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Robert Bau 2/1/25 Robert Bau 2/1/25

Let’s (not) get (too) physical, physical • 7

Thinking services instead of products: Circularity > Linearity

While the shift from products to services – often referred to as servitization – is far from new, it remains a powerful framework for manufacturing companies and digital-first startups looking to embrace customer-centric, service-dominant business models. This blog post wraps up my seven-part series on thinking services instead of products, with a look at the Circularity Over Linearity principle.

7. Circularity > Linearity

The Circularity Over Linearity principle is about adopting circular business models and practices within business and experience ecosystems to reduce environmental impact and drive systemic change. Circularity refers to an economic system designed to eliminate waste and pollution, keep products and materials in use, and regenerate nature (Ellen MacArthur Foundation, n.d.). This approach contrasts sharply with linear take-make-dispose models.

Innovating and designing for circularity includes, but is not limited to:

Fostering a culture of circularity among employees and ecosystem partners
Designing and operationalizing circular business models
Embedding circular principles and practices in portfolio management, lifecycle management, and end-to-end NPD
Designing products with circular properties
Closing the loops
Creating platforms for access and sharing
Cultivating circular mindsets & behaviors in daily life

In the context of servitization and value co-creation, organisations can design supplementary services that enable individuals and groups to integrate circular mindsets, practices, and behaviors into their personal and professional lives (loosely based on Bau 2006, 2010, 2011, 2015). See my blog post about the Solutions Over Products principle for an introduction to supplementary services and service packages.

For this discussion, I highlight what servitization might mean for closed-loop systems, sharing platforms, and circular mindsets & behaviors (adapted from my blog posts Going for gold • 5 and Let’s (not) get (too) physical, physical • 1).

Note: Unlike a product-centric approach, a genuine service design mindset embeds platform thinking, product-service systems, value co-creation, end-to-end experiences, user/local communities, and a multi-actor perspective into conversations about circularity and sustainability.

Closing the loops

Closing the loops is key to reducing waste, extending product lifecycles, promoting reuse, and retaining the value of materials.

In the context of servitization, organizations can develop desirable and effective systems, services, and experiences for:

Providing or ensuring care and maintenance to extend product lifespans and optimize performance
Facilitating refurbishment and repair to restore functionality and value
Upgrading products and solutions to enhance utility and relevance
Repurposing and upcycling products or components to unlock new uses and applications
Extracting maximum value from resources by repurposing them in stages across various uses (a process known as cascading)
Connecting disused products or components with new markets or users (a process known as redistribution)
Restoring and reselling products or components at scale (a process known as remanufacturing)
Supporting recycling initiatives to recover valuable materials and components effectively
Encouraging responsible disposal as a last-resort option in circular systems

Note: Products with circular properties enable closed-loop systems; for example, designs that are modular or simple to disassemble make maintenance and repair loops more efficient and effective. In turn, circular loops reinforce circular design by delivering valuable insights into the performance of products and components, driving continuous feedback and adaptation even after market launch.

Examples: Caterpillar's remanufacturing program restores used equipment and components to like-new condition, extending product lifespans, reducing waste, and offering cost-effective solutions to customers (1973–present). Desso takes back used carpets and recycles them into new products, creating a closed-loop system that conserves resources, reduces landfill waste, and minimises environmental impact (2008–present). Loop, TerraCycle's reusable packaging initiative, partners with major brands to provide durable containers for everyday products; these containers are collected, cleaned, and refilled, creating a closed-loop system that reduces single-use packaging waste and promotes sustainable consumption (2019–present).

BMI Lab’s circular economy patterns associated with closed-loop systems include:

Eco Robin Hood. Redistributing excess or unused resources, such as materials, energy, or products, to those who can repurpose them effectively. Donating a share of revenue to support sustainable or social projects. Providing affordable services or refurbished products to underserved communities.
Incentivized Take-Back. Encouraging customers to return used products or materials to the organization for reuse, refurbishment, remanufacturing, or recycling. This is achieved by offering incentives such as discounts, loyalty points, cash, or other rewards.
Maintenance & Repair. Extending the lifecycle of products by keeping them in optimal working condition through regular upkeep and repairs.
Part-Reuse. Salvaging and reusing functional components from end-of-life products or systems to create new products or restore existing ones.
Product-Reuse. Extending the lifecycle of products by enabling them to be reused multiple times, either by the same user or by transferring them to new users.
Recycling. Maintaining or recovering material value by mechanically or chemically converting ‘waste’ products or materials into new materials or products.
Reverse Logistics. Creating systems and processes to move products, materials, or packaging back from the end-user to the producer or another point in the supply chain.
Waste as Input. Searching for and developing ecologically and socially reasonable applications for used resources, by-products, and post-consumer waste.

(Slightly adapted from Takacs et al., 2020.)

Creating platforms for access and sharing

Creating platforms for access and sharing empowers customers to experience, utilise, and benefit from assets and resources without the burdens and costs associated with ownership. Common service models include peer-to-peer sharing platforms, subscription-based services, and performance-based contracting. For a deeper dive, see my blog post on the Access > Ownership principle.

Examples: Turo allows car owners to rent out their personal vehicles to others through a peer-to-peer car-sharing marketplace (2010–present). Floow2 enables businesses to share equipment, office space, and even staff with other companies to maximize resource efficiency (2012–present). Cohealo helps healthcare facilities share medical equipment with other institutions, optimizing the utilization of costly resources (2013–present).

BMI Lab’s circular economy patterns associated with platforms for access and sharing include:

Dynamic Pricing. Adjusting prices based on real-time demand, availability, or usage patterns, helping to optimize resource allocation and reduce waste.
Fractionalized Ownership. Enabling multiple users to share ownership of a single product or asset.
Pay-per-Use. Offering access to products or services on a usage basis, enabling customers to pay only for what they use.
Performance-Based Contracting. Providing access to high-value solutions without the burden of ownership, with payment tied to measurable outcomes such as engine uptime, energy savings, or system availability.
Rent Instead of Buy. Facilitating short-term access to products or assets through rental agreements.
Sharing. Optimizing resource, asset, and product usage by facilitating shared access among multiple users instead of limiting to individual ownership.
Subscription. Offering access to products or services over a set period in exchange for a recurring fee.

(Slightly adapted from Takacs et al., 2020.)

Cultivating circular mindsets & behaviors

Cultivating circular mindsets & behaviors lays the foundation for sustainable living, resilient communities, and regenerative economies.

In the context of servitization, organizations can develop desirable and effective platforms, services, and experiences for:

Building awareness and knowledge (through supply chain transparency, interactive tutorials, content recommendations, learning paths, etc.)
Sharing practical tools for action (such as adaptive checklists, carbon footprint calculators, resource trackers, and self-repair kits)
Delivering actionable insights (through real-time feedback, personalized dashboards, predictive analytics, simulations, etc.)
Incentivizing sustainable behavior (through gamification, tangible rewards, tiered loyalty programs, take-back programs, etc.)
Building communities and fostering engagement (around causes like climate action or biodiversity conservation)
Supporting and scaling community-based micro-services (such as bicycle self-repair workshops or local refill stations)
Encouraging customers to participate in sustainable or circular initiatives (such as donation programs or community recycling projects)

Examples: Patagonia’s Worn Wear program encourages customers to repair, reuse, and recycle their outdoor gear through trade-in options, repair guides, online resale shop, and events that promote sustainable living (2012–present). Too Good To Go connects consumers with surplus food from restaurants and stores, helping reduce food waste while educating users about sustainable consumption (2015–present). OLIO fosters local sharing of surplus food and household items, enabling communities to reduce waste and embrace circular behaviors in daily life (2015–present).

BMI Lab’s circular economy patterns associated with circular mindsets & behaviors include:

Crowdfunding and public funding. Engaging individuals or institutions to fund circular economy projects or initiatives, leveraging collective support to drive sustainable innovation and impact.
Eco Robin Hood. Redistributing excess or unused resources, such as materials, energy, or products, to those who can repurpose them effectively. Donating a share of revenue to support sustainable or social projects. Providing affordable services or refurbished products to underserved communities.
Incentivized Take-Back. Encouraging customers to return used products or materials to the organization for reuse, refurbishment, remanufacturing, or recycling. This is achieved by offering incentives such as discounts, loyalty points, cash, or other rewards.
Maintenance & Repair. Extending the lifecycle of products by keeping them in optimal working condition through regular upkeep and repairs.
Product-Reuse. Extending the lifecycle of products by enabling them to be reused multiple times, either by the same user or by transferring them to new users.
Recycling. Maintaining or recovering material value by mechanically or chemically converting ‘waste’ products or materials into new materials or products.
Revenue sharing. Collaborating with partners, stakeholders, or communities to share profits generated from circular economy initiatives, aligning incentives and fostering mutual value creation.
Reverse Logistics. Creating systems and processes to move products, materials, or packaging back from the end-user to the producer or another point in the supply chain.
Signalling & Transparency. Providing clear, accessible, and reliable information about a product’s sustainability credentials, lifespan, and end-of-life options.
Sharing. Optimizing resource, asset, and product usage by facilitating shared access among multiple users instead of limiting to individual ownership.

(Slightly adapted from Takacs et al., 2020.)

Benefits

Empowers end-users to adopt sustainable behaviors and circular practices
Reduces environmental impact by minimizing waste, optimizing resource usage, and lowering emissions
Cuts production costs by improving resource efficiency and reducing material waste
Improves operational efficiency through streamlined processes and waste reduction
Ensures compliance with evolving ESG standards and regulatory requirements
Unlocks new revenue streams through circular business models and offerings (such as performance-based contracting)
Drives innovation and differentiation
Enhances brand reputation by demonstrating leadership in sustainability and circularity
Fosters a culture of circularity and sustainability
Encourages continuous feedback, learning, and adaptation

See also

References

Bau, R. (2006). Design av tjänster och upplevelser [Design for services and experiences]. Part of Executive education in Design Management [unpublished training material]. Berghs School of Communication.

