TCBL HANDBOOKS
BUSINESS LABS SERVICE CONCEPTS Michele Osella, Elisa Pautasso, Alberto Buzio Istituto Superiore Mario Boella
TCBL 646133 – HANDBOOK RELEASED AS ANNEX 2 TO D6.7 (TASK 6.4)
29th September 2017
Business Labs Service Concepts
646133 - TCBL Textile & Clothing Business Labs
TABLE OF CONTENTS 1
INTRODUCTION ................................................................................................................. 3
2
CONTEXT OF LABS SERVICE DESIGN .......................................................................... 5
3
TOOLKIT DEVELOPMENT ................................................................................................ 8
4
INITIAL SERVICE CONCEPTS PORTFOLIO .................................................................. 12
5
CONCLUDING REMARKS ............................................................................................... 16
APPENDIX – TCBL SERVICE CONCEPTS VISUALS............................................................ 17
INDEX OF FIGURES Figure 1. TCBL Labs operational context ................................................................................... 5 Figure 2. TCBL service design dimensions (source: ISMB, adapted from IDEO) ...................... 8 Figure 3. TCBL Service Design Tool (source: ISMB) ................................................................. 9 Figure 4. Training session in the service design workshop ...................................................... 11 Figure 5. TCBL initial service concepts portfolio ....................................................................... 13 Figure 6. Visual service concept ‘Workplace of the Future’ ...................................................... 17 Figure 7. Visual service concept ‘Open Source Fashion’ ......................................................... 18 Figure 8. Visual service concept ‘Waste Neutralization’ ........................................................... 19 Figure 9. Visual service concept ‘Fabricademy’........................................................................ 20 Figure 10. Visual service concept ‘Sewing Festival’ ................................................................. 21
INDEX OF TABLES Table 1. TCBL Labs activities ..................................................................................................... 6 Table 2. Building blocks of the TCBL Service Design Tool ...................................................... 10 Table 3. Service concepts characterization .............................................................................. 15 Table 4. Service concepts assessment .................................................................................... 15
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1 INTRODUCTION TCBL – as EU-funded project and global movement with responsible innovation in its DNA – supports initiatives and solutions for building a fair, sustainable, and competitive Textile and Clothing industry in Europe. All this happens through an integrated innovation ecosystem that taps into the significant opportunities ushered-in by new digital technologies, emerging production schemes, groundbreaking business models, and valorization of the untapped artisan know-how. The structural backbone of such an ecosystem consists in a EU-wide network of Business Labs1 acting as proximity touchpoints with enterprises – especially the ones falling under the banner of TCBL Associate companies – and local communities. TCBL Labs explore on a daily basis new ways to design, manufacture, and work together, making outcomes shared and exploitable by the surrounding business ecosystem. The vehicle through which this can occur is a variegated portfolio of services targeting a disparate panoply of entities and acknowledging local specificities as well as pressures faced by the industry. As a result, service design is recognized as the main avenue for channeling Labs’ innovation impulses and creative experimentation towards real-world pain relievers and gain creators. Service design at Lab level has become even more central in Y2, when partners responsible for advisory and business support were called on by Lab leaders confronting a number of challenges: • • • •
Uneven experience in designing innovative services. Paucity of experience in new business development. Limited awareness about best-in-class services already available in the TCBL ecosystem. Scarce visibility of the TCBL network as enhancer for service expansion.
Acknowledging this, Labs service design has become an integral part of the project agenda for Y2 as it symbiotically answers two key priorities that lie at the core of TCBL roadmap: • •
Market relevance of TCBL-enabled offerings. Labs sustainability as linchpin in the quest for sustainability of TCBL ecosystem as a whole, especially when the grant period is over.
This two-fold priority is in tune with review recommendations, which asked Labs to develop practical activities with realistic commercial impact resulting into clear, quantified packages of services tailored to specific business categories. As far as Labs service design is concerned, Y2 objectives were: • •
Make available a procedure meant to facilitate Labs in dealing with innovative service design. Provide an initial definition of service concepts offered by TCBL Labs according to a portfolio logic.
