Why the Product + Service Model is Key to Scaling Across Industries

Scaling a business successfully is rarely about having the perfect product alone. Whether it’s developing essential life skills in education, redefining customer experiences in F&B, or enabling workforce transformation through enterprise AI, businesses achieve long-term impact by combining innovative products with a robust service ecosystem. My experience in transitioning businesses from product-only approaches to product-service models has revealed this as a universal strategy for driving adoption, engagement, and sustainable growth.

The Strategic Transition: From Product to Product-Service Ecosystems

Take the case of Narrative 4, an EdTech company where we expanded the operations from three cities to ten countries. The mission was to equip youth with life skills like curiosity, imagination, deep listening, and civic action—attributes critical for workforce readiness and global citizenship. While the core product—a storytelling-based program—was effective, its high-touch, in-person nature made it challenging to scale. It risked becoming repetitive, expensive, and logistically complex.

We addressed this by reimagining the offering as a hybrid product-service model tailored to diverse user needs and operational scalability. This began with adjacent product innovation, expanded with a service layer including tailored educator training, ongoing support, and classroom resources aligned with standards. A digital platform supported in-person, virtual, and asynchronous delivery, amplifying the program’s impact—scaling the educator network by 600%, reducing acquisition costs by 90%, and boosting retention by 300%.

This model mirrors challenges faced by enterprises adopting AI. While AI products can promise transformative outcomes, their full potential depends on service layers like workforce training, integration support, and process optimisation. In both cases, the product-service model ensures accessibility, adoption, and sustained impact.

The Tactical Application: Enhancing Market Adoption

Bacardi China faced hurdles in establishing its white spirits portfolio in bar channels dominated by beer and ready-to-drink options. Consumer hesitation about mixed drinks and operational inefficiencies for bar staff were key barriers.

We tackled this challenge by introducing Bacardi Towers (a taller version of a juice-mixer container with a tap at the bottom), a bundled product-service offering that simplified the consumption experience. Bar staff were trained to prepare and serve pre-mixed towers, while promotional incentives encouraged bar owners to adopt the format. This blend of product innovation and service support not only drove adoption but also positioned Bacardi as a go-to brand in the bar channel, contributing to a broader strategy for establishing white spirits in the market.

The lesson here applies equally to F&B and enterprise AI: scaling adoption requires addressing user needs with customised solutions, ensuring the product is not just available but seamlessly integrated into real-world use.

Key Takeaways for Applying the Model

These takeaways can vary by industry and the stage of company development, but they offer foundational principles for scaling successfully.

• Understand User Needs First: Design products and services that address pain points and create value along the user journey.
• Investing in Adjacent Product Innovation: Creates multiple entry points with customers and amplifies engagement. Build services that complement these products to deliver holistic solutions.
• Leverage Hybrid Delivery Models: Flexibility is critical. Combine consumption formats (in-person, virtual, synchronous, and asynchronous) to enhance accessibility and cater to diverse user needs.
• Integrate Services for Longevity: Tailored services like training, onboarding, and ongoing support ensure seamless adoption and retention. Include dedicated resources in your service package to address customer needs and provide customisation.

This versatility makes the product-service model indispensable for businesses aiming to scale across industries and geographies.

Conclusion

The product-service model is more than a strategy—it’s a mindset that bridges innovation and impact. Whether scaling essential life skills in education, driving adoption in consumer markets, or transforming workforces with enterprise AI, this approach delivers results by focusing on what matters most: user needs and sustainable value creation.

What successful implementations of the product-service model have you come across? We'd love to hear your insights and experiences!

If you’re looking to drive digital transformation, scale businesses globally, or unlock growth through innovation, let's connect - I’m open to opportunities to help drive meaningful change and create impactful solutions.