Service Design for Networked Business Models by Aldo de Jong & Abby Margolis - Claro Partners With increased connectivity, networks at both a global and local level are growing rapidly whilst new communities can develop and flourish through digital channels. These allow for resources to be shared, swapped, borrowed and traded; bearing a new economy that favours access over ownership. This is a dramatically different user experience context that demands a transformation of our approach to service design. In this session we will share findings from our global research that explored the experiences and opportunities involved in moving from an ownership economy to one built on access and sharing. We will present guidelines for creating value exchange networks and share some tools we’ve developed for creating networked services and business models in the access economy.

2. Service design for networked business models
Service Design Network Conference, Cardiff, 2013
Aldo de Jong, Co-Founder, Claro Partners

3. Share
your
thoughts?
@claropartners
#sharingeconomy
#sdn13

4. Claro
helps
corpora7ons
and
startups
to
navigate
disrup1ve
shi3s
in
society
and
business
Michael
Elisabeth
Mwenge
NL
USA
Congo
Rich
USA
Megan
UK
Mercè
Spain
Aldo
NL
Mandy
Lebanon
Abby
USA
Jiri
Belgium
Gunes
Turkey

5.
We
deliver
business
innova1on
and
service
design
in
the
context
of
disrup1ve
shi3s:
Ownership
Services
delivered
by
companies
Big
data
and
aggregated
resources
Internet
of
informa7on
and
people
Access
Services
enabled
through
networks
Small
data
and
personalised
experiences
Internet
of
Things
Request our point of view paper on each of
these topics at POV@claropartners.com

6. The
basis
of
our
thinking:
two
6-­‐month
global
open-­‐innova1on
projects
USA
UK
DENMARK
SPAIN
INDIA
CHINA
JAPAN
BRAZIL
46
Stakeholder
interviews
99
Ethnographic
sessions
39
Expert
interviews,
plus
secondary
research
Business
Perspec7ve
+
People
Perspec7ve
+
Systems
Perspec7ve
Collabora7ve
and
individual
workshops
with
the
par7cipa7ng
companies

8. The
burden
of
ownership
is
challenging
the
consump1on
economy
+
JOY
OF
OWNERSHIP
BURDEN
OF
OWNERSHIP
-­‐
TIME
Acquisi1on
Use
Post-­‐use

9. The
sharing
economy
emerges
from
communi1es
of
exchange.
Trust
between
strangers
is
a
new
currency.
EXCHANGE
MY
STUFF
YOUR
STUFF

10. Networked
business
models
are
disrup1ng
tradi1onal
ways
of
doing
business
GiffGaff
has
only
34
employees
and
the
average
response
7me
to
a
customer
problem
is
under
90
seconds
At
its
peak,
Encarta
had
62,000+
ar7cles.
Its
highly
centralised
control
contributed
to
its
failure
As
of
May
2011,
Wikipedia
had
3.5m+
ar7cles
in
English,
and
18m
in
all
its
261
languages
Microso3
has
35.000
engineers
and
designers
who
build
solu7ons
based
on
understanding
customer
needs
50.000
Quickbase
users
exchange
soXware
solu7ons
and
knowledge
with
people
like
them

11. We
call
them
Par1cipatory
Service
Networks
(PSN)
A
system
where
value
is
co-­‐
created
and
exchanged
in
a
distributed
way
by
a
network
of
par7cipants.
• Networked
business
models
• Value
exchange
networks
• Collabora8ve
consump8on
• P2P
services
• Bo>om-­‐up
value
exchange
• Sharing
economy
• User-­‐generated
content
etc.

