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

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© Copyright Publicis.Sapient | Confidential
ZACHA RY JEA N PA R A DIS
GVP, Experience Strategy & Service Design Lead
zparadis@sapient.com
@zacharyparadis
nakedinnovation.com

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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.”

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Agenda
 The (Digital Business)
Transformation Imperative
 Innovation of Innovation Approaches
 Service Design vs Product
Management–Complementary Roles

01 The Transformation Imperative

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THE CUSTOMER CHALLENGE
Rapidly changing expectations–
what people consider best-
in-class today, will be out of
date tomorrow.

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The most important
single thing is to focus
obsessively on the
customer.
JEFF BEZOS
FATHER OF MODERN MANAGEMENT
2014 (and every year since)
“
”

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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

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The transformation imperative: exceptional experience drives business success
4. Forrester Cxi, 2017
of brands excel in their customer
experience, according to their customers
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YET ONLY
1%

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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.

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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

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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

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THE BUSINESS CHALLENGE
Agility–the ability to move
faster than the competition,
in line with customers, is
perhaps the single most critical
organizational competency.

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The CEOs of the most
successful enterprises…
place a higher premium
on agility and
experimentation.
IBM CEO STUDY 2016
“
”

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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

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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%

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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:

02 Innovation of Innovation Approaches

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What is innovation?
Creating value for people
through new or improved
services and products
(or creating platforms
for doing it systemically).

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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?

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In fact, we have seen a
vast array of innovation in
how to innovate.

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A perspective on innovation:
Different innovation
problems require
different approaches.

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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

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Service Design vs Product Management–
Complementary Roles

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Product management is
more important than
ever precisely because
new innovations
intersect business,
technology, and design.
MARTIN ERIKSSON
MIND THE PRODUCT
2017
“
”

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Service Design will take
over the world!
ALBERT SORANZO
DIRECTOR OF END-TO-END SERVICE DESIGN, LLOYDS
2018
“
”

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(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

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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

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$
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

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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

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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

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(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

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A COMPLEMENTARY OPPORTUNITY
Product Management
and Service Design work
particularly well together
in Digital Business
Transformation.

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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

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Working together: Service Design fills a mixed backlog for Product Management
Customer Journey Map Service Blueprint Mixed Backlog in Jira

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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

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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

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Thanks! Questions?

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

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