Zachary Paradis

1. Friends or Foes?
CX Strategy, Service Design & Product Management
March 2020

2. 2
ZAC H ARY J EAN PAR AD IS
GVP, CX & Innovation Consulting Lead N.A.
zachary.paradis@publicissapient.com
@zacharyparadis nakedinnovation.com

3. Agenda
1. The (Digital Business)
Transformation Imperative
2. Innovation of Innovation Approaches
3. Competition or Complement?
3

4. 4
The
(Digital Business)
Transformation
Imperative
01
Need to update image?

5. THE CUSTOMER CHALLENGE
Rapidly changing expectations–
what people consider best-in-
class today, will be out of date
tomorrow.
5

6. The transformation imperative: exceptional experience drives business
success
6
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

7. The transformation imperative: exceptional experience drives business
success
7
4. Forrester Cxi, 2017
of brands excel in their customer
experience, according to their customers
4
YET ONLY
1%

8. 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.
8

9. The transformation imperative: technology fueling rate of change
9
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

10. THE BUSINESS CHALLENGE
Agility–the ability to move faster than
the competition, in line with customers,
is perhaps the single most critical
organizational competency.
10

11. 11
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

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

13. 13
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”

14. 14
Innovation of
Innovation
Approaches
02

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

16. 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?

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

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

19. Different approaches for different problems
19
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

20. Different approaches for different problems
20
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

21. 21
Competition
or Complement?
03

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

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

24. (Digital) Product Management and Service Design promise similarities
24
Product Management Service Design
Principles
& Benefits
• Agility
• Customer-centered
• Interdisciplinary
• Iterative
• Outcome-driven
• Agility
• Customer-centered
• Interdisciplinary
• Iterative
• Outcome-driven

25. (Digital) Product Management and Service Design promise similarities
25

26. What is (Digital) Product Management (a too brief primer)?
26
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

27. What is (Digital) Product Management (a too brief primer)?
27
$
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

28. 28
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

29. 29
• 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

30. -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
30
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

31. What is Service Design (another too brief primer)?
31
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

32. What is Service Design (another too brief primer)?
32
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

33. -6
-4
-2
0
2
4
6
8
10
1 2 3 4 5 6 7
8
Service Design’s strength is regional optimization
33
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

34. -6
-4
-2
0
2
4
6
8
10
1 2 3 4 5 6
7
8
Service Design’s strength is regional optimization
34
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

35. 35
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
RADICALLY SIMPLIFY
the product
DIGITAL FIRST
experiences
CHANGE THE
WAY WE WORK
Invest in platform
capabilities to UNLOCK
DIGITAL

36. (Digital) Product Management and Service Design key differences
36
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

37. (Digital) Product Management and Service Design key differences
37

38. A COMPLEMENTARY OPPORTUNITY
Product Management and Service
Design work particularly well
together–in Digital Business
Transformation.
38

39. A COMPLEMENTARY OPPORTUNITY
Product Management and Service
Design work particularly well
together–in Digital Business
Transformation.
39

40. Working together: Service Design fills a mixed backlog for Product
Management
40
Customer Journey Map Service Blueprint Mixed Backlog in Jira

41. Approaches work together to enable every aspect of Experience
Transformation
41
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

42. -5
0
5
10
1
2
3
4
5
6
7
8
Experience Transformation Strategy’s strength is global optimization
42
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

43. 43
‘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

44. thend
copyright publicis sapient | confidential