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UX STRAT Europe 2019: Zachary Jean Paradis, Publicis Sapient


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UX STRAT Europe 2019: Zachary Jean Paradis, Publicis Sapient

  1. 1. Friends or Foes? Experience Strategy, Service Design & Product Management June 2019
  2. 2. 2 Z AC H A RY J EA N PA R A D I S GVP, Experience Strategy & Service Design N.A. Lead @zacharyparadis Chicago, Illinois | This book is about innovation— how to create value for people through new or improved services and products. Innovation doesn’t require unusual genius or creativity, but lately all the buzz surrounding innovation has made it look awfully complicated. Naked Innovation helps unveil some of the mysteries of the process—stripping it down to reveal structures that multidisciplinary teams can share. Once you see the underlying theory and the methods which flow from it, you’ll become even more effective at doing it yourself. “A terrific contribution to the integration of design and management” roger martin, dean, rotman school of management, university of toronto nakedinnovationparadis/mcgaw nakedinnovation uncovering a shared approach for creating value Zachary Jean Paradis David McGaw IIT Institute of Design
  3. 3. Agenda 1. The (Digital Business) Transformation Imperative 2. Innovation of Innovation Approaches 3. Competition or Complement? 4. Q&A 3
  4. 4. 4 The (Digital Business) Transformation Imperative 01 Need to update image?
  5. 5. THE CUSTOMER CHALLENGE Rapidly changing expectations– what people consider best-in-class today, will be out of date tomorrow. 5
  6. 6. The most important single thing is to focus obsessively on the customer. JEFF BEZOS FATHER OF MODERN MANAGEMENT 2014 (and every year since) ” “
  7. 7. The transformation imperative: exceptional experience drives business success 7 89% of customers have higher expectations of customer service than they did just one year ago2 of companies expect to compete mostly on the basis of customer experience by 20161 of customers reported switching brands due to poor customer experience2 60% 49% stock market returns versus laggards (5%) or the S&P500 (20%) 2016 to 20173 34% 1. Gartner Leadership Survey, 2015 2. Global Multichannel Customer Service Report, 2015 3. Forrester CX Quality Can Affect Stock Performance, 2018
  8. 8. The transformation imperative: exceptional experience drives business success 8 4. Forrester Cxi, 2017 of brands excel in their customer experience, according to their customers 4 YET ONLY 1%
  9. 9. THE TECHNOLOGY CHALLENGE Every company is a technology company, no matter what product or service it provides. The companies that embrace this fact are the ones that shape our world. 9
  10. 10. The transformation imperative: technology fueling rate of change 10 CUMULATIVECAPABILITY T I M E 1 9 5 0 1 9 6 0 1 9 7 0 1 9 8 0 1 9 9 0 2 0 0 0 2 0 1 0 2 0 2 0 2 0 3 0 ? IOT AND SMART MACHINE BIG DATA, ANALYTICS, VISUALIZATION WEB 2.0, CLOUD, MOBILE WEB 1.0 ECOMMERCE CLIENT SERVER AND PCS MAINFRAME ARTIFICIAL INTELLIGENCE
  11. 11. The transformation imperative: technology fueling rate of change 11 1. Forrester/eMarketer 2. Forrester 3. Digi-Capital 4. Gartner 5. BCG MOBILE/WEARABLES AI/AUTOMATION AR/VR CLOUD/SAAS IOT 91% of global consumers are projected to have a smartphone, while 1-in-5 US adults will use a wearable1 $1.2T of revenue will be cannibalized by competitors leading with AI and automation from their less savvy peers2 $120B is the projected annual market size of AR and VR by 2020, with AR accounting for the great majority, $90B, of that total3 $436B is the projected annual spend on cloud services globally by 20204 $276B is the projected annual spend on IoT tech, apps, and solutions by 2020, with nearly 50% in utilities, manufacturing, and logistics5
  12. 12. THE BUSINESS CHALLENGE Agility–the ability to move faster than the competition, in line with customers, is perhaps the single most critical organizational competency. 12
  13. 13. 13 Old ways of addressing the competition and opportunities don’t work anymore. IDEA Relevant Problem 1.5 Years LIVE Irrelevant Solution PrimeNow went from Concept to launch in 111 Days 60% Of the US population in less than 30 months
  14. 14. The transformation imperative: agility is required to survive business in 2019 14 1. Harvard Business Review & Constellation NR of the Fortune 500 companies have disappeared.52% 1995 (The Birth of Amazon) Average life expectancy - 75 years 2016 Average life expectancy - 15 years IN THE LAST 15 YEARS
  15. 15. The CEOs of the most successful enterprises… place a higher premium on agility and experimentation. IBM CEO STUDY 2016 ” “
  16. 16. 16 Digital Business Transformation (DBT) radically changes what is possible by revolutionizing both value delivered to the market, and the way in which value is created by embracing digitally-native mindsets, tools, and process. P EO P L E T EC H N O LO GY B U S I N ES S Transforming both the “what” and the “how” of value creation “what” “how”
  17. 17. 17 Innovation of Innovation Approaches 02
  18. 18. What is innovation? Creating value for people through new or improved services and products (or creating platforms for doing it systemically).
  19. 19. We are in an era of continuous innovation. We’ve entered an era forcing companies to shift their priorities and activities faster than ever before, presenting challenges: • How to be as nimble as possible, yet optimize the business? • How to transform the core business? • How to identify the next big bet and business platform?
  20. 20. In fact, we have seen a vast array of innovation in how to innovate.
  21. 21. A perspective on innovation: Different innovation problems require different approaches.
  22. 22. Different approaches for different problems 22 1 (Digital) Product Management Rapidly Evolve Offerings 2 Service Design Reimagine Offerings 3 New Product Innovation & Labs Identify New Offerings 4 (Lean) Startup Develop Incremental Breakthrough
  23. 23. 23 Competition or Complement? 03
  24. 24. Product management is more important than ever precisely because new innovations intersect business, technology, and design. MARTIN ERIKSSON MIND THE PRODUCT 2017 ” “
  25. 25. Service Design will take over the world!ALBERTA SORANZO DIRECTOR OF END-TO-END SERVICE DESIGN, LLOYDS 2018 ” “
  26. 26. (Digital) Product Management and Service Design promise similarities 26 Product Management Service Design Principles & Benefits • Agility • Customer-centered • Interdisciplinary • Iterative • Outcome-driven • Agility • Customer-centered • Interdisciplinary • Iterative • Outcome-driven
  27. 27. (Digital) Product Management and Service Design promise similarities 27
  28. 28. What is (Digital) Product Management (a too brief primer)? 28 Product management is a value focused approach to running an organization, requiring a shift from projects focused on scope, time, and budget to flow, quality, and value. Value FlowQuality Scope Time Cost Deliver Value early & often Higher Quality through rapid feedback Do it fasterDo the right thing Do it right 1 3 2 Optimise Flow to deliver faster
  29. 29. What is (Digital) Product Management (a too brief primer)? 29 $ 5 1. Carve the estate/offerings into “products” (or journeys) 2. Each product gets an owner, a ”mini-CEO” 3. Each product gets a dedicated (full-stack) team 4. Each product gets a goal 5. The product is always changing to maximize progress, product-market fit and business performance 1 2 3 KPI 4
  30. 30. 30 At Target, the first pilot of the new product management and value model was put in place for Adaptive Mobile Web. Key changes in this approach versus what had previously been done included: • Fully empowered product managers/owners • Sub-product teams organized around customer journey • Daily review of KPI’s • Work financed by commitments to KPI objectives – VC style funding – not features • Teams have ability to reprioritize without additional permission Adaptive mobile web product Pilot the shift to catalyze the organization
  31. 31. 31 • Fully empowered product managers/owners • Sub-product teams organized around customer journey • Daily review of KPI’s • Work financed by commitments to KPI objectives – VC style funding – not features • Teams have ability to reprioritize without additional permission Lead time from “Idea to live” 3 Weeks12 - 18 months Number of Teams 60 Route-to-live time Minutes90 days Done in SprintWeeks Minutes1 week Accessibility testing duration Duration of Initial Code Quality Test Time to execute test scripts MinutesWeeks Time to create new development environments 10 minutesWeeks Prototypes / experimentsDiagrams / boxesArchitectural communication approach From To Customer Satisfaction Score Mobile Web 7363 BUSINESS RESULTS CUSTOMER IMPACT YoY Revenue Growth 72%5% Customer Satisfaction Score Tablet 7353 Multidisciplinary Teams Agile Method & Mindset Modern Devops Test & Learn on Cloud Micro-Service-Led Architecture and App Consolidation Culture Enable a team to run fully on value, quality, and speed