Resulting main outcomes – described in the present handbook – are as follows:
1
https://labs.tcbl.eu/
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•
•
Provision of skills and tooling to Lab teams as capacity building action – This comprises a toolkit, a co-creation workshop on service design and a continuous remote advisory by WAAG and ISMB teams, covering respectively T&C technicalities and business development. Initial service concepts portfolio – It is intended as a ‘sneak peek’ of the comprehensive TCBL Labs service portfolio and, at the same time, as a practical exemplification of service concepts that epitomize TCBL values and principles.
Findings of the present handbook are illustrated in a company-friendly manner in the form of visual infographics in Annex 52, with the purpose to attract prospective participants in the industry and stimulate their interest in TCBL vision and services. Concluding these introductory comments, it has to be said that results illustrated in this document are published without disclosing any confidential information having a conspicuous competitive value, which could hamper business development activities that Labs currently have in place.
2
http://www.ismb.it/sites/default/files/Documenti/Research_Docs/TCBL_ServiceConcepts_VisualSummar y.pdf
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2 CONTEXT OF LABS SERVICE DESIGN Before introducing the toolkit conceived for Labs service design and illustrating results obtained, it is worth presenting a number of preliminary observations meant to set the scene. In particular, prior to delving into service prototyping, three important aspects need to be examined with the purpose of appropriately contextualize the service design process into the TCBL setting. Such aspects are as follows: • • •
Target beneficiaries (i.e., to whom the service is offered). Service design pipeline (i.e., how to identify a market opportunity). Service packaging (i.e., how to build a sound service portfolio).
Target beneficiaries As far as target beneficiaries are concerned, Figure 1 visualizes the TCBL operational context, which portrays main Labs’ interlocutors in the TCBL internal value model and, consequently, high-level categories of target segments for Lab services. Drawing on this ‘big picture’, each Lab, besides targeting the industry – especially TCBL Associate companies – provides value to other Labs and to the local community.
Other TCBL Labs
TCBL Lab Community
Industry
Figure 1. TCBL Labs operational context
Service design pipeline Once clarified the target(s) of the value proposition, Labs often struggle to recognize service ideas worth of attention. In particular, a step of proverbial difficulty for Lab leaders is the leap
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from projects3 to services: whilst projects are outcomes of exploratory creative experimentation showcased via the Labs platform – even unique initiatives, sometimes – a service has to be delivered in a repeatable and reliable fashion. Hence, the presence of some criteria acting as reference for selecting promising ideas/initiatives can help very much. The ones set in the TCBL setting are as follows: •
• •
•
Market-readiness, i.e., preparedness for market delivery in terms of comprehension of the target market, competence and resource availability, maturity and dependability of technologies involved, appropriate organizational and communication infrastructures, etc. Monetization opportunities, i.e., revenue generation in the short-run to make the service self-sustainable. Scalability potential, i.e., expansion of the scale to which the service is delivered – and consequent capacity to increase tomorrow’s turnover – through mitigation of capacity constraints, automation, recourse to new channels, onboarding of new segments, smarter pricing mechanisms, etc. Replicability in the TCBL network, i.e., ability of the service to be delivered by another Lab in a different location4.
Service packaging Labs leaders – although equipped with guidelines to short-list promising service concepts – may encounter difficulties in managing the mix of services provided. Ideally, any Lab leader is eager to optimize (scarce) resource allocation and, at the same time, make services interacting and reinforcing one another. To help Labs leaders in creating the mix that best matches internal resources with the opportunities posed by the external environment, Table 1 outlines TCBL Labs activities, which can be seen as reference for clustering services according to their mission. This has been done without any claim of being exhaustive but being confident that the bulk of activities performed by Labs have been reasonably captured.
Table 1. TCBL Labs activities
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Activity type
Description
Examples of related services
Practice-based research
Hands-on creative experimentation generating new knowledge that has operational significance for T&C practitioners
Experimentation programs on new materials, production reconfiguration studies, market sensing reports, technology transfer (of results generated by the Lab)
Design & production
Utilization of internal textile machines, tools, and knowhow to bring design ideas to a
Creative support, digital pattern making, small-scale prototyping, production as a service
https://labs.tcbl.eu/projects
4
It goes without saying that such an attribute does not imply an advantage for the original Lab proposing the service. However, clear benefits arise at ecosystem level since the coverage of the service on the European area increases. Furthermore, other Labs replicating the service somewhere else may act as nodes for a networked delivery model, thus generating value that the original Lab can internalize (e.g., licensing, other Labs redirecting the audience to the original Lab for distinctive or unique offerings).
