Walter Ganz from the Fraunhofer Institute for Industrial Engineering is presenting at the DC10 Service Innovation Congress, organized by Exser and partners. See http://www.exser.nl/jaarcongres/ for more information.

1. Walter Ganz Fraunhofer Institute for Industrial Engineering (IAO) Stuttgart, Germany First National Annual Services Innovation Conference , Schouwburg Almere, November 2, 2011 “ The challenge of testing innovative services, lessons from Germany “

2. Fraunhofer IAO Ideas for Success

5. Applied Services Research at the IAO The Fraunhofer Institute for Industrial Engineering IAO has been a major European center for issues of service innovation for more than 15 years.

6. International Service Research Networks – Examples of our Current and Future Activities present future Deeper Integration in Scientific Communities (e.g. Hosting of Reser 2008) International Monitoring of Activities and Research in Services (MARS) Including Mary Jo Bitner, Richard B. Chase, Roland T. Rust, Jim Spohrer, and many other panel members E!3423 – FACTORY SERVNET First European Eureka Project on Services Research Innovation Policy Project in Services ( IPPS 2006-2007) Integration in the SRII

7. Mega Trends in Service Industries Diffusion of ICT Virtualisation Customer creation of value Hybrid Solution Automatiztion Personalisation Beispiele: Self Services, Online Banking, Webservices, Remote Services etc. Beispiele: Hybrid Solutions, Product related services, Financing, ect. Beispiele: Wikipedia, Second Life, Facebook, Xing, Skype etc. Beispiele: Consultancy, R&D Services, Health Care, Education Service Systems

8. Observation 1: Services are part of the solution Customer buys product Customer buys solution package Customer buys service(s) Engineering Financing Servicing Training Return Maintenance Development and sales of physical goods

10. Why do problems with services arise so often?

11. Service type A Examples: Teller machine Customer self-service Service type B Examples: IT Outsourcing service Life insurance Service type C Examples: Call center Fast food restaurant Service type D Examples: Consulting Medical examination low high Contact intensity low high Complexity Service is not alike service

12. Service Engineering: Closing the Gap from Idea to Realisation of New Services R&D management for services Services as an R&D object methods models tools Service Engineering is concerned with the systematic development and design of service products using suitable models, methods, and tools. idea successful service ?

13. Engineering Approach for Developing New Services product model A product model describes, what a service delivers ( description of the service, data models, service modules) Service Engineering is concerned with the systematic development and design of service products using suitable models, methods, and tools. Warum Total Cost of Ownership? Investitionen in Informationstechnik ba-sieren mehr und mehr auf wirtschaftlichen Betrachtungen. Dadurch wird die Trans-parenz hinsichtlich der tatsächlichen Kos-ten für den Betrieb der Informations-technik zur zwingenden Voraussetzung für die Entscheidungsfähigkeit der Unter-nehmensführung. Insbesondere die Betriebskosten von unternehmensweiten, verteilten Systemen sind häufig nicht transparent. Viele Kostenkomponenten werden bei einer Analyse der Betriebs-kosten häufig nicht oder nur unzureichend betrachtet. Einen Ausweg bieten moderne Verfahren zur Ermittlung der Total Cost of Ownership (TCO), die es ermöglichen, sämtliche direkten als auch der indirekten Kosten zu ermitteln. Vorgehen Projektstart Zum Projektstart wird ein sogenanntes Partner-Team initialisiert, das aus Management-Vertretern Ihres Unternehmens und unseren Projekt-Verantwortlichen besteht. In diesem Kreis wird die Konkretisierung der Planung für den TCO-Check vorgenommen. Das gemeinsame Verständnis für die konkrete Vorgehens-weise, die Zusammenarbeit und die zu erzielenden Ergebnisse wird entwickelt. Der Kreis der in den TCO-Check einbezogenen Kunden-Mitarbeiter wird festgelegt. Kick-Off-Workshop Allen am TCO-Check beteiligten Mitarbeitern des Kunden wird die Vorgehensweise, die Analyse-Methodik sowie das konktete Vorgehen in den Interviews vermittelt. Die Interview-Planung wird vorgenommen und Regeln für die Zusammenarbeit werden vereinbart. Informationserhebung In dieser Phase werden strukturierte Interviews mit den vereinbarten Zielgruppen durchgeführt und durch die gezielte Erhebung relevanter Daten ergänzt. Es kommt ein Leitfaden zur TCO-Analyse zum Einsatz. Durch Einbezug mehrer Management-Ebenen findet ein Cross-Check von Antwortmustern statt. TCO-Check Projekt- start Kick-Off Workshop Informations- erhebung Analyse und Aufbereitung Management- Präsentation process model A process model describes, how a service delivers (definition of process steps, definition of interfaces) resource model Resource models plan the resources needed for service delivery ( staff, materials, IT infrastructure ) Disposition Kontrolle der Prüfausrüstung A ausführend M mitwirkend B beratend Abholung des Schlüssels Reparatur des Fahrzeugs Probefahrt Fahrt zum Flughafen Prüfmittelverwalter Fachabteilungsleiter Disponent Fuhrparkmanager Erfasskraft Reisebüro-Mitarb. Hotline-Agent Kunde Kfz-Mechaniker Kaufm. Sachbearb. A M M M A A A A A M M B Zurückbringen des Schlüssels A M

