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INOM TEKNIKOMRÅDET EXAMENSARBETE

DESIGN AND PRODUCT REALISATION OCH HUVUDOMRÅDET

MECHANICAL ENGINEERING, AVANCERAD NIVÅ, 30 HP

,

STOCKHOLM SVERIGE 2020

Service Design for a Sustainable Food Consumption

Bridging Gaps Between the Food Source and the Kitchen

WIKTOR BJELLEBECK SEBASTIAN PELDIUS

KTH

SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT

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Service Design for a Sustainable Food Consumption

Bridging Gaps between the Food Source and the Kitchen

Wiktor Bjellebeck Sebastian Peldius

Master of Science Thesis TRITA-ITM-EX 2020:508 KTH Industrial Engineering and Management

Machine Design SE-100 44 STOCKHOLM

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Examensarbete TRITA-ITM-EX 2020:508

Tjänstedesign för en hållbar matkonsumtion - Överbrygga gapen mellan livsmedelskällan och köket

Wiktor Bjellebeck Sebastian Peldius Godkänt

2020-09-01

Examinator Claes Tisell

Handledare Mia Hesselgren Uppdragsgivare

Electrolux

Kontaktperson Camila Serpa Soares

Sammanfattning

Detta projekt har utförts för Electrolux och avdelningen Electrolux Innovation. Handledare från företaget var Camila Serpa Soares och Tove Chevalley. Syftet för projektet var att utveckla ett tjänstekoncept inom ämnet hållbar matkonsumtion, vilket senare avgränsades till att fokusera på att öka tillgängligheten av närproducerad mat för målgruppen unga professionella i urbana städer.

Det tillvägagångssätt som har använts under arbetets gång är en tjänstedesignmetodik där kvalitativa forskningsverktyg har använts i syfte att undersöka användaren och kartlägga deras behov, rutiner och beteenden. Projektet har genomgått fyra olika faser. Först en fokus-fas där litteraturstudier, expert-och användarintervjuer har utförts i syfte att specificera fokuset för projektet. Därefter en djupgående forskningsfas med intervjuer och observationer av användaren och andra intressenter vilket ledde till en vision och problembeskrivning. Sedan en iterativ problemlösning-fas (även kallad ”sprint”) bestående av fyra veckor där varje vecka har tilldelats ett problemområde som ska undersökas och testas med hjälp av prototyper i användartester, och till sist en sammanfattande resultat-fas där insikter och lärdomar från samtliga faser slås ihop för att leda till slutgiltiga koncept. Den urbana logistiken har även undersökts med expertintervjuer och användartester för att säkerställa att de slutgiltiga koncepten är genomförbara logistikmässigt samt inte bidrar till stadstockning.

De insikter som har genererats under arbetets gång resulterade i att användaren delades upp i två olika olika behovsgrupper med specifika behov och önskemål. Utifrån dessa behovsgrupper har designprinciper skapats för att vägleda i utformningen av koncept. Till slut utformades tre tjänstekoncept. Koncept 1 adresserar behoven från behovsgrupp A medan koncept 2 och 3 är utformad efter behovsgrupp B. Samtliga koncept har tilldelats en digital plattform, varav koncept 2 och 3 delar samma plattform. Tre olika typer av upphämtningsplatser har utformats samt affärsmodeller för att visa hur koncepten passar Electrolux.

De tre koncepten har presenterats för Electrolux och diskussioner har hållits kring vilken behovsgrupp de vill rikta sig in på, vilka möjligheter och barriärer det finns för varje koncept samt vilket koncept de anser vara mest genomförbar. Innan implementering bör Electrolux testa en fysisk prototyp av koncepten med kund, förhandla med samarbetspartners och undersöka intäktsmodellen.

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Master of Science Thesis TRITA-ITM-EX 2020:508

Service Design for a Sustainable Food Consumption Bridging Gaps between the Food Source and Kitchen

Wiktor Bjellebeck Sebastian Peldius Approved

2020-09-01

Examiner Claes Tisell

Supervisor Mia Hesselgren Commissioner

Electrolux

Contact person Camila Serpa Soares

Abstract

The client of this thesis is Electrolux and the department Electrolux Innovation. The supervisors from the company are Camila Serpa Soares and Tove Chevalley. The purpose of the thesis was to develop a service within the field of sustainable food consumption, which was later narrowed down to increase the accessibility of local produce for the user group young professionals living in urban environments.

A service design-approach with qualitative research-tools has been adopted and used throughout the project to investigate the user and map out their needs, behaviors and routines. The project has gone through four phases: a set-focus phase where desktop research, expert- and user interviews were carried out to specify the focus of the project, an in-depth research phase with user studies as well as other stakeholders that later led to a vision and problem definition, an iterative problem solving-phase (also called ”sprint”) with four consecutive weeks, each with a specific challenge to be investigated and tested with prototypes in user-tests. Lastly, a concluded result phase was carried out where all the gathered insights from previous phases were summarized to guide to the final concepts.

Urban logistics has also been researched through expert interviews and user-tests to ensure the final concepts are feasible in terms of their logistics while not contributing to urban congestion.

As a result of the gathered insights, the target user was divided into two need groups with specific need, demands and desires. Based on these need groups, design principles have been created to guide in the design of the concepts. Three service concepts were developed. Concept 1 addresses need group A while concept 2 and 3 are designed for need group B. All concepts have a digital platform where concept 2 and 3 share the same platform. Three different pick-up points have been developed as well as business model canvases to show how the concept can fit Electrolux.

The three concepts have been presented to the client with discussions regarding which need group they want to focus on, the opportunities and barriers for each concept and which concept they consider most feasible. Electrolux should conduct a user-test with a physical prototype, negotiate with partners and examine the revenue models before implementing any of the concepts.

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FOREWORD

We would like to give our utmost thanks to Camila Serpa Soares and Tove Chevalley at Electrolux Innovation for giving us the opportunity to collaborate with them on this project. The wisdom and time that they’ve so kindly shared has been invaluable for the development of the project but also taught us essential knowledge that we will bring with us in our careers. It is a shame that the COVID-19 virus hindered us from sharing workspace, but we appreciate the short time that we were able to work at the Electrolux headquarters and of course all the time spent together digitally.

We want to express our sincere gratitude to Mia Hesselgren, our supervisor at the Royal Institute of Technology. Words cannot describe how much her trust in us and immense support throughout the project has meant for us. Without her, this project would not have been possible.

We would also like to give a huge thanks to all the small-scale farmers and producers that have been so kind to take their time to answer our questions, allow us to follow them in their everyday lives and open up their homes for us. We hope that their kindness and hard work will get the appreciation that it deserves.

Finally, we would like to thank all the interviewees and participants in our co-creation and prototype testing-sessions. Their comments and opinions have been essential for the project.

Wiktor Bjellebeck, Sebastian Peldius

Stockholm, June 2020

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TABLE OF CONTENTS

1 INTRODUCTION ... 1

1.1 Background ... 1

1.2 Purpose & Research Questions ... 2

1.3 Vision ... 2

1.4 Methodology ... 3

1.5 Limitations & Constraints ... 3

2 FRAME OF REFERENCE ... 5

2.1 Service Design ... 5

2.2 Electrolux ... 6

2.3 Sustainable food consumption ... 6

2.4 The future of city logistics ... 8

3 METHOD ... 11

3.1 Process Overview ... 11

3.2 Toolbox ... 11

3.3 Work Process ... 17

4 RESULTS ... 23

4.1 Set Focus Phase ... 23

4.2 Preparation Phase ... 24

4.3 Sprint 1: User ... 35

4.4 Sprint 2: Producer ... 38

4.5 Sprint 3: Logistics ... 42

4.6 Sprint 4: Three Concepts ... 46

4.7 Final Concept Iteration ... 54

5 DISCUSSION & CONCLUSIONS ... 81

5.1 Discussion ... 81

5.2 Conclusions ... 89

7 REFERENCES ... 90

APPENDIX 1: Semi-structured interview guide, Electrolux Headquarter & on the streets of Stockholm .... 1

APPENDIX 2: Interview Guide, RISE ... 2

Appendix 3: Interview Guide, Intended user ... 3

Appendix 4: Interview guide Day in the life - farm ... 4

Appendix 5: Interview guide producers ... 5

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Appendix 6: Interview Guide, Grocery bag-service ... 6

Appendix 7: Interview Guide, ICA Liljeholmen ... 7

Appendix 8: Itemised response method ... 8

Appendix 9: Clustered user insights ... 9

Appendix 10: Cluster of industry players, Market & business ... 10

Appendix 11: Customer journey – ICA shopper ... 11

Appendix 12: Customer journey – Relationship user ... 12

Appendix 13: Customer journey – REKO-ring user ... 13

Appendix 14: Customer journey – Producers ... 14

Appendix 15: Empathy map ... 15

Appendix 16: Sketches from co-creation workshop ... 17

Appendix 17: Storyboard prototype sprint 1 ... 18

Appendix 18: Interview Guide Prototype test sprint 1 ... 21

Appendix 19: Sprint prototype ... 24

Appendix 20: Cluster prototype test sprint 1 ... 25

Appendix 21: Interview with former farmer and wholesaler ... 26

Appendix 22: Assumptions of producers ... 27

Appendix 23: Sketches sprint 2 ... 28

Appendix 24: Prototype of sprint 2 ... 29

Appendix 25: manuscript test sprint 2 ... 32

Appendix 26: Cluster from test sprint 2 ... 34

Appendix 27: List of assumptions sprint 3 ... 35

Appendix 28: Trigger material sprint 3 ... 36

Appendix 29: Interview guide sprint 3 ... 40

Appendix 30: vALUe canvas ... 41

Appendix 31: Revenue estimation REKO ... 42

Appendix 32: Storyboards sprint 4 ... 43

Appendix 33: Trigger material sprint 4 ... 44

Appendix 34: Interview guide sprint 4 ... 47

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1 INTRODUCTION

This chapter contains an introduction of the thesis which includes the background, purpose &

research questions, vision, methodology and limitations & constraints.

1.1 Background

The environmental awareness regarding sustainable food consumption has increased drastically over the last couple of years. As a consequence, the food industry is now facing great challenges due to its enormous impact on the environment. Most of the problems faced today regarding sustainable consumption of food comes down to decisions; decisions of how to produce something and the consumers decisions of what to buy. The consumers have the burden as well as the power of making the right decisions - decisions that affect our planet (Mutz, 2019). Consumers from all economic backgrounds are willing to pay more for products from companies that are committed to positive social and environmental impact, especially millennials (McCaskill, 2015). However, what is lacking today is the possibility of making an informed decision.

A preparatory study was conducted to investigate the user and their values regarding food, see chapter 4.1. The factors that influenced their decisions was the nutritional value, the impact on environment as well as quality and origin of the food. The users stated that they have an interest in eating locally produced food but the infrastructure for connecting local food producers with the young professional urban consumer is not adapted for their consumption behaviors. A solution that fits their needs and hectic everyday life is currently not available. The farms that provide locally produced food require logistical planning to get to which makes them inaccessible for the young professionals since they often do not have access to a car or a driver’s license. What is needed is easier access to local food as well as transparent information about its supply chain.

The experience of buying groceries directly from the farmer gives the food character, provides insights about the process as well as respect for the work behind it. This brings more value compared to mass-produced food. Quality becomes more important than quantity and the closer the food is produced, the easier it is to get information about it.

Eating sustainably is a complex task. Eating locally is a good choice for the environment but the agricultural methods has a big impact as well (McGregor, 2014). To make local food accessible will enable the consumer to make an informed and sustainable choice and thereby put pressure on the food industry to change to more sustainable practices.

This thesis aims to contribute to and maintain the sustainable development goals set by UN (UN, 2015). More specifically, the goals 11, 12 and 15 are included in this thesis, see figure 1. This by developing responsible and more self-sufficient food-providing systems in connection to cities, for the urban population.

Figure 1. Sustainable development goals, from UN (2020).

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1.1.1 Context

This work is a master thesis-project within the master program of Integrated Product Design and the track Industrial Design Engineering at the Royal Institute of Technology in Stockholm, Sweden. The thesis has its core in the service design-methodology where a qualitative research- approach was adopted. The supervisor for the project is Mia Hesselgren from the faculty of Product and Service-design.

The project has been carried out with the appliance company Electrolux as client with Camila Serpa Soares and Tove Chevalley from the innovation department as representatives. The purpose of Electrolux is to “shape living for the better” and contribute to a more sustainable planet. Due to the increasing interest and awareness of the subject sustainable food consumption, Electrolux wants to investigate how they can tap into this market, and create a service around the topic and therefore assigned the authors this thesis project.

1.2 Purpose & Research Questions

The food industry accounts for 30% of all greenhouse gas emissions globally (WWF, 2020) and a change in how we as humans both produce and consume food is required. The purpose of this thesis is to explore how a sustainable food consumption can be achieved, what problems and needs that exist in the obtainment of food and how Electrolux can provide the user with the tools to achieve this type of consumption. This will be done through a service that makes locally produced food more accessible to the user and provide a level of transparency in line with their values. The user-centered service should also have a business incentive that fits Electrolux. The questions asked and explored in this thesis are:

How can gaps between food source and kitchen for young professionals living in urban environments be bridged?

§ What barriers exist for young professionals who want to acquire local produce?

§ How can a food-providing service be designed to fit both farmers and consumers?

§ How can the values of farmers be maintained (captured, created and delivered) through a supply chain of intermediaries?

How can Electrolux be a player in a food-providing ecosystem?

§ Which roles could Electrolux have in a food-providing ecosystem?

§ Why should Electrolux have this role?

§ Why should Electrolux pursue this topic?

1.3 Vision

A vision statement was developed based on the insights from the set focus- and preparation phase.

This to get a unified aim and agreement with Electrolux of what the final concepts should offer the user as well as what the user should understand, experience and do. The vision statement was formulated as follows:

To create a food-providing service that makes local produce more accessible to young professionals living in urban environments. This through bridging the values of

the farm and thereby nudge them into more sustainable food habits.

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1.4 Methodology

To understand the needs and demands of the user, a user-centered research approach was adopted.

Since the goal of the project was to develop a service, service design methodology and qualitative research tools were used. The Sprint-method was used to rapidly and iteratively define challenges, ideate on solutions and test concepts with the intended user. The methodology and tools used throughout the project are described in chapter 3.

1.5 Limitations & Constraints

The following limitations and constraints of the project has been set:

§ The project was set to be carried out within 20 weeks.

§ The concepts developed were only suggestions of possible paths.

§ The business models developed were not too detailed and should be considered as suggestions.

§ The user researched mainly consisted of participants living in the Stockholm area.

§ All the laws and regulations of food distribution was not overly considered when ideating on concepts. Only the most important such as transporting in a cool environment was considered. The regulations should therefore be researched further before implementing any of the concepts to the market.

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2 FRAME OF REFERENCE

This chapter presents the theoretical reference frame that has been used to research, design and develop the final concepts of this thesis. The references used as a frame is Service Design, Electrolux, Sustainable food consumption and Future of city logistics.

2.1 Service Design

The goal of this thesis is to understand the needs of users, stakeholders and other actors in the ecosystem of sustainable food consumption. To achieve this, the approach chosen in this thesis is the qualitative research method Service Design. Qualitative research was chosen because it gives a holistic view of the problem and allows for an explorative approach where patterns can be identified from the collected research. By questioning and analyzing the patterns that emerge from the research, key findings can be pointed out and integrated in the design process (Milton, 2017).

The qualitative research method Service Design has been applied in this thesis to explore co- creatively with users and develop concepts of how a user-centered service can be designed.

Service Design is a design research method that uses a long-term perspective. It involves the design of interactions between the touchpoint of a service and its users, along with more intangible components possibly provided by IT (Boeijen et al., 2017). With the holistic view that Service Design provides, it aids in the development of entire systems that provides services to users.

Service Design is based on and integrates a variety of other design principles such as interaction design, experience design and product design. Its focus always lies on the users and their experience. The involvement and participation of users and stakeholders in co-creation workshops and explorative user-tests are essential for clarifying the complexities that involves in the design of a service (Boeijen et al., 2017).

To assure that the thesis is made within the frames of Service Design, the following principles by Stickdorn & Schneider (Stickdorn & Schneider, 2011) are used as guidance throughout the project:

User-centered

The core of Service design is to establish valuable insights and an understanding of how people interact with each other through conversation, actions and co-existence. The term User-centered goes beyond the quantitative description of users and utilizes Service Design methods to enable the designer to experience the service through the eyes of the user (Stickdorn & Schneider, 2011).

Co-creative

To create collaboratively with users and stakeholders is an essential part of service design and a way for the designer to gain insights from different actors involved in the design and development of the service as well as those directly or indirectly affected by the final result (Stickdorn &

Schneider, 2011).

Sequencing

The aim of sequencing is to analyze and break down the service-process to individual touchpoints and interactions with the user. The service-process normally follows three phases; the first phase when the user initiates contact with the service, the actual service flow-phase where the user experiences the service and the last phase after the user has used the service. All these three phases combined creates a service moment (Stickdorn & Schneider, 2011).

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Evidencing

This principle revolves around adding a concrete detail to the otherwise quite abstract service- process. These concrete elements can consist of personal letters, email, souvenirs or brochures. If it is realized in an effective way it creates an opportunity for the user to develop a greater loyalty and satisfaction towards the service (Stickdorn & Schneider, 2011).

Holistic

The holistic principle of Service Design says that when performing user interactions, the focus should always revolve around the context of the service (Stickdorn & Schneider, 2011).

These 5 principles were used throughout the thesis to create a deeper understanding for users and other stakeholders within the ecosystem of sustainable food consumption.

2.2 Electrolux

Electrolux is the world’s leading manufacturer of appliances for both professional and home use (Electrolux Group, 2020). The company was formed in 1910 by Axel Wennergren and was pioneering in the development of vacuum cleaners and refrigerators during the early 20th century (Electrolux Group, 2020). Electrolux’s current purpose is to “shape living for the better”, and to do so, they strive to always improve, create better experiences and act sustainably. Their mission is to “reinvent taste, care and wellbeing experiences for more enjoyable and sustainable living around the world” (Electrolux Group, 2020).

This project has been done at the Innovation department at Electrolux Home. Electrolux innovation participated as client in the course Service Design at KTH the fall of 2019, where the project revolved around designing a service for a sustainable food consumption where Electrolux acted as service-provider. Electrolux Innovation expressed interest in continuing the exploration of sustainable food consumption and this thesis is the result of it. Electrolux innovation is a part of Electrolux Home that works with agile concept development.

The user targeted in this thesis is referred to as the young professional. This is a term coined in the project brief that was received in the beginning of the project and stems from Electrolux’s target user. Because of non-disclosure agreements with Electrolux, their target users will not be described further.

2.3 Sustainable food consumption

The global impact of the food industry on the planet is increasing and stands for 30% of greenhouse gas emissions and with no actions taken, this number is predicted to grow in the coming years (WWF, 2020). To design for a sustainable food consumption, the whole food chain needs to be taken into account which means that a holistic view on the subject is required to understand the impact it has on our planet. In this thesis, various research papers on the subject as well as interviews with experts has been used as guidance to keep the outcome of the project sustainable and relevant in a future context. The areas used in this thesis can be summarized as sustainable eating in practice, transparency and local produce.

Sustainable eating in practice

Sweden is importing a big part of the consumed food and the cities are at a large-scale dependent of imported groceries which causes emissions from transportation and lowers food safety (Kamb, A, 2019). To consume food products that has been produced inside or in connection to the cities can contribute to an improved living environment and strengthen the local community (Kamb, A,

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2019). Being aware of what you consume and having a holistic view of the whole food chain is critical when it comes to sustainable food consumption (Birgit Landquist, RISE, 2020). Where the food has been produced, its production methods, how it has been produced in terms of working conditions, social responsibility as well as the environmental footprint all have an impact. The easiest way for consumers to consume food sustainably is to follow the guidelines given by Livsmedelsverket (Birgit Landquist, RISE, 2020).

Meat is the food that affects the environment the most and it is therefore important to limit the total meat consumption and choose meat produced with care for environment and animal welfare (Livsmedelsverket, 2020). Although meat consumption is negative for the climate, grazing animals can keep fields open and it is good for biodiversity, especially in wooded areas (Livsmedelsverket, 2020). Compared to other countries, Swedish meat production stands well in terms of animal care, use of antibiotics and climate impact (Livsmedelsverket, 2020).

To eat sustainably can be a complex task for the consumer. The report Sustainable Eating from the Academy of Nutrition and Dietetics (Wolfram, 2019) gives concrete guidelines for the consumer on how to support sustainable eating. Presented below are four of their guidelines most relevant to the project:

Grow something

To grow your own food increases understanding of the value of food and the effort and resource needed to grow it. The insights can influence how consumers buy, use and dispose the food.

Shop locally

To shop locally keeps the local community alive and fosters a healthy and diverse environment.

The emissions from transportation are also cut down immensely.

Initiate conversations about food

Talking about food with producers, grocery store-staff and other consumers will help spread information and awareness. This will make more people mindful of what they eat.

Eat seasonally

To focus on seasonal produce in the area is a great way to support the local farmers, lower transportation emissions and prevent possible unsustainable agricultural methods and work environments. This since the knowledge and transparency of produce is decreased when imported.

Transparency

According to the authors of the survey Transparency Content and the Consumer Journey there is a growing demand of transparency in the food chain (Pages, 2017). The survey indicated that “the vast majority of consumers value product transparency and consider a wide array of information about a particular product before making purchase decisions” (Pages, 2017). The authors of the study present insights on the “importance of transparency content to consumers” (Pages, 2017).

The main insights gained from the study is that consumers demand information about the source of ingredients; the manufacturing methods, how it has been shipped and handled as well as the labor policies. The consumers mostly want their information before and during their purchase. The customer is also keen to pay more for a product with transparent information versus a non- transparent product.

Another study on the subject of transparency called How Consumer Demand for Transparency is Shaping the Food Industry (Label Insight, 2016) discusses the consumer demand of transparency and what the consumers value as most important. The authors of the survey determine how

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consumers make food choices, how they shop, and what product information they expect brands to show.

The study shows that the consumers have trust issues when it comes to the information on the food labels. 75% of the consumers do not trust the information that the brands are showing. 94% want more information to be able to make an informed decision. If given the opportunity, over a third of participants were willing to switch to a brand that shows more information about their products.

They are also open to get their information through digital channels (Label Insight, 2016).

Local produce - REKO

Reko stands for “Rejäl konsumtion” which translates to proper consumption. It is a grassroot- community initiative that provides a way of buying local produce directly from the producer without any middlemen. The idea is that consumers and producers join together and forms a marketplace where they can exchange information and products.

These marketplaces are called REKO-rings. In these REKO-rings, relationships are created between those who raise and grow the food and those who cook and eat it. Questions about how the animals were raised are mixed with tips and recipes for the season’s ingredients. The communication between consumers and producers are handled through Facebook groups. In these groups, the consumer can browse what products that are available in the local REKO-ring and order what they want. The Facebook group also contains all the details about where and when the ordered products can be collected and how they payment is processed. A requirement for REKO is that all transactions are settled in advance.

The first REKO-ring in Sweden was formed in Grästorp in the fall of 2016. Since then, the number of REKO-rings in Sweden has increased rapidly. As of April 2020, there were approximately 175 REKO-rings with just over 500,000 members (Hushållningssällskapet, 2020).

2.4 The future of city logistics

City logistics is the distribution of goods that takes place in urban environments. City logistics also utilizes strategies that increase its efficiency and reduce the congestion and emissions. It consists of services that aids in providing efficient management of the movement of goods while providing quick response to customer demands (Rodrigue & Dablanc, 2020).

In 2018, an estimation was made that 55 percent of the world’s population resides in urban environments, and by 2030 it is expected to rise to 60 percent of the global population (UN, 2018).

The E-commerce sales worldwide amounted to 33 trillion SEK as of 2019 and is expected to grow to 61 trillion SEK by 2022 (Clement, 2020). This increase of density of the urban population along with the rapid increase of E-commerce business means that the future of city logistics needs to adapt to the challenges that these changes will bring. Amstel (Amstel, 2017) predicts an increased use of public space, noise, congestion and pollution. Furthermore, increased e-commerce will result in smaller more frequent and time critical deliveries in urban environments (Amstel, 2017).

Parallel to these rapid changes, the issue of sustainable city logistics becomes more important. The logistics is the backbone of E-commerce, so how can city logistics adapt to the future demands of sustainable transportation and zero-emission policies that cities will require? Trendspotting’s to be considered when dealing with future city logistics have been made by Amstel and presented in his article (Amstel, 2017) where the following trends were considered relevant to this thesis:

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Options adapted to changing customer demands

Companies will have to adapt to the demands of their customers to survive. Customers will demand same day delivery, delayed delivery, home delivery, to alternative locations, to neighbourhood stores and to public transport stations. The touchpoints with customers will increase and the information about their delivery will have to be predictable and given in real time (Amstel, 2017).

Address intelligence

The parcel and courier companies should have control of the last mile delivery costs. These companies will have dynamic pricing and intelligent routing systems and collaborate with each other to perform efficient deliveries (Amstel, 2017).

Robotisation

Robots and smart-autonomous vehicles will compose the core of urban logistics. Unmanned deliveries carried out by drones and unmanned pick-up points. It will also become more necessary because of a future shortage of delivery workers (Amstel, 2017).

Clean air zones

Cities will see an increase of low-emission and clean air zones which will force delivery companies to rethink their last mile-delivery and invest in vehicles with low to zero emission. Strict penalties will be given to those not meeting the set emission agreement (Amstel, 2017).

Zero emission

The zero emission and clean air zones will be notable mainly in the dense and central areas of cities. According to Amstel, not only cargo vans and trucks will be electrified. An increase of

“light electric freight vehicles” will happen on the streets of cities. Examples of these vehicles are cargo bikes and electric mopeds. These vehicles will not only be more cost efficient, but also provide parcel companies with greater flexibility (Amstel, 2017).

Smart planning

Big data will be used to plan delivery routes and real time traffic information will be provided for the current situation in the city and for the availability of unloading zones. According to Amstel, the “uberification” of last mile delivery will be unstoppable. The next generation delivery companies will need to collaborate and share data as well as space amongst one another (Amstel, 2017).

Public-private-partnerships

Customer demands when it comes to fast delivery will grow, and with this a growing trend for utilizing urban space will grow. Hubs all around the city will appear in for example old warehouses and shopping malls. According to Amstel, these city hubs will be developed in a collaboration with the public and private sector. In the growing residential areas, new opportunities will emerge that allows for a rethink to fit the increased demand of quick last mile delivery (Amstel, 2017).

Mobile pick-up points

Mobile pick-up points used for parcel collection and E-commerce can move and change their locations throughout the day autonomously or by a courier driving it around. By moving pick-up points around the city extends their reach to customers and can be optimized to make the amount of pick-up points smaller while still reaching all customers. Schwerdfeger & Boysen (Schwerdfeger & Boysen, 2020) suggest procedures for how to implement mobile pick-up points in urban environments. Their result and conclusion show that major reductions in costs and pick- up points are possible (Schwerdfeger & Boysen, 2020). Mobile pick-up points can be beneficial for the environment, reduce congestions and negative health impact in urban environments (Schwerdfeger & Boysen, 2020).

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3 METHOD

This chapter describes the methodological process that has been used throughout the project. It includes a process overview, a toolbox of all methods used, and the work process described in detail.

3.1 Process Overview

The basis of the methodology used in this project is the service design approach. It is a holistic perspective where focus lies on designing a system that provides a service to the user. The central focus of service design is user experience, where the involvement of users and other stakeholders are essential in order to tackle the complexities of the project and result in a functional service for the user (Boeijen et al., 2017). To tackle the design challenge, the sprint method was used. It is an approach that originates from Google ventures where a five-day process is used to solve problems.

The thesis project work was divided into seven phases, beginning with a set focus phase. In this phase, background research was collected to find a suitable direction within the problem area to focus on. The set focus phase was followed by a preparation phase where more research was conducted, and further knowledge was gained in the focus area to form a solution space. The preparation phase was followed by four sprint loops. Every sprint consisted of five parts: Define challenge & choose a target, Ideation, Decide on best, Prototype and Test & Learnings. The project was completed with a concluded result phase, where the result of the research was summarized, and the three concepts developed during the sprint loops were finalized. The final concepts were later presented to the client for evaluation regarding their feasibility and suitability for the company.

3.2 Toolbox

In this chapter the methods used throughout the project are listed and explained how they can be used. The methods are not listed chronologically since the majority of the methods have been used on several occasions throughout the project. In chapter 3.3.1 to 3.3.4, the tools are presented in the phase of the project they were used.

3.2.1 Interview methods

Qualitative interviews are used to gather information about a certain topic, going below surface level (Stickdorn, Lawrence, Hormess, & Schneider, 2019). Conducting qualitative interviews with the users allows for a greater understanding of their problems, needs and attitudes. It facilitates in explaining what they mean rather than just say.

There are three types of interviews; structured, semi-structured and in-depth interviews. What differentiates them from each other is the architecture of the questionnaire, where structured interviews have a fixed set of questions following a certain structure. The follow-up questions are asked with alternatives that the interviewee can choose from. For the semi-structured interviews, a set of questions has been prepared beforehand. However, they can be asked in any order and are open-ended. When conducting an in-depth interview, the interviewer has few predetermined questions and the follow-up questions are based on the answer from the interviewee. This allows the conversation to dive deeper into the subject and collect knowledge that describes the interviewee (Stickdorn, Lawrence, Hormess, & Schneider, 2019).

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During the research-phase of the project, qualitative interviews were held with stakeholders and experts. Both group members were participating with one taking notes and the other asking questions and then rotating. The interviews were then further analyzed by using the clustering method to identify key research findings, see 3.2.17.

3.2.2 Sprint

Sprint is a method used by companies when developing new products, services or in general problem solving (Knapp, 2016). The main idea is that within five days go from defining the problem to having a prototype and test it with the intended user. This allows teams to rapidly test possible solutions and observe the reaction of the user before the company invest time and money into developing the end-product. Due to the short time span and the grand scope of the work that needs to be done, the inventor of the method (Knapp, 2016) has developed a structure of what the focus of each day should be and what methods the team should perform to reach their goal. Knapp (2016) presents the following structure for conducting sprints:

Mondays: Define challenge & choose a target

First, the problem is mapped out. This allows uncertainties to be pointed out and gives the team clarification of what answers they need to get at the end of the week. Information is gathered from expert interviews to further expand the problem space. The experts should be both people from inside and outside the company. The information should come from different sources to give a nuanced picture of the problem. Thereafter, a target customer and target event are chosen.

Tuesday: Ideation

Solutions to the problem is sketched. The ideas can be iterations of already existing solutions to similar problems in other industries or completely new solutions. Different methods can be used in this step, but the main goal is that at the end of the day there are various solutions to the challenge.

Wednesday: Decide on best

Since all of the solutions can’t be tested, the team needs to decide on which one of the ideas that have an opportunity to solve the challenge. Before the end of the day, the team should have a testable hypothesis and a plan of how to execute the test.

Thursday: Prototype

During this day, the prototype that will be used in the user tests is built. The prototype should be realistic but also be able to be made in only one day’s work. The team should be able to conduct a test-run with the prototype at the end of the day.

Friday: Test & Learnings

On Fridays, the prototype is tested and evaluated with the intended user. Five is the optimal number of interviews to conduct during the day. When all the test-sessions have been executed, the information gathered is analyzed and patterns are searched for. When the day is over, the team should have a good understanding of what they need to do next in their project process.

A visual presentation of how the structure of a sprint-week is built up, and what the aim of each day is can be seen in figure 2.

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Figure 2. Phases within a sprint-week (Knapp, 2016).

3.2.3 Empathy Map

Empathy map is a tool in which the designer dives into the mind of the customer so their needs can be defined and later turned into opportunities for development (Board of Innovation, 2019).

The tool enables the designer to understand what problems that can arise from a certain situation as well as the user’s aspirations and concerns. The information gathered from the user research are synthesized and visualized with respect to what the customer thinks, feels, says, does, hears sees as well as their pains and gains.

3.2.4 Problem Definition

Problem definition is a method used to define the problem in the beginning of a design project, usually defined at the end of the research phase (Boeijen et al., 2017). The method aims at defining the underlying problem by answering the following questions:

§ What is the problem?

§ Who has the problem?

§ What are relevant context factors?

§ What are the goals?

§ What are the side effects to be avoided?

§ Which actions are admissible?

The outcome of answering these questions is a description of the design problem which can be used as a guide throughout the project. It contains the desired end situation and paves the way for the start of ideation. It also enables a shared understanding of the problem between members of the team and possible stakeholders.

3.2.5 Stakeholder Map

In a stakeholder map, all the stakeholders of a project, product or idea is laid out on a map (Savina, 2019). This enables for a visual representation of how the influence of others can affect the project as well as the connection between those players. When the stakeholders have been identified and ranked according to their influence, a plan of how to engage them can be developed.

3.2.6 Customer Journey Map

Customer journey mapping is a method where a mapping is conducted of all stages a customer goes through when using a service or product (Boeijen et al., 2017). The purpose is to generate a graphic representation of the stages that the customer passes when using the service or product,

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providing a deeper understanding and insights of the customers emotions, goals, interactions and barriers at each stage of their journey. The map is made by researching the intended users of the project. Throughout the project, the customer journey map can be used to identify what knowledge is still missing regarding the user at a certain stage in the journey.

3.2.7 Design Principles

Design principles are guidelines and considerations that are required for the designer to implement in the concept to assure it being of value for the user (Design Kit, 2020). The principles are based on the accumulated user insights from the conducted research and describes how the needs can be addressed. This serves as guiding rails for the designer when ideating on solutions. By formulating design principles, the concepts can stay consistent of its objectives when iterated.

3.2.8 How Might We

How might we is a method used to reframe identified problems and insights into questions to aid during ideation (Board of Innovation, 2019). The problems and insights are formulated as questions that starts by asking “How Might We”. The purpose of the method is to turn challenges into opportunities that the design can focus on. A How Might We question should be able to be answered in many ways. They should not suggest only one solution, but instead give a frame for ideation.

3.2.9 Stakeholder Co-creation Workshop

In a co-creation workshop, different stakeholders of a project are invited to jointly create solutions to certain problems that revolves around the project (Belozerova, 2018). Instead of being objects of research, they become participants in the design process, allowing for faster user feedback. The workshop can be organized to fit different purposes and users. Generally, the insights from the previous research is presented to give the participants an understanding of the challenge.

Thereafter, a facilitator guides the participants in the conversation and ideation sessions.

3.2.10 Design Drawing

Design drawing is a tool for exploring and communicating ideas (Boeijen et al., 2017). It is used in various design stages such as ideation, exploration of concepts and presentation of concepts.

Sketching can serve as a starting point for new ideas and help explore the functions and shapes of the design. It is also a great tool for communicating ideas to stakeholders and can serve as a base for trigger materials with the user.

3.2.11 Brainstorm

Brainstorming is a tool that provides a great quantity of ideas in a short period of time (Boeijen et al., 2017). The approach is to gather a number of people relevant to the project to work in a group where it is encouraged to express any idea they can think of. The bottom-line is that “quantity breeds quality”.

3.2.12 Crazy 8s

Crazy 8s is a rapid sketching exercise in which the designer chooses his/hers most appealing ideas and thereafter sketches eight iterations of it in eight minutes (Knapp, Kowitz, & Zeratsky, 2016).

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Each person takes a piece of paper and folds it three times. In each of the eight panels, the participant creates miniature sketches. A timer is used to keep the time limit to 60 seconds for each section. This exercise allows for development of concept ideas and considerations of alternative ways for solutions to the problem.

3.2.13 Heatmap

Heatmap is used when ideas from the ideation phase are presented to the rest of the group and thereafter evaluated (Knapp, Kowitz, & Zeratsky, 2016). The concepts are put on a wall and the team members are given dot stickers to be put beside parts of an idea that the participant finds interesting. They can also put several stickers if they find the whole idea exciting. Any question is written down and put below the sketch. Due to the quick and rapid process, all the ideas presented are more easily remembered. The dots create a “heat map” that shows which ideas that the group finds intriguing and facilitates in deciding what ideas or parts of ideas that the team should continue work with.

3.2.14 Storyboard

Designers use storyboards to envision how the customer uses their concepts by stringing together the sequences that the user goes through before, during and after interacting with the product or service (Knapp, Kowitz, & Zeratsky, 2016). The format of the storyboard is much like a comic book where frames with graphic illustrations are used to set the context and show functions. By making a storyboard, problems and uncertainties of the concept can be found and taken care of before building a prototype.

3.2.15 Scenario-testing

Scenario testing is a tool that helps the designer to show and test ideas in their intended context (Milton, 2017). By designing a scenario with characters, a narrative and environment, the designer can test the context and usage of their product/service with the intended user. Scenario testing can be done through different media such as text, photography, films, storyboards and act-outs that mediates the scenario of use. Afterwards, users are asked to evaluate the product or service.

Scenarios are based on insights from research such as field studies and interviews with stakeholders as well as interviews and future forecasts from experts on the subject.

3.2.16 Explorative trigger material

Trigger material are visualized versions of ideas and concepts developed from the ideation phase.

They are shown during test-sessions to spark discussions with the interviewee and to examine which assumptions that can be validated or rejected (Transformator Design, 2014). The fidelity of the visualizations can vary from high to low, depending on the assumptions that are evaluated.

They can also differ in what format is used, from hand sketches to physical mock-ups.

3.2.17 Clustering

Clustering is when a variety of information gathered from research is segregated into similar groups of data that share common traits (Kaushik, 2019). It is common for designers to create clusters based on the data collected from user interviews and thereafter group them into customer segments. This summarization facilitates analysis and pattern finding, making it easier for the

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designer to grasp their needs and preferences. It also facilitates when deciding on business strategies.

3.2.18 Personas (Need groups)

Personas is a tool used to represent larger groups of users within a demographic (Milton, 2017).

The Personas are based on real observations and interviews with users. Their needs and objectives are then summarized to form fictional characters as representations. The method can be used to segment different types of users. A persona should tell a rich story and can be used as a target to design for. In this project, we discovered that the needs are not static nor attached to the individual, but instead attached to certain situations that occur. Therefore, we bundled together needs connected to a certain situation and formed what we call “need groups” rather than personas. This allowed us as designers to focus on the contextual behaviors and needs.

3.2.19 A day in the life

A day in the life is a research method where the designer follows a person for a period of time, usually throughout a typical workday, and observes and documents the person's experiences and activities, providing a snapshot of the person's daily activities (Milton, 2017). It is useful for exposing unforeseen issues in the routines of the followed person. When using this research method, the designer acts as a “fly on the wall”. Everything the followed person does is observed and recorded, as well as the context in which the person interacts.

3.2.20 vALUe

vALUe is a method that is used to evaluate a large number of ideas in a fast and organized way (Boeijen et al., 2017). vALUe stands for: Advantage, Limitation and Unique Elements. It allows for ideas to be described in simple terms by listing the Advantages, Limitations and Unique Elements for each idea. It is best used early in the ideation stage where a large number of ideas needs to be compared. It allows the designer to compare ideas which results in easier decision making.

3.2.21 Service blueprint

Service blueprint is a tool for visualizing and explaining a complex service and its underlying internal processes (Kertesz, 2020). It illustrates a service journey and maps out the relationships between each detail of it along a timeline. The service blueprint consists of five lanes describing the user’s interaction with the service and its underlying processes:

1. The physical evidence.

These are the touchpoints where the user interacts with the service.

2. The customer’s actions.

This describes the user journey, the actions the user has to take to use the service.

3. Frontstage interactions.

These are the interactions made between the service provider and the user. These interactions can be seen by the user.

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4. Backstage interactions.

These are all things the service provider has to do in order to run the service successfully. The user doesn’t see or interact with this part of the service.

5. Support processes.

These actions support the service. Such as coordination and planning.

The blueprint makes it easier for the designer to map out the most critical elements of the service and connect user experience to the underlying processes that needs to be realized.

3.2.22 Business model canvas

Business Model Canvas is a tool that visually defines business ideas with the help of a canvas divided into nine areas: key partners, key activities, key resources, value proposition, customer relationships, channels, customer segments, cost structure and revenue stream (Boeijen et al., 2017). By analyzing the outcome and coherence of these nine areas it allows the designer to see the viability of the business idea. It shows what added value that is given and for whom, what collaborations that are needed in order to realize the idea, where profit can be generated and what costs are involved. It can also aid in evaluating already existing businesses and identify their strengths and weaknesses.

3.2.23 Itemised response

Itemised response is a method that is used to judge early ideas quickly and intuitively while still maintaining a structured approach (Boeijen et al., 2017). By listing the positive and negative features of each idea, the team gets a better understanding of the possible solutions and a hint on which ideas that are worth developing further.

3.3 Work Process

This chapter is an overview of the implemented work for each phase of the project. The methods and aim of each phase will be described.

3.3.1 Set Focus Phase

The aim of the first phase of the project was to narrow down the broad topic of sustainable food consumption, set an area to focus on and collect knowledge to be used in the frame of references.

The phase started with desktop research on the subject of sustainable food consumption where internet searches were made. The keywords mainly consisted of “transparency in food”,

“sustainable food consumption”, “food chain”, “food production”, “locally produced food” and

“urban logistics”. Previous reports written in areas related to the subject were also studied. Semi- structured interviews were carried out on two occasions during this phase with 17 individuals that fit Electrolux target user, the young professional. The aim of the first interview-session was to investigate the intended users and get a first glance of how they perceived sustainable food consumption, what they found troublesome regarding the subject and what they did to lead a more sustainable lifestyle. The interviews were carried out in the streets of Stockholm and at Electrolux Headquarters. See appendix 1 for the interview guide.

A semi-structured expert interview was carried out with a senior consult specializing in sustainable consumption and production at RISE (Research Institutes of Sweden). Subjects such as the

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infrastructure of food, locally produced food and transparency of the food chain were touched upon. See appendix 2 for the interview guide. Research and material collected during this phase were also used for the foundation of chapter 1 and chapter 2.

The accumulated insights were collected and the Itemised response method was applied to form a decision together with Electrolux on which part of sustainable food consumption to move forward with.

3.3.2 Preparation Phase

The aim of the preparation phase was to gain more knowledge in two areas of interests: the intended users and market & industry players. Insights were gathered and combined to form a synthesis at the end of the phase.

Intended users

Two sets of interviews were held with intended users at three occasions during the preparation phase. The first set of interviews were semi-structured and conducted with four intended users over phone as well as in the home context. The interviews were based on the insights gained from the set focus phase and aimed at pinpointing the user’s grocery shopping routines, how they valued food, their interest and perception of sustainable food consumption as well as locally produced food and what problems they might have in obtaining it. These interviews took approximately 45 minutes to perform. The interviews were recorded and later transcribed and analyzed. See appendix 3 for interview guide.

The second set of interviews were also semi-structured and held at REKO-ring Liljeholmen as well as at a handout of pre-ordered meat at the farm of a local meat producer. At both occasions the customers and visitors were interviewed. 13 interviews were held, where the length of the two sets of interviews were short and took about five minutes to perform. Notes were taken during both occasions and later analyzed. The aim of these interviews was to understand the users who already use existing channels for obtaining local produce and hear what they found troublesome, their views on local produce and how the meetups work in practice.

Market & Industry players

The aim of researching the market & industry players was to identify actors that exist in the local food market in Stockholm, how existing grocery stores work with local produce and get insights of the work of the local farmers. One day in the life, two field studies and four semi-structured interviews were conducted both in context as well as over phone.

A day in the life

“A day in the life” research was performed at a farm north of Stockholm, with observations being documented with a camera and a notebook. The observed person was a worker with responsibility of the sales at various REKO-rings. She was followed from the start of her workday, preparing for a REKO-ring meetup later the same day. She was also observed during and after the meetup.

Several questions were asked throughout the day to clarify what she was doing and why, and a longer interview was held at lunch time. See appendix 4 for interview guide.

Interview with producers

Semi-structured phone interviews were conducted with three producers to further deepen the understanding of their work. The topics discussed revolved around the distribution of their food to restaurants and private consumers, how they manage waste, challenges they face, other aspects of local produce and how they work with information regarding their products. The interviews took

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approximately 1 hour each and were recorded and later analyzed. See appendix 5 for interview guide.

Field study and contextual interview

One contextual semi-structured interview as well as a field study was conducted at a small-scale farm north of Stockholm. The interview was held in the kitchen of the two farm owners, discussing the same topics as mentioned above. The same interview guide as the one used with interview with producers were used. See appendix 5 for interview guide.

Existing grocery bag-service focusing on local produce

One semi-structured phone interview was conducted with a grocery-bag service that supplies local produce to customers in the southern regions of Sweden. The aim was to gain insights in how they work and what value proposition they offer to their customers. The interview revolved around topics such as how to supply groceries that are seasonal based, their customer segment, how they distribute the groceries from producer to consumer and how the farmers benefit from their service.

The interview lasted for 30 minutes and was recorded and analyzed. See appendix 6 for interview guide.

ICA Liljeholmen

To get an understanding of what established grocery stores do in terms of sustainable food consumption and how they differ compared to buying groceries online or directly from the farmer, one semi-structured interview was conducted with the head of sustainability at ICA Liljeholmen.

The topics discussed were challenges with sustainable food consumption, what barriers they have with locally produced food and the advantages and limitations of being a physical store compared to an online grocery store. The duration of the interview was 45 minutes. It was recorded with a mobile phone and later analyzed. See appendix 7 for interview guide.

Synthesis

At the end of the preparation phase, a synthesis was performed with the aim of collecting the learnings gained from the conducted research. All the performed interviews were transcribed and analyzed. Important and insightful parts of the interviews were highlighted and further developed by written comments beside the transcribed text. The most valuable insights were then clustered using the digital platform Stormboard.

A stakeholder map was developed to understand what stakeholders are important for the project and help organize them in a visual way. Customer journey maps were made to depict the user experience of grocery shopping. The users were divided into three need groups to illustrate three different ways of shopping for food. A fourth customer journey map was made to illustrate the producers experience when selling their products through REKO-ring’s. Empathy maps were formed for both the user as well as the producer. This would serve as a foundation when identifying the needs and opportunities to design for in the next phase.

As a final step in the synthesis, the accumulated insights led to the creation of a problem definition and a vision to act as guidance throughout the ideation phase. This allowed the team to get on the same track and further concretize the aim of the design.

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3.3.3 Sprint Phase

The sprint method was used during the ideation phase to quickly and iteratively verify the assumptions developed in the research, further explore problem areas and test solutions with the intended user. For a description of the Sprint-method, see chapter 3.2.2. In this chapter, a description of how the sprint method was implemented in the project is presented and the results can be seen in chapter 4.3 - 4.6.

Sprint

Four sprint weeks were executed in this project, each with its identified challenge-statement and target user. The focus of each sprint week was built upon the findings and learnings from the previous week, creating a chain of four iterative loops that eventually lead to the final concepts.

The focus of each sprint was the intended user, producer, logistics and intended user again as seen in figure 3.

Figure 3. Chain of sprint-loops.

It is up to the designer to decide the number of sprints they want to perform and if they should be consecutive or not (Knapp, 2016). In this case, it was decided that four consecutive sprint-weeks would be implemented since it would generate concepts fairly quick and also give time to change direction if they were proven to be un-feasible. In the first sprint week, the challenge was to test the assumptions about the intended user that arose from the research-phase. Focusing on this target in the beginning of the ideation-phase gave a good foundation of concepts that could be developed further in the upcoming sprints. The initial test showed that there were a number of important factors that played a big role in the service-system. Therefore, the next sprints focused on the challenges that arose from those topics. Each sprint phase gave a new and more thorough perspective on the feasibility and desirability of the concepts. Lastly, the insights from previous weeks were tied up in the final sprint week and new concepts were developed and tested with intended users.

3.3.4 Final Concept Iteration

The last phase was performed to summarize the insights from the sprints and iterate the three final concepts based on the learnings from sprint 4. It was decided together with the client that presenting three final concepts would be of value since it would show different aspects of how the users needs could be met and how Electrolux could fit in to this new market segment. Presenting three concepts of lower fidelity compared to one final concept of a higher fidelity would also benefit Electrolux if they were to pursue development of one concept. This since the thesis will be published and therefore available to the public. The outcome of each phase was analyzed to form an overview of the work carried out up until this point. It was important to package the insights connected to each concept in a tangible and comprehensive way.

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The intended user, the young professional, was formed into two need groups with their own specific needs to represent the user. Design principles were developed for each need group by analyzing and clustering the learnings gained through the interviews and tests with the intended user. This would also facilitate in the handover of the project to the client. The insights from the last user test along with the design principles were implemented on the three final concepts. The concepts were visualized in an equal resolution that reflects which state of the development process they are in and facilitates in the comparison between them. Service blueprints were made to give a holistic overview for each concept, explain the underlying internal processes and illustrate the user’s journey while interacting with the concepts. To describe the viability of the concepts, business model canvases were made. This to communicate what added value each concept would bring to the user and Electrolux. The business model canvases also highlight what collaborations are necessary for the concepts to be realized by the client.

Stakeholder Workshop

A final workshop was held together with the supervisors at Electrolux where the need groups, design principles and the three concepts were discussed. The purpose of the workshop was to discuss the results and findings gained from the project and get a sense for the challenges and opportunities linked to each need group and concept.

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References

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