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Activity type
Description
Examples of related services
fully manufactured product reality Business support
Assistance aimed to facilitate everyday operations of T&C businesses, especially SMEs and micro-companies
On-demand usage of digital equipment, handling of physical materials, co-working spaces, connection with incubation and acceleration programs, business coaching and mentoring
Education & training
Structured actions to equip people with knowledge, knowhow, and skills required in particular T&C-related occupations or needed to reinvent a career
Workforce training, thematic workshops, programs for unemployed and vulnerable groups, access to MOOCs, branded learning materials
Community management
Building and reinforcement of meaningful relationships within the community gravitating around the Lab
Networking and brokerage, event organization, marketing promotion, challenges and contests
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3 TOOLKIT DEVELOPMENT Once the scene has been set, it is time to unveil the tool conceived by ISMB analysts to facilitate Labs service design in the TCBL setting. Such a tool has its root in design thinking5, selected as key solution-based approach for service concept characterization. This choice is grounded on the design thinking nature, which eschews simple (and simplistic) linear approaches, accepts indeterminacy6 and moves nimbly between the abstract and the concrete as well as between analysis and synthesis 7 in search for practical, creative resolution of issues and problems, including ‘wicked’ ones. This reinforces the idea of utilizing elements peculiar to the designers' toolkit – like empathy and experimentation to name a few – to arrive at innovative solutions. According to IDEO, hailed as one of the world's most innovative design firms, design turns into actual results when it integrates the needs of people, the possibilities of technology, and the requirements for business success8. Drawing on this seminal contribution, ISMB analysts portrayed the picture of TCBL service design dimensions (Figure 2).
Desirability
Customer perspective Problem-solution fit
Where the magic happens
Business perspective Product-market fit
Viability
Feasibility
Technological perspective Opportunity-company fit
Figure 2. TCBL service design dimensions (source: ISMB, adapted from IDEO)
First of all, a service concept should be relevant for the market, addressing relevant problems (a.k.a. pains) and opportunities (a.k.a. gains) that generate traction. Once this condition is validated (i.e., problem-solution fit), a service concept has to be evaluated against the yardstick of business sustainability: if the service concept allows the Lab not only to generate value but
5
Rowe, P. G. (1987). Design Thinking. Cambridge: The MIT Press.
6
Buchanan, R. (1992). Wicked Problems in Design Thinking. Design Issues, 8(2), 5-21.
7
Beckman, S. L., & Barry, M. (2007). Innovation as a Learning Process: Embedding Design Thinking. California Management Review, 50(1), 25-56. 8
https://www.ideou.com/pages/design-thinking
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also to appropriate a slice of it – through monetization – while satisfying the market, productmarket fit is met. Moreover, a reality check is needed to assess the practicality of the service concept in view of internal resources available and favorable/unfavorable external conditions (i.e., opportunity-company fit). The three afore-mentioned dimensions have been combined by ISMB analysts into a unique tool, named with the moniker of ‘TCBL Service Design Tool’ (Figure 3). The resulting visual tableau allows any Lab leaders to apply design thinking fundamentals in the process of new service development (or revision of existing services).
Figure 3. TCBL Service Design Tool (source: ISMB)
As the reader may surmise, the TCBL Service Design Tool decomposes the three dimensions into seven building blocks, each of which helps the Lab leader – and potential facilitators – in focusing on a key aspect of the service concept (Table 2).
