1. THE FLOCK
Product-Service System Design Connected
YANINA GUERZOVICH

2. Faculty of Design
Master in Product Service System Design
THE FLOCK
A service system that connects Product-Service System Design Thinkers
to promote the profession and build opportunities for collaboration
Tutor: Valentina Auricchio
Co-tutor: Cesare Griffa
Author: Yanina Guerzovich
Matr. 735147
A.A. 2010/2011

3. ABSTRACT ENGLISH
With a highly competitive market in the race for innovation which shifts from manufacturing to the provision of
information and services, the need to find business alternatives as well as solutions to build a more sustainable soci-
ety has increased. In this context, design has expanded its domain to fit the challenge. Product-service system design
[PSSD] provides combined systems of products and services to deliver user functionality in a way that reduces the
impact on the environment. Acknowledging the value of PSSD, this thesis aims to build tools to spread this win-
win approach which reveals a growing international interest.
In order to reach this objective, a community-centered project was carried out, focusing on the Product-Service
Designers from Politecnico di Milano, as lead users and ambassadors of the approach to spread its scope. This
group is characterized by a high selection of talents, internationality and multidisciplinarity to approach complex
problems. However, as professionals of a new discipline which is shaped as it grows, they encounter challenges along
their journey to apply the PSSD skills. From the students’ perspective, there are gaps that could be better supported.
From the market’s perspective, there is lack of information about the profession and a cultural change is necessary
to move to Product-Service System thinking. PSS designers try to adapt in a competitive market to the available
opportunities offered, facing many difficulties.
From this scenario, this thesis seeks answers to the following question: how might we empower Product-Service
System designers along their pre and professional experience to build new opportunities? An ethnographic
participative research contrasted with available literature and an analysis of current trends, allowed us to identify
insights and opportunities to create a solution that balances group and individuals’ needs, desires and relationships.
Additionally, the trends on how people link, communicate and network show us that social capital becomes crucial
and the need to move to alternative dedicated solutions that enhance entrepreneur behaviours and tangible connec-
tion for open collaboration. Adding the analysis of similar designers’ communities to learn about good practices,
The Flock, a proposal of a service system was drawn to address the question. The Flock is a hub that connects and
represents Product-Service System Design Thinkers to promote the profession & professionals, creating opportuni-
ties to share, get feedback, co-work and collaborate with firms & organizations. It has two main touchpoints: an
online platform and an event for work collaboration, each one with supporting products and services to enhance
the community’s activities. The Flock offers several strategies, which were successfully prototyped, to give a voice
to the members and to build new opportunities for professional development, opening the doors to flood the PSS
approach locally and globally.
2 ABSTRACT ENGLISH

4. ABSTRACT ITALIAN
Con un mercato altamente competitivo in gara per l’innovazione che si sposta dalla produzione di beni alla for-
nitura di informazioni e servizi, la necessità di trovare alternative di business così come le soluzioni per costruire
una società più sostenibile è aumentata. In questo quadro, il design ha ampliato il proprio dominio per adattarsi alla
sfida. Product-service Sistem Desgin [PSSD] fornisce sistemi combinati di prodotti e servizi per fornire funzionalità
agli utenti in modo da ridurre l’impatto sull’ambiente. Riconoscendo il valore del PSSD, questa tesi si propone di
costruire strumenti per diffondere questo approccio win-win che rivela un crescente interesse internazionale.
Per raggiungere quest’obiettivo, è stata effettuato un progetto centrato in una comunità, concentrandosi sui Prod-
uct-Service Designers del Politecnico di Milano, nel ruolo di utenti pionieri e ambasciatori del approccio per
diffondere la sua portata. Questo gruppo è caratterizzato da una selezione elevata di talenti, internazionalità e
multidisciplinarietà per affrontare problemi complessi. Tuttavia, essendo professionisti di una nuova disciplina che
prende forma nella misura in cui si sviluppa, incontrano difficoltà lungo il loro percorso per applicare le competenze
di PSSD. Dal punto di vista degli studenti, ci sono lacune che potrebbero essere supportate meglio. Dal punto di
vista del mercato, vi è una mancanza d’informazioni sulla professione ed è necessario un cambiamento culturale al
modo di pensare in termini di PSSD. Designers PSS cercano di adattare in un mercato competitivo alle opportunità
offerte, affrontando molte difficoltà.
Da questo scenario, questa tesi cerca risposte alla seguente domanda: come possiamo potenziare ai Designers di
PSS lungo la loro esperienza pre-professionale e professionale per costruire nuove opportunità? Una ricerca
etnografica partecipativa, insieme a un confronto con la letteratura disponibile e un’analisi di tendenze attuali, ci
ha permesso di identificare visioni e opportunità per creare una soluzione che bilanci bisogni collettivi e individu-
ali, desideri e rapporti. Inoltre, le attuali tendenze su come le persone collegano, comunicano e creano reti mostra
il divenir cruciale del capitale sociale e la necessità di passare a soluzioni alternative specifiche che promuovono i
comportamenti imprenditoriali e una connessione tangibile per una collaborazione aperta. Aggiungendo l’analisi
di simili comunità di Designers similari per imparare le buone pratiche, The Flock, una proposta di un sistema di
servizi è stata elaborata per affrontare la questione. The Flock è un hub che connette e rappresenta Product Ser-
vice System Design Thinkers per promuovere la professione e i professionisti del settore, creando opportunità per
condividere, ottenere feedback, co-operare e collaborare con le imprese e organizzazioni. Ha due punti di contatto
principali: una piattaforma online e un evento di collaborazione di lavoro, ognuno con il supporto di prodotti e
servizi per migliorare le attività della comunità. The Flock offre diverse strategie, che sono state prototipate con suc-
cesso, per fornire attrezzi e costruire nuove opportunità di sviluppo professionale per i membri, aprendo le porte a
propagare l’approccio PSS localmente e globalmente.
ABSTRACT ITALIAN 3

