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MODEL
IMPROVEMENT
From Makio Hasuike workshop “Laisure Mobility” & “Healthy City”
Presented to:
Prof. Cabirio Cautela
Prof. Fabrizio Pierandrei
POLITECNICO DI MILANO
Mondadori production 2011
1
AUTHORS
Angelica Bello - Colombia Chiara Cacciani - Italy Yuzhou Chen - China Miguel Bello - Colombia
Second year student in the Master of Product Service System Design Poli-Tong exchange Student in the Second year student in the Master of
Product-Service-System Design at student at Politecnico di Milano, with Master of Product-Service-System Product-Service-System Design at
Politecnico di Milano and Industrial a bachelor in Communication Design Design at Politecnico di Milano and Politecnico di Milano and Industrial
Designer from Universidad Nacional from the same university. She is fo- Graphic Designer from Shanghai Designer from Universidad Nacional
de Colombia. She has experience in cused in design thinking, user center TongJi University. She is focused on de Colombia. He has experience in
footwear and leather design, shoes design, as long as communication graphic design, interface design, web- service design, management sys-
collection setting, coolhunting and at 360°. She would like to pursue an site design and service design. tems, product and packaging design.
trend research. MBA in the future.
Other Colaborators
Giulia Barra - Italy
Gan Yifan - China
Diego Dalia - Italy
2
CONTENTS
3
CHAPTER 1
PRESENTATION
4
Presentation
Providing context and
first design result INITIAL BRIEF
MH WAY
It is the name of the brand launching the propylene briefcases and the tel-
escopic tubes for drawings in 1982 by Makio Hasuike. Its new products are an
“
instant and global success thanks to a design that is able to meet the needs of
the consumers through a clear style that goes beyond what is in fashion at that
time. After more than 25 years of success, prizes, and a great deal of admirers,
followers and also imitators, MH Way keeps on researching and innovating in a
Mobility interpreted as
crosswise direction by means of a powerful tool as product design is.
ACTION not as movement
”
Several items amongst the MH Way products have turned into community icons
becoming companions to consumers over the years, since the very start up to from one place to another
the present and keeping on that way for the future.
WHERE: MILANO
The main concepts to be applied are those ones provided by the PGT (Govern-
ment plan of Territory) that will guide project’s development. The concepts are:
5
CONCEPTS Presentation
Providing context and
first design result
6
Presentation
Providing context and
first design result INITIAL BM
KEY PARTNERSHIP KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIP CUSTOMER SEGMENT
Bookcase
installation
Advertising
Comune di Milano
Who moves out of Milan and
wants to get rid of weight
Community within users
Maintenance
KEY SOURCES CHANNEL
Who loves to read but
Book owners doesn’t have much money
Enhance reading and to spend
Books sharing books outdoor in the
park during spring and Bookmerang Comune di
summer time, as a valuable
milano
city leasure time.
Premise
Starting from here we developed “Bookmerang: the more we are the more Once in Parco Sempione he can just leave a book, exchange it or take it and so
we read” a system based in reading moments and in the Milanese park, as start reading in the park or at home. It’s up to people behaviour and responsibil-
pilot project in Parco Sempione. ity if they take the book home, to bring it back.
Bookmerang is a PSS to enhance reading and sharing of books outdoor in the What we are trying to exploit in this project is people’s will to share and ex-
park during spring and summer time, as valuable city leisure time. The reader change for a reusable good, besides trends that stress on social responsibility
can get to know about Bookmerang from the Comune di Milano website, our such as separate collection of rubbish.
main partner and sponsor, or directly by going to Parco Sempione and see our
Bookmerang Bookcases.
