Lecture roadmapping product service combinations

Lecture Roadmapping Product-Service systemsThe product service integrated roadmapLecturer: drs. Ir. J.R. Helmus

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As a master of integrated service engineering you might be interested in the Product Development Management Association

4Cicada Innovation 2012

General practitioner

District Nurse / Home Care

ContentMonitoringcocreationcommunicationfinance

Fragile elderly

Family care

?

Product-service Innovation for Elderly project 2012

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What if your thermostat didn’t need you…Example of my vision on the future

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www.evrythng.com

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www.evrythng.com

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We are the top management team of Philips Healthcare

Imagine….

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Suddenly this man walks in…

And tells us about the reorganisation of the Philips business model…

And we need to come up with an innovation plan for our business unit otherwise it will be sold….

We have only one hour to tell him about the innovations inhealth we willcome up with for the next 3 years..

Our innovation funnel is at least two years…

How will we be able to come up with this plan for future

innovations?

Well..Roadmapping could help us

Part 1:Technology roadmapping

Part 2:Tradidional roadmapping

Part 3: Roadmapping for product-service combinations

Objectives for this lectureAfter this lecture you will be able to:

Understand the basics of roadmapping

Understand the differences between the various ways of roadmapping

develop a roadmap for product service

combinations

• different types of roadmaps• Technology versus business roadmapping• Technology roadmapping in short• Traditional Business roadmapping•Connection between technology and business roadmapping

•business roadmapping for Product-Service combinations

Structure of this lecture

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Part 0

What is Roadmapping

What is roadmapping?

“What kind of activitiets do we need to startup today to soon have the availability of Technology, knowledge and Competences to create the products and Services of tommorrow?

In basis, there are two kinds of roadmaps.

Technology Roadmapping (TRM)• Initiated by government or branch• Transcending companies• Often for cluster/branch/sector• Scope: 10-20 year• Goals: identify need for research and

priorities for research• No ownership• Not confidential, often public

Business Roadmapping (BRM)• Initiated by a company• Company specific• For a company, product of product range• Scope: approx 5 year• Goals: develop a practical planning for achieving the company's vision• Company is owner• Confidential

Part 1

Technology roadmapping

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Let‘s get back to the Philips Healthcare Management team

Age, Family History, Living environment, Social connectedness

Weight: ScalesHeight, Waist, Hip: Tape Measure, Clothes fit, Lean body mass

Temperature: Thermometer (surface, core heat)

Appearance: Photo , Video, Body imaging

Heart Rate: Wristband, Breast band, Sticker sensor

Body Fat: BMI, Impedance

Activity: Pedometer , Accelerometer, HR, HRR, O2/CO2Psychological & Physical health: HR, HRV, Glucose, Lithium, (…)

Fitness: Flexibility, Strength, Endurance Respiratory: FEV

Sleep: Accelerometer, Electrical

Stress: Breathing rate, BP, Galvanic skin resistance, HRV, Salivary, Cortisol

Cardiovascular risk: HRV, BP, arterial plaque, Cholesterol

Physiological health: DNA, Immune status

Today

Future

Nutrition: Intake, Marco/micro nutrients

Medicine adherence: Sender pill

Sensory: Vision, Aural, Tactile Thermal, Taste

?

A master of science should be able to develop a vision on future technologies

For example on Ehealth

Technology Roadmapping

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Technology roadmap

Example of a technology roadmap for newspaper related technologies

Technology Roadmapping often results in typical conjoint roadmap based on scientific sources

Technology Roadmapping

The Scurve model helps to gain insight in technology development

time

Tech

nolo

gie

waard

e

Current technolgy

New technology

STAR

CASH COW

QUESTION MARK

DOG

DOGPerf

orm

an

ce (

e.g

.. %

effi

cen

cy/$

)