5. WHERE I’M STANDING RIGHT NOW
start local, scale global
think small and possible
balance optimism & realism
design is NOT a linear process
trust in the we and sharing economy
think doing & think trying & trying again
co-work, team up with colleges and people
designing is about decision making, take them
people make happiness & creativity come closer to stay
start with a vision to do good, listen and observe to move forward
make everything worth making it, share it, learn from it, make it real
today I want to make something that could be useful and real for the future
of people like me
WHERE I’M STANDING RIGHT NOW
4 WHERE I’M STANDING RIGHT NOW

6. THE QUESTION
How might we empower PSS Designers along their pre
& professional experience to build new opportunities?
THE QUESTION 5

7. TABLE OF CONTENTS
INTRODUCTION 8
INTRODUCTION & METHODOLOGY 9
1 FROM PSS THEORY TO PSS DESIGNERS 11 2 FROM PSS STUDENTS TO PSSPROFESSIONALS 45 3 FROM SPREADING IN TO SPREADING OUT 77
1.1 INTRODUCTION to PSS DESIGN 12 2.1 THE [PSS]D JOB MARKET 46 3.1 LINK COMMUNICATE NETWORK 78
1.1.1 PSSD by the BOOK 14 2.1.1 PSSD MARKET ENTRANCE GATES 48 3.1.1 POLIMI PSSD SPREADING IN 80
1.1.2 FROM TANGIBLES TO INTANGIBLES 16 2.1.2 PSSD ENTRANCE GATE: COMPANIES 50 3.1.2 POLIMI PSSD SPREADING OUT 82
1.1.3 PSS DESIGN IS A 360 APPROACH 18 2.1.3 PSSD ENTRANCE GATE: GOVERNMENT 51 3.1.3 POLIMI PSSD COMMUNICATING PSSD 84
1.1.4 PSSD, AN APPROACH TO SUSTAINABILITY 20 2.1.4 PSSD ENTRANCE GATE: END-USERS 52 3.1.4 POLIMI PSSD LINKING 85
1.1.5 PSSD FOR GOVERNMENTS & PUBLIC SECTOR 22 2.1.5 PSSD ENTRANCE GATE: DESIGN STUDIOS 53 3.1.5 INSIGHTS: SWOT 87
1.1.6 PSSD, INNOVATION ENGINE FOR COMPANIES 24 2.1.6 PSSD MARKET IN ITALY 54 2.2 HOW DO OTHER DESIGNERS’ COMMUNITIES
1.1.7 PSSD METHODOLOGIES & TOOLS 26 2.2 POLIMI PSSD STUDENT’S JOURNEY 56 LINK, COMMUNICATE & NETWORK? 88
1.2 PSS DESIGNERS at POLITECNICO DI MILANO 28 2.2.1 THE MILLENIAL INQUIRER PROFILE 61 2.2.1 CASES AND TRENDS BOOKLET 89
1.2.1 PSSD by POLIMI PROFESSORS 29 2.2.2 PSSD PROFESSIONAL PROFILE 62 2.2.2 ON NETWORKS AND COMMUNITIES 90
1.2.2 PSSD at POLIMI 30 2.2.3 MAPPING POLIMI PSSDs 64 2.2.3 CASE STUDIES SUMMARY 92
1.2.3 PSS DESIGNERS at POLITECNICO DI MILANO 32 2.2.4 POLIMI PSSDs PLACEMENT 68 2.2.4 TRENDS SUMMARY 94
1.2.4 PSSD by POLIMI STUDENTS 34 2.3 OUTPUT & OPPORTUNITIES 70 2.3 CONCLUSIONS 96
1.2.5 PSSD by POLIMI STUDENTS’ PROJECTS 38 2.3.1 MAPPING & DIRECTORY 71
1.3 OUTPUT & OPPORTUNITIES 41 2.3.2 INSIGHTS: SWOT 76
1.3.1 MANIFESTO 42
1.3.2 INSIGHTS: SWOT 44
6 TABLE OF CONTENTS

8. TABLE OF CONTENTS
4 FROM VISIONING TO PROTOTYPING 97
4.1 IDENTITY COMMUNITY COWORK 98 4.2.16 BUSINESS MODEL 162
4.1.1 POSITIONING & ANALYSIS 100 4.2.17 ROLES & ACCESS 164
4.1.2 CONCEPT GENERATION 102 4.2.18 PROTOTYPE EVOLUTION 168
4.1.3 COLLABORATIVE DESIGN 104 4.2.19 IMPLEMENTATION STEPS 169
4.2 PROJECT PROPOSAL: THE FLOCK 106 4.2.20 PROPOSAL EVALUATION 170
4.2.1 VALUES 108 4.2.21 WHAT’S NEXT 173
4.2.2 VISION & NAME 109 4.3 FINAL REFLECTION 174
4.2.3 MAIN SERVICES 110
4.2.4 MAIN TOUCH POINTS 111
4.2.5 CONNECT SERVICES 112
REFERENCES
4.2.6 ONLINE PLATFORM 114 BIBLIOGRAPHY 176
4.2.7 CONNECT COMMUNICATION 125 IMAGE INDEX 178
4.2.8 FIND & SHARE INSIGHTS SERVICES 130 GRAPHICS INDEX 180
4.2.9 FIND & SHARE INSIGHTS COMMUNICATION 134
4.2.10 FIND & SHARE INSIGHTS SYSTEM MAP 135
4.2.11 CO-WORK EVENT & SERVICES 136
4.2.12 CO-WORK SYSTEM HOW 138
4.2.13 CO-WORK TOOLKIT 142
4.2.14 USERS 146
4.2.15 SCENARIOS 148
4.2.16 THEFLOCK HOW - SYSTEM MAP 159
4.2.17 BENEFITS 161
TABLE OF CONTENTS 7