7
PRODUCT Presentation
Providing context and
first design result
Cut Views
100
45
Side View
Empty Position Full Position
Horizontal Vertical 50
60
8
9
CHAPTER 2
ANALYSIS
10
Analysis
Critical perspective
& tools CRITICAL ANALYSIS
TECHNO
LOG
Y
KEY TRENDS
CS
OMI
ON
EC
IO
OC
S
KEY PARTNERSHIP KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIP CUSTOMER SEGMENT
Bookcase
installation
self-service
Who reads to kill time, but
not very reading passionate
Advertising
Comune di Milano
Who moves out of Milan and
wants to get rid of weight
SUPPLI Maintenance
Community within users MARKET ISSU
ERS ES
KEY SOURCES CHANNEL ND
MA
DE
Book owners Who loves to read but
NEED &
Enhance reading and doesn’t have much money
sharing books outdoor in the to spend
Books
park during spring and Bookmerang Comune di
ERS
ENT
city leasure time.
OLD
GM
Who has the will to share
EH
SE
something beautiful as a
AK
Some editors
T
ST Parco Word of book MAR
KE
sharing attitude Sempione mouth
COST STREAM REVENUE STREAM
MACROECONOMICS
KET
FORCES
AR
M
L
BA
GLO
11
Analysis
Critical perspective
& tools
Stakeholder
- People who like to read to kill time reading but are not really into it, not willing
to spend much money in buying books, they enjoy it especially in the waiting
SUPPLI moments.
ERS - Bookworm people, interpret reading as a travel, like to read a book from the
beginning to the end but are open to share and compare Comune di Milano
is the provider of Bookerang, since it already takes care of the park mainte-
nance; this means that the Comune should provide the structures (bookcases),
take care of keeping them clean and proper, and to storage them in the winter
months when not useful; taking care of all costs.
ERS
INDUSTRY FORCES Competitors
OLD
Bookcrossing is the current leader for free book exchanging; this service value
Suppliers proposition is to connect people throughout books. They define book crossing
EH
as the world library, a place where books gain new life and passing from one
AK
Stakeholders ST
person to another, books become a way to connect people. So fare there are
906.808 bookcrosser and 6.771.734 books travelling around the world and Italy
Competitors in the worldwide statistics is the 25th country in terms of bookcrosser vs popula-
tion [graph]; this means that there is a quite big design opportunity there.
New entrants
Bookcrossing focuses on the swapping action, in this case where and when this
Substitute products and services action takes place is not important; moreover it’s important to trace the book
path to create a reading community and a source for advice.
of years. Dynamic and open minded they don’t want heavy baggage such as
DE
books, in the moving. - E-book is the new technology that is trying to substitute normal paper books,
NEED &
- People willing to share and discover common interests with people. Not pos- on the user side you can have many books in just one device, even not easy to
sessive of their things they are quite flexible and adaptable. find books, on the company side there is a big saving in printing.
MARKET FORCES
ENT
GM
Market segments
SE
T
KE
MAR Needs and demands
12
Market issues
Analysis
Critical perspective
& tools
TECHNO
LOG
TECHNO Y SUPPLI
LOG ERS
Y Technology
e-book, QR code, geotagging.
Socioeconomic:
People from Milan going away, while suburban people coming to the centre dur-
KEY TRENDS
CS
ing weekends, short work/studying staying in Milan
OMI
KEY TRENDS INDUSTRY FORCES
Cultural: couch surfing, separate collection of rubbish, clothing donate, Bogotà
CS
Societal
yes/no sign. and cultural trend
ON
OMI
EC
Societal and cultural trend Suppliers
O
IO
ON
OC
EH
Regulatory trends S
EC
AK
IO ST
Regulatory trends OC Stakeholders
S Socioeconomic trends
Socioeconomic trends Competitors
Technology trends
Technology trends New entrants
COMMODITIE
S
COMMODITIE
Global market conditions E MARKET ISSU
S UR ES
Crisis people not willing to spend money on not strictly necessary goods/ser-
E
CT
vices. UR ND
RU
MA
CT
INFRAST
DE
RU
Capital markets
INFRAST
NEED &
Public funding, hard to gather money for public infrastructure, although in our
case the cost of bookcase mould is quite high. However the editorial market in KET MACROECONOMICS
MACROECONOMICS
Milano is excelent and should be consider as opportunity.
