Smart Retro, a smart city project by Demos Helsinki and it’s distinguished partners, was kicked off in a spirit of enthusiastic co-operation. Smart Retro aims for creating effective business models and tools, which can be used for refurbishing residential areas in smart and sustainable ways. This is one of the presentations held in Smart Retro Meetup.

1. Smart Spaces?

2. Smart Cities?

3. City On Demand
Built environment needs its own app store!
Jarmo Suominen
Professor, Service Architecture
Aalto University, ARTS, Architecture
MIT Medialab Sa+P
Massachusetts Institute of Technology

4. This is me as a user of my City
[supply driven logic]
My City is taking care of
logistics, marketing
available offerings to me
trough various channels.
Focus is on distribution
and delivery of goods to
market.
My city is planning what
is good for me. I am
using my City

5. This is me as a consumer of My City
[market oriented logic]
My City is trying to
understand my demands
trough participative
processes. Offerings are
developed based
demand, focus is on
product, price, place
and promotion.
My city is asking what is
good for me.

6. This is me as a participant of My City
[service dominant logic]
Focus is on creating
value together.
Affordances are
developed based value
proposition and I am an
active participant
identifying what is
valuable for me
My city is asking to do it
together.

7. Development of customer orientation
• 4 P’s
- product
- price,
- place
- promotion
• customer as an
object
• logistics
• marketing
channels
• distribution
• goods to market
• value proposition
• value co-creation
• service
• relational
• customer
involvement
• customer as an
active participant
Lähde: Lusch 2007Jarmo Suominen | Aalto University 2014 7

8. Symbolic
value
Emotional value
Operational value
Economical value
Technical value
Perceived
Customer Value
Jarmo Suominen | Aalto University 2014 8
Focus on the identity
and brand, value
proposition
Focus on customer
experience,
emotions,
redemption
Focus on operations,
practices and
processes
Focus on economics,
investments ROI
Focus on
infrastructures,
technologies and
solutions

9. What are the architectures for value co
creation?

10. Lab for Learners | Jarmo Suominen 2014
Dynamic
Emerging
Enabling
Robust
Planned
Implementing
Lab for learners Temple for teachers
23.5.2014 10

11. Instead of maximizing short-term ROI
(Return On Investment)
We focus on maximizing long-term ROC
(Return On Community)
And institutionalizing ROL
(Return On Luck) accelerating Serendipity

12. DUMBO | NY

13. User engagement
23.5.2014 DYICITY Jarmo Suominen DEC 2011 13

14. Customer value and Service Architecture
The focus is not on products, but on the consumers' value -
creating processes, where value emerges for consumers, and is
perceived by them.
Jarmo Suominen | Aalto University 2014
14
Customer
value

15. Jarmo Suominen | Aalto University 2014 15
Architectures of value co creation

16. Urban
acupuncture

17. DOING
DOING
DOING
DOINGDOING
DOING
DOING
DOING
AALTO LOOP
PATTERN REGOGNITION
Case QUT, Brisbane
2014 DYICITY Jarmo Suominen DEC 2011 17

18. CAMPUS WALK
Case QUT, Brisbane
23.5.2014 DYICITY Jarmo Suominen DEC 2011 18

19. City On Demand

20. University
Workplace
Hospital
Traditional development:
Each entity includes all the
necessary resources within
its own premises
Inhouse
Service architecture | J Suominen | 2014
Internal resources
Internal use

21. Workplace
Shared
New models emerging:
Use of shared resources
like co working platforms is
perceived efficient
Service architecture | J Suominen | 2014
Internal resources
External and internal use
University
Hospital

22. Workplace
Distributed
New models emerging:
Use of shared resources
like co working platforms is
perceived efficient
Service architecture | J Suominen | 2014
External resources
Internal use
University
Hospital

23. Workplace
On Demand
Shared Service
Platforms
Sustainable development:
Organizations could
minimize their footprint by
using professionally
operated shared resources
Service architecture | J Suominen | 2014
Eternal and Internal resources
External and internal use
University
Hospital
Service architectures for value co
creation

24. 30
75
160
310
600
1130
2150
2006 2007 2008 2009 2010 2011 2012
Amount of Service Operators in USA has doubled
every year after 2006.
Jarmo Suominen | Aalto 2013 24
FIX, minimize fixed costs
FLEX, maximize flexibility
FLUX, optimize interaction

25. New Business Opportunities
City On Demand
Internal resources External resources
02.FLEX Shared
School as
community/neighborhood
center, access facilities like
gym and art class, services
like training or couching
Internal
use
External
use
04.FLEX On Demand
School as service, run by
service operations using
shared resources, optimizing
its own footprint, demanding
service operator
01. FIX In house
School as a resource for
educational purposes,
including all necessary
resources and services
within its own premises
03. ADD Distributed
Using external resources
for enabling education
and community objectives
Lab for Learners | Jarmo Suominen 201423.5.2014 25

26. MIT City Scope
as a platform for value co creation in
urban context

27. Shanghai scale model
Shanghai Scale Model

28. 28 28Avatar Holotable

29. SYMBOLIC VALUE
Green campus / path
Jarmo Suominen | Aalto University 2014 29

30. EMOTIONAL VALUE
Social density / amount of interaction
Jarmo Suominen | Aalto University 2014 30

31. OPERATIONAL VALUE
Mobility
Jarmo Suominen | Aalto University 2014 31

32. ECONOMICAL VALUE
Land use and investments
Jarmo Suominen | Aalto University 2014 32

33. TECHNICAL VALUE
Wind load (building automation and
infra)
Jarmo Suominen | Aalto University 2014 33

34. Real-Time Data Observatory &
Urban Transformation Simulator
of:
•Movement of people
•Movement of vehicles
•Flow of goods
•Energy flows
•Wind flows
•Solar access and shadows
•Personal data and payment flows
•Food networks
•Urban lighting
•Livability
•Productivity
•Disease
•Crime
•Creative output
CityScope, Changing Places Group, MIT Media La
Jarmo Suominen | Aalto University 2014 34

35. Market To Market With
Organization centric Solution centric
User demands Customer value
Quantitative metrics Qualitative metrics
One way information Symmetrical knowledge
Static solution Dynamic solution
Added value Redeemimg value proposition
Value exhange Customer relationship
Maximizing profit Optimizing value
From supply driven to service dominant solutions
35
Jarmo Suominen | Aalto University 2014

36. Sushi

37. Robust process design
Clear solution space definition
Customer centric choice navigation
Urban App Store