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Expo V4


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a presentation about tools and techniques to help companies be more market driven

a presentation about tools and techniques to help companies be more market driven

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  • BackgroundIntroduced in 1976IBM PC 1981, Apple IIe 1977, years before their graphicsOutbound problemsWhere to sell it, what to say, $ salesMissing features, not complete productCustomersNavy, USFS, Duck’s Unlimited, Labs, publishingInbound problemsRequirements were all over the mapHow do you prioritize?
  • Value is the perception a customer has of the difference between the benefits she will derive from using your offering under a particular situation, to achieve specific objectives — and the costs she will have to pay
  • This kind of deliberate collaboration and co-innovation often leads to:optimal solutionsprofitable growthmarket transformationswhich exceed the expectations of both vendors and customers
  • Product – shall have a resolution of less than 1/8 inchBusiness – shall increase recovery by no less than 3 percentNon-functional – lasers can be replaced in less than ½ hourConstraints – shall have a manufacturing cost of less than $40K
  • Transcript

    • 1. Define Your Requirements Not The Product Features: Effective Skills To Improve Co-Innovation
      Miki Tokola, MICOM Consulting
      Roger Hicks, RHC LLC
    • 2.
    • 3.
    • 4. What’s Happening?
      Customer Expectations have Expanded
      Evaluating the whole solution not just the product features
      Market Relationship Structures are Complex
      Supply chains being replaced by ecosystems
      High Need for Agility
      High uncertainty about future and less control of outcomes
      Co-Innovation is an Imperative
      More situations where customers don’t know and vendors don’t know
      “The future ain’t what it used to be”
      - Yogi Berra
    • 5. Customer Expectations Have Expanded
      Ideal Product
      A unique Service that extends Value in Quality, Price, Delivery and defers / minimizes customer costs
      Price / Cost
      Expected Product
      Base Price, Delivery
      and Quality Levels
      Generic Product
      The right components and related design support
      Features / Capability
      Changing Definition of the “Product”
    • 6. Relationship Structures Are More Complex
      Supply Chain
      Value Delivery Network
      The Market Relationship Model Has Changed
    • 7. High Need for Agility
      Adaptive Market Navigation
      (agility - move fast to stay aligned
      with constant changes)
      Transformative Collaboration
      (co-create goals and work together on a possible future)
      Future Conditions That Are Hard to Predict
      Envision the Future
      (define and invest in
      a clear set of objectives)
      Contingency Planning
      (extra efforts to analyze & position accurately)
      Number of Success Factors That Are Not Easy to Control
    • 8. Co-Innovation is an Imperative
      Customer Requirements
      Supplier Driven -Sales, Proposal & Promotion Processes
      Customer & Supplier Co-Innovation and Value Discovery
      Latent wants
      Customer Driven – Operational Efficient Purchasing & RFQ Processes
      Supplier Driven - Needs & Product Requirements Definition Processes
      Existing wants
      Supplier Offerings
      Un-known Solutions
      Known Products
      Changing Emphasis in the Customer/Supplier Interaction Processes
    • 9. Is There a Better Solution Creation Process?
      A Co-innovation approach that is market driven
      A new approach is needed to achieve better results with less effort
      A needs discovery approach that is product driven
      Impact on Results
      Optimal Solution
      Requirements Based Solution
      Requested Features
      Challenge of collecting and integrating useful input for better solutions
      Effort Needed to Get Results
    • 10. Market-Driven
      Strategy and culture
      superior business performance
      on chosen markets
      to deliver superior value
      current and future problems
    • 11.
    • 12. A Cautionary Tale
    • 13. Benefits of Market-Driven
      31% more profitable
      2X faster to bring products to market
      20% higher satisfaction rates
      Command higher prices
      Gain higher market share
    • 14.
    • 15. Product Driven
    • 16. Market Driven
    • 17. Definition of Value
      Value = benefits – costs
      • All value is in the mind of the customer
      • 18. Value is situational
      • 19. Value implies tradeoffs
      • 20. Value has several dimensions
    • The 5 Dimensions of Benefits
      “I need to reduce costs”
      “I need to improve throughput”
      “I want to leverage other people’s knowledge”
      “I want to feel that I own the best”
      “I need to solve a problem”
    • 21. The 5 Dimensions of Cost
      “How troublesome will the installation be?””
      “What additional resources will I need”
      “What are the risks if it does not work as planned””
      “How much is it going to cost?”
      Lost Opportunities
      “What are the risks if it does not work as planned””
    • 22. Co-Innovation
      New style of market-oriented engagement
      Improved relationship with supply chain
      Clearly define problems
      Requirements, not features
      Suppliers discover latent needs
    • 23. Innovation Perspectives
      is the profitable implementation of ideas and is used by suppliers to bring “new value” to their customers.