FORCES MARKET FORCES
AR
KET
ENT
M
Economic Infrastucture:
FORCES
AR
GM
BA Global market conditions Market segments
M
Parco Sempione park maintenance is well done, but the park at night time is not GLO
SE
L T
GLO
BA Global
safe besides it closes early. In the park there is also market
a library, conditions
three clubs (bar KE
Capital markets
AR Needs and demand
bianco, just cavalli and old fashion), a kindergarden and the triennale museum
M
Capital markets
which are big attractions for people of different ages.
Economic infrastructure Market issues
Economic infrastructure
Switching costs
13
Revenue attractiven
I S
Regulatory trends OC Stakeholders
S
ocioeconomic trends Competitors
Market
COMMODIissues
TIES MARKET ISSU
e-book, newspaper online as an emerging competitor force against regular book ES
E comsumption. ND
UR
MA
CT
Market segment
DE
RU
AST
NEED &
Collective services are blooming more and more, people is willing to share, and
seek for a strong connection with the city, to feel part of a whole.
MACROECONOMICS
Needs and demands MARKET FORCES
KET
ENT
Some outdoor and leisure places to go to in the city to escape from the chaotic
FORCES
AR
GM
and frenetic Milanese lifestyle. People are not willing to pay for spending their Market segments
M
SE
leisure time in a public space.
L T
GLO
BA Global market conditions KE
MAR Needs and demands
Switching cost
Capital markets
Feel part of the city environment, feel the city yours, very important connection Market issues
with the brand (city), more reliable as well than bookcrossing where you never
Economic infrastructure
know if you are going to find something and where. Switching costs
14
Analysis
Critical perspective
& tools SWOT
STRENGTHS WEAKNESSES
- Enhance reading and sharing books where (park) - High cost platform with low revenues.
and when (spring/summer) these activities might - It depends of municipality policies for using public
have more demand. infrastructure.
- Provide a leisure activity as a part of a public - Installing the bookcases in public open space
initiative. means that they won’t be available during winter
- Users have an active role inside the system. season.
- Create a sense of community without pushing user
to have contact between them and without
depending of a virtual network.
- The more we are, the more we read.
15
Analysis
Critical perspective
& tools
SO Strategies WO Strategies
1. Agreements with the park to make its labor force part of the system. 1. Sharing the risk and initial investment with other cities. Long term agree-
2. Create long term relationship with Editors doing them investors of the system. ments with municipalities to make the project perdurable.
3. Long term marketing program to aware people and tourist to donate their 2. Linking the project with Editorial Fairs and other events might help its eco-
books before leaving the city. nomical support.
4. QR codes can be implemented in order to control the system and allow 3. In winter time it might move to other places like schools, universities and
people geo-tagging. airports.
“Identify ways that can use its strengths “Establish a defensive plan to prevent weaknesses
to reduce its vulnerability to external threats” from making it highly susceptible to external threats”
ST Strategies WT Strategies
1. Installing additional advertising inside the book pages in order to increase 1. Reduce production cost by high mass production. Less cost per unit.
advertisers and revenues. 2. Reduce production cost in the bookcase by changing design, structure, or
2. Agreements with the park office in order to don’t allow other ways of book materials.
exchange/acquisition outside the system.
3. Using park security force in order to avoid damage and/or stealing. At the
same time, create social awareness to condemn this issues through the website
and advertisement.
