Expo V4
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Expo V4



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

Expo V4 Expo V4 Presentation Transcript

  • Define Your Requirements Not The Product Features: Effective Skills To Improve Co-Innovation
    Miki Tokola, MICOM Consulting
    Roger Hicks, RHC LLC
  • 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
  • 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”
  • Relationship Structures Are More Complex
    Supply Chain
    Value Delivery Network
    The Market Relationship Model Has Changed
  • 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
  • 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
  • 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
  • Market-Driven
    Strategy and culture
    superior business performance
    on chosen markets
    to deliver superior value
    current and future problems
  • A Cautionary Tale
  • 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
  • Product Driven
  • Market Driven
  • Definition of Value
    Value = benefits – costs
    • All value is in the mind of the customer
    • Value is situational
    • Value implies tradeoffs
    • 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”
  • 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””
  • Co-Innovation
    New style of market-oriented engagement
    Improved relationship with supply chain
    Clearly define problems
    Requirements, not features
    Suppliers discover latent needs
  • 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.
  • [Veneer lathe video]
  • Kano Model
    done poorly
    or not at all
    done well
  • Market Research
  • Primary Research Tools
    Ethnographic Studies
    Customer Panels
    Usability Testing
    In-person Interviews
    Focus Groups
    Telephone Interviews
    Print Surveys
    Web surveys
  • 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
  • 5 WHYS
    Help customers reflect their true needs
    Root message – most fundamental message
    Get to actionable input
  • 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.
  • 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.
  • 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
  • Desired Outcome
    Unit of Measure
    Minimize the time it takes to change a blade
    Desired Outcome
  • Outcome Analysis
  • Types of Requirements
  • Voice to Req’s to Specs
    Customer voices, images and outcomes
    Features and attributes
    Engineering specification
  • 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
  • What to Look For with VOC in Market Driven Process
  • 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.
  • Closing Remarks and Recommendations for Action
  • 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.
  • 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
  • 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
  • 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.
  • Thank You For Your Attention
    For More Information or to Continue the Discussion Please Contact Us
    Roger Hicks – roger.hicks@comcast.net
    Miki Tokola – miki@micomconsulting.com
    Jose Campos - Jose@rapidinnovation.com
    Or Visit: