Designing and defining a new service-centred business offering

To support a move from product-based solutions, Engine were engaged for over a year by a new ventures team at Philips Lighting to define a new service-centred business model and related service propositions for them to take to market.

The first wave of the new venture has been launched in the retail sector. The offer provides a platform of rich tools and services for retailers to effectively manage their assets and customer touchpoints to deliver an enhanced and profitable in-store experience. It delivers a reliable infrastructure that allows retailers to build trust in technology. It enables the creative use of assets to tell better stories around a store’s products and services and includes behavioural tracking to measure impact and to adapt the experience. The model is also adaptable to other sectors, including healthcare.

Philips had already developed an innovative concept for a new software solution. However, they recognised the need to establish a service platform for delivering a higher level of value to their clients operations and ultimately to the in-store experience in order to break into and lead the market.

The team set out to understand the current service landscape and to identify the opportunity for improvements and innovation. The team had to consider how to establish a sustainable new service platform and the role of Philips, affiliates and associated enterprises in its growth. 


Rapid development of early business model

A cornerstone of the work was the establishment of a set of design principles to guide the service design and delivery. These were clear articulations of what the user experience should be like, both in general and specific to the type of touchpoint involved: in digital, in person, in store or otherwise. These were informed by customer insight, existing brand values and business goals.

At the heart of the service design was a technology solution - a remarkable new software platform to help retailers to manage a wide range of customer-facing assets across their premises. The platform is delivered with a range of professional support services in relation to the use of the platform, the generation of compelling customer experiences, and the supply and use of the right assets.


Proposition development with stakeholders

The project started with a review of initial ideas and existing research, and a workshop around the potential purpose and value of a service-centred solution, including an assessment of what Philips should and could offer. This informed a brief for what the team needed to learn in terms of the market, their target users and the opportunity space.

The following 3 months involved interviewing and co-design exercises with retail store owners, managers, employees, retail concept designers, interaction designers, interior designers, technologists and marketing executives. Insights were used to refine thinking around the business model and service offers and to align the two as part of a logical growth strategy.

An internal assessment was made on the potential value to the business of these models and the next round of venture funding was secured. 

The project entered a design phase where we generated detailed concepts and designs for the service offers for review and refinement with target customers. During this phase the service design principles were also defined and the business model refined.

Examples of development sketches and proposition communication

An illustration of the service proposition and accompanying assets from the PRS website

The result is the creation of a cohesive and compelling vision of the business and the service offer, right down to detailing business roles and hardware and software features.

The project was co-presented by Engine and Philips at the Service Design Network conference in Berlin, October 2010, where we also co-presented our work with the Portuguese Airport Authority on establishing and delivering a new passenger-centred service strategy.