16
Analysis
Critical perspective
& tools BLUE OCEAN
SHIP
T ION
KE ELA
Y R R R
ES ME
peo
ple OU
RC remain S TO
’s a
ttitu ES red
uce CU
e
te t eli
rvic user
s
os m
-se e serv
ice
har l f within
i
e
e s n it y y of th
book books
na
m u u e n c
eq
te
case com age fr
ate
s the us
raising
cre
Value Proposition
VA
ST SIDE
CUSTOMER SEGMENT
LUE SIDE
KEY ACTIVITY Enhance reading and
sharing books outdoor
who read
installationg
in the park during
bookcase in spring and summer who m s to kill time,not
advertisnce CO time, as a valuable city who oves out o
very pas
sionate
ena rs f Milan
m a in t
se leasure time. who has the a n
er u love will t d wan
gath s to o sh ts to g
et rid
ts to read are s of weig
te even CH
AN b
ome
t h ht
crea IP ut d ing b
SH co NE oes eaut
N ER ty) w mu L S n ’ t wan if l a sab
T li s bo ord ne t to ook
AR pa er spe
KE Y P ici n rs
o ok of di M nd m
un ow dit ca mo ila uch
s
pa ook
(m ook e e
ip
se ut no
b
rc m
e
sh
b m s h we
ion
o er
RE
M
er
so bs
Se an
mp
rtn
TEA
VE
ite
kca s
m gw
Se don
tumn ranspor s
boo ase
stora t
pa
pi
NU
se
ge
co
S
on eb
ar
atio
c
ES
e of bookc
ST
(p
gi
ilo ite
te
ST
CO
n
ra
tp
s
t
st
RE
ro
je
AM
ct
)
anc
r - au
nten
winte
mai
17
3 MAIN CRITICALITIES
3 MA
IN C
RIT
ICA
LIT
CHANGE
IN
IES
-IM
REMA PR
OV
E AM
ST
RE
EVE
N UE
R
CR
and
EA
low neus
oge
NG
TES
hom
UCI
nce
Just o
RED
REVENUE source
STREAM REVENUE
STREAM
REVENUE
Free social
service based
Customer Segment
Value proposition
“ Key Partneship
Key Resources
Key Activities
Cost Stream
Revenue Stream
PARTNERSHI
P
Channels
How can we make the system Co
Milan muna di
oa
partn s a main
SUSTAINABLE
COST SIDE VALUE SIDE ersh
ip
BM COMPONENTS Un
not ique
”
ab par
all le to s tner
in terms of money? KE
Y A
the u
cos f fer
t
CT
IVI
TIE
S
Pr t en our o u .
no nc le vic
om o ag se
e p r
pe he
ot ugh e
Conclusion
io t
o se
t
n o
is
t
The goal of this project is to reach the breakeven point, which means covering
e
all of the costs, not to earn money without loosing the social value of the project;
in the conclusion part we will then try to forecast a future business oriented logic
to start actually earning money (being aware that it will greatly affect the value
proposition).
18
19
CHAPTER 3
NEW LOGIC
20
New Logic
Data supports &
environment BM LOGIC
MARKET SHARE IN EDITORIAL INDUSTRY
How is the new logic?
To reach the breakeven point we used an efficiency strategy based in research-
ing possible partners and scanning of typical Milanese activities to generate
revenue (value). In doing this we’ve kept up the three main concepts of the Gruppo Mondadori 28,4%
29%
Mondadori
project, flock force, waiting moment and socializing, trying to support and exploit Other Editors 39,9%
them more and more.
RCS 12,6%
First we focused on the publishing industry, checking out how many books are
published every year, if Milan was a “high reader” city and who are the main edi-
tors. In the next graphics you will see more specific and comparison information PUBLISHED BOOKS IN ITALY
that provides a better structure to the project. 61.500 per year
36%
Milano 65%
943 Other cities
Milano
1.059 20%
Rome Milano
15%
Rome
Data Source: http://soslibri.diogenemagazine.eu/ - http://www.mondadori.it/
21
New Logic
Data supports &
environment
Rotomolding Industry
The second market involved in the project was the
plastic industry one; the bookcase mould produc-
tion in fact, is the major cost to suffer before the
lunch of the product service system. Plastic before
1970 was just a cheap and poor material not used
for furniture; starting from the ‘70s the market blos-
somed and nowadays many design companies are
specialized in plastic production.
