Service delivery and Co-creation to support Value and Sustainability in PSS design

1. Through-life Engineering Services Conference 2012 Session 3A: Delivering Through-Life Service Support Service delivery and Co-creation to support Value and Sustainability in PSS design Lucile Trevisan, Alan Lelah, Daniel Brissaud G-Scop Laboratory Grenoble University - France

2. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Introduction Competitiveness Focus on user’s needs Manufacturers add services Sustainable development Rarefaction of natural resources Need for new production and consumption patterns Economic Environmental Product-Service Systems Providing value Achieving sustainability Social

3. PSS Issues Value Sustainability • Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Our approach Design facilitators for value creation and sustainability achievement Life Cycle Co-creation process Delivery system Research issue: Understanding the way that Delivery system and the Co-creation process can contribute to the design of valuable and sustainable solutions (solution with sustainable value ?). PSS Design

4. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Value creation through PSS Product-based approach PSS approach Value as a means Value-in-exchange Value embedded in a physical artifact Value as a result Value-in-use Customer experience Value is added through knowledge and service contents [Tomiyama, 2001]

5. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Sustainability through PSS • Environmental gains through rental, sharing, pooling of goods [Meier, 2010] • Responsibility of the producer [Meier, 2010] • Concept of sustainable PSS [Roy, 2000]

6. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Service Delivery and Co-creation Object of interaction with users Object of design Design Development Service delivery Build the value proposition Experience the value Value co-creation

7. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion PSS design for value creation • Understand use and customer behaviour • Network coordination – organization – supply chain management • Life cycle approach • Learn from users • New skills’ development – knowledge management ‘The elaboration of solutions results from a value co-creation process involving actors from both the supply network and the customer network’ [Cova and Salle, 2008]

8. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion PSS design for sustainability • Reducing environmental impacts throughout the life cycle: • Use phase: rental, sharing, pooling • Resourcesmaintained valuable (‘re-valuable’) • Stakeholders involvement: • Roles and responsibilities clarified • Common decisions • Win-win relationship: • Continuation of the provision of satisfaction – sustainable business model [Barber, 2012] • Long-term benefits

9. Society Sustainable value • Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Sustainable value creation Supply value cycle Customer value cycle Continuity of the value creation Customers Provider Co-creation Service delivery Resources: Products Knowledge and skills Satisfaction Needs fulfilment

10. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Case study • European leader in rental/maintenance of textile and hygiene articles • PSS since 1945: • Cleaned working-clothes services • Providing clothes – cleaning them regularly (pooling) • Re-design of clothing; process of cleaning; distribution logistics • Environment Round Table in 2008 [Grenelle, 2008]: evaluation of the environmental benefits •  How does the case fit into our present representation ?

11. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Supply value cycle Customer value cycle Continuous value Co-creation Provider Customers Service delivery • Service delivery design: • Diagnosis: site specificities, stocks dimension, delivery frequency, size measures • Delivery and collection of clothes: function of needs • Professional cleaning and drying process • Control and repair Customer value: Continual performance Access to adapted products Flexibility of the products Provider value: Knowledge on customers Knowledge of product use Improvement of skills

12. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Sustainable value: continuous creation • Re-design : • New material – lifetime doubled • Cleaning techniques: consuming less water, electricity, detergents • Life cycle assessment in 2008 (comparison with a purchase scenario): • Reduction of 50% of energy consumption and CO2 emissions • Water consumption divided by 10 • Since 2008: • Quality improvements: better comfort • Product recycling • Reduction of water and energy consumption and use of detergents • Continuity of the improvement of the offer: • ‘Multiservice’ concept: different types of clothes, sanitary services and drink services • Collection of clothes using organic cotton resulting from fair-trade Sustainable value Society Supply value cycle Customer value cycle

13. Introduction • Our approach • Value creation and sustainabilitythrough PSS • Service Delivery and Co-creation • Design for value /sustainability • Sustainable value creation • Case study: Elis • Conclusion Customer value cycle Supply value cycle Conclusion • Focus on co-creation and service delivery: • continuous improvement on the offering (re-design) • Value creation continuum: • Provider: knowledge generation, skills development • Customer: fulfilment of the needs • Society: Sustainable value • Sustainable value: • Supported by service delivery and the co-creation process • Resulting from life cycle approaches in design • Has to be considered as dynamical and continuous • Value creation is supported by the convergence of the interests (for the customer, the provider and the society): ‘win-win-win relationship’ Sustainable value Society Co-creation Service delivery

14. Thanks for your attention