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Table 2. Building blocks of the TCBL Service Design Tool
Service design dimension
Service design building blocks
Rationale in Labs service design
Desirability
Target segment(s)
Identify, since the inception, to whom the value proposition is addressed (e.g., industry, other TCBL Labs, community) and its profile
Problems/opportunities addressed
Point out needs and benefits tackled
Core resources needed (e.g., physical, human, financial)
Specify which are the key assets and competences that are mandatory for building and delivering the service, in absence of which feasibility is compromised
Fit with Lab types (e.g., D/M/P)
Understand whether the Lab at stake is aligned with the requirements and, potentially, figure out Labs to team up with
Best practices already available
Identify eminent sources of inspiration, especially the ones that are part of the TCBL universe
Monetization opportunities
Ensure a short-term revenue generation logic to kick-start operations
Scalability mechanisms
Delineate tomorrow’s revenue generation logic for increasing the scale in a way that is instrumental to impact expansion
Feasibility
Viability
So far the TCBL Service Design Tool has been distributed to Lab partners in digital and paper format (A0 poster), and it was tested in a half-a-day workshop on service design held in Amsterdam in September 2017. On such an occasion, a number of key informants (e.g., several Labs representatives – some of whom at the helm of Business Cases – and a delegation of new TCBL partners) were invited to join a ‘creative jam’ session aimed to rapidly prototype an initial bundle of service concepts, drawing on the variety of TCBL Lab projects. While the process underlying the formulation of the initial service concepts portfolio is described in section 4, at this juncture it is worth noticing that each service concept depicted was the result of a co-creation process. In fact, each group participating in teamwork activities was led by an internal ‘champion’, supported by a facilitator, and catalyzed by a bunch of other participants bringing a fresh perspective and helping to ‘connect the dots’ into the TCBL ecosystem. This workshop was accompanied by a preliminary training session (Figure 4) offered to Lab leaders and a continuous remote advisory by WAAG and ISMB teams, covering respectively T&C technicalities and business development. As part of capacity building initiatives, possible follow-ups have been investigated and will be actualized in Y3.
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Figure 4. Training session in the service design workshop
Finally, outcomes of fieldwork activities and feedback collected from workshop participants seem to suggest that TCBL Service Design Tool has not to be seen as a stand-alone entity. Conversely, TCBL Value Mapping Tool9 can act as possible companion for understanding value generated by the service and anticipating impact implications.
9
http://www.ismb.it/sites/default/files/Documenti/Research_Docs/TCBL_ValueModeling_Annex.pdf
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Business Labs Service Concepts
646133 - TCBL Textile & Clothing Business Labs
4 INITIAL SERVICE CONCEPTS PORTFOLIO TCBL Consortium decided to unveil the initial service concepts portfolio in Y2 to make available well in advance a downsized yet meaningful preview of the comprehensive TCBL Labs service portfolio, which will be finalized by the end of the project. Incidentally, it also represents an opportunity to provide a flavor of the richness and diversity residing in TCBL creative experimentation. The process of service selection drew on TCBL Lab projects, which have been gathered in a unique long-list by combining the Labs projects featured in the TCBL Web archive with the ones spontaneously reported by Labs leaders who participated in the service design workshop. To select a short-list of service concepts out of this wide-ranging collection of Lab projects (i.e., 40+ entities), criteria used were as follows: • • • •
Market-readiness, with the intent to minimize time-to-market. Good coverage of the Labs activity spectrum, to reflect the breadth of TCBL scope. Balanced relevance for stakeholders, to ensure that all categories belonging to the Labs operational context (i.e., industry, other TCBL Labs, community) are targeted. Capacity to express TCBL identity, with the idea to practically exemplify TCBL values and principles in action.
At first, market-readiness was assessed through the identification of internal ‘champions’: this was done asking Lab leaders – on the occasion of the service design workshop – to step forward if they were already delivering or were in the process of developing services included in the TCBL Lab projects initially collected. Service concepts short-listed in this way were then clustered by Labs activity to gauge the representativeness of activity types outlined. Subsequently, service concepts belonging to the five clusters were filtered by workshop participants with the idea of prioritizing the ones that stand out in epitomizing TCBL identity. The remaining service concepts went finally through a collective rating provided again by workshop participants. This time participants were asked to assign for each service concept a dot sticker in correspondence to the stakeholder category that would best benefit from the service being delivered. As it usually happens in similar ‘dotmocracy’ approaches, outcomes at service concept level were based on cumulative voting. At that point, the mix of five service concepts was chosen with the principle of balancing industry-oriented, Lab-oriented, and community-oriented entities. The selected service concepts composing the TCBL initial service concepts portfolio are: • • • • •
Workplace of the Future Open Source Fashion Waste Neutralization Fabricademy Sewing Festival
Figure 5 characterizes selected service concepts by putting them in relation to Labs activities and the relevance for TCBL stakeholders (i.e., industry, other TCBL Labs, and community).