9. INTRODUCTION
In the last 3 decades, the economic basis of western nations has changed dramatically However, as professionals of a new discipline which is being shaped as it grows, they
from manufacturing to the provision of information & services. Moreover, the highly encounter challenges during the study period and after, to apply the PSSD skills. Due to
competitive market races to find business alternatives to innovate. Adding the increased the newness of the approach, professionals need to adapt to the available opportunities
focus on sustainability to fight hiper-consupmtion and, on experiences to centre the that the market offers. Competition is tough in the design sector, in general, with more
solutions on people, design has expanded its domain to fit the challenge. Product-service students leaving design education than there are jobs to receive them. This work tries to
system design [PSSD] is a relatively new discipline born to give answer to this con- understand the difficulties that this group faces in relation to their professional identity
text, from the theory of Product-Service Systems [PSS] which combines in a system and activity, spotting insights for design innovation.
product(s) and service(s) to deliver user functionality in a way that reduces the impact From this scenario, this thesis wants to answer the following question: how might we
on the environment. Even if Product-Service Systems are not new to the world, its empower Product-Service System designers along their pre and professional experi-
interests grows with the need of more sustainable and responsible behaviours of com- ence to build new opportunities? To give answer to this quest, the thesis is divided in
panies, governments and users. The United Nations Environment Programme’s and four chapters organized in relation to the PSS designer journey. Starting from the users,
the recurrent academic research shows the valorisation of the concept as an opportunity it converges from the background theory to the people’s needs opening to macro analysis
for sustainable solutions. In addition, the “Millenial Generation” who fosters the new of trends and new literature based on the opportunities found. The participation of the
trends of collaborative consumption powered by new mechanisms for virtual and open addressed group crosses all phase of the project, in order to create a solution that strikes
collaboration gave a big push to propagate this strategy. a balance between complex system of needs, desires and relationships shared well as the
With this picture in mind and acknowledging the value of PSS as an option for unlink- single requests of each member. The first three chapters are the research. The methodol-
ing economic growth and environmental impact for companies, organizations and users, ogy is based on 3 connected lines of activities: a literature review and desk research, an
this thesis aims to build tools to spread this win-win approach. ethnographic research spread along the chapters and, the analysis of trends and similar
In order to approach this objective, a community-centered project was carried out, fo- case studies. The first chapter goes from the PSS theory to the definition given by the
cusing on the specific group of people who share this common background (study expe- PSS designers from Politecnico di Milano, in order to build an updated definition of
rience and language) and common future visions: the Product-Service Designers from the profession by the designers’ point of view. The second chapter transits from the stu-
Politecnico di Milano, as lead users. In 2005, the Master in Product-Service System dent to the professional experience to understand the different entrance gates to the job
Design was born in this academic institution with a growing number of Product-Service market and the obstacles faced. The third chapter focuses on how the designers spread
System cases in the world, a specific methodology and the development of design ap- in and out, with an analysis of how they and other communities link, communicate and
proaches such as Design for Sustainability. Having the PSS theory and design thinking network. This chapter set the framing trends for the design proposal development. All
as its base, a new group of the designers are formed and placed in market now. This the chapters present outputs and an analysis of Strengths, Weaknesses, Opportunities
group is characterized by their high talent selection, internationality and multidiscipli- and Threats [SWOT] which will serve as inputs for the project proposal. Finally, the
narity to approach complex problems. Even if they are limited in number, these charac- last chapter shows from the visioning process to the prototyping phase of the proposed
teristics bring opportunities to empower them as lead ambassadors of the approach to design solution to boost the profession and professionals creating new doors to flood the
promote the scope around the globe. concept on a local and global basis through new opportunities.
8 INTRODUCTION

10. METHODOLOGY
FROM PS
SD S
ERS TUD
ESIGN EN
SS D TS
TOP TO
RY PS
EO S
P
TH
SS
RO
FE
P
OM
SS
FR
ION
AL
S
PSS THEORETICAL BACKGROUND
PSSDS JOURNEY & PLACEMENT
PSS DESIGNERS DEFINITION
1 2 PSSD JOB MARKET
PROJECT DEVELOPMENT & PROTOTYPE
43 HOW PSSDS LINK COMMUNICATE & NETWORK
PARTICIPATORY CONCEPT GENERATION
TUDIES & CASE STUDIES & TRENDS RESEARCH
S RESEARCH
FR
OM
SP
RE
AD
G IN
IN IN G
YP TO
OT SPR
OT EADI
PR NG OUT
G TO
IONIN
ETHNOGRAPHIC RESEARCH
FROM VIS
DESK & LITERATURE REVIEW
CASES & TRENDS RESEARCH
DESIGN
METHODOLOGY 9

11. ‘I am what I am because of who we all are.’
Leymah Gbowee

12. 1
FROM PSSTHEORY TO PSSDESIGNERS
FROM
PSSTHEORY
TO
PSSDESIGNERS
What is a Product-Service System [PSS] and a PSS designer? How is it defined by lit-
erature and by the actors using this approach? The first chapter points out the defini-
tions given by reviewed authors, exploring the different elements of the PSS theory.
The second part of the chapter, juxtaposes the PSS Design students and professionals’
definition in order to incorporate the concept from the practice of designing PSSs. In
this case, and to have a people-centered approach through interviews and surveys, the
reflections come from the PSS community from Politecnico di Milano where the Master
in Product-Service System design is carried out. Finally, a manifesto proposal and some
Strengths, Opportunities, Weaknesses and Threats are stated to be considered for the
final design solution.
FROM PSSTHEORY TO PSSDESIGNERS 11

