Making sense of product service management

Product service management is an oxymoron that reflects the evolving intersection of traditional product and service concepts as technology blurs their boundaries. This approach, also known as service productization, extends the product operating model to service businesses, emphasizing a customer-centric approach to value delivery. Unlike traditional product management, which relies heavily on technology, service product management requires significant human interaction, with both service providers and clients playing crucial roles. It underscores the importance of addressing the needs of both users and service providers equally, as the latter are integral to maintaining service quality and continuity. Additionally, exponential growth strategies typical in product-led companies are less applicable to service businesses, which must balance user growth with provider growth or efficiency. To successfully adopt a product operating model, service businesses must standardize offerings, embrace digital transformation, and cultivate an active user base to facilitate data-driven decision-making and iterative improvements.