14. The Gap in Service Engineering Idea finding and assessment Idea finding Idea assessment Product model Enterprise requirements Market requirements Marketing activities Human resource measures Organizational measures Marketing concept Resources model Process model Requirements analysis Service concept Service implementation Service test Employee feedback Customer feedback Roll-out Market launch ? Products are tested in labs, so why not services, too?

15. Testing of new products and new software Selected methods for product tests: – Accelerated Aging Testing – Compression Testing – Fatigue Testing – Flexural Testing – Shock Testing – Tensile Testing – Thermal Shock Testing – Vibration Testing – Usability testing – … Selected methods for software tests: – Boundary value analysis – All-pairs testing – Specification-based testing – Code coverage – Fault injection – Mutation testing – Performance testing – Security testing – User acceptance testing – … Testing is well established in product and software development. The aim is to ensure that the needs both of the company and of its customers are met.

17. Test approach for service concepts Planning Preparation Execution Analysis Documen-tation Evaluation Test approach for service concepts Definition of test team, test group and responsibilities Selection of service functions to be tested Decision on test environment Test scenario identification Analysis of service processes Provision of test, environment, ob-jects and subjects Context-specific know-how delivery Interaction design Performing of test routines Performing of interaction with service theatre Observation through invited stakeholders Feedback collec-tion and implementation Analysis of feed-back and collection of improvements Immediate integration of improvements into test scenario Reporting of all test activities Action plan for the integration of test results into the service Analysis of test process activities and performance Detailed feedback from test partici-pants Creation of final test report Activities Idea manage-ment Require-ments analysis Service concept Service test Service implemen-tation Market launch New service development process

18. Knowledge on Demand ServLab as test platform The ServLab is a platform with extensive options for visualising and testing new service concepts.

19. Business Projects Completed Accor hotel business Tests of check-in variants Employer's liability insurance association for health services and public welfare New consulting service: Design of geriatric facilities focusing on: Fall prevention Siemens Switzerland Test of a new online service titled »Knowledge on Demand« Bergmann sanitation Optimization of sales process, interactional design, training concept

20. Siemens Switzerland: Development of a new service » Knowledge on demand «

21. Knowledge on Demand Test approach Requirements analysis Service blueprint Analysis of critical factors Development of test scenarios Simulation of process Development of measures Simulation of interactions Simulation of environment Process planning Service blueprinting Visualizing the processes BPM tool Process simulation Scripts, personae, service theatre, design of interactions Workshop, mobiTED, direct feedback Virtual reality / second life Designing the service environment

23. Knowledge on Demand Impressions

26. “ Hello …. This is the Police. If you are being attacked from behind by a mad axe-murderer, press ‘One’ ...” Attractive Services won ’t happen accidentally - they need to be designed!

27. Fraunhofer IAO Service Engineering and Management Your contact for further information: Fraunhofer IAO Nobelstr. 12 70569 Stuttgart (Germany) www.iao.fraunhofer.de Walter Ganz phone +49 (0) 7 11/9 70-21 80 fax +49 (0) 7 11/9 70-22 99 [email_address] Models, methods, and tools for new service development Quality oriented design of services R&D management for service providers