13. INTRODUCTION to PSSDESIGN
Product-Service System Design [PSSD] is quite a new discipline that originates from the theory of Product-Service Systems [PSS]. The PSS
concept, born in Northern Europe, was first formally defined in the late 90’s by Goedkoop. Since then, most authors have mainly defined a PSS
as ‘product(s) and service(s) combined in a system to deliver required user functionality in a way that reduces the impact on the environment’
[Goedkoop, 1999]. Even if Product-Service Systems are not new to the world -we can think of libraries and laundromats - its interests has grown
with the need to be a more sustainable society with more responsible companies, governments and users. In addition to the academic research
on the field and the UNEP’s valorisation as an opportunity for sustainable solutions, the “Millennial Generation” and the new mobile tools for
collaboration boosted this business strategy to spread.
But who builds PSS? Studies have shown that as the result of an innovation strategy, PSS are conceived inside an organization by diverse profes-
sionals [designers, managers, etc.], entrepreneurs building new business approaches and bottom-up initiatives. Even if there is not always a clear
actor behind the PSS, it is sure that they can be designed. With an increased number of cases in the world, a specific methodology [MEPPS] and
the development of design approaches such a Business Design, Strategic Design, Service Design, Interaction Design, User-Experience Design and
Design for Sustainability, the Product-Service System Design program was launched at the Politecnico of Milan in 2005.
12 INTRODUCTION to PSSDESIGN

14. PRODUCT-SERVICE SYSTEMS
ARE NOT NEW,
PSS DESIGNERS ARE.
INTRODUCTION to PSSDESIGN 13
[1]

15. PSSD by the BOOK
KEY ELEMENTS OF A PSS [2] WHICH A PSS DESIGNER SHOULD BE ABLE TO INTERVENE HOLISTICALLY
PRODUCT
* NOTE
a tangible commodity manufactured to be sold and fulfill a user’s
1_
The design of a Product-Service
needs.* IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII System broadens as it includes in-
tangible products – e.g. communi-
SERVICE
cation & interaction design - which
not necessary are manufactured to
an activity done for others with an economic value and often done on be sold but could but could be for
2_ a commercial basis.*IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII instance, openly shared and co-pro-
duced in partnerships. A Product-
SYSTEM
Service System Designer should
work having both the user and the
planet at the center of the design
3_ a collection of elements including their relations.IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII thinking.
1999
AUTHOR WHO FORMALLY DEFINED PSS PSS CONCEPT BIRTH DATE PSS FOUNDING DEFINITIONS BY COUNTRY
GOEDKOOP
PSS DOMINANT DEFINITION / WHAT MOST AUTHORS UNDERSTAND A PSS AS:
ET. AL [2]
PSS CONCEPT’S BIRTH COUNTRY
‘PRODUCT(S) AND SERVICE(S) COMBINED
IN A SYSTEM TO DELIVER REQUIRED USER
FUNCTIONALITY IN A WAY THAT REDUCES
THE IMPACT ON THE ENVIRONMENT’[2]
NL
14 PSSD by the BOOK

16. PSSD by the book
PSSD ASSOCIATIVE KEYWORDS PSSD WRITERS / WHO TO READ?
PSSD T.S.BAINES PSSD STATE OF THE ART
DESIGN
TIM BROWN DESIGN THINKING
PEOPLE-CENTERED
PARTICIPATORY CO- THINKING LUISA COLLINA PSSD & EDUCATION
DESIGN COUNCIL UK SERVICE & PUBLIC DESIGN
INNOVATION FUAD-LUKE ALASTAIR DESIGN ACTIVISM
STRATEGY
TRANSFORMATION
EXPERIENCE LINDAHL ET. AL PSSD EXPERIENCES
SOCIAL
MULTIDISCIPLINARY
PUBLIC EZIO MANZINI DESIGN FOR SUSTAINABILITY
TRANS
BUSINESS
ANNA MERONI CREATIVE COMMUNITIES
PRODUCTIZATION
SERVICE OKSANA MONT PSSD OVERVIEW
DON NORMAN DESIGN
ECONOMY COMPLEXITY
DEMATERIALIZATION SUSPRONET PSSD EXPERTS NETWORK
SERVITIZATION
SUSTAINABILITY JOHN THAKARA DESIGN FOR COMPLEXITY
ECO-EFFICIENCY UNEP PSSD FOR SUSTAINABILITY
WE
LIFE-CYCLE CARLO VEZZOLI SYSTEM DESIGN 4 SUSTAINABILITY
SHARING ERIC VON HIPPEL DEMOCRATIZING DESIGN
PSS BENEFITS PSS BARRIERS
WIN-WIN 1_CULTURE
SOLUTION
Product-Service-Systems are generally presented as a win-win solution
2_INFORMATION
There are still many barriers the adoption of a PSS strategy since it brings with it significant cultural and
with a wide range of economic and environmental benefits for the pro- corporate challenges for all actors. Even if the foundation concepts are recognized, its real life application
ducer, customer and society. For instance, to the producer it could mean and definition have changed over the years. Despite the available literature such, PSSD is still not always
an offering of higher value that is more easily differentiated while some easy to communicate as its terminology not widely used. Some are not still correctly informed about what
PSSDs release the customer from the responsibilities of asset ownership, it is and its scope. Others, even if have a similar approach are not identified as PSSD firm; its uptake by the
and to society at large a more sustainable approach to business. PSS Design professionals and industry seems limited.
PSSD by the book 15