Carefully choose one or more technology performance indicators

Ideal timing moment for new technology implementation

Technology Roadmapping

. Ten Hagen Stam

Technology assessment

4R-model

Cyclicmodel: 4R’s influence each other

research

resources

rumours ready

Bron: Trends in IT 2001, P. Noordam, A. van der Vlist, B. Derksen, uitg. Ten Hagen Stam

Technologieverkenning

BCG-matrix

• Question Mark = tech development unclearresearch H, rumours H, rest L

• Star = tech performance will growresearch H, rumours H, resource H

• Cash Cow = no tech developmentresearch L, rumours L, resource H, ready H

• Dog = failed technologyresearch L, rumours H, resource L, ready H

research

resources

rumours ready

Functionality and performance determines the applicability of a technology for your product/service

Example: proprerties, functionalities and performance indicators for 3D printing methods and other rapid prototyping methods.

Technology Roadmapping

Timing of technology research and development is crucial for a company’s performance

Required time to implement technology

5 - 10 year 3 - 5 year 1 - 2 year

Well

un

ders

tood

pro

ven

un

pro

ven

Unce

rtain

ty o

f te

chnolo

gy

research

Future

Current projectsMissed opportunity

problem

B

F

CD

E

G

A

Innovation matrix for a specific technology

Technology Roadmapping

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Imagine you are the CEO of the new motion

You would like to invest in quick charging infrastructure

But there is no market standard yet and there is not enough

money to make mistakes

Technology Roadmapping

Many research companies publish technology roadmaps or forecasts

Bottom up assessment to within value chain to create technology roadmap

Chipmachine producers Chip producers

Examples are: Accenture/ mcKinsey/ Batelle/ Rand

Purchases new technology equiptes machinesroadmaps nieuwe producten

Sales new technology equipped machinery

Technology Roadmapping

Examples of public Dutch technology roadmaps

• Elektricity Technology Roadmap (KEMA)– Vision on electricity 2020

• “Catalysis, Key to sustainability”– Sector roadmap up to 2010

• Nationale Toeleveren & Uitbesteden Agenda (NEVAT)– 4 sector roadmaps for:

• Electronics/mechatronics• Automotive• Plastics value chain• Metal industry

Technology Roadmapping

Technology Roadmapping

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Back to Philips healthcare

RIDING A SKATEBOARD JUST BY THINKING ABOUT THE DIRECTION TO GO TO.

Based on technology dreams could come true

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Let’s think about these future innovations in eHealth

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Develop a future vision on technologies that will play an important role in eHealth innovations for Philips in the near future?a) What kind of performance indicators are relevant for this

technology?b) How would you find out when this technology will reach the cash

cow phase in its life cycle?

Assigment for part 1

Part 2

Tradidional Roadmapping

traditional Business Roadmapping

•The basics•The requirements• factor time in a roadmap• push versus pull• Roadmap input methods• relation with other RM’s

Business Roadmapping

Identification, selection, acquisition, exploitation and protection

Technology roadmapping—A planning framework for evolution and revolutionRobert Phaal*, Clare J.P. Farrukh, David R. ProbertTechnology forecasting and social change, 2004/vol 71 UK accepted 26 May 2003

Traditional roadmapping is integrated in te business strategy cycle

Business Roadmapping

PRODUCT LINE A

PRODUCT LINE B

PRODUCT LINE C

A1 A2 A3 A4

B1 B2 B3

C1 C2 C3

B4

TECHNOLOGIESEXTERNAL

TECHNOLOGIES

technology bb

technology pp technology qq

technology aa

technology xx technology yy technology zz

INTERNAL

technology a1 technology a2

technology p1 technology p2 technology p3

YEAR 1995 1996 1997 1998 1999 2000 2001

Philips generic format

in different forms and shapes Roadm

apping basicsBusiness Roadmapping

vandaag

The basic idea of roadmapping is simple

time

Technology/knowledge/Competences

Product/service

Business/Market

Business Roadmapping

Today

“What kind of activitiets do we need to startup today to soon have the availability of Technology, knowledge and Competences to create the products and Services of tommorrow?”

soon tommorrow

• Being able to develop a vision on the future of the market and environment of the organization

• Insight in the competences of the organization

• Insight in the portfolio of the organization

• Shared ambition for the future

• The desire to concretize the vision and strategy of the organization in a practical integral plan

&• The ambition and desire to execute this plan!