22
New Logic
Data supports &
environment PROJECT LOGIC
M2
3’000.000
2’250.000
1’300.000
750.000
ano
ne
M
ello
bro
ttà
li
lli
ana
nin
drin
ible
ani
Cav
enn
tell
ane
xO
nci
pio
am
orla
in
Mil
rtes
ont
eS
san
e
i Tr
Tic
ont
oe
coi
em
Sch
elle
oL
ei F
oF
ord
ont
Ma
les
od
Bos
ro M
c
oS
del
od
Par
lla
c
oN
Par
oM
oA
od
c
ella
Par
i Vi
Par
c
olo
Ind
Par
Par
c
c
c
c
od
Par
Par
Par
od
gric
Par
lici
c
c
Par
oa
Par
Pub
c
Par
ini
rd
Gia
Parks in Milano
This is why we evolved the “Parco Sempione” based into a “Milanese park
network”. We sought for all parks in the city, analyzing them according to the
size and to the security aspect. In fact the security of the space was another hot
topic. Although the project looks forward to changing people’s behaviours, ask-
ing for their common and citizen sense, we evaluated only parks with fences,
closing time and night watchmen service; of course this won’t avoid people
to steal them or ruin them if they want to, but hopefully it will be a deterrent
reminding them their own consciousnesses.
Data Source: http://it.wikipedia.org/wiki/Parchi_di_Milano
23
New Logic
Data supports &
environment
# Crossed
Books
100
Bookcrossing.com - Stadistics
Bookcrossing is the popular online-based platform
in which people can share books with others. Its
80
website has interesting statistics about this initia-
tive. Germany and Australia are the most active
countries with almost 60.000 active bookcrossers.
60
Italy has a modest position compare with his
neighbour, however is interesting to see how Emilia
Romagna and Lombardy have the biggest book- 40
crossing activity in the country. It means that Milano
has all the potential for this kind of projects, not only
for the huge amount of editors and sellings, but also 20
for his sharing and social culture.
0
gna
dia
io
uria
iulia
nte
eto
bria
rch
can
Laz
bar
mo
Ven
ia G
Um
ma
Lig
Ma
Tos
Lom
Pie
Ro
ene
ilia
li V
Em
Friu
25
CHAPTER 4
BOOKMERANG
26
Bookmerang
Redesigned Business
Model NEW BM
KEY PARTNERSHIP KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIP CUSTOMER SEGMENT
Selling art
Bookcase pieces Who reads to kill time, but
installation not very reading passionate
self-service
Producing
and selling
Advertising Who moves out of Milan and
catalog
Mondari wants to get rid of weight
Maintenance
Artist
Calling
+ Community within users
Who loves to read but doesn’t
have much money to spend
Exhibition
Salone del mobile
art+
KEY SOURCES CHANNEL
literature
www.bookmerang.it
bookmerang bookmerang
Comune di Milano Auction
Artists website
Comitee
Art purchaser
Enhace a public culture move- 15 milanese Word of
Books ment that makes available arts parks
Catalog mouth
comitee and literature to milanese citi-
Book owners zans and visitors Catalog
Salone del mobile visitor
sharing attitude
COST STREAM REVENUE STREAM
NEW
27
BM BARYCENTER Bookmerang
Redesigned Business
Model
General Logic
The barycentre of the new business model is still set in the value proposition,
moving from this one we developed an L shape strategy focused into key part-
nerships, those ones then affect the cost and the revenues streams. Key asset,
we greatly improved are key activities.