17. FROM TANGIBLES TO INTANGIBLES
FROM TANGIBLES TO INTANGIBLES
The old boundaries between manufacturing and We need to move towards a point where we are reli- EVOLUTION OF THE PSS CONCEPT [Morelli 2002]
services are dissolving. Services now typically ant on 10% of the resources that are consumed by in-
represent between 60% and 70% of the GDP of dustrialized countries today. To bring product
PR
S
CT
manufacture and use to a point where
OD
developed nations and almost all new companies Product
DU
UC
Service
O
being founded and jobs created are in this so called it doesn’t harm the system, we need to revise
TI
PR
System
ZA
OF
TI
tertiary sector. Back in 1970 companies’ invest- our understanding of physical products as independent
ON
ION
OF
ment in intangibles was 40% of their investment objects and begin designing for products and related
AT
Product(s) Services(s)
IZ
SE
IT
in tangibles. Today it has trebled. A manufacturing services within systems. [UNEP 2001] AND AND
RV
RV
Services(s) Product(s)
IC
SE
company in 2010 has to have a keen eye on the
ES
soft or intangible side of its offer; the best are be- IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
coming manuservice companies. Manufacturing
Product(s) Services(s)
invests more, proportionately, in intangibles than We’re moving away from designing
the service sector; being design, the most impor- things (products) and towards more
tant investment in intangibles in the UK. Design services, more joint ownership of The expansion of the design domain from the design of
is the bridge between the consumer questing for things. [Thackara 2006] products to the definition of new services it is particu-
the experiential and the company trying to meet larly relevant in a historical moment of the shift from a
that appetite with an offer that presents the new IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII mature industrial phase to what Rifkin (2000) defines as
in a user-friendly and innovative way. [Hutton, the age of access
‘ ’...The convergence of these
Design Council UK, 2010] There are fewer products made, but they are products trends of Servitization and Productization is the con-
nonetheless, and typically specialized products sideration of a product and a service as a single offering
made specifically for that service...from the – a PSS [Morelli 2002]
physical product to all the connections that the product
If design has become more ethereal,
have to all the social networks, is a enormous challenge IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
it’s because there’s a new commer- to do it as a unified user experience in all levels: the tan-
cial emphasis on intangible values. Dematerialization refers to the opportunity
gible well design go collect good data, the connectivity/
Peter Fossick, professor at Savannah College of to break the link between value delivered to the
sharing to make the data social and visualizing, and the
Art and Design (Scad), USA. [Aaltonen 2010] customer/user and the amount of physical mate-
long term relationship (feedback, community, ongoing
rial needed to create that value. [T S Baines 2007]
relationship with the service). Media feedbackloop is
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII part of your life. [Arnall, 2010]
16 FROM TANGIBLES TO INTANGIBLES

18. FROM TANGIBLES TO INTANGIBLES
IN THE LAST 3 DECADES, THE ECONOMIC BASIS OF WESTERN NATIONS HAS CHANGED DRAMATICALLY FROM MANUFACTURING TO THE PROVISION OF INFORMATION & SERVICES. ADDING THE
INCREASED FOCUS ON SUSTAINABILITY & EXPERIENCES, DESIGN HAS EXPANDED ITS DOMAIN.
Product-service systems are also presented as a special NEW DOMAINS 4 DESIGNERS’ ACTIVITIES [Morelli 2002] Service design is “the field concerned with the
case of servitization: a market proposition that development of services to meet specific needs”
SOCIETY
extends the traditional functionality of a product by (Shedroff) focusing on “customer experiences in
incorporating additional services with an emphasis on industries such as retail, banking, transportation,
the ‘sale of use’ rather than the ‘sale of product’. The healthcare, business-to-business enterprises,
customer pays for using an asset, rather than its pur- and education” (IDEO).
chase, and so benefits from a restructuring of the risks, SOCIAL ORGANIZATION There are close ties to the dimensions of interac-
CONSTRUCTION
responsibilities, and costs traditionally associated with OF TECHNOLOGY
AND
DESIGN
tion and experience that originated in interface
ownership. Similarly, the supplier/manufacturer can
CULTURE
design.
improve their competitiveness as these ‘solutions’ may IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
be clearly differentiated from product-based offerings
OR
GY TECHNICAL DEFINITION GA The understanding of product-service elements that has
while simultaneously retaining asset ownership that can OLO NI
ZA
HN [INDUSTRIAL DESIGN]
TIO
EC since become well established in service provision re-
enhance utilization, reliability, design, and protection. T N
[T S Baines 2007] search has been an especially important factor in giving
the interdisciplinary networking of com-
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Services do not qualify as property. While products are petencies (which is, in itself, characteristic of design
bought, services are made available. In a service econ- processes) a central role in the service sector. There is still
While service engineering is still trying to es- omy, it is human time that is being commodified, not debate about whether service design is primarily about
tablish itself as a discipline at universities and in places or things. Services always invoke a relationship the simultaneous definition of virtual and material as-
practice, service management is no longer unu- between human beings as opposed to a relationship be- pects of the service, the coordination of human-human
sual as a path of study in business administra- tween a human being and a thing. [Rifkin 2000: 84] and human-machine interfaces, or the design of experi-
tion courses. Service marketing has established Because PSS are generated by the convergence of dif- ences where functionality and emotionality are equally
itself internationally, and service design, mocked ferent actors during the use phase the experiential at- accounted for in the integration of new technologies
when first introduced as an academic field in de- tributes of the PSS need to be thoroughly planned. for intelligent and client-oriented standardization. This
sign education at the beginning of the 1990s, now This makes the design of PSS particularly relevant to debate can ultimately only be resolved by interdiscipli-
has credibility in teaching, research, and practice designers...[which] requires a that the traditional do- nary design teams: Collaborative Design. [Mi-
around the world. [Hutton 2010] main of design activities...be extended to new cultural chael Erlhoff 2008]
domains, where a thorough understanding of consump-
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII tion processes is possible. [Morelli 2002] IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
FROM TANGIBLES TO INTANGIBLES 17