Bau, R. (2010, December). Ten strategy paradoxes in service Innovation and design. Paper presented at ServDes 2010 (Service Design and Innovation Conference), Linköping, Sweden.

Bau, R. (2011, December). Strategy paradoxes in service innovation and design. In: Cai et al. (Eds.), Design Management: Toward a new era of innovation. Proceedings from the 2011 Tsinghua-DMI International Design Management Symposium, Hong Kong, China. IDMA.

Bau, R. (2015). Thinking services instead of products. In: Service Design Boot Camp, Day 1 [unpublished training material]. Veryday.

Ellen MacArthur Foundation (n.d.). What is a circular economy?

Takacs, F., Stechow, R. & Frankenberger, K. (2020). 40 circular economy pattern cards. BMI Lab.

Robert Bau 1/1/25 Robert Bau 1/1/25

Let’s (not) get (too) physical, physical • 6

Thinking services instead of products: Members > Users

While the shift from products to services – often referred to as servitization – is far from new, it remains a powerful framework for manufacturing companies and digital-first startups looking to embrace customer-centric, service-dominant business models. In this blog post, I explore the Members Over Users principle, one of seven ways to think services instead of products.

6. Members > Users

The Members Over Users principle is about building vibrant, connected communities around shared interests, practices, and products. In the context of servitization and value co-creation, a community is seen as a supplementary service that fosters symbiotic relationships not only among members but also between members and the brand. These communities can be created and managed by the brand, by third parties, or by the members themselves. (Loosely based on Bau 2006, 2010, 2011, 2015.) See my blog post about the Solutions Over Products principle for an introduction to supplementary services and service packages.

Note: Unlike a brand-led, product-centric approach, a genuine service design mindset integrates platform thinking, peer-to-peer interactions, value co-creation, end-to-end experiences, and a multi-actor perspective into the community-building process.

Communities can be categorized in various ways, including by purpose, focus, channel, user type, engagement level, ownership, or stewardship. For this discussion, I focus on five purpose-driven types:

Learning and development
Troubleshooting and problem-solving
Product development & modification
Brand engagement & advocacy
Activism and advocacy

Note: This list is intentionally neither exhaustive nor mutually exclusive. Each type is channel-agnostic, meaning it can exist in a digital, virtual, physical, or hybrid format. Social networking and P2P sharing – two common community practices – are inherently embedded across all types.

(Inspired by Sethuraman, 2021; Community-Led, 2022; Common Room, 2022; Disco, 2023; NAS.io, 2023; Forbes Communications Council, 2024; and Forbes Technology Council, 2024.)

Communities for learning and development

Why it matters

Communities for learning and development are collaborative hubs where members enhance their knowledge, skills, and expertise around specific domains, practices, or products (e.g., accounting, home decor, or organic food). By sharing resources, engaging in discussions, and showcasing projects, these communities empower individuals to grow together, sharpen their expertise, and contribute to collective progress while fostering a sense of belonging and shared purpose.

How it works

Communities for learning and development thrive on collective intelligence, operating as dynamic ecosystems where knowledge is both consumed and created. Members exchange ideas, share best practices, and solve challenges in their field. Activities often range from casual Q&A sessions to structured workshops, webinars, and collaborative projects.
Some communities adopt the ‘community of practice’ model, emphasizing collective expertise in a particular domain. Others focus on providing curated content, such as online courses or skill-building challenges, enabling members to progress in a structured way. These platforms create a virtuous cycle: members come for the resources and stay for the connections, learning not only from experts but also from their peers.

How it benefits members

Provides access to expert insights, exclusive learning materials, and peer support
Enables direct interaction with subject-matter experts and thought leaders, offering unique perspectives
Creates opportunities to connect with like-minded peers, mentors, and collaborators
Offers a safe, supportive environment to ask questions, share experiences, and discuss ideas without fear of judgment
Fosters a nurturing atmosphere that builds confidence and promotes a sense of belonging
Delivers formal recognition, such as certificates, badges, or public acknowledgment for milestones achieved
Supports continuous learning to enhance personal and professional growth

Examples: Dribbble [sic] is a community for designers and creative professionals to share, grow, and get hired (2009–present). TeacherTube is an online platform where educators share instructional videos, lesson plans, and other teaching resources (2007–present). The official Cricut community on Facebook provides a platform for crafters and makers to motivate, inspire, and help one another (2014–present). BabyCenter is a community where parents connect to discuss parenting challenges, share advice, and find solutions for everything from newborn care to adolescent issues (1997–present).

Communities for troubleshooting and problem-solving

Why it matters

Communities for troubleshooting and problem-solving provide a space for members to tackle challenges, resolve issues, and share solutions. By blending peer support with brand-led assistance, they address not only technical issues but also broader pain points that arise across the journey – from ‘Learn & Buy’ to ‘Repurpose, Resell, or Recycle.’ For members, these communities foster empowerment and self-reliance. For brands, they offer valuable insights to improve products, services, and experiences.

How it works

Peer support serves as the foundation, with experienced users and experts playing a pivotal role in helping others. Members share their knowledge, provide step-by-step solutions, and offer innovative workarounds based on their personal experiences. This exchange fosters a sense of mutual reliance, as members learn not only how to resolve specific issues but also how to anticipate and address similar challenges in the future.
Brands complement peer support by providing structured, authoritative resources that enhance the troubleshooting experience. Resources can include FAQs, detailed instructional guides, video tutorials, or live troubleshooting events designed to address common pain points. By actively participating in these communities, brands help bridge gaps in knowledge and ensure accurate information is available.

How it benefits members

Provides immediate access to a diverse pool of insights and creative solutions from peers and experts
Offers faster resolution of problems, delivering quick relief from disruptions and pain points
Enables members to learn proactive troubleshooting strategies, helping them avoid future frustrations
Empowers members to become more self-reliant, building their skills in identifying and resolving issues independently
Fosters a supportive environment that encourages collaboration and recognises members for their contributions
Broadens perspectives on challenges, often leading to the discovery of innovative fixes or workarounds

Examples: Apple Support Community is a forum where Apple users can ask questions, share solutions, and receive support from both fellow users and Apple experts (2004–present). Houzz Community is a space for homeowners, renters, and professionals to solve problems related to home improvement, interior design, and landscaping (2009–present). PatternReview.com is an online platform where sewing enthusiasts share reviews of patterns, offer advice on garment construction, and troubleshoot sewing challenges (2001–present).

Communities for product development & modification

Why it matters

Communities for product development provide a platform for members to actively participate in R&D, innovation, and NPD processes. This collaborative approach transforms research and product development from a one-sided effort to a shared journey, placing the voice of the consumer at the heart of innovation. For brands, it means creating solutions that better align with real-world needs and expectations. For members, it offers the chance to shape the brands and products they care about.
Communities for product modification provide a space for members to share inspiration and ideas for adapting, enhancing, or personalizing products after purchase – often in ways not anticipated by the manufacturer. For members, it empowers them to customize products for their individual needs. For brands, it reveals valuable insights and sparks ideas to drive future innovation efforts. See also my blog post on the Individualization Over Standardization principle.

How it works

In research, innovation, and design processes, designers and members collaborate as equal partners, bringing their unique expertise and perspectives to the table. Designers employ methods such as crowdsourcing, generative research, exploratory prototyping, rapid experimentation, and beta testing to co-envision, co-design, and co-test new products and product-service systems with members. This highly collaborative approach ensures the final solutions reflect the real needs and preferences of the people who will use or interact with it. For a lighter-touch approach, innovation and design teams can solicit feedback from members throughout the process, incorporating their input to shape key design decisions.
Post-purchase, members actively share ideas, tools, and creative techniques for adapting products to better meet their unique needs and preferences. Brands that embrace post-purchase customization actively support these efforts by offering inspiration, DIY guides, tools, templates, interchangeable components, and digital upgrades.

How it benefits members

Empowers users by giving them a voice and agency in shaping solutions that impact their lives
Provides exclusive opportunities to influence the development of brands and products they care about
Offers chances to learn new skills through hands-on co-creation and customization
Recognises members as part of a creative, collaborative community
Builds deeper connections with the brand through active participation and shared innovation
Delivers personalized solutions that meet individual needs, preferences, and pain points

Note: For an in-depth exploration of open design, see van Abel et al., 2011; for generative research, refer to Sanders & Stappers, 2012; and for rapid experimentation, consult Bland & Osterwalder, 2019, and Thomke, 2020. For a deep dive on post-purchase customization and the democratization of innovation, see von Hippel, 2005.

Examples: Copenhagen’s Bike City Plan is a collaborative urban design project where residents worked with urban planners and city officials to create a cycling-friendly infrastructure (2009–present). LEGO Ideas is a platform where enthusiasts submit designs for new LEGO sets and vote on their favourites, with top-voted designs considered for production by LEGO (2008–present). ModCloth's 'Be the Buyer' program invited customers to vote on clothing samples, determining which designs would go into production (2009–2014). IKEA Hackers is a community where enthusiasts share ideas for modifying and repurposing IKEA furniture into custom configurations (2006–present). Bethesda Softworks empowers players to customize and expand games like Skyrim and Fallout through its Creation Kit, fostering a vibrant modding community and extending game lifecycles (2011–present).