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Business Labs Service Concepts
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Labs activities
Relevance of the service concept for stakeholders
Selected service concept
Practicebased research
Workplace of the Future
Design & production
Open Source Fashion
Business support
Waste Neutralization
Education & training
Fabricademy
Community management
Sewing Festival
High
Medium
Low
Legend:
Other TCBL Labs
Industry
Community
Figure 5. TCBL initial service concepts portfolio
The following paragraphs contain a brief description of the selected service concepts. Workplace of the Future is an advisory practice oriented to T&C organizations experiencing skills shortage, competitive decline, and limited absorptive capacity when it comes to digital technologies. Such T&C organizations are thus immersed into incubation programs in which they can experiment with ‘factories of the future’ environments enabled by the latest digital technologies and organizational models. As part of these programs, T&C organizations have access to physical experimentation spaces provided with a whole range of advanced textile machines and IT equipment, being constantly supported by multidisciplinary researchers. Once completed such an experience, enrolled companies will have discovered the possibilities of digitally-enabled production flexibility (e.g., short runs) and will be in the position to fruitfully absorb new digital technologies and related skills, turning ultimately knowledge-intensity into competitive advantage. Workplace of the Future is currently under development, building on a nascent alliance among several Labs. Open Source Fashion is a service that combines the digital fabrication paradigm with distributed manufacturing principles. It results into an on-line marketplace globally accessible where customers keen on experimentation can explore a variety of garments realized by emerging designers from all over the world. All products – fully accessible in a digital format – are ‘open source’ and sold ready for use, assembly or fabrication, giving people the possibility to produce them on-demand in next-door Fab Lab. A model in this vein allows fashion consumers to customize quality products – thus overcoming the ingrained S, M, L and XL universal standards – and to manufacture them on a proximity basis while resorting to local ecosustainable suppliers for raw materials. Open Source Fashion is currently implemented by Fab
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Textiles as experimental project of digital couture, with the collaboration of the international Fab Lab network. Waste Neutralization is a business support service providing matchmaking mechanisms that connect T&C manufacturers trapped in complex waste disposal with a wealth of entities active in recycling and material reuse. A similar model, especially suitable for local scale implementation, operationalizes circular reuse of various textile materials through reverse logistics: the service provider moves goods from their typical final destination for capturing untapped value through restorative and regenerative practices performed by other companies. This happens with (1) recycling companies, even far from the textile sector (e.g., insulation, papermaking); (2) charities and NGOs, which can get raw materials for free and transform them how they wish; (3) conscious consumers, who are served through eco-retailers of recycled and reused products. Waste Neutralization is nowadays offered by REDU in the local T&C district. Fabricademy is a new-generation textile academy based on distributed, shared and open education. It is made up of transdisciplinary courses that focus on the development of new technologies applied to the textile industry in its broad range of applications, from the fashion realm to the upcoming wearable market. By combining the knowledge of traditional craftsmanship with an in-depth comprehension of the latest discoveries, Fabricademy equips students and professionals with a unique blend of skills concerning new ways of designing, prototyping and producing. From the organizational standpoint, Fabricademy hinges on a decentralized education model in which students learn together in local workgroups, supported by high-caliber trainers and mentors to whom they are connected globally by content sharing and video for interactive classes. Fabricademy is currently implemented as joint venture of Fab Textiles and TextileLab Amsterdam partially backed by TCBL. Sewing Festival deals with the serial organization of public events meant to gather people from every walk of life for a day of sewing, knitting, and embroidery. Building on the make-do-andmend trend and taking inspiration from sewing cafés popping up across Europe, Sewing Festival intends to promote the art of sewing through a learning-by-doing approach facilitated by a nice and friendly atmosphere. In addition, these events represent an unparalleled chance to engage groups that are traditionally under-represented in sewing circles (e.g., men and millennials), stimulate conscious consumption, and cultivate ‘circular’ repairing and reusing practices in the local community. Sewing Festival events are made possible by sponsorships coming from local businesses interested in visibility (e.g., haberdasheries), companies interested in talent recruiting, and CSR investments. While initiatives in this vein abound, Sewing Festival was already held in Palermo (where the ‘champion’ Fabbrica ARCA is headquartered), albeit organized by a different entity. A new edition powered by TCBL is under consideration. The five service concepts prototyped by means of the TCBL Service Design Tool are reported in the Appendix, to which the reader is referred for all details. While visuals reported in the Appendix are self-explanatory and capable of providing a concise illustration of how each service works, Table 3 recaps main characteristics of such services.