12. Landscape
of
Alterna7ve
Models
of
Ownership
&
Value
Exchange
claropartners.com
>
login
u:
pdfa
pw:
ownership

13. The
access
economy
drives
new
business
models
t Rental
fee
Car
use
u
t Payment
Car
u
CONSUMER
CAR
USER

14. Par1cipatory
Service
Networks
(PSNs)
are
networked
business
models
t Payment
Car
u
CONSUMER
CAR
OWNER
Car
use
u
t
Rental
fee
CAR
USER

15. PSNs
are
difficult
for
tradi1onal
business
to
adopt
PARTICIPATORY
SERVICE
NETWORKS
TRADITIONAL
BUSINESSES
Centralised
value
crea7on
VALUE
CREATION
Decentralised
value
co-­‐crea7on
Command
and
control
chain
CONTROL
Diffusion
of
control
High
on
the
company
side
CAPITAL
INTENSIVENESS
Low
on
the
company
side
Limits
to
scale,
speed
and
localness
AFFORDABILITY
Unaffordable
projects
now
possible
Aims
at
efficient
labour
use
LABOUR
EFFICIENCY
Redundancy
and
flexibility
of
roles
Resource
alloca7on
RESOURCES
Resource
aarac7on
Clear
role
responsibili7es
ACCOUNTABILITY
Diffusion
of
responsibility
Highly
designed
and
planned
DESIGNED
vs.
ORGANIC
Organic
characteris7cs

16. Networked
business
models
calls
for
a
shi3
in
approach
to
service
design
1. Focus
on
the
individual
customer
2. Design
and
deliver
a
service
3. Own
a
unique
rela1onship
with
customer
Tradi1onal
service
models
Networked
business
models
1. Uncover
opportuni1es
in
a
network
2. Enable
exchanges
to
deliver
service
3. Iden1fy
your
role
in
the
ecosystem

17. 1. Uncover
opportuni1es
in
a
network
2. Enable
exchanges
to
deliver
service
3. Iden7fy
your
role
in
the
ecosystem

18. 1.
Uncover
opportuni1es
in
a
network
Individual
customer
What
do
they
need?
Network
What
do
they
need?
What
do
they
have?

19. 1.
Uncover
opportuni1es
in
a
network
Key
ques1ons:
• How
are
people
connected
within
the
network?
• What
is
their
mo8va8on
to
join?
• What
are
the
values
exchanged?

20. 1.
Uncover
opportuni1es
in
a
network
How
are
people
connected
within
the
network?

21. ust
t of
A
e
circumstances the introduction of money can turn collaborative dynamics
1.
Uncover
opportuni1es
in
a
network
into more competitive ones where structural loops are lost and the
What
is
their
mo1va1on
to
join?
course, this competition can be integral
network becomes fragmented. Of
to the model, but at other times it can limit value exchange to a simple,
calculated transaction, especially in cases where the network is dependent
upon people’s creativity.
TANGIBLE
BENEFIT
SMALL
+
TOKEN-­‐LIKE
SIMPLE,
QUICK
TRANSACTION
pes
or
m
ose)
The motivations to join a PSN are very different then the motivations to actively contribute. Initially,

22. 1.
Uncover
opportuni1es
in
a
network
What
are
the
values
exchanged?
RK
odes – or actors
pes of value
ns can be identified
change network.
AIM
mon, highs the type of
d is its reason for
pants is crucial for
ompany to apply
o take advantage
ness activates that
gh a PSN initially,
Connections
Knowledge
connecting to others
sharing knowledge with others
“By connecting with each other, we
heighten our identity as KoreanAmericans.”
“By connecting with each
other, we will find out things
we want to know about new
technologies.”
Competencies
Resources
using skills to create value
providing funds/resources to others
“By connecting to each other we
can trade children’s clothes to save
money.”
“By connecting with each other, we
can learn how to speak each other’s
language.”
A company can effectively map the value present both within their business and within their
wider network (of customers, partners, suppliers) into four loose groups: resources, knowledge,
competencies and connections.

23. 1. Uncover
opportuni7es
in
a
network
2. Enable
exchanges
to
deliver
service
3. Iden7fy
your
role
in
the
ecosystem

24. 2.
Enable
exchanges
to
deliver
service
Design
the
service
journey
Design
par1cipatory
services
Single
user
experience
Networked
experience

25. 2.
Enable
exchanges
to
deliver
service
Key
ques1ons:
• How
is
value
exchanged?
• How
to
design
for
a
networked
experience?
• How
to
enable
interac8ons
and
exchanges?
• How
to
encourage
contribu8ons?