Communities for brand engagement & advocacy

Why it matters

Communities for brand engagement and advocacy build loyalty, retention, and emotional connections between the brand and their fans. By fostering a sense of belonging and shared purpose, these communities not only encourage retention but also turn loyal fans into advocates who amplify the brand’s reach and influence.

How it works

Brands often strengthen connections with fans through tiered loyalty programs, exclusive experiences, and experiential rewards. Brands can also create communities where fans feel recognized, appreciated, and valued. In these spaces, fans connect with one another, share content, and celebrate their passion for the brand. Fans may gain access to early or exclusive products, features, content, and events, fostering a sense of inclusion and privilege. They can also contribute ideas, vote on new designs, and participate in beta testing programs. While many of these communities are brand-led, they can also emerge organically, fueled by the enthusiasm and creativity of fans.
In these communities, brands can encourage and incentivize fans and influencers to become active promoters and advocates. Brand advocates may share testimonials, create content, participate in referral programs, and take on ambassadorial roles. In exchange, they receive exclusive rewards, recognition, and opportunities to connect more deeply with the brand.

How it benefits members

Provides access to exclusive rewards, early product launches, and personalized experiences
Fosters a sense of belonging by connecting members with like-minded individuals who share similar values and interests
Offers recognition and pride in contributing to the brand’s growth and success
Deepens emotional connections to the brand, creating a stronger sense of alignment and purpose
Empowers members to shape the brand’s direction through feedback, participation in campaigns, and co-creation opportunities

Examples: Marriott International's loyalty program, Marriott Bonvoy, provides members exclusive benefits and personalized experiences across its extensive portfolio of hotels and resorts (2019–present). Peloton’s community members organize group rides, create workout challenges, and share their fitness journeys on social media (2014–present). Sephora's Beauty Insider Community is an online platform where beauty enthusiasts can share tips, product recommendations, and reviews (2017–present). The Weber Grills Fan Group on Facebook is a community where barbecue lovers share tips, seek advice, and exchange ideas for perfecting their grilling techniques (2015–present). IDEAL OF SWEDEN is a fashion accessory brand that leverages the Brandbassador platform to connect with passionate fans and influencers who promote their products in exchange for rewards (2017–present).

Communities for activism and advocacy

Why it matters

Communities for advocacy and activism empower members to advocate for causes like climate action, racial equality, LGBTQ+ rights, and economic justice, providing a collective voice to influence policies and drive systemic change. By connecting like-minded individuals and organizations, these communities raise awareness, amplify impact, and foster a sense of belonging among those committed to social good.

How it works

Communities for advocacy and activism serve as platforms for collective action and collaboration. Members work on initiatives that create tangible impact or advocate for changes in laws, regulations, or public policies aligned with their cause. These communities provide tools, resources, and networks to empower effective action. Examples include educational guides, petition templates, online forums for networking, digital platforms for campaign coordination, spaces for in-person meetings, mentorship from experienced advocates, and training sessions on public speaking or community organizing.

How it benefits members

Provides tools, resources, and education to take meaningful action on issues they care about
Creates a sense of purpose by aligning individual values with collective goals
Fosters personal growth by actively participating in initiatives, engagements, and skill-building workshops
Builds connections with like-minded individuals, organizations, and influencers
Cultivates a sense of belonging within a supportive, purpose-driven community

Examples: Patagonia’a Action Works platform connects individuals with grassroots environmental organizations to take collective action on pressing ecological issues.(2018–present). Ben & Jerry’s champions social justice by mobilizing and fostering a coummunity of advocates who push for systemic change (2000s–present). TOMS’ One for One Movement builds a community of advocates by linking every purchase to social impoact, from donating shoes to supporting clean water and mental health inititiatives (2006–present). Lululemon’s ‘Here to Be’ program amplifies voices, funds projects, and create opportunities that promote equitable access to fitness, mindfulness, and personal growth (2016–present).

Organizational benefits

Fosters peer-to-peer connections, laying the groundwork for a thriving community
Amplifies brand reach and generates social proof
Builds brand trust and affinity
Builds strong, lasting relationships that enhance NPS, increase CLV, and drive loyalty
Mitigates innovation risk and reduces product development costs (through co-creation and high-quality feedback loops)
Delivers valuable insights and inspiration for future innovation efforts
Lowers support and service costs through community-led solutions
Decreases reliance on paid acquisition channels
Encourages innovation in value creation, value co-creation, and value facilitation (see my blog post Get the balance right! • 2)
Drives differentiation and builds brand equity
Drives continuous feedback, learning, and adaptation

See also

The Circularity Over Linearity principle will be covered in the next blog post.

References

Bau, R. (2010, December). Ten strategy paradoxes in service Innovation and design. Paper presented at ServDes 2010 (Service Design and Innovation Conference), Linköping, Sweden.

Bau, R. (2015). Thinking services instead of products. In: Service Design Boot Camp, Day 1 [unpublished training material]. Veryday.

Bland, D.J. & Osterwalder, A. (2019). Testing business ideas: A field guide for rapid experimentation. Wiley.

Common Room. (2022, November 29). Community of practice vs. community of product. Blog.

Community-Led. (2022). Why community now? Blog.

Disco. (2023, December 19). 10 online communities examples: A complete compilation. Blog.

Forbes Communications Council. (2024, January 17). 19 ways to create a community around your brand.

Forbes Technology Council. (2024, January 31). How to build engaged, enthusiastic communities for your tech company.

NAS.io. (2023, October 25). 8 types of online communities you should know about. Blog.

Sanders, L. & Stappers, P. J. (2012). Convivial toolbox: Generative research for the front end of design. BIS Publishers.

Sethuraman, R. (2021, March 12). Four ways to create customer communities that drive product value and success. Forbes Technology Council.

Thomke, S. H. (2020). Experimentation works: The surprising power of business experiments. Harvard Business Review Press.

van Abel, B., Evers, L., Klaassen, R. & Troxler, P. (Eds.). (2011). Open design now: Why design cannot remain exclusive. BIS Publishers.

von Hippel, E. (2005). Democratizing innovation. MIT Press.

Robert Bau 12/15/24 Robert Bau 12/15/24

Let’s (not) get (too) physical, physical • 5

Thinking services instead of products: Inclusion > Exclusion

While the shift from products to services – often referred to as servitization – is far from new, it remains a powerful framework for manufacturing companies and digital-first startups looking to embrace customer-centric, service-dominant business models. In this blog post, I explore the Inclusion Over Exclusion principle, one of seven ways to think services instead of products.

5. Inclusion > Exclusion

The Inclusion Over Exclusion principle is about removing discriminatory, socioeconomic, cultural, linguistic, physical, or financial barriers that prevent underrepresented and historically excluded groups from fully accessing, engaging with, and benefiting from products and brands (adapted from Linares, 2021).

The emphasis shifts from making physical products and built environments more universal or accessible to delivering supplementary services that reduce barriers and foster a sense of belonging throughout the customer journey (loosely based on Bau 2006, 2010, 2011, 2015). The thinking applies broadly to digital experiences as well, albeit with some adjustments to the terminology.

Note: Compared to a product-centric and compliance-based approach to DEI, a genuine service design mindset pays careful attention to how experiences are envisioned, co-created, co-produced, and co-delivered across phases, moments, and touchpoints in the customer journey.

In this discussion, I highlight nine strategies for staging equitable experiences and advancing equitable outcomes.

Power tip: These strategies will help you systemically and systematically uncover opportunities for new or enhanced supplementary services across the entire customer journey, from ‘Learn & Buy’ to ‘Repurpose, Resell, or Recycle.’ For more context, see my blog posts on the Solutions Over Products principle and the Journeys Over Transactions principle.

Strategies for staging equitable experiences and advancing equitable outcomes throughout the journey

Ensure welcoming, respectful, and safe experiences for all, regardless of ability, identity, or cultural background. See my blog post Going for gold • 7.
Encourage customization and personalization of services, products, and touchpoints to meet individual needs. See my blog post on the Individualization Over Standardization principle.
Deliver flexible and adaptive solutions that address individual needs in real-time. See my blog post on the Individualization Over Standardization principle.
Democratize access to high-value assets and resources. See my blog post on the Access Over Ownership principle.
Connect people with similar goals, interests, or challenges. See my blog post on the Members Over Users principle.
Give people from diverse backgrounds a voice and agency in shaping services and experiences. See my blog post Going for gold • 7.
Empower and equip employees to champion and drive the implementation of DEI initiatives. See my blog post Going for gold • 7.
Drive accountability by setting clear DEI goals, tracking progress, and ensuring transparent reporting.
Foster a culture of continuous feedback, learning, and adaptation to ensure ongoing relevance with evolving user needs and DEI practices.

Examples: Walmart offers sensory-friendly shopping hours for customers with autism and other sensory sensitivities (2023–present). Sephora provides multicultural and multilingual consultations, where beauty experts provide personalized advice in the customer’s native language and adapt recommendations to local beauty standards and cultural preferences (2015–present). Target invests in diversity and inclusion training to ensure employees are equipped to engage respectively and inclusively with customers of all backgrounds, identities, and abilities (2013–present). Makani Homes offers a platform for Muslim travelers to swap homes or book accommodations that cater to their cultural values and preferences (2024–present). Inclusive Design Research Centre helps organizations make their offerings more universal or inclusive (1993–present).

Note: Several prominent U.S. companies have recently scaled back their DEI initiatives in response to political pressures, legal challenges, and shifting public sentiment. For instance, in January 2025, Target announced changes to its DEI programs, including commitments to support underrepresented employees and businesses. As companies navigate this evolving landscape, they must carefully weigh the short-term benefits of reducing DEI efforts against the long-term risks to workforce engagement, customer trust, and brand reputation. Striking a balance between external pressures and the need for inclusive workplaces and customer-friendly environments will be crucial for long-term success.

