Presented at Business of Software USA, Tony Ulwick (Strategyn) shares insights on how to deliver products that do useful jobs for customers, practical steps you can take to discover these jobs and strategies for success.
Watch if you are involved in product strategy or development, or simply want to make something great for your customers.
6. Traditional innovation begins with ideas
Stage
1
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Stage
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Gate
2
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Gate
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Gate
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Create
Business Case Development
Testing and
Validation Launch
Ideas Scoping
Innovation Process
Who is the customer?
What problem are they trying to solve?
What customer segment makes the most attractive target?
What unmet customer needs should we address?
5%
succeed
7. Innovation should be a needs-first process
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Product
Strategy Development
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Innovation Process
Testing and
Validation Launch
Market
& Needs
Market
Strategy
Who is the customer?
What problem are they trying to solve?
What customer segment makes the most attractive target?
What unmet customer needs should we address?
Development Process
86%
succeed
8. Customer needs are elusive and misunderstood
You can’t satisfy
customer needs if
you don’t know
what they are
9. What constitutes a legitimate need statement?
Wants
Attributes
Solutions
Specifications
Unarticulated
needs
Problems
Requirements
Desires
Customer Needs
Must haves
Exciters
Delighters
Value drivers
Latent
needs
Expectations
Characteristics
Wishes
Features
Benefits
Ideas
Jobs
Table stakes
10. Through a jobs-to-be-done
lens, new possibilities emerge
“People don’t want a quarter inch
drill, they want a quarter inch hole.”
Theodore Levitt - 1962
17. Rule 1: define the customer as the job executor
The support team is not
the primary customer
The job executor is
the primary customer
The buyer is not the
primary customer
18. Rule 2: define the market as an executor/job
Market Music enthusiasts Listening to music
+
Talk to music enthusiasts about the job of listening to music.
19. Rule 3: analyze the job-to-be-done
Confirm
Define Locate Prepare
Execute Monitor
Modify Conclude
The Customer-Centered Innovation Map,
Harvard Business Review, 2008
20. Job map for ‘listening to music’
Confirm the
music plan
Monitor the
experience
Assess the
situation
Gather the
desired music
Organize the
music
Modify the
music
selection
Assess the
experience
21. MP3 players get more of the job done
Confirm the
music plan
Monitor the
experience
Assess the
situation
Gather the
desired music
Organize the
music
Modify the
music
selection
Assess the
experience
22. Streaming services get more of the job done
Confirm the
music plan
Monitor the
experience
Assess the
situation
Gather the
desired music
Organize the
music
Modify the
music
selection
Assess the
experience
23. Solutions evolve to get the whole job done
The ultimate solution
can be envisioned
once the job is known
24. How should a customer “need” be defined?
Market definition Needs analysis Market strategy
25. Rule 4: define customer needs as desired outcomes
Giving Customers a Fair Hearing,
MIT Sloan Management Review 2008
Needs
Direction Metric Object of Control
Minimize the time it takes to get the songs in
the desired order
26. Outcomes are perfectly defined need statements
Desired outcomes
are the glue that
holds the innovation
process together
27. Listeners have desired outcomes
Confirm the
music plan
Monitor the
experience
Assess the
situation
Gather the
desired music
Organize the
music
Modify the music
selection
Assess the
experience
Minimize the time it takes to determine how much
music will be needed, e.g., minutes, etc.