26. 2.
Enable
exchanges
to
deliver
service
How
is
value
exchanged?
Short
descrip1on:
RelayRides
is
a
P2P
car
rental
service.
Private
car
owners
to
rent
out
their
cars
for
money,
to
drivers
looking
for
a
close,
and
affordable
way
to
rent
cars.
How
is
the
value
exchanged?
Sketch
out
the
network
Who
is
exchanging
value?
Car
users,
car
owners
and
RelayRides
What
value
is
exchanged?
Car,
money,
members,
insurance
CAR
OWNER
Car
use
u
t
Rental
fee
USER

27. 2.
Enable
exchanges
to
deliver
service
How
do
we
design
for
a
networked
experience?
t
Rental
fee
Car
use
u
USER
DISCOVER
JOIN
USE
EXTEND

28. 2.
Enable
exchanges
to
deliver
service
How
do
we
design
for
a
networked
experience?
DISCOVER
JOIN
USE
EXTEND

29. 2.
Enable
exchanges
to
deliver
service
How
do
we
enable
interac1ons
and
exchanges?
Trust
in
the
value
exchanged
Trust
in
the
plahorm
Trust
in
other
network
par7cipants

30. 2.
Enable
exchanges
to
deliver
service
How
to
encourage
contribu1ons?
CONTRIBUTION"

31. 1. Uncover
opportuni7es
in
a
network
2. Enable
exchanges
to
deliver
service
3. Iden1fy
your
role
in
the
ecosystem

32. 3.
Iden1fy
your
role
in
the
ecosystem
BRAND
BRAND
1:1
rela1onship
with
customer
Branded
experience
Facilitate
rela1onships
among
customers
Brand
facilitates
rela8onships
in
an
ecosystem

33. 3.
Iden1fy
your
role
in
the
ecosystem
Key
ques1ons:
• What
roles
does
the
network
need
to
func8on,
and
who
can
provide
it?
• How
to
start
and
grow
the
network?
BRAND

34. 3.
Iden1fy
your
role
in
the
ecosystem
What
roles
does
the
network
need
to
func1on,
and
who
can
provide
it?
3
OWNER
ROLES
Host
Community
creator
Community
orchestrator
5
NON-­‐OWNER
ROLES
Crowd
gatherer
Builder
Network
enhancer
Conversa1onalist
Beneficiary
in

35. 3.
Iden1fy
your
role
in
the
ecosystem
How
to
start
and
grow
the
network?
Emerge
eg.
Look
for
the
right
condi7ons
to
create
a
plahorm
for
exchange
Seed
PSN
eg.
Start
the
network
in
key
places,
with
key
actors
and
the
right
condi7ons
to
grow
Adapt
eg.
Allow
the
network
to
fragment
or
specialise
if
it
needs
to
Nurture
eg.
Encourage
par7cipa7on
and
help
the
network
to
flourish
Weed
eg.
Discourage
or
filter
out
nega7vity
which
could
reduce
par7cipa7on
in
the
network

36. Networked
business
models
calls
for
a
shi3
in
approach
to
service
design
1. Focus
on
the
individual
customer
2. Design
and
deliver
a
service
3. Own
a
unique
rela1onship
with
customer
Tradi1onal
service
models
Networked
business
models
1. Uncover
opportuni1es
in
a
network
2. Enable
exchanges
to
deliver
service
3. Iden1fy
your
role
in
the
ecosystem

37. Exercise

38. Value
proposi1on
template
Design
a
networked
service
Short
descrip1on:
Who
is
exchanging
value?
What
value
is
exchanged?
How
is
the
value
exchanged?
Sketch
out
the
network

39. Share
back
@claropartners
#sharingeconomy
#sdn13

40. A
toolkit
to
design
a
par1cipatory
service
network
leveraged
by:

41. Explore
more:
join
us
for
the
Global
Service
Jam
in
Barcelona!
7-­‐9
March"
Strategists, developers and designers all across the
world come together in one weekend to explore,
create and prototype a service."
In Barcelona this is mentored by Claro Partners,
their clients and other professionals."
Aldo
de
Jong|
Co-­‐Founder
aldo.dejong@claropartners.com
+34
647
857
922
(m)
Send
us
an
email
at
jam@claropartners.com
to
be
no7fied
as
soon
as
registra7ons
open
barcelonaservicejam.org