Benefits

Expands market reach by catering to previously underserved or overlooked segments
Transforms products into holistic solutions that support customers at every phase, moment, and touchpoint of their journey
Reduces customer friction by addressing barriers and pain points throughout the entire journey
Creates potential for new and recurring revenue streams through innovative supplementary services
Increases switching costs and reduces customer churn
Builds strong, lasting relationships that enhance NPS, increase CLV, and drive loyalty
Encourages innovation in value creation, value co-creation, and value facilitation (see my blog post Get the balance right! • 2)
Drives differentiation and builds brand equity

See also

The Connection Over Isolation principle will be covered in the next blog post.

References

Bau, R. (2010, December). Ten strategy paradoxes in service Innovation and design. Paper presented at ServDes 2010 (Service Design and Innovation Conference), Linköping, Sweden.

Bau, R. (2015). Thinking services instead of products. In: Service Design Boot Camp, Day 1 [unpublished training material]. Veryday.

Robert Bau 12/1/24 Robert Bau 12/1/24

Let’s (not) get (too) physical, physical • 4

Thinking services instead of products: Journeys > Transactions

While the shift from products to services – often referred to as servitization – is far from new, it remains a powerful framework for manufacturing companies and digital-first startups looking to embrace customer-centric, service-dominant business models. In this blog post, I explore the Journeys Over Transactions principle, one of seven ways to think services instead of products.

4. Journeys > Transactions

The Journeys Over Transactions principle is about empowering customers across every phase, moment, and touchpoint in their journey (i.e., value creation process). It shifts the emphasis from providing products (value delivery) to equipping customers with the tools and support they need to perform tasks, ‘get the job done,’ and achieve desired outcomes (value facilitation, value co-creation, and value creation). See my blog post Get the balance right! • 2 for a deeper dive into this topic.

The customer journey can be mapped at different altitudes – from 30,000 feet (the broader experience ecosystem) to 500 feet (microinteractions within a touchpoint). Examining maps at specific ‘scales’ uncovers opportunities for new or enhanced supplementary services that empower customers in their value creation process. See my blog post about the Solutions Over Products principle for an introduction to supplementary services and service packages.

In this discussion, I will focus on phases, moments, and touchpoints in the context of physical products (loosely based on Grönroos, 1990; Wirtz & Lovelock, 2016; Risdon & Quattlebaum, 2018; Bau, 2006, 2010, 2011, 2015, 2021: and Ulwick, 2005). The thinking applies to digital products as well, albeit with some adjustments to the terminology.

At 10,000 feet: Phases

The customer journey for tangible products typically unfolds across the following phases:

Learn & Buy: Customers gather information, explore options, make purchase decisions, complete payment, and arrange for delivery or collection.
Use & Adapt: Customers install, utilize, explore, and adapt the product.
Own & Maintain: Customers protect, preserve, and upgrade the product (through actions like storage, upkeep, repairs, and updates).
Repurpose, Resell, or Recycle: Customers extend the lifecycle of the product or its components.
Troubleshoot: Customers address and resolve issues that arise at any point of the journey.
Advocate: Customers share their experiences and promote the product/brand at any point of the journey.

Power tip: At this altitude, determine customer jobs (core, emotional, social) or goals (functional, emotional, self-expressive, social) for each phase. This will make it easier to uncover unmet needs and identify opportunities for supplementary services.

Note: I am intentionally using ‘phase’ rather than the more common ‘stage’ to emphasize overlapping or fluid periods within a journey. Phases highlight multiple activities or experiences that may occur simultaneously or cyclically, whereas stages imply a linear process with distinct transitions between steps.

At 5,000 feet: Moments

Each phase comprises of one or more customer moments. From the customer’s perspective, each moment represents a significant stepping stone toward reaching their goals, whether at a phase or journey level.

Examples of moments in each phase:

Learn & Buy: Searching for information. Comparing, customizing, and evaluating options. Deciding on the best fit. Exploring financing options. Completing payment. Arranging delivery or collection.
Use & Adapt: Receiving and inspecting the delivery. Unboxing and examining the product. Installing or setting up the product. Exploring features and functionalities. Using the product. Adapting the product to specific needs.
Own & Maintain: Storing the product. Protecting the product from damage. Monitoring usage and performance. Performing regular maintenance. Resolving issues. Replacing consumables. Upgrading to enhance performance or functionality.
Repurpose, Resell, or Recycle: Repurposing the product. Reselling the product. Recycling the product responsibly.
Troubleshoot: Identifying an issue. Resolving the issue (DIY or guided). Seeking professional support.
Advocate: Writing reviews or feedback. Recommending the product to others. Showcasing use on social media or community platforms.

Reflecting a customer-first approach, customers may engage solutions from multiple brands throughout the journey to ‘get the job done.’

Power tip: At this altitude, include internal and external triggers in your journey map to illustrate what prompts customers to take action. Triggers draw attention to unmet, underserved, or overserved needs and can arise at any point in the customer journey, not just at the beginning. Examples include replacing a broken product, buying a gift, receiving a recommendation, noticing signs of wear and tear, facing challenges during setup, or learning about a trade-in program.

At 2,500 feet: Touchpoints

Each moment is shaped by multiple touchpoints that work together to create a seamless and cohesive experience. These touchpoints facilitate interactions between the customer and the product or brand.

In the context of physical products, examples of touchpoints during the moment ‘Searching for information’ may include online reviews on CNET, conversations with colleagues, product pages on Amazon, customer service hotlines, in-store displays at Best Buy, and product packaging. In this moment, customers often zig-zag between channels and leverage multiple touchpoints to reach their goals, especially in high-involvement purchases (Rossiter & Percy, 1987).

The critical roles touchpoints play within the moment or across multiple moments:

Role 1: Facilitate interactions between the customer and the product (e.g., touch-sensitive interface)
Role 2: Facilitate interactions between the customer and the brand or organization (e.g., live chat)
Role 3: Connect the customer with third parties pivotal to the overall experience (e.g., real-time delivery tracking)
Role 4: Enable interactions between the customer and other users or communities (e.g., online forum)
Role 5: Help the customer transition smoothly from one touchpoint or moment to another (e.g., SMS notifications)
Role 6: Assist the customer to recover effectively from problems or disruptions (e.g., self-service diagnostic tool)

Touchpoints can be categorised in various ways, such as:

Tangible vs. Intangible: Printed product brochure vs. product tutorial video
Analog vs. Digital: Printed user guide vs. interactive setup instructions on a mobile app
One-way vs. Two-way: In-store product display vs. real-time conversation with a customer service representative
Permanent vs. Ephemeral: Branded storefront vs. one-time SMS notification
Static vs. Dynamic: Product packaging (fixed, unchanging) vs. personalized recommendations on an app (adaptive, evolving)
Proactive vs. Reactive: Maintenance reminder (initiated by the organization) vs. conversation with customer support (initiated by the customer)
Functional vs. Emotional: Troubleshooting guide vs. thoughtfully designed packaging (for the unboxing experience)
In-control vs. Out-of-control: Company-owned help desk vs. third-party reviews
Branded vs. Non-branded: Physical product vs. community forum

Power tip: At this altitude, focus on touchpoints rather than channels or media. Touchpoints are more granular, representing specific interactions between the customer and the product or organization. For example, within a mobile app, touchpoints might include product descriptions, checkout, and push notifications. Adopting a touchpoint-first approach makes it easier to uncover pain, friction, and pleasure points throughout the journey, which in turn helps identify opportunities for supplementary services.

Benefits

Transforms products into holistic solutions that support customers at every phase, moment, and touchpoint of their journey
Reduces customer friction by addressing pain and friction points across the entire journey
Strengthens emotional connections by positioning the organisation as a trusted partner at every step of the journey
Increases switching costs and reduces customer churn
Builds strong, lasting relationships that enhance NPS, increase CLV, and drive loyalty
Extends the product lifecycle through refurbishment, repairs, repurposing, buy-back schemes, etc.
Creates potential for new and recurring revenue streams
Encourages innovation in value creation, value co-creation, and value facilitation (see my blog post Get the balance right! • 2)
Drives differentiation and builds brand equity

See also

The Inclusion Over Exclusion principle will be covered in the next blog post.

References

Bau, R. (2010, December). Ten strategy paradoxes in service Innovation and design. Paper presented at ServDes 2010 (Service Design and Innovation Conference), Linköping, Sweden.

Bau, R. (2015). Thinking services instead of products. In: Service Design Boot Camp, Day 1 [unpublished training material]. Veryday.

Bau, R. (2021). Strategy playbook for service design [unpublished playbook]. Design Partners.

Grönroos, C. (1990). Service management and marketing: Managing the moments of truth in service competition. Lexington Books.

Risdon, C. & Quattlebaum, P. (2018). Orchestrating experiences: Collaborative design for complexity. Rosenfeld Media.

Rossiter, J.R. & Percy, L. (1987). Advertising and Promotion Management. McGraw-Hill.

Ulwick, T. (2005). What customers want: Using Outcome-Driven Innovation to create breakthrough products and services. McGraw-Hill.

Wirtz, J. & Lovelock, C. (2016). Services marketing: People, technology, strategy (8th ed.). World Scientific Publishing.

Robert Bau 11/1/24 Robert Bau 11/1/24

Let’s (not) get (too) physical, physical • 3

Thinking services instead of products: Individualization > Standardization

While the shift from products to services – often referred to as servitization – is far from new, it remains a powerful framework for manufacturing companies and digital-first startups looking to embrace customer-centric, service-dominant business models. In this blog post, I explore the Individualization Over Standardization principle, one of seven ways to think services instead of products.

