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Zachary Jean Paradis: Service Design & Product Management: Friends or Foes?

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As every discipline evolves their practice, and gets better at creating value, contemporary organizations are being caught between potentially conflicting approaches. Service design, modern product management, and lean startup-like new offering innovation processes all purport to be a path to drive customer-centered, business-driving results! Yet, there seems to be little to zero understanding of how these fit together, or if they are in direct conflict. This presentation will propose a model to drive clarity in how potentially conflicting approaches are actually complementary, specifically in the context of business favored topic of the day–Digital Business Transformation.

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Zachary Jean Paradis: Service Design & Product Management: Friends or Foes?

  1. 1. O C T O B E R 2 0 1 8
  2. 2. 2 © Copyright Publicis.Sapient | Confidential ZACHA RY JEA N PA R A DIS GVP, Experience Strategy & Service Design Lead zparadis@sapient.com @zacharyparadis nakedinnovation.com
  3. 3. 3 © Copyright Publicis.Sapient | Confidential IDC (and many other analysts) recognized, “Sapient is among the most capable firms overall worldwide, providing the functional, industry, and technical knowledge necessary to plan for and deliver on digital transformation.”
  4. 4. 4 © Copyright Publicis.Sapient | Confidential Agenda  The (Digital Business) Transformation Imperative  Innovation of Innovation Approaches  Service Design vs Product Management–Complementary Roles
  5. 5. 01 The Transformation Imperative
  6. 6. 6 © Copyright Publicis.Sapient | Confidential THE CUSTOMER CHALLENGE Rapidly changing expectations– what people consider best- in-class today, will be out of date tomorrow.
  7. 7. 7 © Copyright Publicis.Sapient | Confidential The most important single thing is to focus obsessively on the customer. JEFF BEZOS FATHER OF MODERN MANAGEMENT 2014 (and every year since) “ ”
  8. 8. 8 © Copyright Publicis.Sapient | Confidential The transformation imperative: exceptional experience drives business success 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% cumulative total return: CX leaders outperformed S&P 500 return of 72.3% 2007 to 20143 107.5% 1. Gartner Leadership Survey, 2015 2. Global Multichannel Customer Service Report, 2015 3. Customer Experience ROI Study Watermark 2015
  9. 9. 9 © Copyright Publicis.Sapient | Confidential The transformation imperative: exceptional experience drives business success 4. Forrester Cxi, 2017 of brands excel in their customer experience, according to their customers 4 YET ONLY 1%
  10. 10. 10 © Copyright Publicis.Sapient | Confidential 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.
  11. 11. 11 © Copyright Publicis.Sapient | Confidential The transformation imperative: technology fueling rate of change 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
  12. 12. 12 © Copyright Publicis.Sapient | Confidential The transformation imperative: massive investment in tech to disrupt 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
  13. 13. 13 © Copyright Publicis.Sapient | Confidential THE BUSINESS CHALLENGE Agility–the ability to move faster than the competition, in line with customers, is perhaps the single most critical organizational competency.
  14. 14. 14 © Copyright Publicis.Sapient | Confidential The CEOs of the most successful enterprises… place a higher premium on agility and experimentation. IBM CEO STUDY 2016 “ ”
  15. 15. 15 © Copyright Publicis.Sapient | Confidential Old ways of addressing opportunities don’t work anymore. IDEA Relevant Problem 1.5 Years LIVE Irrelevant Solution PrimeNow went from concept to launch in 111 Days And now reaches Source: Stephanie Landry, VP and Head of Amazon Prime Now / 60%of the US population – in less than 30 months
  16. 16. 16 © Copyright Publicis.Sapient | Confidential The transformation imperative: agility is required to survive business in 2018 1. Harvard Business Review & Constellation NR of the Fortune 500 Companies have disappeared. IN THE LAST 15 YEARS, 1995: (The Birth of Amazon) Average life expectancy - 75 years 2016: Average life expectancy - 15 years 52%
  17. 17. 17 © Copyright Publicis.Sapient | Confidential C U STO M E R T EC H N O LO GY B U S I N ES S Transforming both the “what” and the “how” of value creation Digital business transformation radically changes what is possible by revolutionizing both the value delivered to the market, and the way in which value is created in companies:
  18. 18. 02 Innovation of Innovation Approaches
  19. 19. 19 © Copyright Publicis.Sapient | Confidential What is innovation? Creating value for people through new or improved services and products (or creating platforms for doing it systemically).
  20. 20. 20 © Copyright Publicis.Sapient | Confidential 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?
  21. 21. 21 © Copyright Publicis.Sapient | Confidential In fact, we have seen a vast array of innovation in how to innovate.