28
Bookmerang
Redesigned Business
Model SYSTEM MAP
plastic producer
PRODUCE
NEW
book trials
Milanese parks
LEAVE
label
salone del mobile home
Milanese
people
TAKE
website reading
turists
book store
exhibition
artist
catalog
ADVERTISING
PRINT
mondadori
29
MAIN CHANGES Bookmerang
Redesigned Business
Model
Producing Catalog
Ar
tis
COST
tC
all
STREAM
gin
Se
llin
gA
rt P
iec
es
SO
OPOSIT OPOSIT
E PR E PR
L
ION ION
D
Pro
duc LU LU art+ s
ing tor
A
1
Edi
literature
2
V
Cat
V
alog
RI
DADO
MON
Enhance reading, free book
exchange & free book trials Enhace a public culture move- r
Selling Produce
Catalo
g
distribution out door in the ment that makes available arts
Plastic
park during summer & and literature to milanese
spring time citizens and visitors
KEY
ACTIVITIES PARTNERS
Salone Del Mobile
ion
Salone Exhibit
ad
Com
une D
Th
i Mila
Re
rity no
e
Secu
M
e
CH
o
Bo
W re W
ok lone st P
NE e are The More
15
S
N
Sh D ark
a
L
Big
op el
IT
g
Bo
e
nd
M
M ok
o
ob ado
EF
tion Ow
W
duc
EN
W of M
s ner
in ile ri
or
eb
Pro s
e M
B
d
ase
sit
ila
kC ou n
Boo th
REVENUE
en
t STREAM
CU
em n
Mi
tis tio
ST
Sa se C urch
r
lan Art
ve uc
OM
Ad rod
lon iti
e
ER
P
e P zen ser
SE
G
ar s &
M
P
EN
i cip Vis
T
an
a
ts
to Book T nt
rials Advertiseme
rs
Art Bookcase Selling
30
Bookmerang
Redesigned Business
Model FINAL CONCLUSION
Future Forecasting
Thank to Persico and Mondadori partnerships and to the consequent new diver- We could push the business model strategy a bit further and project a “real
sified fluxes of revenues, Bookmerang is economically feasible. Still our main earning” business model; this of course would effect the value system, let’s see
three concepts and values, didn’t change but are now stronger and stronger: how.
Flock Force Starting from the book trial preview by Mondadori we could imagine two con-
The product service system keeps its social value features based in collabora- verging evolution:
tive services, trends and communities and in seeking for changing people’s 1. Mondadori decides to push the trial transforming it in a script public jury.
minds about public furniture; it enhances reading, free book exchange and free This means that not yet published script would be available in Bookmerang, all
book trials distribution out door in the park during summer and spring time. the reader would put themselves into the redactor shoes and would judge the
Moreover now with the “art cases” exhibition it recalls even a larger number of “book to be”; this of course would imply a system of readers’ feedback for the
people that could be interested in joining the flock. publisher. This scenario profiles a new market where potentially would be the
readers to decide which books they want to be published.
Socializing 2. Second converging scenario goes with the web 2.0 logic, in which users
At the same time Bookmerang yearly exhibition becomes an occasion of social- become co-producers of contents; according to this logic what it could happen
izing, of enhancing public culture, arts and literature for Milanese citizens and is that readers willing to become writers, could start leaving their own script in
visitors; as well as for unknown artist a great opportunity to show their talent. the cases, hoping for a good feedback by the others. This of course would be
very interesting Mondadori that could have a no cost resource of new brand
Waiting time talents, that already gained fame and demand into the reading public. The book
Waiting time reinterpreted as reading and going to an art exhibition, becomes “Tre metri sopra il cielo”, which script first was released in two different high
valuables and joyful. schools in Rome, was published only after the highschool kids’ great interest in
the script.
Projecting this web 2.0 scenario ahead in the future we could even think about a
transition of media: authors could simply leave the paper script in the Bookmer-
ang cases, then if successful Mondadori could publish an e-book version of the
book even translated in many languages.
As we said in first place, this earning scenario drags the values of the project
a bit far from the beginning; a system based on feedback needs a high control
and maintenance, it cannot be left up to people behaviours, neither be so
spread out in the city as the park network is thought to be.
Ultimately we would loose what we simplifying call “the social value” of the
project, because as we know, one thing is to project a business system to make
money, another is to project a social system for the people. In developing this
project we picked the second one, the first one is still a scenario on the go.
31
32