3. Individualization > Standardisation

The Individualization Over Standardization principle is about tailoring content, products, services, and experiences to meet the unique needs of individuals, groups, and organizations. This approach recognizes varying levels of customer engagement, ranging from high-effort, hands-on participation to low-effort, consent-driven interaction. (Based on Bau, 2006, 2010, 2011, 2015; Wirtz & Lovelock, 2016.)

Note: The varying levels of engagement align well with Grönroos’ distinction between enabling and relieving services. Enabling services support customers by providing them with the necessary resources, tools, or knowledge, or resources to perform tasks independently. Relieving services take over tasks on behalf of the customer, thereby reducing their workload and responsibility. (Grönroos, 1990)

This blog post explores five overlapping schools of thought in individualization:

From passive consumption to active participation
From one-to-many to one-to-one marketing
From mass production to mass customization
From point-of-purchase to post-purchase customization
From rule-based to real-time personalization

Note: Unlike a product-centric approach that often treats services as an afterthought, a genuine service design mindset integrates product-service systems, value co-creation, platform thinking, end-to-end experiences, and a multi-actor perspective into the conversation on individualization.

From passive consumption to active participation

Rooted in the concept of value co-creation, active participation means engaging B2C and B2B customers in the creation, production, and delivery processes as co-researchers, co-innovators, co-designers, co-producers, and co-marketers.

Organizations employ strategies like co-creation, participatory design, crowdsourcing, and open design (to name just a few) to facilitate this level of participation and engagement. Customers are no longer treated as passive recipients but embraced as active collaborators or prosumers. Value is no longer embedded in static products but realized through dynamic customer-provider interactions. See my blog post Get the balance right! • 2 for a deeper dive into this topic.

The implications are twofold. First, organizations need to design systems, platforms, services, and processes that enable customers to realize value within their specific contexts. Second, traditional creators – such as innovators, designers, engineers, and developers – must evolve into platform builders, curators, coaches, and facilitators to inspire and empower active participation.

When customers contribute their time, effort, and expertise, they invest emotionally in both the process and outcome, fostering a sense of ownership and personal accomplishment. They may also gain tangible benefits, such as cost savings, performance improvements, financial rewards, or exclusive access.

(Toffler, 1980; Grönroos, 1990, 2011; Gummesson, 1999; Prahalad & Ramaswamy, 2004; van Abel et al., 2011)

Examples: IKEA enables customers to collect, transport, and assemble furniture themselves, combining flat-pack design with self-service to make home furnishing more affordable and accessible (1956–present). Build-A-Bear Workshop empowers parents and children to create personalised stuffed animals together, making the process fun and memorable (1997–present). MyStarbucks Idea crowdsourced suggestions for new products, store experiences, and community engagement models (2008–2018). LEGO Ideas (formerly LEGO CUUSOO) invites fans to co-create new LEGO sets through collaborative submissions and voting (2008–present). GE Aviation’s TrueChoice™ suite offers tailored maintenance and operational solutions designed to meet the unique needs of aviation clients (2016–present). SAP’s Co-Innovation Labs (COIL) facilitate collaboration between SAP, customers, technology providers, and startups to co-develop customized solutions for specific industry challenges (2007–present).

From 1:many to 1:1 marketing

One-to-one marketing centres on building personalised, long-term relationships with individual customers by (a) learning their unique preferences and needs through each interaction, and (b) continuously tailoring offerings to their evolving expectations (Peppers & Rogers, 1993; Pine, Peppers & Rogers, 1995).

1:1 marketing involves four critical steps (slightly adapted from Peppers & Rogers, 1993):

Identify: Understand who your customers are by gathering detailed insights into their preferences, behaviours, and needs. Create a living profile for each customer – a memory that grows and evolves with every interaction – ensuring a deeper understanding of their unique journey over time.
Differentiate: Segment customers based on their lifetime value, profitability, and specific needs. Prioritize high-value customers and identify underserved groups to focus resources strategically.
Interact: Develop meaningful, personalised, and cost-efficient interactions across channels (e.g., email, social media, or in-person). Treat each interaction as a learning opportunity to identify customer preferences, uncover unmet needs, and predict future behaviours.
Customize: Use the knowledge gained to tailor content, products, services, and experiences to meet the specific needs of individual customers, ensuring relevance and fostering loyalty.

Technology plays a pivotal role – not only in collecting and analysing customer data to enable personalisation at scale but also in facilitating meaningful, tailored interactions that foster deeper customer engagement.

Examples: Amazon leverages its recommendation engine to offer tailored product suggestions and promotions based on individual browsing history, purchasing behaviour, and preferences (1995–present). Stitch Fix combines human stylists with AI to deliver curated clothing selections, learning from customer feedback to refine future recommendations and deepen personalization (2011–present). Spotify uses machine learning to generate personalized playlists like ‘Discover Weekly’ and ‘Release Radar,’ adapting dynamically to user listening habits and introducing new music tailored to their tastes (2008–present).

From mass production to mass customization

Mass customization offers a scalable approach to addressing individual customer needs by blending the cost efficiency of mass production with the flexibility of bespoke solutions. This is achieved through customer insight (identifying segment needs and sacrifice gaps), unbundling (breaking products, processes, and experiences into configurable components), modular design (designing standardized components and platforms), operational flexibility (leveraging advanced manufacturing and JIT inventory), customer integration (utilizing configurators, algorithms, predictive analytics, recommendation engines, and feedback loops), and human intervention (providing curation, coaching, and creative problem-solving). (Based on Pine, 1993; Pine, Peppers & Rogers, 1995; Normann, 2001.)

The four faces of mass customization (Gilmore & Pine, 1997):

Collaborative customizers conduct a dialogue with individual customers to help them articulate their needs and make customized solutions that fulfill those needs.
Examples: Paris Miki’s Mikissimes Design System engages customers in a dialogue to create personalized eyewear tailored to their specific needs (1994–present). Nike By You (formerly NIKEiD) enables customers to design customizable footwear tailored to their preferences (1999–present).
Adaptive customizers offer standardized solutions that are modifiable by customers post-purchase for different purposes or occasions.
Examples: Lutron’s programmable lighting systems allow customers to modify lighting settings for different purposes or occasions (2010–present). Tesla offers over-the-air, pay-to-unlock upgrades that provide access to additional features and functionality post-purchase (2012–present). WikiHouse provides open-source architectural designs and resources, enabling individuals and communities to construct sustainable, low-cost housing customized to their needs (2011–present).
Cosmetic customizers present standard solutions differently to different customers.
Examples: Coca-Cola’s ‘Share a Coke’ campaign replaces its iconic logo on bottles with personalized names, adding a personal touch while maintaining brand recognition (2011–present). Glossier’s skincare products come with sticker sheets, allowing customers to personalize the packaging (2014–present).
Transparent customizers make adjustments for individual customers without their explicit involvement or approval.
Examples: Hoteliers tailor room experiences for high-value, repeat customers by adjusting pillow types, pre-setting room temperatures, or adding fresh flowers upon arrival. Retailers adjust store layouts and feature locally sourced products to reflect regional preferences and seasonal demand.

Technology plays an integral role in enhancing the efficiency, efficacy, and scalability of mass customization – for example, by dynamically suggesting customized products or configurations based on customer behaviours, preferences, and real-time interactions.

From point-of-purchase to post-purchase customization

Post-purchase customization involves customers and communities modifying or personalizing solutions after purchase to better suit their needs – often in ways not originally intended by the manufacturer or service provider. Depending on the context, it may also be referred to as user innovation, product hacking, or post-purchase personalization (see, e.g., von Hippel, 2005).

Some companies resist post-purchase customization, citing concerns over intellectual property, brand integrity, or product safety; others support and embrace it by providing inspiration, DIY guides, tools, templates, interchangeable components, and digital upgrades.

Examples: IKEA Hackers is a community where enthusiasts share ideas for modifying and repurposing IKEA furniture into custom configurations (2006–present). Bethesda Softworks empowers players to customize and expand games like Skyrim and Fallout through its Creation Kit, fostering a vibrant modding community and extending game lifecycles (2011–present). GoPro supports user-led innovation through modular accessories and a community where customers create and share customized camera setups for unique filming needs (2004–present). Casio G-Shock owners personalize their watches by swapping out straps, bezels, and faceplates to create bold, customized designs, with third-party sellers and DIY enthusiasts fueling the market for custom components (2019–present).

From rule-based to real-time personalization (a.k.a. hyper-personalization)

Powered by AI-driven systems, hyper-personalization delivers highly relevant, context-aware offerings, interactions, and experiences that adapt in real time to individual behaviours, contextual needs, and environmental factors. It achieves this by analyzing structured data (e.g., demographics, purchase history, location, time of day, weather conditions) and unstructured data (e.g., browsing patterns, social media activity, sensor data, emotional cues) both historically and in the moment. (Based on Hayes & Downie, n.d.; Jaffery, n.d.; Rusiñol, 2023.)

True personalization delivers on five implicit promises that shape customers’ expectations (slightly adapted from Abraham & Edelman, 2024):

Empower me. Provide intuitive tools and experiences that simplify tasks, support decision-making, and help me achieve my goals.
Know me. Leverage contextual, real-time data to understand my preferences, behaviours, and intent in the moment.
Reach me. Optimize communications by delivering the right message, through the right channel, at the right time.
Show me. Deliver tailored content and recommendations that align with my interests, needs, and preferences.
Delight me. Anticipate my needs and exceed expectations with unexpected, value-added solutions or experiences.

Advanced AI capabilities – such as predictive analytics, natural language processing, conversational AI, and recommendation algorithms – drive the precision, adaptiveness, and responsiveness of hyper-personalization (Hayes & Downie, n.d.; Jaffery, n.d.; Rusiñol, 2023).