  22. 22. 22 © Copyright Publicis.Sapient | Confidential A perspective on innovation: Different innovation problems require different approaches.
  23. 23. 23 © Copyright Publicis.Sapient | Confidential Different approaches for different problems and opportunities 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
  24. 24. 03 Service Design vs Product Management– Complementary Roles
  25. 25. 25 © Copyright Publicis.Sapient | Confidential Product management is more important than ever precisely because new innovations intersect business, technology, and design. MARTIN ERIKSSON MIND THE PRODUCT 2017 “ ”
  26. 26. 26 © Copyright Publicis.Sapient | Confidential Service Design will take over the world! ALBERT SORANZO DIRECTOR OF END-TO-END SERVICE DESIGN, LLOYDS 2018 “ ”
  27. 27. 27 © Copyright Publicis.Sapient | Confidential (Digital) Product Management and Service Design promise similarities Product Management Service Design Principles & Benefits • Agility • Customer-centered • Interdisciplinary • Iterative • Outcome-driven • Agility • Customer-centered • Interdisciplinary • Iterative • Outcome-driven
  28. 28. 28 © Copyright Publicis.Sapient | Confidential
  29. 29. 29 © Copyright Publicis.Sapient | Confidential What is (Digital) Product Management (a too brief primer)? 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 Assured Quality through fast feedback Do it fasterDo the right thing Do it right 1 3 2 Optimise Flow to deliver faster
  30. 30. 30 © Copyright Publicis.Sapient | Confidential $ 5 What is (Digital) Product Management (a too brief primer)? 1. Carve the estate/offerings into products 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 ? 4
  31. 31. 31 © Copyright Publicis.Sapient | Confidential What is Service Design (a still too brief primer)? The Service Design approach is value focused, enabling an organization to do what seems impossible–improving customer experience while simplifying and reducing cost-to-serve DRIVE CUSTOMER RELEVANCE REDUCE COST TO SERVE CUSTOMERS
  32. 32. 32 © Copyright Publicis.Sapient | Confidential What is Service Design (a still too brief primer)? Organization and operations BACK STAGE (Operating Model) • Process • Compliance & Policy • Product development • Pricing • Legal • Operations • Technology • Etc. FRONT STAGE (All touchpoints) • All customer touchpoints • Communications • Web • Mobile • Retail • Employee • Physical product • Telephony SERVICE DESIGN Reimagining and orchestration end-to-end across the enterprise Across every customer and employee touchpoint Customer & Employee Experiences
  33. 33. 33 © Copyright Publicis.Sapient | Confidential (Digital) Product Management and Service Design key differences 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
  34. 34. 34 © Copyright Publicis.Sapient | Confidential
  35. 35. 35 © Copyright Publicis.Sapient | Confidential A COMPLEMENTARY OPPORTUNITY Product Management and Service Design work particularly well together in Digital Business Transformation.
  36. 36. 36 © Copyright Publicis.Sapient | Confidential A (completely non-scientific) characterization of how different approaches create value over time (Digital) Product Management Rapidly Evolve Offerings Obsessive Evolution Service Design + Product Management Reimagine Offerings Measured Revolution Waterfall Big Bang Hope and Pray
  37. 37. 37 © Copyright Publicis.Sapient | Confidential Working together: Service Design fills a mixed backlog for Product Management Customer Journey Map Service Blueprint Mixed Backlog in Jira
  38. 38. 38 © Copyright Publicis.Sapient | Confidential We’ve seen big results at a major UK bank by combining (Digital) Product Management and Service Design approaches ‘Our ambition is to make the most of emerging technologies, modern engineering techniques and use of data to transform customer experience. ’’ OPERATIONAL EFFICIENCY Interview time in branches50% 6 Agile labs Rated best account opening journey in the UK #1 CUSTOMER EXPERIENCE WAYS OF WORKING Pensions operations effort 40%1 DAY Pensions processing time 22DAYS Automated testing Manual testing 75% Relationship Manager effort to on-board SME clients End-to-end time to on- board SME clients75% DAYS 5 Route to live time 90DAYS
  39. 39. 39 © Copyright Publicis.Sapient | Confidential Approaches work together to enable every aspect of Digital Business Transformation T R A N S F O R M AT I O N S T R AT E G Y Defines the major vectors of transformation: new and reimagined offerings and efficiency opportunities, strategic enablement requirements, 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 V A L I D AT 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 AT E G I C E N A B L E M E N T Explores net new or reimagined business opportunities through a lean startup-like New 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 Organizational Change Management API and Capability Platform Build DevOps Tooling
  40. 40. 40 © Copyright Publicis.Sapient | Confidential Thanks! Questions?
  41. 41. © Copyright Publicis.Sapient | Confidential

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