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

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

Design facilitators for value creation and sustainability achievement Our approach Introduction Our approach Value creation and sustainability through PSS Service Delivery and Co-creation Design for value /sustainability Sustainable value creation Case study: Elis Conclusion PSS Issues Life Cycle Delivery system Co-creation process PSS Design Value Sustainability Design facilitators for value creation and sustainability achievement 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 ?).

Value creation through PSS Introduction Our approach Value creation and sustainability through PSS Service Delivery and Co-creation Design for value /sustainability Sustainable value creation Case study: Elis Conclusion 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]

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

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

PSS design for value creation Introduction Our approach Value creation and sustainability through PSS Service Delivery and Co-creation Design for value /sustainability Sustainable value creation Case study: Elis Conclusion 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]

PSS design for sustainability Introduction Our approach Value creation and sustainability through PSS Service Delivery and Co-creation Design for value /sustainability Sustainable value creation Case study: Elis Conclusion Reducing environmental impacts throughout the life cycle: Use phase: rental, sharing, pooling Resources maintained 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

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

Case study Introduction Our approach Value creation and sustainability through PSS Service Delivery and Co-creation Design for value /sustainability Sustainable value creation Case study: Elis Conclusion 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 ?

Continuous value Service delivery design: Customer value: Introduction Our approach Value creation and sustainability through PSS Service Delivery and Co-creation Design for value /sustainability Sustainable value creation Case study: Elis Conclusion Supply value cycle Customer value cycle Provider Customers Service delivery Co-creation 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

Sustainable value: continuous creation Introduction Our approach Value creation and sustainability through PSS Service Delivery and Co-creation Design for value /sustainability Sustainable value creation Case study: Elis Conclusion 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

Conclusion Value creation continuum: Sustainable value: Introduction Our approach Value creation and sustainability through PSS Service Delivery and Co-creation Design for value /sustainability Sustainable value creation Case study: Elis 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’ Supply value cycle Customer value cycle Service delivery Co-creation Sustainable value Society

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