Examples:

Peloton leverages real-time data and AI to deliver adaptive fitness experiences that evolve dynamically based on user performance, preferences, and feedback (2012–present). To illustrate: After a high-intensity interval session, Peloton uses wearable data and user activity to recommend recovery rides and adjust future workouts for optimal performance and recovery.
BMW integrates AI-powered features within its iDrive system to personalise in-car experiences based on driver habits, preferences, and real-time contextual factors (2018–present). To illustrate: Upon entry, iDrive adjusts seat position, climate, and lighting automatically, while dynamically suggesting alternate routes or activating rain-adaptive settings based on live traffic and weather data.
Sephora employs AI to analyze customer preferences, past purchases, and skin tones to deliver hyper-personalized beauty experiences through its Virtual Artist app (2016–present). To illustrate: The app examines a user’s photo to recommend foundation shades matched to their complexion, and leverages purchase history and browsing behavior to suggest complementary products like setting powders or brushes.

Note: Hyper-personalization exemplifies low-effort, consent-driven engagement. Ethical considerations, transparent data practices, and explicit user consent are essential for avoiding biases, protecting user data, and building trust.

Benefits

Aligns offerings and experiences with customer needs, preferences, and priorities, ensuring relevance, meaning, and value
Fosters emotional connection by making customers feel uniquely understood and valued
Reduces effort by streamlining decision-making and offering solutions that adapt to evolving needs
Optimizes resource allocation by using customer data to target the right solutions at the right time
Builds strong, lasting relationships that foster brand loyalty, enhance NPS, and increase CLV
Enhances customer advocacy by staging experiences that motivate customers to share with others
Strengthens competitive advantage (over companies using traditional segmentation)
Drives continuous innovation by leveraging customer data, feedback, and modifications
Encourages innovation in value creation, value co-creation, and value facilitation (see my blog post Get the balance right! • 2)

See also

The Journeys Over Transactions principle will be covered in the next blog post.

References

Abraham, M., & Edelman, D. C. (2024, November–December). Personalization done right: The five dimensions to consider – and how AI can help. Harvard Business Review.

Bau, R. (2010, December). Ten strategy paradoxes in service Innovation and design. Paper presented at ServDes 2010 (Service Design and Innovation Conference), Linköping, Sweden.

Bau, R. (2015). Thinking services instead of products. In: Service Design Boot Camp, Day 1 [unpublished training material]. Veryday.

Gilmore, J. H., & Pine, B. J. (1997). The four faces of mass customization. Harvard Business Review, 75(1), 91–101.

Grönroos, C. (1990). Service management and marketing: Managing the moments of truth in service competition. Lexington Books.

Grönroos, C. (2011). Value co-creation in service logic: A critical analysis. Marketing Theory, 11(3), 279–301.

Gummesson, E. (1999). Total relationship marketing: Rethinking marketing management from 4Ps to 30Rs. Butterworth-Heinemann.

Hayes, M., & Downie, A. (n.d.). AI personalization. IBM Think.

Jaffery, B. (n.d.). OmniaAI. Connecting with meaning: Hyper-personalizing the customer experience using data, analytics, and AI. Deloitte Canada.

Normann, R. (2001). Reframing business: When the map changes the landscape. John Wiley & Sons.

Palmer, A. (2011). Principles of services marketing (6th ed.). McGraw-Hill Education.

Peppers, D., & Rogers, M. (1993). The one to one future: Building relationships one customer at a time. Currency Doubleday.

Pine, B.J. (1993). Mass customization: The new frontier in business competition. Harvard Business School Press.

Pine, B.J., Peppers, D., & Rogers, M. (1995). Do you want to keep your customers forever? Harvard Business Review, 73(2), 103–114.

Prahalad, C. K., & Ramaswamy, V. (2004). The future of competition: Co-creating unique value with customers. Harvard Business Review Press.

Rusiñol, G. (2023, December 27). Navigating the future: The dynamics of hyper-personalization and AI in customer experience. Forbes Tech Council.

Toffler, A. (1980). The Third Wave. Bantam Books, 1980.

van Abel, B., Evers, L., Klaassen, R., & Troxler, P. (Eds.). (2011). Open design now: Why design cannot remain exclusive. BIS Publishers.

von Hippel, E. (2005). Democratizing innovation. MIT Press.

Wirtz, J. & Lovelock, C. (2016). Services marketing: People, technology, strategy (8th ed.). World Scientific Publishing.

Robert Bau 10/1/24 Robert Bau 10/1/24

Let’s (not) get (too) physical, physical • 2

Thinking services instead of products: Solutions > Products

While the shift from products to services – often referred to as servitization – is far from new, it remains a powerful framework for manufacturing companies and digital-first startups looking to embrace customer-centric, service-dominant business models. In this blog post, I explore the Solutions Over Products principle, one of seven ways to think services instead of products.

2. Solutions > Products

The Solutions Over Products principle shifts the focus from merely making and selling products to delivering holistic solutions that address the broader needs of customers (based on Bau, 2006, 2010, 2011, 2015; Wirtz & Lovelock, 2016). This suggests that companies should not define themselves by the products they produce but by the outcomes their customers seek (see, e.g., Levitt, 1960). Achieving this may require a networked approach, fostering collaboration across organizational boundaries to combine complementary resources, expertise, and capabilities for mutual benefit – including partnerships with universities, suppliers, customers, and even competitors (Kanter, 1994).

Examples: From selling cameras to capturing memories. From selling cars to improving mobility. From selling fitness equipment to fostering wellness journeys. From selling printers to managing documentation.

This blog post explores three key shifts at the heart of the Solutions Over Products strategy – from minimum viable products to augmented solutions, from core products to service packages, and from one-size-fits-all to tailored solutions. It wraps up with a curated list of my favourite approaches and frameworks for achieving a strong problem-solution fit.

Shifting from minimum viable products to augmented solutions

Value propositions should account for the potential expansion and evolution of the customer offering over time.

The core benefit (big idea) represents the fundamental benefit or purpose the product serves, addressing the intrinsic need for which customers seek a solution.
Example: The Oura Ring provides personalized health insights by tracking sleep, activity, and readiness. The core benefit is about empowering users to make informed decisions that enhance their daily performance and overall wellness.
The basic product includes the minimum viable set of features necessary to deliver the core benefit.
Example: The basic product is the lightweight and discreet wearable, equipped with sensors for heart rate, temperature, and movement tracking.
The expected product comprises all the standards and features that customers typically expect when purchasing the product; these expectations are shaped by past experiences, customer reviews, advertising, competitor offerings, technological trends, regulations, etc.
Example: Features users expect from a premium wearable include accurate tracking of key health metrics; an intuitive mobile app with data visualization and daily reports; durable and waterproof design suitable for everyday wear; a rechargeable battery with a multi-day lifespan; and seamless syncing with other health apps and devices.
The augmented product includes additional features, services, and benefits that go beyond customer expectations and drive differentiation.
Example: Unique, differentiating features include automatic activity detection, sleep optimization insights, a readiness score, real-time stress monitoring, guided relaxation, personalized content, and the user community called Oura Circles.
The potential product encompasses future enhancements and transformations that the product might undergo to attract new customers or retain existing ones.
Example: Future enhancements and expansions may include AI-powered predictive analytics, integration with other health and wellness applications, collaborations with corporate wellness programs, and customization options to tailor appearance and functionality.

Models and frameworks that unpack customer offerings in this way include the Whole Product Concept by Geoffrey Moore (1990) and the Five Levels of a Product by Philip Kotler (1994).

Note: While the concept of a minimum viable product (MVP) is fundamental to incremental and iterative product development, it should arguably be anchored in a clear and ambitious long-term vision for the product or business. This approach aligns well with the principle of Think Big, Start Small, Scale Fast (popularized in the innovation space by Carroll, 2010). For an insightful discussion on the concept of MVP, including misconceptions and practical applications, please see Kniberg (2016).

Shifting from core products to service packages

Value propositions should encompass the tangible and intangible elements of the offering that empower customers in their value creation process.

The core product defines the solution customers are buying and the principal benefits they seek (the ‘what’ and ‘why’). The core product may be tangible, intangible, or a hybrid of both. Similarly, the benefits it delivers may be tangible (financial), intangible (non-financial), or a combination of both.
Example: Peloton is a premium fitness brand. The core product is the fitness equipment (Peloton Bike or Treadmill) with access to the on-demand library of live and recorded classes led by world-class instructors (accessed through equipment touchscreens or the Peloton app). Benefits include physical fitness, health improvements, convenience, motivation, and positive reinforcement.
Wrapped around the core product, supplementary services add significant value by facilitating and enhancing the usage of the product or consumption of the service. Examples of facilitating services include solutions for customer support, payment processing, delivery, and installation. Examples of enhancing services encompass solutions for personalization, training, loyalty programs, and concierge services (to name but a few). Supplementary services play a critical role not only for improving the customer experience and differentiating the offering from competitors, but also for addressing the unique challenges of marketing and managing services (such as intangibility, heterogeneity, inseparability, perishability, co-creation, and timeliness).
Example: Peloton’s facilitating services include professional delivery and installation, financing options, subscription management, customer support, warranty and protection plans, and integration with health tracking tools. Enhancing services include training programs, tailored class recommendations, customized metrics, branded gear, community engagement, exclusive member events, and loyalty programs.
The processes required to deliver both the core product and the supplementary services are guided by pre-defined service attributes and measurable service standards, ensuring consistent levels of quality and productivity across all encounters in the end-to-end experience. Service attributes – such as reliability, accessibility, responsiveness, credibility, empathy, and security – serve as guiding principles or benchmarks for designing touchpoints that consistently meet or exceed customer expectations.
Example: Peloton’s white glove delivery includes professional delivery, assembly, setup, and a demo in customers’ homes, offering a seamless start-to-finish experience with added convenience, reassurance, and peace of mind. Key service attributes may include reliability (ensuring services are consistently dependable and error-free), empathy (demonstrating care and understanding during customer interactions), and responsiveness (promptly addressing customer needs and concerns).