  32. 32. -6 -4 -2 0 2 4 6 8 10 1 2 3 4 5 6 7 8 Modern Product Management’s strength is local optimization 32 Product Management is the best form of organizational design and approach to aggressively optimize products and drive market fit in BAU. Product teams excel at optimizing individual value pools
  33. 33. What is Service Design (another too brief primer)? 33 The Service Design approach is value focused, improving customer experience while simplifying and reducing cost-to-serve by tying customer value to how the organization delivers. DRIVE CUSTOMER RELEVANCE REDUCE COST TO SERVE CUSTOMERS
  34. 34. What is Service Design (another too brief primer)? 34 Organization and operations BACK STAGE (Operating Model) • Process • Compliance & Policy • Product development • Pricing • Legal • Operations • Technology • Etc. FRONT STAGE (All touchpoints) • Communications • Web • Mobile • Retail • Employee • Physical product • Telephony • Etc. SERVICE DESIGN Reimagining and orchestration end-to-end across the enterprise Across every customer and employee touchpoint Customer & Employee Touchpoints
  35. 35. -6 -4 -2 0 2 4 6 8 10 1 2 3 4 5 6 7 8 Service Design’s strength is regional optimization 35 Service Design is a better approach to optimize across products for customer outcomes, where significant gaps exist in CX and in the delivery of that CX. Service design could reimagine the journey of using these products, front-and-back stage
  36. 36. -6 -4 -2 0 2 4 6 8 10 1 2 3 4 5 6 7 8 Service Design’s strength is regional optimization 36 Service Design is a better approach to optimize across products for customer outcomes, where significant gaps exist in CX and in the delivery of that CX. Ultimately, seeing a set of products as a connected offering with shared customer outcome and capabilities
  37. 37. 37 T-Mobile reorganized around a set of prioritized journeys, and we helped them leverage service design to make sure the customer experience that was envisioned could be realized in the most efficient fashion. • In one example, ”Self-serve upgrade” • We identified the lack of customers ability to upgrade their mobile devices without coming to a retail store • The service and digital design defined a new experience, new business processes, and technology requirements • +$9M net revenue/savings in first quarter of launch Design isn’t just skin deep – the org and ops are just as important to great CX Research Provide Device Process & Update Take My Device Customer wants a quick way to return their devices that is easy tounderstand and initate from their prefered touchpoint. Customer wants to be able tochoose a convenientmethod toprovide their device to T-Mobile regardless of howor where they originally received it. Customer wants to feel reassured that there device will be processed quickly, efficiently, accurately, andtheir balance will be appropriately adjusted . Customer Trigger Customer Trigger Customer Trigger Front-Stage Interactions Front-Stage Interactions Front-Stage Interactions Back-Stage Activities Back-Stage Activities Back-Stage Activities Self-Service Interactions Self-Service Interactions Self-Service Interactions Line of sight Line of visibility Steps People Process Technology Figure how to get started and what to expect Decideshow (where) they want to interact Request help with returning device Initiatesa legitimate remorse return Receivesreturn shipping instructions Dropsoff shipment Views accurately adjusted bill Remorse Customers ECR Team Care Rep RetailRep Exchange Customers My.t-mobile App Upgrade Customers Quick View POS Search online Review physical documentation Call Care Visit Retail Look-up on T-Mo digitaltool Ask Social Media SocialMedia Escalation Verifyidentity Look-up receipt or verify identity Identifyreason for return Troubleshoot unnecessary remorse Identifiesif device can be fixed of exchanged Initiate trade-in Identifyoriginal order &capture remorse reason Quarantine Determine device condition and credit fee implications Verify communication preference Log transaction history Re-stock and transfer Quick Code Reduce Shrink Grand Central Issue receipt Create return authorization and send handling instructions Print labeland receive into inventory ReversSTO and transfer inventory UPS pick-up, handling and tracking Receive shipment, scan IMEI and match with return authorization Physical device inspection,remediate anyconditionsissues and applycredits/fees Quarantine Device handling fallout RAon the Fly UPS Tracking RADICALLY SIMPLIFY the product DIGITAL FIRST experiences CHANGE THE WAY WE WORK Invest in platform capabilities to UNLOCK DIGITAL
  38. 38. (Digital) Product Management and Service Design key differences 38 Product Management Service Design Key Differences • Obsessively evolutionary • Independent teams • Touchpoint focused • Lean(er) • Growth-and-profit- driven • Agility in BAU • Entertains wholesale reimagination • Cross-enterprise • Journey-focused • Collaborative(er) • Relevance-and- efficiency-driven • Agility in transformation
  39. 39. (Digital) Product Management and Service Design key differences 39
  40. 40. A COMPLEMENTARY OPPORTUNITY Product Management and Service Design work particularly well together– in Digital Business Transformation. 40 Experience^
  41. 41. Working together: Service Design fills a mixed backlog for Product Management 41 Customer Journey Map Service Blueprint Mixed Backlog in Jira
  42. 42. Approaches work together to enable every aspect of Experience Transformation 42 E X P E R I E N C E ( T R A N S F O R M A T I O N ) S T R A T E G Y Defines the major vectors of transformation (offerings, journeys, capabilities, etc), growth and efficiency opportunities, strategic enablement requirements, teams that will execute, and investment plan N E W O F F E R I N G O P P O R T U N I T Y E X P L O R A T I O N C O R E B U S I N E S S R E I N V E N T I O N S T R A T E G I C E N A B L E M E N T Explores net new business opportunities through a lean startup-like Digital Product Innovation process to determine what should be funded and scaled Reimagining and realizing the major vectors of transformation–journey or offerings–leverages Service Design to fill a mixed backlog of transformation opportunities across offering, CX, capabilities, and modern Product/Journey Management & Engineering to realize the outcome and ultimately own the evolution of the business … Enables the transformation by providing critical platforms–API and Capability Platforms, tools–DevOps, and cultural change–Organizational Change Management, to drive agility and ongoing evolution at the speed of the customer Service Design Product/Journey Management & Engineering Journeys API and Capability Platform Build DevOps Tooling Organizational Change Management B L U E P R I N T P R O T O Y P E S C A L E SHAPING PLANNING PROVING & ESTABLISHING M L S P R I O R I T I Z EI N T E N TS T R A T E G Y
  43. 43. -5 0 5 10 1 2 3 4 5 6 7 8 Experience Transformation Strategy’s strength is global optimization 43 Product Management and Service Design are both poor approaches when needing to determine overall ambition and longitudinal investment. Transformation Strategy more easily enables us to see opportunities which are currently off the map, or to consider defunding an offering
  44. 44. 44 ‘Our ambition is to make the most of emerging technologies, modern engineering techniques and use of data to transform customer experience. ’’ Operational Efficiency Rated best account opening journey in the UK #1 Customer Experience Ways Of Working Pensions processing time 1 Day 22 Days Interview time in branches 50% Pensions operations effort 40% 75% Relationship Manager effort to on-board SME clients End-to-end time to on-board SME clients 75% 6 Agile labs Automated testing Route to live time 5 Days 90 Days Manual testing We’ve seen big results at a major UK bank by combining these approaches
  45. 45. 04 Q&A 45
  46. 46. thend copyright publicis sapient | confidential