sharing of understandings and assumptions

Improvements-‐ External input from customers should be included-‐ Increased facilitation needed-‐ Support identification of value

“… the workshop was very practical and we have tools that we can use in the future”


Results and discussionFollow up with the firms has provided initial evidence of impact

New product-‐service systems are being developed by the firm

New services and products-‐ Customer process support (supporting job-‐to-‐be-‐done) via an app has been developed

-‐ Design of a product-‐service system for one of its commoditized product (white-‐space innovation)

Sharing knowhow-‐ Ecosystem mapping assisted the sharing of market know-‐how and customer centric thinking

-‐ Mixed groups working-‐ improved communications -‐ provided a common language -‐ increased understanding of customers' jobs

“… the workshop was very practical and we have tools that we can use in the future”


ConclusionsThe approach was approached however there are improvements to be made

The practical approach was appreciated by the participants

Connecting the Service Design tools together to create a process was exceedingly helpful

Customer journey mapping and cradle-‐to-‐grave life-‐cycles would have improved the discussions

The use of interactive visuals broke down barriers within the firm, creating structured discussions with a common understanding and language allowing a move away from new product development

More use of examples/use cases are needed


RecommendationsMore workshops should be held with changes to confirm potential improvements

Include customer journey mapping and the equipment cradle-‐to-‐grave life-‐cycle to provide more input

Identify where customer value accrues (eg, top-‐line, bottom-‐line or compliance/risk)

Include an assessment of the customer willingness to pay to support the integration of pricing

It is recommended that more workshops are held using the ‘standard format’ with a wider range of firms so that a wider range of feedback can be obtained

Invite people external to the firm to the workshop


Thanks for your time!Questions over dinner…

improving innovation in small and medium sized firms by using service design tools

Business