28. Confirm the
music plan
Monitor the
experience
Assess the
situation
Gather the
desired music
Organize the
music
Modify the music
selection
Assess the
experience
Listeners have desired outcomes
Minimize the time it takes to determine
what songs to include
29. Confirm the
music plan
Monitor the
experience
Assess the
situation
Gather the
desired music
Organize the
music
Modify the music
selection
Assess the
experience
Listeners have desired outcomes
Minimize the time it takes to determine the
order in which to play the songs
30. Confirm the
music plan
Monitor the
experience
Assess the
situation
Gather the
desired music
Organize the
music
Modify the music
selection
Assess the
experience
Listeners have desired outcomes
Minimize the likelihood that the music sounds
distorted
31. Confirm the
music plan
Monitor the
experience
Assess the
situation
Gather the
desired music
Organize the
music
Modify the music
selection
Assess the
experience
Listeners have desired outcomes
Minimize the time it takes to remove songs that
you no longer want to hear
32. Outcomes power a predictive model for growth
Desired outcomes
Solutions
Minimize the time it takes to determine
the order in which to play the songs -- -- + ++
Minimize the likelihood that the music
sounds distorted -- ++ + ++
Minimize the time it takes to remove
songs that you no longer want to hear -- -- + +
33. How should a “market strategy” be defined?
Market definition Needs analysis Market strategy
34. Rule 5: unmet outcomes drive market strategy
Deciding which
unmet outcomes to
target is the
essence of
strategy
35. The opportunity landscape paints the picture
Opportunity score = importance + max (importance – satisfaction, 0)
Importance Satisfaction
Outcome 1 2 3 4 5 IMP 1 2 3 4 5 SAT OPP
Minimize the time … 5 5 9 47 34 8.1 12 28 30 17 13 3.0 13.2
Desired
Outcome
Overserved
Satisfaction
Importance
Underserved
36. The opportunity landscape paints the picture
Opportunity score = importance + max (importance – satisfaction, 0)
Importance Satisfaction
Outcome 1 2 3 4 5 IMP 1 2 3 4 5 SAT OPP
Minimize the time … 5 5 9 47 34 8.1 12 28 30 17 13 3.0 13.2
Desired
Outcomes
Overserved
Satisfaction
Importance
Underserved
43. ODI reveals hidden segments of opportunity
Overserved
Satisfaction
Importance
Underserved
44. Rule 7: the segment type dictates the strategy
Product improvement Disruptive innovation Sustaining innovation Breakthrough innovation
The “right” strategy is the difference between success and failure
45. When will a product improvement strategy work?
Few underserved outcomes – add features to get the job done better
Overserved
Satisfaction
Importance
Underserved
46. A winning product improvement strategy
• Uncovered segment with
14 unmet outcomes
• Added the right features
• Created a best seller in
North America for 8 years
47. When will a disruptive innovation strategy work?
Overserved segment – lower cost solution to get the job done worse
Overserved
Satisfaction
Importance
Underserved
48. A winning disruptive innovation strategy
• Built a low-cost platform
• Created a $300M electronic
evidence discovery
business
• Led the industry for over a
decade
49. When will a sustaining innovation strategy work?
Appropriately-served segment – add features to help get more jobs done
Overserved
Satisfaction
Importance
Underserved
50. A winning sustaining innovation strategy
• Discovered more jobs-to-be-
done
• Developed new ways to
enhance its software
assurance offering
• Increased subscription rate
by 150% and grew revenue
by over $1 billion
51. When will a breakthrough strategy work?
Highly underserved – new product to get the job done significantly better
Overserved
Satisfaction
Importance
Underserved
52. Winning breakthrough innovation strategies
Small share increase can generate a disproportionate share of profits
Dyson
• 5x more expensive
• 24% market share
• 59% profit share
Nest
• 7x more expensive
• 8% market share
• 25% profit share
Apple
• 3x more expensive
• 12% market share
• 70% profit share
53. Now it is time for idea generation
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Ideation
Gate
2
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Gate
4
Gate
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Innovation Process
Who is the customer?
What problem are they trying to solve?
What customer segment makes the most attractive target?
What unmet customer needs should we address?
54. Rule 8: Get the job done significantly better
Success comes
from getting the
job done at least
20 - 30% better
58. Stage
1
Product
Strategy Development
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2
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3
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4
Stage
5
Gate
2
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3
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Gate
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Gate
5
Innovation Process
Testing and
Validation Launch
Outcome-Driven Innovation process
Market
& Needs
Market
Strategy
Who is the customer?
What problem are they trying to solve?
What customer segment makes the most attractive target?
What unmet customer needs should we address?
Development Process