Service Design Explained: What challenges are being solved in Discovery projects

Service design discovery plays an important role in developing effective services and products by helping organizations align with user needs, business objectives, and technology. The discovery phase is typically the first stage of the service design process, focusing on research and understanding. It allows businesses to clarify key insights, validate assumptions, establish a foundation for future work, and already during this phase companies can often take significant steps towards addressing practical business challenges that they have. 

What questions, problems, and challenges can be addressed through discovery projects, and what outcomes can be achieved? In this article, we will explore three key types of discovery in service design: Requirement Discovery, Roadmap Discovery, and Monetization Discovery.

Requirement Discovery

⁉️ Client Challenge As the next OKR planning session approaches with a vital strategic topic on the roadmap, an important question emerges: how can we address this topic effectively? At DPM, we answer this question through requirement discoveries. In this discovery, we collect stakeholders’, business units’, and technology requirements across departments to form a rough concept and a clear way forward.

📌 Results You Can Expect

• Cross-departmental exchange and alignment
• A set of aligned perspectives and unified requirements
• Comprehensive insight into stakeholder, business, and technical requirements, including potential opportunities, challenges, and additional data points needed
• Rough UX/tech concept for further iteration
• Defined roadmap and strategic direction
• Guiding the decision-making for technical solutions towards "make or buy"

🤝 Example: Simplifying Processes and Boosting Efficiency By tailoring digital tools to meet customer needs, we simplified processes and significantly boosted efficiency. For instance, Azelis ' key strategic drivers—innovation, sustainability, and digitalization—helped achieve 2x adjusted EBITDA through strong organic growth.

Using a structured service design approach, we focused on understanding customer expectations, especially concerning online touchpoints, to improve efficiency and convenience through digital tools. This led to the digitization of our product range and the expansion of digital services, positioning Azelis as a key innovator in the specialty chemicals and food ingredients industry.

The customer and service platforms developed through this initiative are viewed as critical components of the chemical group's digital expansion strategy, playing a pivotal role in its successful IPO. The first global platform was launched within six months, offering personalized features, including 91 market-specific portals covering 90,000 products. Learn more here: Azelis Project.

Roadmap Discovery

⁉️ Typical Client Challenge Your departments and employees have shown remarkable motivation over the past years, launching various initiatives to boost the company's success. While some initiatives were a true success, many did not meet the planned output and impact. Now, a critical question arises: Are all these initiatives well-known to senior business leaders, and do they effectively contribute to the company's overarching goals?

Another pressing question is: How can we better align these initiatives to achieve the desired outputs, particularly in relation to our business goals? At DPM, we recommend a roadmap discovery to address these concerns. We consider your vision and business goals as we assess various initiatives, ensuring a focus on the core aspects that drive and connect them, ultimately ensuring that all initiatives contribute to your company’s success.

📌 Results You Can Expect

• Identification of ongoing initiatives, success stories, pain points, and common focus areas
• Alignment of customer and business needs with technological and financial feasibility
• Development of success criteria to evaluate and strengthen initiatives
• Reinforcement of your vision and business goals
• A comprehensive roadmap detailing goals, outcomes, and initiatives for the short, mid, and long term

🤝 Example: Consolidating a Market-Leading Position A leading digital healthcare company HearUSA wanted to consolidate its position as a market leader and outperform its competitors. Building on existing initiatives, they asked us to help identify and prioritize high-impact solutions. Through our discovery process, we pinpointed high-value opportunities by balancing user experience, feasibility, and business impact. This resulted in a clear retail vision and recommended strategy for the next three years.

We consolidated more than 60 global initiatives into a single prioritization framework, with the most impactful solutions integrated into a detailed implementation roadmap. This process enabled the company to streamline its operations and achieve greater strategic focus. Learn more here: HearUSA Project.

Monetization Discovery

⁉️ Typical Client Challenge While your core products are performing well and generating solid revenue, your company may be asking:

• "How can we create additional, sustainable income streams based on our current product landscape?"
• "Should we refine our pricing strategy to align better with customer expectations?"
• "Could we switch to a subscription-based business model?"

At DPM, we recommend monetization discoveries to identify new revenue opportunities within your product range, taking into account market trends, competitors, and customer needs. We uncover which features your customers expect and which are considered "wow features" that they are willing to pay extra for. It's equally important to determine which part of your customer base is most willing to pay.

📌 Results You Can Expect

• A triangular analysis of business (revenue), market (saturation), and customer needs (willingness to pay) to understand potential revenue streams
• A validated monetization model that increases revenue and cash flow
• A vision, roadmap, and strategic adjustments tailored to the future of your business and product landscape
• By implementing the strategy, your business is set for future success, integrating features and functions that focus on customer needs
• As a result, the use of your offering and customers' willingness to pay for it will increase

🤝 Example: Transforming to a Subscription-Based Model Take the case of Freepik , a global ad-driven asset download company. Relying heavily on a single marketing channel and an ad-based business model, they asked us to analyze the impact of moving to a subscription-based model. Through our discovery process, user requirements and willingness to pay were translated into a product vision with the right feature set and a new pricing strategy.

This strategic shift optimized value for both users and the company, transforming Freepik's business model. Learn more here: Freepik Project.

At DPM, we have over 10 years of experience helping businesses create, scale, and transform their digital products. Want to discover the most effective solutions and strategies for your business? Get in touch with us today: kontakt@produktmacher.com