Business Roadmapping

The requirements for successful roadmapping within an organization are:

`

tijd

Technologies/knowledge/Competences

Product/service

Business/Market

Time connects push versus pull strategies• From where the organization stands now and came from• From market demand to new technology development• From an ambition or a vision on a future market• Mind the short term and long term horizon (mc Kinsey - three horizons)

past futuretoday roadmap

MARKET

PULL

TECHNOLOGY

PUSH

Business Roadmapping

Mind the technology roadmap

Therefore an integral approach is needed to connect the dots in the roadmap

• Different aspects and disciplines within the organisation (in layers and sublayers)• Process indicators like : drivers, issues, indicators, milestones• Relation between the layers and process indicators

tijd

Technologie/Kennis/Competenties

Product/Dienst

Business/Markt KNOW WHY

KNOW WHAT

KNOW HOW

KNOW WHEN

Business Roadmapping

Using pre-announcements can help to adjust the disciplines in the roadmap - particularly production versus demand over time

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http://mynokiablog.com/2011/10/01/rumours-nokia-windows-phone-nokia-ace-to-have-4-3-amoled-1800mah-and-lte-4g-att-q1-2012-searaysabre-specifications-inside/

‘‘formal, deliberate communication before a firm actually undertakes a particular marketing action such as a price change, a new advertising campaign, or a product line change’’.

Business Roadmapping

It makes it even be possible to finance the scale up process

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• Recent well-known examples of NPP include Microsoft’s Windows Vista, officially launched on November 30,2006,

• Apple’s iPhone, launched on June 29,2007,

• Apple’s iPad, launched on April 3, 2010.

• For example, Amazon.com accumulated 1.6 million prelaunch orders for J.K.Rowling’s book ‘‘Harry Potter and the Deathly Hallows’’ two weeks before its launch date (July21,2007), making this book the most preordered product ever for the online retailers.

Online prelaunch orders proved to be effective and efficient in locking customers with the preannounced products.

NPP becameincreasingly popular recently, especially in thecompetitive high-techindustries.

Examples

Business Roadmapping

Productie proces3

Markt1

Product/Service2

Business Roadmapping

At best the relationships between projects and layers are to be made explicit in the roadmap

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What could have gone wrong in Google’s roadmap?

Business Roadmapping

Several methods can be used to achieve a future planningExamples of methods

• SWOT-analysis

• portfolioanalysis

• competitor analysis

• market- en trendresearch

• technology assessment

• scenario-development

Here you see the function of technology roadmapping

Possible future

Mid term future

Short term future

Possible future

Possible future

Now

1.

2.

3.

4.

1. Trendanalysis2. Scenario development3. Backcasting4. Roadmapping5. Portfoliomanagement

5.

Business Roadmapping

iPad Mini kannibaliseert verkoop originele iPadAMSTERDAM - De verkoop van de 9,7 inch iPad groeit niet meer. Sinds de komst van de iPad Mini neemt de verkoop van het originele model in Japan en de Verenigde Staten zelfs af.

56http://www.nu.nl/gadgets/3190250/ipad-mini-kannibaliseert-verkoop-originele-ipad.html

Business Roadmapping

How would Apple use its roadmap when introducing a new product?

There are innovation processes based on different types of roadmaps

Product-Technology options evaluation

Roadmapcreation

Define targets

Product-Market analysis

Marketinformation

Technology Assessment

Identification of Technology

Project proposals

Bron: EIRMA /Phaal et al.

