Servitization of the Home: IoT Development of Use ...00:04:19 00:05:02 00:05:46 00:06:29 T i m e Occurrence Z-wave motion sensor It appeared that the towel was used more often than

©Prof Glenn Parry 2017of 22

Glenn ParryProfessor of Strategy and Operations ManagementUniversity of the West of England

Servitization of the Home: IoT Development of Use-Visibility Measures

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©Prof Glenn Parry 2017

Currently we information asymmetry in the home• Consumer has knowledge of functional

activities– Little information is passed back to the supplier

• Suppliers lack post sale visibility of their products in use

• Contexts of use are where value is created– Where products are used in combination with

other resource in value creating activity– This is the start point of the reverse supply chain

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Which is most valuable?

PolystyreneGold

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Value as “perceived in use” means we must consider context

The value of an offer to a consumer is only known when they integrate it into their lives

The value of an offer to a consumer is only known when they integrate it into their lives

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Use value is difficult to capture and it is perceptual, and contextual which is annoying

• Capturing how ‘good’ something is in use is difficult

• Value is perceptually determined– by the user in their context

• Perceptions change with context and new information

• We need a constant stream of new use information

Businesses need to understand changing patterns of use

Businesses need to understand changing patterns of use

In their day these were all considered to be ‘good’

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Business models show firms value creation and capture process

Capture Worth

£ sustainable

Realised in use and context

Production ofa value proposition

Value

Source: Teece, 2010; Parry and Tasker, 20146 of 22


Currently PoS data is available and measured

Capture Worth

£ sustainable



Value

Point of sale data

Point of sale data

Infuences propositon

design

Infuences propositon

design

Customer survey data ? Customer survey data ?

7Note: PoS is ‘point of sale’


We can get consumer use data direct from IoT devices and sensors

Capture Worth

£ sustainable



Value

IoT Use DataIoT Use Data

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This is already done in complex engineering service

• Helicopters and aircraft are now often sold as a service– E.g 1000 flying hours

• The provider needs to monitor condition and use– Health Usage Monitoring Systems

[HUMS]– Intelligence Vehicle Health

Management [IVHM]

• This changes the nature of the business model– often shifts responsibility and risk– Reliant on technology so requires

complex expensive infrastructure

9Source: Neely, A. (2010) “The Servitization of Manufacturing: Innovation in Business Models”, Service Grand Challenge Summit Meeting, Cambridge Sept 22nd. ; Image from Withus, http://www.withus.re.kr/withus/e/product/product_hums.htm

IoT extends this concept into the home at low costIoT extends this concept into the home at low cost


Hub of All Things is the platform repository used to collect data

• HAT is a Personal Data Microserver Account (PDMA)

• HAT collects IoT and other data– And makes it accessible only to you in one place

• The platform is built– We had 6 people collecting a lot of personal

data– We are working now to scale up

• HAT PDMA is owned by the individual– Individuals share data only with those they

select– DP0’s data given to study

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Hubofallthings.com

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We undertook an explorative case study of 6 HAT users• Quantitative data from sensors and systems in the

homes– Instrumentation of rooms to create data density

• Qualitative data from interviews, user process descriptions and home visits

• Focus upon showering activity (difficult space)– Private function in the home– Video not acceptable– “Wet” environment– Mains power use limited

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Identification of many resources in the shower room

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Analysis of the resources led to a categorization of data types• Interaction Data

– Data from a resource/mechanism which is not transformed, diminished or depleted during single use E.g. taps, showers, doors, rooms

• Experience data– Information from resource that is transformed, diminished, but not depleted E.g.

towel, flannel,

• Depletion data– Data on a resource which is consumed at a rate higher than it is replenished

E.g. shower gel, shampoo

• Consumption data– Data on resource which is replenished at the rate it is consumed E.g. water,

electricity

These are nested functons and categorisaton is set by the chronology of a selected event

These are nested functons and categorisaton is set by the chronology of a selected event

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Example of interaction data capture: the shower room

Also gives count data of Interacton with showerAlso gives count data of Interacton with shower

Z-wave humidity sensor

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Example of consumption data capture: shower water use

1 2 3 4 5 6 7 8 9 10 11 12 13 140

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10

15

20

25

30

35

0

50

100

150

200

250

TimeVolume

Time / mins

Volume / Litres

Average 21 mins

Also gives count data of Interacton with showerAlso gives count data of Interacton with shower

Showering event occurrence

Z-wave flood sensor

Shower duraton and volume of water was much longer than individual thought!

Shower duraton and volume of water was much longer than individual thought!

Note: av. duration 19 mins; av. water vol. 149 litres (a bath is 80 litres)

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Example of experience data capture: Towel

00:00:00

00:00:43

00:01:26

00:02:10

00:02:53

00:03:36

00:04:19

00:05:02

00:05:46

00:06:29

Tim

e

Occurrence

Z-wave motion sensor

It appeared that the towel was used more often than the ‘owner’ expectedOthers were using their towel to dry their hands!

It appeared that the towel was used more often than the ‘owner’ expectedOthers were using their towel to dry their hands!

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Example of depletion data capture: shampoo

0 20 40 60 80 100 120 1400

50

100

150

200

250

300

f(x) = − 2.25 x + 400.53R² = 0.91

f(x) = − 2.32 x + 176.4R² = 0.91

Days

Weight/g

(A)

(B)

AMBB; Developed by Cambridge

Shampoo consumpton rate was relatvely linearShampoo consumpton rate was relatvely linear

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Example depletion data capture: Shower gel

Wei

ght

AMBB; Developed by Cambridge

Shower gel consumpton rate was erratcShower gel consumpton rate was erratc

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Linking data we can start to see the effects of context on shower gel use

Running increases both shower tme, and shower gel consumpton by 100%

Running increases both shower tme, and shower gel consumpton by 100%

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Findings

• Explorative case shows IoT implementation and operationalisation in the home– Tracks consumption– Shows use and resource combination

• Provides a categorisation of consumption types– Helps in constructing measurement and sensor selection

• Numerous implications for supply– Consumers perceptions of use differs to actual

• Time in shower is longer• Use of towel is more ‘shared’ than thought

=> Survey data would be misleading– Some activities are moderators for others

• Running leads to longer shower length and double the consumption of shower gel

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Session draws upon the open access paper:

Parry, G., Brax, S.A., Maull, R., Ng., I. (2016) “Visibility of consumer context: improving reverse supply with internet of things data”, Supply Chain Management: An International Journal, Vol. 21 Iss: 2, pp.228 – 244

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Questions

www.hubofallthings.com

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The ‘Good’ Professor@drgeep

Glenn Parry

Documents

Servitization of the Home: IoT Development of Use ...00:04:19 00:05:02 00:05:46 00:06:29 T i m e Occurrence Z-wave motion sensor It appeared that the towel was used more often than