19. PSSDESIGN IS A 360 APPROACH
sustainability, this approach gives new inputs for PSS that looking at the product’s life
can opt for alternative that can vary it: Reducing, Recycling, Reusing or Redistributing.
In pssd, the time domain is expanded, both by prolonging the period of time that the
producing company has an active interest in- and control over the product and also by
To design a PSS, companies must move from creating the need to consider multiple product lives, where the product (artefact) can be
subject to numerous users over longer period. Vezzoli defines 3 interrelated elements for
‘product thinking’ to ‘system thinking’, and system innovation for sustainability:“satisfaction” - a reference - the system must work
breakdown the ‘business as usual’ attitude. for a solution able to fulfil needs and desires of a stakeholder community; “stakeholder
interaction” - the subject - the system should promote innovative stakeholder configura-
tions or partnerships while answering to a specific social demand for satisfaction; “sus-
A system (from the Greek word systema meaning a whole compounded of parts) refers
tainability” – the objective – the solution must work from the viewpoint of sustainable
to a combination of related parts organized into a complex whole, such as the cosmos,
development following social concern [social equity & cohesion] and environmental
organisms, political or social bodies, or even cognitive constructions such as a theory or
care [system eco-efficiency]. [Vezzoli 2007]
philosophy. (Michael Erlhoff 2008) To design with a System’s approach means to look
at the bigger picture.
STAKEHOLDERS IN PRODUCTS & SERVICES LIFE-CYCLE MIX [Manzini & Vezzoli 2002]
From a systemic point of view, PSS requires a functional thinking process based on stra- life cycle (system) resources
optimization: product function-based
tegic partnerships sharing a common vision about how deliver a conceived solution idea. discrete resources optimization: wide system resources optimization:
look at the map of stakeholders
phase-based (e.g. producer) solution based
It means to involve in the PSS
delivery. These changes may modify the relationships between business functions in the
organization and increase the demand for an early involvement of the users as collabora-
retailers retailers retailers
tors or co-creators of the system solutions that are viewed from the client’s perspective.
con lient
co n lient
con lie nt
r
r
r
uce
uce
uce
[Mont 2000 at [T S Baines 2007]
c
c
c
sum
sum
sum
prod
prod
prod
er
er
er
designer designer designer
One of the first approaches was to look at the life-cycle of the product su
pp
lie
rs
m
d o ag
en an
fe
f li er su
pp
lie
rs
d o ag
en an
m
fe
f li er su
pp
lier
s
d o ag
en an
m
fe
f li er
and the system of stakeholders involved from the ‘cradle’ passing through its design,
manufacturing, distribution, usage, maintenance, etc. to its ‘grave’ or disposal. “Design
is a creative activity whose aim is to establish the multi-faceted qualities of objects,
processes, services and their systems in whole life cycles”. (ICSID, 2005) Even if not [ e .g . w a s h i n g m a c h i n e ] [ e .g.de te rge nt] [ e .g. m a inte na nc e s e rvic e ]
exclusive to PSSD – a whole discipline has been developed in relation as design for [e.g. solution = to have clothes washed]
18 PSSDESIGN IS A 360 APPROACH

20. PSSD by the BOOK - the system’s approach
PSSD by the book
LIFE-CYCLE
looking at the all the stages of a
Another input comes from
product or service experience: from the discovery to the post-
usage memories and long term relationship. This means as thinking first the product like
music player that provides the enjoyment of listening, in a way unlinking the function
from the physical device. For the designer, it means thinking it all: the communication
channels, events and pieces to discovery and advertise; the online and offline service user
experience; point of sale and channels of purchase; the product, learning and packaging
at its use, the post-services such as maintenance and updating, disposal or exchange; the EXPERIENCE
networks and sharing experiences. To make this a whole, seamless, coherent experience
requires considering each action, each system response, each message--whether verbal
or visual, silent or audible, visceral or behavioural, haptic or happenstance--all as part
of the whole. [Norman, 2010] Some of the well designed experiences cited by Norman
are for products: the BMW Mini Cooper, the ubiquitous iPod, and Amazon’s Kindle;
for websites: Amazon, eBay, FedEx, Kayak, UPS, and Netflix; for pure services: luxury
hotels and low-cost business hotels as well as stores such as IKEA. This approach is not
exclusive to PSSD, most designers use it, but it is essential for it. PSS designers must be
P+S
to manage all the stages and delegate to design experts if needed the particular task but
having in mind the whole experience.
By definition a PSS designer provides ‘an innovation strategy, shifting the business
focus from designing (and selling) physical products only, to designing (and selling)
a system of products & services which are jointly ca-
pable of fulfilling specific client demands’. [E. a. Manzini STAKEHOLDERS
2003]. This is, thinking systematically products and services as inseparable elements
where one needs the other to provide the final offer. As in libraries, books are just the
‘No product is an island’
element that provides the service of the enjoyment of reading given by the library
that provides the service of lending them but without the products the service would
be obsolete.
(Norman n.d.)
PSSD by the book 19