Business Roadmapping

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proces

Another example of a innovation process that uses several roadmaps

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Back to Philips healthcare

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http://www.myzeo.com/sleep/http://www.philips.nl/c/audioproducten/mp3-link-aj7030d_12/prd/nl/

Let’s create a roadmap for a new connected Philips product

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Now, develop a business roadmap for the MyZeo that contains specific roadmap proprties based on the article on of Phaal et al. (2003).

Assigment for part 2

Part 3

P/S Roadmapping

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Visie IBM

Roadmapping for product-service combinaties

Technology roadmapping for technology-basedproduct–service integration: Youngjung Geum, Sungjoo Lee, Daekook Kang, Yongtae Park J. Eng. Technol. Manage. 28 (2011) 128–146

PS Roadmapping

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MY

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WHAT IF FILTERSYSTEMS WOULD ARRANGE MAINTENANCE AUTOMATICALLY

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The internet of things is nothing new

The application of IoT is new

If costs and benefits match…

Costs of IoT Benefits of IoT

Sensor ~ 1 cent

UMTS chip ~ 10 cent

Source:alibababa.com

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3 types of streams1. information2. Feedback3. enhancement

THEN WISDOM AND KNOWLEDGE WILL BE THE NEXT CURRENCY

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The cloud will become the center of the ecosystem of product service (IoT) combinations

That is because P/S systems contain several typical elements

PS Roadmapping

Example:

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What’s on this managers mind at the end of each year?

Harold GoddijnWhat are the minimum requirements for my product to be delivered? And what can I deliver later (after sales)?

PS Roadmapping

The minumum viable product is a guideline first product release and follow up

http://www.userdrivendev.com/p/mvp-for-enterprise.html``

PS Roadmapping

To gain full advantage of this seperation the roadmap should be adjusted

time

Technology

(interface)

Service

Business/Markt

Product

Knowledge/

competences

PS Roadmapping

Technology as an enabler

Technology directly enables the integrationof products and services, directly infused inthe process of integration.

Even the individual product or service is nottechnology-embedded; the integration canbe realized by the technology.

Bron: CSI – Bob williams

Technology indirectly enables the integrationof products and services by being applied tothe both products and services and providing the means for integration

PS Roadmapping

Technology mediates the product-originated integration, particularly thetechnology-based servitization

Bron: CSI – Bob williams

Technology mediates the service-originatedintegration, firstly applied to the serviceand the service is productized to providethe more valuable information

Bron: www.evalan.com

Technology as a mediator

PS Roadmapping

Technology and products are independently applied to the services, facilitating the product–service integration.Mostly happens in technology-basedmaintenance service

Bron: CSI – Bob williams

Technology facilitates the integrationof products and services,especially the integration towardthe product

Technology as a facilitator

www.plymovent.com

PS Roadmapping

Question: What kind of role would technology have in the product/service system of Car2Go?

Development of the roadmap on macro level (1)

Development of the roadmap on macro level (2)

Development of the roadmap on macro level (3)

QFD / linking grid is the proposed method to connect P/S/T within the roadmap

Service features adjusted to customer value drivers

Linking the features enablesbest selection of technology

Intermediary step from service to technology embedded service

Example of QFD

Score van concurrentie

Relatie van de eigenschappenValue map en attributen tabel

klantwensen

Product eigenschappen

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Case : Servitization of ehealth product

We currently produce inhalers for asthma patients. We are able to add technology to our product by implementing all kinds of sensors (flow/temp/RH/volume) and develop a service for nurses/patients/family etc.

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Asthma practitioner

Asthma patient

Teachers

Family care

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Now, develop a roadmap for the product service system of the inhaler case that contains the specific roadmap adjustments based on the article on of Geum et al. (2011).

Assigment for part 3

The end result displayed in a roadmap

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Jurjen Helmus@JRHelmusJ.R.Helmus@hva.nl0645464751