      is the ability of a company to improve productivity by collaborating with their value network to identify, characterize and address specific problems; thus, creating innovative solutions, which would otherwise not be possible.
    • 24. [Veneer lathe video]
    • 25. Kano Model
      done poorly
      or not at all
      done well
    • 26. Market Research
    • 27. Primary Research Tools
      Ethnographic Studies
      Customer Panels
      Usability Testing
      In-person Interviews
      Focus Groups
      Telephone Interviews
      Print Surveys
      Web surveys
    • 28. Primary Research Tools
      Deep knowledge about a few
      Insights below the surface
      Discover unknown needs
      Implicit info
      Early stages of product process
      Tip of the iceberg
      Thin knowledge about many
      Later stages of product process
      Explicit info
      Info about know needs
    • 29. 5 WHYS
      Help customers reflect their true needs
      Root message – most fundamental message
      Get to actionable input
    • 30. Finding Unstated Requirements
      How do you feel about this software product?
      It is very difficult to use.
      The menu system is not intuitive
      Tell me more.
      Tell me why it’s not intuitive.
      I get lost all the time.
    • 31. Finding Unstated Requirements
      Well, there are too many layers and no way to get back.
      Why do you think you get lost using the menu?
      Root Message: The menu system has too many layers and no way to get back which makes customers feel that the product is too difficult to use.
    • 32. Outcome to Feature
      Desired outcome
      The fundamental measures of performance inherent to the execution of a specific job
      Product requirement
      What the product shall be able to do/have to satisfy customer needs
      Product feature
      A functional attribute of a product that is included in the design specification
    • 33. Desired Outcome
      Unit of Measure
      Minimize the time it takes to change a blade
      Desired Outcome
    • 34. Outcome Analysis
    • 35. Types of Requirements
    • 36. Voice to Req’s to Specs
      Customer voices, images and outcomes
      Features and attributes
      Engineering specification
    • 37. Voice of Customer Research - An Overview
      Plan it out
      Why is the VOC necessary?
      What questions need to be answered?
      Who are the participants?
      Where will you go?
      How will you document?
      Discussion guide
      Interviews prep
      Probe and listen
      Observe & capture
      Supplemental surveys
      Extract key points
      Analyze and organize
      Note key statements
      Record useful images
      Extract insights
      Translate into requirements
      Stages of a VOC Research Project
    • 38. What to Look For with VOC in Market Driven Process
    • 39. A VOC Story
      Question – what do wine makers need to help them process grapes?
      The VOC Project - 2009
      Talk to over 30 wine makers.
      Listen and learn to understand how the wine making process works.
      Understand the business challenges.
      Gain insight into what the value drivers are for wine makers.
      Size the potential market segments.
      Pick an area of focus.
      Result - November 30, 2010 – Key Technology introduces its family of Crush Pad Equipment Solutions for wineries. 
      The sorting table is the critical link between the vineyard and the winery.
      Key developed the Grape Receiving and Inspection Platform along with other modular equipment to help small and medium sized wineries produce the highest quality product possible in a highly efficient and operator friendly process.
    • 40. Closing Remarks and Recommendations for Action
    • 41. How Do Companies Create Value?
      Successful companies do not just add value, they reinvent it!
      To achieve superior results companies should strive to be more market oriented and focus on how they can co-produce value with other stakeholders in their eco-system.
    • 42. Understand the Business Problems You Want to Solve
      Late to the market
      Low market share
      Weak brand position
      Insufficient product and service capabilities
      Costly relationship management
      Low Customer Satisfaction
      Poor financial results (growth and profits)
      Damage from un-managed risks
      High cost marketing and selling channels
      Poor win-loss statistics
    • 43. What Should We Be Working On?
      A Rethinking of the Approaches Used to Create and Develop Solutions
      Gaining Deep Insight into Customer/Market Needs
      Know enough to appreciate the unspoken wants
      Know enough to anticipate market trends and new requirements
      Real Understanding of Markets and Segments
      Align with and serve target groups that desire common benefits
      Profiling of customer clusters based on the benefits they value
      Competencies to Rapidly Discover and Implement Ideas
      Coordinated actions to profitably deliver whole solutions with superior value
      Supplier partnerships to quickly bring new innovations to market
    • 44. Recommendations for Action
      Identify one supplier and start focusing how you can help them to understand your problems and co-innovate with you.
      Forget about features, it’s all about value creation.
      Build a Outcomes Table to help you explain your problems and objectives.
      Practice the 5-why’s on anyone you can.
    • 45. Thank You For Your Attention
      For More Information or to Continue the Discussion Please Contact Us
      Roger Hicks –
      Miki Tokola –
      Jose Campos -
      Or Visit: