Innovation Pipeline How to Keep the Front End Full

Bruce Janda

IRI emeritus Member

September 15, 2014

E. Wolf20May2014

Innovation

Need Capability

Delivery

Technology

Development

Integration

Adaptation

Invention

Discovery

Creation

Opportunity

Market

Influencer

Consumer

Purchaser

Offering

Product

Service

Channel

Commercialization

Brand

Message

PricePerformance

Promotion

Quality Lifecycle

Features

Desire

Maintainer

Financier

Application

Solution

Successful Innovation

Combines Need, Capability

and Delivery

“Innovation isn't about finding a novel solution, but in more accurately defining the right problem.

Understand the problem, & the solutions become almost obvious.”

“If you don't accurately define the right problem, the best you can hope for is to solve the wrong

problem, very well.”

“So much of what people call innovation is little more than brainstorming on new features without real

purpose.”

Oftentimes, these design ideas force the company to sell what they build instead of building what

customers need.”

“Companies typically expend great efforts in time & resources to brand, position, message & spin a

product to make it sell.”

“Solve the right problem, & there is much less marketing required to gain market share.”

Larry Marine, President, Intuitive Design

Henry Fordprobably didn’t say this, but…

"If I had asked people what they wanted, they

would have said faster horses."

• In 1921, the Ford Motor Company sold about 2/3 of all the cars

built in the U.S.

• By 1926, this share had fallen to approximately 1/3.

• And in 1927, when Ford belatedly brought the Model A to the

market, that percentage fell to about 15%.

My conclusion: Ford was great innovator but he

quickly lost touch with his customers

Market Research and Feedback

“VOC ≠ voice of competitor” Graham Jackson VP R&D

AstenJohnson

• Customer Survey

• Consumer Attitudes or Market Size

• Call Center Complaints/Credits

• Sales Call Reports

• Unsolicited Comments

• Evaluative Research

compare alternatives/confirm acceptance

HUT home use test, CLT central location test, Focus Group

• Generative Research

Generate new ideas

Identify unmet customer opportunities

Contextual InterviewingAcquire and Apply Customer Input

Summary: Value Innovation Works provides a 10 step

process to bring the fuzzy front end of innovation into

focus. The key is identifying the “MIC” or most

important customer in the value chain and using textual

interviewing to get at the unmet needs to create a blue

ocean opportunity with compelling value

Theory Application

Clear Need Identification

Prevents Pipeline Plugs

1. Most Important Customer

2. Open Ended Questions

3. Graphical Data Organization

Clear Customer Need

Definition

• Prioritization

• Resource allocation

Most Important Customer

in your value chain

Get the right feedback!

1. B:C Probably ultimate consumer (merchandising

mgr.)

2. B:B not so easy! Probably not the entity buying

from you

• Can your distributor give expert input on unmet needs of the

true decider? Who loses sleep over how your product

works?

• Most Important Customer: 3 Lean Questions

1. Who has to fix the problem?

2. Who loses financially?

9Copyright, Value Innovations, Inc 2004-2014 All rights reserved

Manufacturer of

automotive parts

Distributor

Jobber

Auto dealer or

Repair Shop

Consumer

North America

Manufacturer of

automotive parts

Distributor

Auto dealer or

Repair Shop

Consumer

Europe

B2B

Most important customer in value chain

Copyright Value Innovations, Inc. 2004-2013 All rights reserved

The 3 Question Template

Who has to fix

the problem?

Who stands to

lose

financially?

Who sees

the Value?

Distributor

Purchasing

Sales X X

Marketing X

Manufacturer

Purchasing X

Operations XX XXX XX

Logistics XX XXX XX

Copyright Value Innovations, Inc. 20040-2013. All rights

reserved11

The 1st Rd InstrumentOpen Ended Question Examples

Start at the highest level (e. g.,)

What are the issues keeping you awake at

night?

What are the critical issues you’ll face over

the next 3 to 5 years in your job?

What changes to you expect to see in the

next 3 to 5 years?

Copyright Value Innovations, Inc. 20040-2013. All rights

reserved12

The 1st Rd InstrumentPower Lead-Ins

What has been your experience…

How have you successfully used…

What is the determining or deciding factor

when…

What makes you choose…

What is the one thing you would improve

about…

Do NOT start off discussion with your products and services

Copyright Value Innovations, Inc. 20040-2013. All rights reserved 13

The Golden Rules

Don’t ask “What do you need?”

Interviewees don’t know what they don’t know

Interviewees don’t know what you could do

As soon as you ask, what do you need? …… you’re

back to the world of incrementalism

“If I had asked them what they wanted,

I would have made…….faster horses”

Henry Ford

Low Hig h

Exercise Program s

Total Num ber

Ipod

No = 0, To Speakers = 2.5, Data = 5

Speakers

No = 0, Yes = 5, Prem ium = 7.5

Connectivity

No = 0, USB = 5, W ireless = 10

Fan

No = 0, Yes = 5, Prem ium = 7.5

Console Looks

1-10 Sub jective

Screen Size

Sm all = 2.5, M ed = 5, Large = 7.5

In terface

1-10 Sub jective

Tracking

No = 0, Yes = 5, Prem ium = 7.5

Reading Rack

1-10 Sub jective

Brand

NLS Survey PM '11 Unaided %

0.0 2.8 5.5 8.3 # #

Cardio Consoles

Value to Consum er/UserNautilus Draft 3

6

7

8

9

10

11

1

2

3

4

5

20

No

No

Yes

6

Small

No

7

Speakers

Prem

Prem

9

Lrg

Yes

7

Schw inn 840 To Be