21. PSSD, AN APPROACH TO SUSTAINABLITITY
MAIN AUTHOR WHO SEES SUSTAINABILITY AS THE ULTIMATE GOAL OF PSS THORNE AT TED INSPIRED BY BOTSMAN & ROGERS’ BOOK SHOW PSS AS A ROAD TO
MANZINI ET. AL[UNEP 2001] COLLABORATIVE
CONSUMPUTION
Even if not all authors link PSS with achieving sustainability and many PSS
cases do not consider the opportunity for reducing resource consumption
[Fidler 2010], Manzini et al. see it as the ultimate goal. The PSS concept is a
possible and promising business strategy potentially capable of helping achieve “from selling & owning products to providing the utility of the product jointly with the service.”
the leap which is needed to move to a more sustainable society [UNEP 2001]. SYSTEMS
PSS do not necessarily lead to more sustainable solutions but they can be
designed to be. But it “exists a potential role for the design for sustainability,
in promoting and facilitating system innovation resulting in eco-efficient and
socially equitable/cohesive enterprises/initiatives offering a mix of products
and services, based on network-structured and locally-based model.” [Vezzoli
2007] Services can be used to dematerialize, customize, or replace product
offerings. [Kara Davis 2010] However, organizations need to not work on
big-scale industrial logic and consider a local trade-off between material usage,
PRODUCT SERVICE SYSTEMS REDISTRIBUTION MARKETS COLLABORATIVE LIFESTYLES
energy, and labour required for logistics movements to achieve sustainability,
just adding services will not do it.
THE BIG SHIFT FROM THE 20th CENTURY TO 21th CENTURY [BOTSMAN & ROGERS, 2010]
THE ONTOLOGY OF THE PSS IMPLIES A SET OF CREDIT + REPUTATION +
MULTIPLE
_interrelated life phases and activities throughout the product’s service time
ADVERTISING +
INDIVIDUAL
OWNERSHIP
COMMUNITY +
SHARED
ACCESS
<
_interrelated systems of artifacts
_stakeholders’ values
HYPER CONSUMPTION COLLABORATIVE CONSUMPTION
20 PSSD, AN APPROACH TO SUSTAINABLITITY

22. PSSD AS AN APPROACH TO SUSTAINABLITITY
PSSD by the book
PSS FOR SUSTAINABILITY BARRIERS THE IDEAL PSS BENEFITS THE 3 STAKEHOLDERS GROUPS
HYPER- SOCIETY
CONCUMPTION
For consumers & industry a cultural shift is necessary in order to prefer to fulfil a need by a service rather than own-
SUSTAINABILITY-
ORIENTED
ing a physical product. [UNEP n.d.] This is the shift from Hyper-consumption to Collaborative Consumption, which INNOVATION
Thorne detects as what is happening in the 21st century. [Thorne 2010] COMPANY CUSTOMER
Within a company, barriers can include the lack of experience & know-how to design service methods and manage-
ment systems, the shift in tradition from judging and measuring performance based on the quantity of goods sold, and
a lack of skilled service personnel. [UNEP n.d.]
3-FORCES MODEL [Christensen & Tan]. All benefit
with a mind-set of continuous product improvement in
EVOLUTION OF THE CAR MARKET SECTOR PSS WITH 4 PRINCIPLES OF SUSTAINABILITY EXAMPLE both a physical & a societal way. For the end-user it can
ZIPCAR
deliver new patterns of usage, lifestyle, purchasing and
CAR CAR RIDE RP2P CAR-
OWNERSHIP SHARING SHARING CAR RENTAL flexibility. For the producing company it can deliver
SHARING
IN USA,UK, closer contact to customer and therefore, extended ser-
AND CANADA
vices & loyalty, new markets, greater market share and a
Another expample like the the Zipcar, car-sharing com- redefinition of core-activities can be achieved. For soci-
pany, is Total-Care Package which offered to airlines by ety, the overall effect should increase the sustainable di-
Rolls-Royce plc. where rather than transferring owner- mensions, towards the factor x improvements: increased
ship of the gas turbine engine to the airline, Rolls-Royce product efficiency (due to the producing company hav-
deliver ‘power-bythe-hour’. As R-R maintains direct ing increased liability for-, insight into- and ownership
access to the asset they collect data on product perfor- over the product); a closer relationship between societal
mance and use which enables the improvement of per- needs & the supplied products (due to the voice of the
[BOTSMAN & ROGERS, 2010] formance parameters for efficiency, reducing cost & the customer (and other stakeholders) being louder and
environmental impact. [T S Baines 2007] clearer than before.
PSSD AS AN APPROACH TO SUSTAINABLITITY 21

23. PSSD FOR GOVERNMENTS & PUBLIC SECTOR
Today’s services must respond to new challeng- sector projects, with the aim of developing practical design solutions to some of the
most complex problems. Even if not identified as PSSD, the explanation and use of
es including a low carbon economy, an ageing service design matches the approach of PSS in many ways. Rapid prototyping creates
population and the rising demands of service us- efficiencies by designing out problems early, and the collaborative nature of many design
projects can engage public sector workers, frontline staff and users in the develop-
ers. These pressures make innovation essential, ment and delivery of new services. Developing this capacity would help public sector
organizations manage their creative processes and find innovative solutions for service
public services must be designed to meet the delivery [UK Design Council 2008] Since the public sector isn’t yet widely using design
complex needs of users while delivering cost techniques to make service improvements, there is an opportunity for service providers
to set themselves apart by using design to address key issues including value for money
efficiencies. [UK Design Council 2008] & efficiency, personalisation, risk management & sustainability. [Design for public
services n.d.] With innovation at the heart of public policy-making we get value for
PSS AND GOVERNMENT INVOLVEMENT
taxpayers’ money. [Cameron 2010]
PSS provide a comprehensive solu-
ENGINE’S SHAPE METHOLOGY FOR PEOPLE-CENTERED SERVICE INNOVATION
tion for governments who promote Diamond 1: Direction setting Diamond 2: Service design Diamond 3: Service production
more sustainable production and
Initiate Create Select Define Initiate Create Select Define Initiate Create Select Define Sustain
consumption patterns. [UNEP 2001]
As public pressure on environmental issues grows, the widespread promotion and
adoption of PSS is favoured by government bodies. Successful PSS applications can
also, through the increase in sales and service activities, offset the loss of jobs in tradi-
Vision Service
tional manufacturing. This is demonstrated by the interest shown in PSS by Sweden Document Blueprint
and the Netherlands who tend to lead in the adoption of environmentally sustainable
business [T S Baines 2007]. When conceptualizing PSS in general and specially in the Innovating services within local government demands a high degree of care and sensi-
public sector, the government tends to be an actor either principal or secondary as a tivity in planning and execution. Innovation is innately risky and often expensive; the
promoter always working for social cohesion. The UK Design Council has a strong best way to reduce costs and the risk of failure is by involving users and front-line staff
track-record in helping the public sector use design. It has piloted a range of live public in this process. [Engine n.d.]
22 PSSD FOR GOVERNMENTS & PUBLIC SECTOR