Models and frameworks that encapsulate the tangible and intangible elements of a service offering include the Service Package by Christian Grönroos (1990), the Three-Component Model by Adrian Palmer (2011), and the Flower of Service by Wirtz and Lovelock (2016). Additionally, the SERVQUAL model by Parasuraman, Zeithami, and Berry (1988) serves as a valuable framework for identifying the key attributes most relevant to a specific experience.

Shifting from one-size-fit-all to tailored solutions

Value propositions should demonstrate how offerings are tailored to meet the specific needs and preferences of segments, entities, and individuals.

Approaches include:

Focusing efforts on serving specific customer segments or niches that mainstream, mass-market service providers often overlook. (Porter, 1980; Wirtz & Lovelock, 2016)
Examples: Focused service offerings include Code First Girls (free coding courses for women globally); Crunchyroll by Sony Pictures (anime-only streaming service); DeHaat (agri-tech solutions & services to the farming community in India); FedEx Custom Critical (expedited service for specialized, valuable, and hazardous shipments); and BMW Individual (bespoke and exclusive customizations of BMW vehicles).
Using tiered services models to address diverse customer requirements and varying price sensitivities in both B2B and B2C markets. Tiering can be applied across all dimensions of the customer offering – core products, supplementary services, and delivery processes. (Wirtz & Lovelock, 2016) This aligns with the concept of ‘flexible’ customer offerings – wrapping optional services around ‘naked’ solutions – which, in turn, supports flexible pricing models (Anderson & Narus, 1995).
Examples: Spotify’s tiered subscription model (Free, Premium Individual, Premium Duo, Premium Family, Premium Student). Delta Air Lines’ tiered loyalty programs (Silver Medallion, Gold Medallion, Platinum Medallion, Diamond Medallion). Microsoft’s tiered support system (Standard Support, Professional Direct Support, Premier Support).
Encouraging active participation in the specification, creation, production, delivery, and marketing of customer solutions to facilitate deep customization and personalization. See my blog post about the Individualization > Standardization principle.
Dynamically adjusting offerings and delivery systems to respond to customer needs in real time. See my blog post about the Individualization > Standardization principle.

Ensuring a good problem–solution fit

To create solutions that truly resonate with customers, businesses must focus on understanding the problems customers are trying to solve and the outcomes they are striving to achieve.

Competing/complementary approaches to ensure a good problem-solution fit include:

Jobs to Be Done (JTBD). A framework for understanding (a) the functional, emotional, and social jobs customers are trying to accomplish, (b) the steps they take to achieve these jobs, and (c) the products, services, and tools they ‘hire’ to get the job done. Integral to the Outcome-Driven Innovation methodology, JTBD helps identify underserved or overserved needs and guides the development of solutions that address these gaps. (Ulwick, 2005)
Seeing products in motion. Thinking of products in terms of verbs rather than nouns can reveal unexpected problems or opportunities. This means shifting the focus from static objects, products, or spaces (what they are) to dynamic activities, processes, experiences, or outcomes (how they are used and what they enable). (Kelley, 2001) For example, reimagining a chair as ‘sitting,’ a water bottle as ‘drinking,’ a car as ‘driving,’ and a classroom as ‘learning’ opens up new possibilities for enhancing or rethinking end-to-end experiences.
Design thinking. A people-first mindset, methodology, and toolkit for identifying the right problems to solve and determining the best ways to solve them, based on the principles of divergence and convergence. The process typically involves the following phases (or variations thereof): Frame a Question, Gather Inspiration, Generate Ideas, Make Ideas Tangible, Test to Learn, and Share the Story. (IDEO U, 2024; Design Council, 2007; Brown, 2008) See also my blog post Lean & mean innovation machine • 2.
Value Proposition Design. A framework for creating alignment between the Value Map, which represents what the business offers (core offerings, pain relievers, gain creators), and the Customer Profile, which represents what the customer needs (jobs, pains, gains). This approach ensures the customer offering directly addresses customer needs, resolves pain points, and delivers added value. (Osterwalder et al., 2014)
Customer Development. A methodology for building and scaling startups based on four iterative steps. Customer Discovery: Identifying and validating a significant problem that customers are willing to pay to solve. Customer Validation: Ensuring the proposed solution effectively addresses the problem and customers are willing to pay for it, ideally by developing and testing a minimum viable product (MVP). Customer Creation: Generating demand for the validated product through targeted marketing and outreach. Company Building: Transitioning from a discovery-focused startup to a scalable business with established processes and teams. (Blank, 2005) See also my blog post Lean & mean innovation machine • 2.
Other interesting approaches include Blue Ocean Strategy (Kim & Mauborgne, 2005), Solution Selling (Eades, 2003), Mass Customization (Pine, 1993), and One-to-One Marketing (Peppers & Rogers, 1993).

Benefits

Addresses the specific requirements, expectations, and price sensitivities of various segments, entities, and individuals
Aligns offerings with customer priorities, ensuring solutions feel meaningful and valuable
Offers richer and more engaging customer experiences by combining tangible and intangible elements
Ensures consistency across all encounters with the brand or service
Sets realistic customer expectations, reducing the gap between expected and perceived service
Fosters customer trust, satisfaction, and loyalty
Builds strong, lasting relationships, enhancing NPS and CLV
Drives brand differentiation in crowded markets
Supports flexible pricing strategies
Facilitates upselling and cross-selling
Creates potential for new and recurring revenue streams
Encourages innovation in value creation, value co-creation, and value facilitation (see my blog post Get the balance right! • 2)

See also

The Individualization Over Standardization principle will be covered in the next blog post.

References

Anderson, J.C., & Narus, J.A. (1995). Capturing the value of supplementary services. Harvard Business Review, 73(1), 75-83.

Bau, R. (2010, December). Ten strategy paradoxes in service Innovation and design. Paper presented at ServDes 2010 (Service Design and Innovation Conference), Linköping, Sweden.

Bau, R. (2015). Thinking services instead of products. In: Service Design Boot Camp, Day 1 [unpublished training material]. Veryday.

Blank, S. (2005). The four steps to the epiphany: Successful strategies for products that win. K&S Ranch.

Brown, T. (2008, June). Design thinking. Harvard Business Review, 86(6), 84–92.

Carroll, J. (2010, May). Innovation: Think big, start small, scale fast. Jim Carroll.

Design Council. (2007). Eleven lessons: Managing design in eleven global brands. Desk research report. Design Council, UK.

Eades, K. M. (2003). The new solution selling: The revolutionary sales process that is changing the way people sell. McGraw-Hill Education.

Grönroos, C. (1990). Service management and marketing: Managing the moments of truth in service competition. Lexington Books.

IDEO U. (2024). Design thinking.

Kanter, R.M. (1994). Collaborative advantage: The art of alliances. Harvard Business Review, 72(4), 96-108.

Kelley, T. (2001). The art of innovation: Lessons in creativity from IDEO, America’s leading design firm. Currency/Doubleday.

Kim, W.C., & Mauborgne, R. (2005). Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant. Harvard Business School Press.

Kniberg, H. (2016, January). Making sense of MVP (Minimum Viable Product) – and why I prefer Earliest Testable/Usable/Lovable. Crisp.

Kotler, P. (1994). Marketing management: Analysis, planning, implementation, and control (8th ed.). Prentice Hall.

Levitt, T. (1960). Marketing myopia. Harvard Business Review, 38(4), 45-56.

Moore, G. A. (1991). Crossing the chasm: Marketing and selling high-tech products to mainstream customers. HarperBusiness.

Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How to create products and services customers want. Wiley.

Palmer, A. (2011). Principles of services marketing (6th ed.). McGraw-Hill Education.

Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.

Peppers, D., & Rogers, M. (1993). The one to one future: Building relationships one customer at a time. Currency Doubleday.

Pine, B.J. (1993). Mass customization: The new frontier in business competition. Harvard Business School Press.

Porter, M.E. (1980). Competitive strategy: Techniques for analyzing Industries and competitors. Free Press.

Ulwick, T. (2005). What customers want: Using Outcome-Driven Innovation to create breakthrough products and services. McGraw-Hill.

Wirtz, J. & Lovelock, C. (2016). Services marketing: People, technology, strategy (8th ed.). World Scientific Publishing.

Robert Bau 9/1/24 Robert Bau 9/1/24

Let’s (not) get (too) physical, physical • 1

Thinking services instead of products: Access > Ownership

While the shift from products to services – often referred to as servitization – is far from new, it remains a powerful framework for manufacturing companies and digital-first startups looking to embrace customer-centric, service-dominant business models. In this series of blog posts, I have refreshed vintage content with repackaged strategies and new examples to help leaders, innovators, and designers transform customer offerings and experiences for the future.

Seven ways to think services instead of physical and digital products:

Access > Ownership. Enabling access to assets and resources without the burdens of ownership.
Solutions > Products. Delivering holistic, outcome-focused solutions that address the broader needs of customers.
Individualization > Standardization. Tailoring content, products, services, and experiences to meet the unique needs of customers.
Journeys > Transactions. Empowering customers in their value creation process across every moment and touchpoint.
Inclusion > Exclusion. Removing barriers that prevent individuals and groups from engaging with products and brands.
Members > Users. Building vibrant, connected communities around shared interests, practices, and products.
Circularity > Linearity. Adopting circular business models and practices to reduce environmental impact and drive systemic change.