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Table 3. Service concepts characterization
Selected service concept
Labs activity type
Internal ‘champion(s)’
Segments addressed
Fit with Lab types
Workplace of the Future
Practicebased research
TCoE Make Lab
T&C businesses undertaking transitions (e.g., companies scaling down, Independents scaling up)
Place, Making
Open Source Fashion
Design & production
Fab Textiles
Fashion designers, end consumers, raw material companies (especially innovative ones), manufacturing nodes (Fab Labs and TCBL Labs)
Design, Making
Waste Neutralization
Business support
REDU
Local T&C manufacturers, recyclers, end consumers willing to buy recycled and reused products, charities and NGOs
Place
Fabricademy
Education & training
Fab Textiles and TextileLab Amsterdam
Students in search for a new type of textile education, textile professionals willing to reinvent themselves, worldclass experts and teachers, partner nodes (including Fab Labs and TCBL Labs)
Design, Making
Sewing Festival
Community management
Fabbrica ARCA
Everyone, especially adult men, children and students
Place
Finally, service concepts elaborated are succinctly evaluated in Table 4 against the yardstick of criteria defined in section 2.
Table 4. Service concepts assessment
Selected service concept
Marketreadiness
Monetization opportunities
Scalability potential
Replicability in the TCBL network
Workplace of the Future
Medium
Medium
Low
Medium
Open Source Fashion
High (already in place)
Medium
High
High
Waste Neutralization
High (already in place)
Medium
Medium
Medium
Fabricademy
High (already in place)
High
High
High
Sewing Festival
High (already in place but organized by a different entity)
Low
Medium
High
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5 CONCLUDING REMARKS Shining a spotlight on the envisaged legacy of TCBL project, it consists of four communities (i.e., Associate Labs, companies, service providers, and advisors), which are accompanied by assets such as TCBL Open Platform, TCBL brand, and the format of TCBL annual conference. In such a context, Labs represent the main structural component of the resulting ecosystem, as they will carry forward the main activities after project completion and will continue to remain the touchpoint with TCBL ecosystem for both enterprises and local communities. As a result, permanence and growth of Lab network passes necessarily through comprehension of sectoral dynamics and consequent capacity to deal with industry’s needs in a creative and time-effective fashion. On these bases, Labs activities – coupled with enabling services made available by Associate service providers through TCBL Open Platform – become the backbone of a thriving TCBL ecosystem. Acknowledging such a priority for Y3 and Y4 roadmap, next steps can be as follows: • • • • •
Expansion of the capacity building action in the field of new service design (e.g., handbook, workshop, ‘crash course’). Characterization of ‘personas’, intended as fictional business types representing recurring companies targeted by TCBL. Initiatives for fostering exchange of practices among Labs. Gradual consolidation of the comprehensive TCBL Labs service portfolio. Evaluation of the uptake of the TCBL Labs service portfolio (e.g., through innovation accounting).
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APPENDIX – TCBL SERVICE CONCEPTS VISUALS
Figure 6. Visual service concept ‘Workplace of the Future’
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Figure 7. Visual service concept ‘Open Source Fashion’
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Figure 8. Visual service concept ‘Waste Neutralization’
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Figure 9. Visual service concept ‘Fabricademy’
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Figure 10. Visual service concept ‘Sewing Festival’
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