In the dynamic service industry, small service businesses are in a constant pursuit of innovative strategies to stay ahead. “Service as a Product” (SaaP) emerges as a transformative approach, converting traditional service delivery into scalable, marketable products. This article provides a comprehensive look at SaaP, incorporating advanced innovation frameworks like the Three Horizons Model, and the application of the Scaled Agile Framework (SAFe).
Service as a Product: A Strategic Business Model
Keeping it simple, SaaP is about repackaging specialized services into standardized, product-like offerings. It can be applied to any market segment where your business generates revenue. This approach not only streamlines the service delivery process but also enhances scalability and customer accessibility. By adopting SaaP, businesses can transform complex services into easily digestible and marketable products, appealing to a broader customer base and opening new avenues for growth.
Incorporating ‘Jobs to Be Done’ and Three Horizons Framework
Transitioning to SaaS presents an opportune moment to re-evaluate and deeply understand your customers’ desires and requirements. A fundamental shift in mindset is required here: moving from a traditional 1:1 service delivery model, which offers highly customized solutions, to a 1:many product-centric model necessitates a broader, yet focused approach. This transition demands thorough research and analysis to discern what truly resonates with your customers. Employing frameworks like ‘Jobs to Be Done’ and the Three Horizons Model can be incredibly beneficial during this process. These frameworks not only aid in pinpointing customer needs but also help in strategically aligning your service offerings with both immediate market demands and future innovation potentials.
Steps to Productize Services
- Identify Core Services: Select services with unique value.
- Standardize Offerings: Establish consistent pricing, deliverables, and procedures.
- Leverage Technology: Enhance efficiency through digital tools and automation.
- Develop Supportive Materials: Create instructional content to complement the service.
- Implement a Targeted Marketing Strategy: Market the service as a distinct product.
This concepts require a deeper dive, which I write about in a future article.
Building a Team for SaaP that is Agile
Building a multidisciplinary team is crucial for a successful transition to Service as a Product (SaaP), with a keen eye on efficiency and cost-effectiveness. This team should combine diverse expertise, including technical, marketing, and operational skills, to foster innovation and reduce the need for costly external resources. Implementing Agile methodologies and the Scaled Agile Framework (SAFe) is essential for adaptability and alignment with organizational goals, as these approaches focus on value-driven delivery, minimizing waste and unnecessary expenditures. Continuous professional development should be emphasized, as investing in the team’s training builds in-house expertise, proving more cost-effective than frequent external hiring or training. Collaboration, encouraged through Agile and Scrum practices, enhances problem-solving and project management efficiency, helping to avoid expensive mistakes or delays. Finally, prioritizing customer feedback ensures that development efforts are market-aligned, reducing the risk of investing in unprofitable features or services, thus maximizing the return on investment.
Eisha Armstrong’s Insights and Personal Reflection
Eisha Armstrong’s book “Productize: The Ultimate Guide to Turning Professional Services into Scalable Products” offers crucial insights into service productization. I found a deep connection with this book; her thoughts mirrored my own, and her concepts resonated profoundly. Further research revealed Armstrong’s Harvard Business School background, hinting at a possible influence from Clay Christensen. The alignment between Armstrong’s teachings and Christensen’s principles is striking, underscoring the importance of a scalable, efficient business model in tech.
Finally Thoughts
The shift to a Service as a Product model presents significant growth opportunities for small tech businesses. By integrating frameworks like the Three Horizons Model and SAFe, companies can navigate this transition effectively, aligning their services with both current market trends and future business goals.