24. PSSD FOR GOVERNMENTS & PUBLIC SECTOR
PSS FOR THE PUBLIC SECTOR BARRIERS PSSD FOR PUBLIC SECTOR EXAMPLE
1_UNFAMILIAR SHARE THE ROAD
An innovative transport club. being run by University
2_CLOSE STRUCTURE
College Falmouth as a pilot AIR project, co-developed
with the UK Design Council Dott Programme and its
users. The project addresses problems of traffic and park-
ing congestion in Falmouth and Penryn. As the Univer-
To favor a larger initial introduction of PSS, they have to be economically convenient, reach critical mass and require sities have grown, increasing numbers of students bring
government intervention (economic incentive) at national level. Changes in legislation are different from country to their cars to the area and use them infrequently. The
country (as in Extended Producer Responsibility) governments have to protect organizations doing long-term invest- share the road project aims to reduce the number of cars
ments instead of sub-optimal short-term strategies. [Bianchi 2009] by offering alternate modes of transport that are as good
The UK Design Council research among public sector organisations found that service providers are often unfamiliar or better as owning a car.
with design-led approaches to service innovation. Moreover procurement processes disadvantage small design agen- Other examples include design for mobility: car and
cies which feel strongly that government processes are an obstacle to working with public sector clients. [Design for bike sharing systems developed in many developed
public services n.d.] Good drivers for PSS adoption are: marketing conditions, legislation, and environmental worries, countries cities (Milan, Barcelona, etc.) and increasing
even though these drivers that cannot be found in all the countries and for all the industries [Bianchi 2009] Plus, the in emerging ones (Buenos Aires, Mexico DF, etc); de-
structure of public sector organisations restricts creativity as they tend to work in silos, meaning new ideas cannot sign for health (Gateshead Primary Care Trust0, design
flow around organisations or cut across departmental boundaries [Bichard 2008]. Even if in some developing countries in eduction (Bertie County School, Walker Technology
their a concern for sustainable public services development and design councils exist [e.g. CMD in Argentina] they College), design for job placement (New Work Corn-
deal mostly with the promotion of traditional approaches to design and they are hardly used strategically among the wall), design against crime, design for disadvantaged
public sector. individuals, for social inclusion, etc.
A SIMPLE DEFINITION OF PUBLIC SECTOR INNOVATION EXAMPLES OF PUBLIC SECTOR DESIGN INNOVATIONS
‘NEW IDEAS THAT WORK AT
CREATING PUBLIC VALUE’
[Mulgan 2007]
PSSD FOR GOVERNMENTS & PUBLIC SECTOR 23

25. PSSD, INNOVATION ENGINE FOR COMPANIES
PSSD AND THE FOCUS ON VALUE
PSS THINKING ADDS VALUE
Most authors see the purpose of a PSS as a specific competitive value proposition, and
Competition continues to increase among man- so directly refer to the need for customer satisfaction and economic viability. A PSS is
an integrated product and service offering that delivers value in use to differentiate
ufacturing companies around the world, adding from competitors who simply offer lower priced products. The PSS logic is premised
more and more competitors to the global mar- on utilizing the knowledge of the designer manufacturer to both increase value as an
output and decrease material and other costs as an input to a system. [Tukker 2006]
ket. PSS provide alternative strategic market The fundamental business benefit of a PSS is an improvement in total value for the
opportunities that deliver value to remain or customer through increasing service elements. Competitive edge is enhanced as, for
example, a service element that is not easy to copy and facilitate, communicates infor-
become viable and with a competitive edge. mation about the product–service package [TS Baines 2007].
BENEFITS FOR COMPANIES [UNEP 2001] EXAMPLE OF PSSD WITH A FOCUS ON VALUE [Kumahor and Bueno 2010]
_More opportunities for innovation and market development
_Increased operating efficiencies
_More and longer-term client relationships
_Improved corporate identity
_Better feedback on consumer needs
BARRIERS FOR COMPANIES
A COMPLEX CROSS-FUNCTIONAL PROBLEM
PSS implementation is, indeed, a complex cross-functional problem for which tradi-
tional manufacturers, especially from the organisational point of view, are not ready, Nike plus: a shoe that talks to your ipod to your com-
puter and share the information and connect with the
typically facing PSS barriers during the first implementation steps. Further barriers are: social and competition and visualized the data.
lack of market demand (i.e. because PSS do not exist or else), high localized labour
price (i.e. trade-off between labour and logistics costs), fear of consumer reaction, fear
of accepting risks that are not known, and business-as-usual attitude. [TS Baines 2007]
24 PSSD, INNOVATION ENGINE FOR COMPANIES