Designing Services in the Cloud Mike Varona, Thoughtworks
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DAY TWO – OCT 3rd 2015 at Global Service Design Conference NYC MORNING SESSIONS / / SELLING SERVICE DESIGN more info at: http://bit.ly/1Qfl3cC
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Designing Services in the Cloud Mike Varona, Thoughtworks
- 1. Service Design in the Cloud Mike Varona | ThoughtWorks | @mikevarona October 3rd, New York City
- 2. SERVICE DESIGN IN Mike Varona, Innovation and Experience, ThoughtWorks THE CLOUD
- 10. Failure IS an option here. If things are not failing, you are not innovating enough. - Elon Musk
- 16. THE INTERNET OF THINGS
- 18. Easton LaChappelle Invents world-changing technology. Gives it away for FREE.
- 19. THANKYOU For questions please contact: Mike Varona mvarona@thoughtworks.com
Editor's Notes
- Today I want to talk about Designing Services in the Cloud. What’s the cloud, though, right? It’s kind of a mystery. No one understands it. For most, “the Cloud” is this weird place, somewhere “Up There”, where information is beamed up, and sits for a while, until someone needs it and it’s beamed back down somehow. Very Sci-Fi-y. For most, I think it often feels that way. We might as well call it designing services in space. “Cloud” is a buzzword that vaguely suggests the promise and convenience of being able to access files from anywhere. But the reality is that the cloud is hardly floating like mist above our heads — it’s a physical infrastructure, its many computers housed in massive warehouses all over the world. And yet as long as it’s easy to read email on our phones and watch movies on our laptops, we generally don’t take the time to wonder where our data actually goes, how it gets there, and what happens to it on its way. What we’re really talking about here, though, is sharing resources to optimize performance. And it’s starting to have some major implications about how products and services work and how we need to start thinking about design.
- Digitize or Die. This is not actually the message that I’m trying to deliver here. While technology and digital products and services are important components of what we design now, if you choose, it can just be that, a component. A consideration, and one that we should all be making in our designs. Now, more interestingly, and perhaps less defined is the landscape ahead of those who are looking to bring service design into the digital space.
- Similar to the shift that we’ve witnessed from physical products to services, we are now seeing a shift in digital. In the product world, we’ve seen products, outputs, transactions, suppliers, and element. As we’ve started to introduce more complex service business models, we’re seeing a world that includes solutions over products, Outcomes over outputs, Partnerships over transactions, Network Partners over suppliers, and Ecosystems over elements. Questions around What future business models might enable value through services? What new service and support capabilities enable these business models? And How will innovation in performance information and analytics enable service business models?
- The digital world is seeing this shift much faster. Part of the reason might be that digital products aren’t quite what we might call pure products and services: There’s a fuzzy line. They’re sellable in different ways. Disks, CD, DVD-ROMS, preloaded onto machines, with the internet, we could download them from sites They’re usually easily replicable, shareable, distributed. Digital products are easier to copy, share, and give to friends. Manufacturers actually had to think about how to limit unwanted distribution. We’ve all heard stories around intellectual property etc. The format of digital actually forced industries to rethink their long-held revenue and security models. They’re supportable in different ways. Versioning, updates, help, patches.
- Digital product lifecyle similar to service lifecycle Continuous improvement And with this we’re seeing a familiar shift to services
- Unfortunately, the digital world has also followed suit with its development of services as simply cloud versions of their former products. You might hear the term SaaS, software as a service, from time to time (this is usually at an commercial enterprise level). On a more familiar level, you might recognize products like Adobe CS becoming Adobe CC, Microsoft Office becoming Office 365, or perhaps even hardware analogs like physical hard drives to cloud storage sites like iCloud. These shifts offer a very limited take on what SaaS has the potential to be. Many off their value propositions are around increased convenience or capacity in exchange for a subscription fee. The real rub is when services and, thus, service design are flipping the paradigm on its head, and are driving the products, touchpoints, and ecosystem.
- With Internet and Social Media, Service design to drive products in the digital world. What do touchpoints look like in digital? Amazon, Google, Facebook, are driving how products are created. Smaller companies scale?
- Digital Is Changing the Landscape Change how we prototype, collaborate, sketch, scale How can small players, entrepreneurs think about services in a manner that takes advantage of the benefits of digital Innovation Price is so low cost The speed that tech changes accelerating. What does that mean for services?
- It means that failure is less scary. In fact, it’s becoming key. POWER OF FAILURE How can we iterate on services? Get gut feelings? Get comfortable with less perfect information. How good is good enough. Talked about continuous improvement. Can we automate that?
- What does that mean for our practice? Not UX! What are the differences? What are the nuances?
- How Service Design can start to borrow from UX Design Thinking Lean/Agile Image
- How Service Design can start to borrow from UX Design Thinking Lean/Agile Image
- IoT is a thing that we spend a lot of time thinking about at ThoughtWorks. And though the majority of the world is looking at hardware and products, we spend a lot of time thinking about the software and the services. What possibilities will this open up? How do you imagine a canvas where the industry isn’t defined? Things are changing faster than players can adapt. You don’t know what you don’t know. How do you anticipate and adapt?
- IoT is a thing that we spend a lot of time thinking about at ThoughtWorks. And though the majority of the world is looking at hardware and products, we spend a lot of time thinking about the software and the services. What possibilities will this open up? How do you imagine a canvas where the industry isn’t defined? Things are changing faster than players can adapt. You don’t know what you don’t know. How do you anticipate and adapt?
- You’ll hear from companies that are leading the way by creating the freedom to experiment and more about the capabilities you’ll need to create your digital future. From large network provider thinking like a startup, a digital pizza company, to a FS inst. that has created agility and speed, a startup that is disrupting itself and a new take on customer loyalty to brands. and in closing, how do you respond to a world where a 14 year old kid from Cortez, Colorado (pop. 8972) builds a prosthetic arm with a 3d printer, spends few years perfecting it, reducing the cost from 60k to 1k, and then, on the cusp of cashing in, open sources the invention at the ripe old age of 19. How do you compete in this world? What do services look like in this world? What is an open source service? Are you ready to participate in that conversation?
- Fortunately this is not new territory for everyone so there are valuable lessons to be learned. It takes being open and receptive to the voice of the customer, adopting innovation approaches being used by tech accelerators and startups and learning from lean startup, lean enterprise and design thinking methods, while embracing continuous delivery and integration. All the building blocks are there – it’s about how we assess where we are as an organisation, what parts we can digitalize and how we can rapidly scale these out. Where do you start? Depends where you are, but having a brave leader is critical. We believe that understanding your business in the context of what products or services to explore, exploit and sustain is useful.