Note: These strategic principles are not mutually exclusive or collectively exhaustive (MECE), which is intentional. Think of them as lenses through which to explore opportunities to transform customer offerings and experiences – an approach that proves highly effective in ideation sessions.

1. Access > Ownership

The Access Over Ownership principle is about empowering B2B and B2C customers to experience, utilize, and benefit from assets and resources without the burdens and costs associated with ownership. The focus shifts from value exchange and take-make-dispose models to value-in-use, circular behaviors, and collaborative consumption. (Based on Bau, 2006, 2010, 2011, 2014, 2015; Wirtz & Lovelock, 2016; Botsman & Rogers, 2010; Buczynski, 2013; Jégou & Manzini, 2008; and Gassman et al., 2014.)

Note: In this context, assets refer to physical items (vehicles, machinery, real estate, etc.) and digital assets (software, data, digital content, etc.). Resources encompass these assets along with intangible elements such as expertise, time, and network access. In outcome-driven innovation, resources are tools or means that enable customers to perform tasks, ‘get the job done,’ and achieve their desired outcomes.

This blog post explores 9 service models that prioritize access over ownership.

Note: XaaS (Anything-as-a-Service) is a widely recognised expression of the Access Over Ownership principle, enabling usage-based access to systems, platforms, software, and products. Its applicability to the 9 service models below depends on the specific context and implementation.

Service models

B2C2C peer-to-peer sharing models empower individuals to share their own assets and resources – such as homes, cars, tools, or skills – with others in exchange for a fee, or for free in a bartering system where goods or services are exchanged directly. In this setup, enabling platforms typically serve as intermediaries, connecting users, managing transactions, and fostering a sense of community.
Examples: Turo allows car owners rent out their personal vehicles to others through Turo’s car-sharing marketplace (2010–present). TaskRabbit connects individuals seeking help with everyday tasks – like home repairs, furniture assembly, and cleaning – to skilled local freelancers, known as Taskers (2008–present). Community-based micro-initiatives – such as bicycle self-repair workshops, family-run micro-nurseries, and home laundry services – facilitate the exchange of skills, services, and resources among community members (Jégou & Manzini, 2008).
B2B P2P sharing models enable businesses to share their own assets and resources – including vehicles, facilities, equipment, tools, and even manpower – with other businesses for a fee. Platforms play a crucial role by facilitating connections, managing transactions, and fostering collaboration, networking, and knowledge sharing.
Examples: Floow2 enables businesses share equipment, office space, and even staff with other companies (2012–present). LiquidSpace allows businesses to rent out unused office space to other companies, freelancers, or startups on a short-term basis (2010–present). Cohealo helps healthcare facilities share medical equipment with other institutions, optimizing the utilization of costly resources (2013–present).
B2C rental, leasing, and subscription models provide individuals with access to high-value assets and resources for a set time, sometimes bundled with services like customer delivery, onboarding, and support to boost productivity and address potential issues.
Examples: Rent the Runway enables customers to rent designer clothing and accessories for a specific period, returning them after use (2009–present). Netflix provides subscribers access to a vast library of movies and TV shows without the need for ownership (2007–present). Zipcar allows users to rent cars by the hour or day, offering convenient access to vehicles without the costs of ownership (2000–present).
B2B rental, leasing, and subscription models allow businesses to access high-value assets and resources for a set time, often bundled with services like delivery, setup, installation, training, maintenance, optimization, and expert support to boost productivity and maximize value-in-use.
Examples: Salesforce provides businesses with subscription-based access to its CRM software, offering ongoing updates, support, and customization options to enhance user productivity (1999–present). WeWork enables companies to lease flexible office spaces bundled with services such as high-speed internet, cleaning, and community events to create a collaborative and professional environment (2010–present). Cisco Systems offers businesses the option to lease networking equipment, which includes setup, maintenance, and ongoing expert support to maximize operational efficiency (1984–present).
Performance-based contracting provides access to high-value solutions without ownership responsibilities, with payment tied to measurable outcomes such as engine uptime, energy savings, or system availability.
Examples: Rolls-Royce’s TotalCare service (formerly know as Power-by-the-Hour) removes the burden of engine maintenance from airlines and other customers by actively managing engines throughout their lifecycle to ensure maximum flying availability (1962–present). Schindler’s ElevateMe offers performance-based contracts for elevator systems, billing building owners based on uptime and operational metrics to ensure reliability and minimize downtime (2015–present). Signify (formerly Phillips Lighting) offers Lighting-as-a-Service, helping municipalities and businesses achieve energy-efficient lighting with fees linked to energy savings and performance (2014–present).
On-demand access (or pay-per-use) allows people or businesses to instantly obtain assets and resources as needed, paying only for what they use at the moment, without long-term commitments. Building on this concept, pay-per-use models involves precise usage-based billing, such as per minute, mile, or unit consumed.
Examples: Uber provides users with on-demand ride services, enabling them to pay only for what they need when they need it (2009–present). AWS (Amazon Web Services) offers businesses scalable cloud computing power on demand (2006–present). Blue Apron delivers meal kits on demand, allowing customers to cook at home without committing to a subscription (2012–present).
Resource pooling brings together groups of people or businesses to share or jointly access resources. Through collaboration, these groups can collectively strengthen their bargaining power to secure preferential treatment or negotiate more favorable terms.
Examples: Community Supported Agriculture (CSA) brings together individuals who pledge to support a farm, effectively turning it onto a shared community resource (originated in the 1960s). Gartner Peer Community facilitates peer-to-peer networking, knowledge sharing, and collaboration among industry professionals, enabling the exchange of best practices and actionable insights (2000–present). Community solar projects enable individuals or businesses to co-invest in shared solar installations, pooling resources to generate renewable energy and reduce energy costs (originated in early 2000s).
Freemium models offer basic features for free, but once upgraded, they often allow multiple users, like project teams or households, to share access.
Examples: Spotify Family Plan provides premium music streaming for multiple household members, allowing each person to maintain their own playlists and recommendations (2014–present). Google Workspace (formerly G Suite) enables real-time collaboration, with paid plans offering additional storage, advanced features, and increased user capacity (2020–present). Zoom offers free video conferencing, with paid options for hosting larger meetings and unlocking advanced collaboration tools (2011–present).
Fractionalized ownership allows individuals or businesses to co-own high-value assets, sharing the costs, benefits, and responsibilities of ownership.
Note: While not strictly an example of Access Over Ownership, fractionalized ownership aligns closely with its principles.
Examples: NetJets allows clients to purchase a share in an aircraft, granting them access to private jet services without the full cost of ownership (1986–present). Boatsetter offers fractional ownership of boats, allowing co-owners to share costs and access while reducing individual expenses (2012–present). Pacaso facilitates co-ownership of luxury vacation homes, allowing multiple buyers to share costs, usage, and maintenance through a professionally managed model that streamlines the ownership experience (2020–present).

Note: Dynamic pricing is not a standalone service model but operates as a mechanism within many models, adjusting prices in real-time based on factors such as demand, availability, usage patterns, or market conditions. Dynamic pricing helps businesses respond dynamically to market fluctuations and make the best use of available resources.

Benefits

Democratizes/expands access to high-value assets and resources by improving accessibility, affordability, and usability
Removes the burdens of ownership, including upfront investment, storage, maintenance, repairs, upgrades, and disposal
Provides flexibility and freedom to adjust, scale, or discontinue usage/consumption as needs change over time
Aligns with the trend of prioritizing experiences over possessions
Optimizes resource utilization through shared access and continuous use
Monetizes underutilized assets or resources, turning them into revenue-generating opportunities
Reduces demand for new production (of tangible goods)
Fosters a sense of community by connecting users who share similar needs or values
Reduces environmental impact (see my blog post on the Circularity > Linearity strategy)
Encourages innovation in value creation, value co-creation, and value facilitation (see my blog post Get the balance right! • 2)
Drives differentiation and builds brand equity

See also

The Solutions Over Products principle will be covered in the next blog post.

References

Bau, R. (2010, December). Ten strategy paradoxes in service Innovation and design. Paper presented at ServDes 2010 (Service Design and Innovation Conference), Linköping, Sweden.

Bau, R. (2014). Sharing & caring across generations. Breakout session at Service Design Global Conference, Stockholm, Sweden. [Unpublished]

Bau, R. (2015). Thinking services instead of products. In: Service Design Boot Camp, Day 1 [unpublished training material]. Veryday.

Botsman, R & Rogers, R. (2010). What’s mine is yours: The rise of collaborative consumption. HarperCollins.

Buczynski, B. (2013). Sharing is good. How to save money, time and resources through collaborative consumption. New Society Publishers.

Gassman, O., Frankenberger, K. & Csik, M. (2014). The business model navigator. FT Publishing.

Jégou, F. & Manzini, E. (2008). Collaborative services: Social innovation and design for sustainability. Edizioni POLI.design.

Wirtz, J. & Lovelock, C. (2016). Services marketing: People, technology, strategy (8th ed.). World Scientific Publishing.

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Let’s (not) get (too) physical, physical • 7

7. Circularity > Linearity

Let’s (not) get (too) physical, physical • 6

6. Members > Users

Let’s (not) get (too) physical, physical • 5

5. Inclusion > Exclusion

Let’s (not) get (too) physical, physical • 4

4. Journeys > Transactions

Let’s (not) get (too) physical, physical • 3

3. Individualization > Standardisation

Let’s (not) get (too) physical, physical • 2

2. Solutions > Products

Let’s (not) get (too) physical, physical • 1

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