Outcome-Driven Innovation - ronsantschi.com€¦ · If want to jump from a 20-30% success rate to...

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We help clients formulate market growth strategies, develop innovative new

products reliably and predictably, and market them more effectively through

our patented process for defining, collecting, and prioritizing unmet customer

needs. We call this ODI.

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ODI is primarily focused on helping clients with the front end, feeding the

building of the new product business case

Insight is very helpful downstream when doing marketing

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Innovation is the process of devising a solution that satisfies the customer’s

unmet needs

The process is analogous to solving a complex simultaneous equation (needs

and solutions)

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One approach to innovation many companies take is solution-first

Without knowing all the customers unmet needs, companies brainstorm

solutions and concept test them with customers

The equation may never be solved because only a subset of solutions and

unmet needs are considered

When using a solution-first approach, it is only by chance that the optimal

solution will be uncovered

Even if do rapid prototyping, still only test a small set of solutions since time is

always a constraint

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Assess your organization:

- For any given product area in your company, how many people know all the

customer’s needs and which are unmet?

- Is there agreement across functions as to what the customer’s needs are?

- Which are unmet?

- What a customer need is?

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However, there is a gap between what is captured and what is needed

Because companies don’t know what inputs to capture and customers don’t

know what is needed, they offer “requirements” in their own language that is

convenient to them

Companies try to translate this mix of inputs and often get a bunch of vague,

incomplete, in-actionable, or worse, wrong, statements, e.g., make it easy to

use, make it go faster, etc.

What do companies conclude?

- Customers do not know what they want, they cannot articulate their needs

- Therefore, they must have latent needs – needs they don’t know they have

- Customer requirements change quickly over time

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Customer needs must meet two basic principles …

Be based on a measurement system that is instinctive to customers, which

means that it:

- Reflects the customer’s true definition of value

- Has universal/global significance

- Is relevant now and in the future

Have a consistent structure, content, and format so that it:

- Prompts a course of action

- Is not left open to interpretation

- Does not confound the way they are prioritized

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Job is the stable, long-term focal point around which value creation should be

centered

Helping a customer perfectly execute the job is the true definition of value

creation

Must understand what is being measured and controlled by customers to

ensure the job is executed with the speed, predictability, and output the

customer desires, regardless of product used

The statements that describe what must be measured and controlled are the

customers’ desired outcomes

They are customers’ fundamental measures of performance associated with

getting a job done

If want to jump from a 20-30% success rate to 80-90%, you must dramatically

change how you think

Must shift your focus from the product or the customer to the job they are

trying to get done

When the job is accepted as the sole unit of analysis, companies:

- Stop capturing requirements on products and service

- Instead they capture requirements on the jobs that those products or services

are intended to perform

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The job of farming corn has 156 desired outcomes or metrics in total farmers

use to judge how well they have executed this job

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Each statement’s structure, content, and format have been optimized so as to

limit variability

Rules have been developed to ensure the statement

- Is actionable

- Is not open to interpretation

- Does not confound the way it or other statements are prioritized

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When the job is the unit of analysis, customers do not have latent or

unarticulated needs

Customers may not be able to articulate a solution, but they can certainly

articulate what outcomes they want to achieve

For example, before the microwave oven was invented, customers could not

articulate their need for a microwave oven, but they did know they wanted to…

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Since companies struggle to identify a need, they also have a hard time

determining which ones are unmet

As a result, they have a hard time knowing which new ideas are winners, so

they make many small bets

Leading to many initiatives, few successes, and high costs

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When is a need unmet?

If a desired outcome is both important and unsatisfied, it is unmet

The more important and less satisfied an outcome is (the more unmet it is) the

greater it represents an opportunity for value creation

Outcomes are prioritized based on their attractiveness as opportunities for

value creation

We administer a survey to a significant population to determine the importance

of each outcome and the degree to which each is satisfied, given the

solution(s) they are using today

Then use our proprietary opportunity algorithm to calculate what is important

AND poorly satisfied

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As a result of using outcome-driven research methods, companies know

where to place their big bets

They can transform innovation into a predictable discipline and make big bets

with confidence

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Companies do not have to brainstorm hundreds of ideas and hope that one of

them is a breakthrough idea

People know and agree on what needs are unmet

With a focus on specific unmet needs (desired outcomes), individuals are able

to generate ideas they know in advance will be worthy of investment

Outcome-focused idea generation replaces scattershot brainstorming and

systematizes the concept creation process

The dynamics of innovation are changed

Before hiring us, one client had brainstormed over 250 different ideas. After

doing a study, they were able to quickly narrow these down into the top 10

ideas and create a new product concept within days.

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Can leverage the customer insight across different strategic organizational

activities

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Strategyn has worked with many clients across industries

Methodology is applicable to any innovation initiative in any industry

Not focused on the solutions, but the customer needs

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