Today people are increasingly expecting that their products are network connected, offering extra functionality. They expect products from the same brand to seamlessly connect and, when relevant, that their products will have access to value-add services. This trend looks set to continue growing in the coming years. And Philips Design is currently developing Service Design in order to support Philips to participate more effectively in this rapidly-changing business landscape.

"More and more products have network connection," says Mark Hartevelt, Senior Director for New Business at Philips Design, "and are becoming part of larger ecosystems of content, social media , products and services. Consumers are using the same networks  to connect to services, communicate, collaborate and engage in social networks. This means that businesses are increasingly expected to deliver more than the product alone  by providing solutions that enhance the customers complete  experiences with product and brand."

Philips is already doing so. Philips Lifeline, a new Philips service eco-system that helps seniors to easily call-in help in case of emergency, is just one example.

However, according to Hugo Raaijmakers, Creative Director for Service Design at Philips Design, "this is a very dynamic area where time to react is critical. Because with ecosystems, value spaces can only be occupied by a few players.  Apple is a well known  example of successfully  occupying the value space ‘enjoying music’; the iPodiPhone, iTunes, Garageband, MacBook, etc. all are seamlessly connected to provide one integrated experience.”

In order to support Philips addressing this new challenge, Philips Design started to develop the Service Design competence already two years ago. "We run  three main activities in parallel," explains Mark, "helping articulate the vision on what services can do for Philips, running  pilot projects for developing  product/service combinations, and supporting the creation of the enabling conditions for Philips product/service ecosystems to be developed and delivered on a large scale."

In 2010 eight pilot projects have been initiated, with some of them already set to be developed into a business proposition. "The awareness is growing  that Service Design brings important and exciting new opportunities to enhance the value our solutions bring to people," says Hugo.