Product Service Value In Use (Jobs) Innovation Odi Case Studies


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Product Service Value In Use (Jobs) Innovation Odi Case Studies

  1. 1. Product-Service Value-in-Use (Jobs) Innovation OUTCOME-DRIVEN INNOVATION CASE-STUDIES Strategyn UK, March 2010
  2. 2. OUTCOME-DRIVEN INNOVATION CASE-STUDY Growing Microsoft’s Software Assurance Business Microsoft’s Software Assurance was a business under pressure, facing declining renewals that put substantial revenue at risk. Using Strategyn’s outcome-driven innovation (ODI) methodology, Microsoft was able to: • Discover hidden opportunities for value creation over the lifecycle of PC software • Repackage and reposition the Software Assurance offering to meet customer needs without developing new products • Turn Software Assurance into a growth business and dramatically increase annual renewal rates Drawing on the responses of 28 procurement managers, Microsoft dissected the job of purchasing a license agreement, uncovering 76 desired outcomes (customer needs). Microsoft then conducted interviews with 30 IT professionals, uncovering 58 desired outcomes related to their role in The opportunity landscape for purchasing and purchasing, 81 outcomes on the job of managing a software license, and 34 managing software licenses revealed a other jobs related to managing software licenses. Next, using ODI-based number of jobs and desired outcomes that quantitative research techniques, Microsoft had 100 procurement were underserved. Many could be addressed managers and 298 IT professionals prioritize those needs. Not surprisingly, by products already developed but not the results revealed dissatisfaction with current licensing practices, with 94 previously integrated into the offering. of 215 desired outcomes (39 for procurement managers, 55 for IT professionals) being underserved. The same was true of 10 of the related jobs. Importantly, the ODI results revealed many opportunities for “In a market under immense price pressure, Strategyn’s outcome-driven approach to innovation that Microsoft had not previously considered. innovation allowed us to grow a struggling business.” Dave Wascha, Director – Microsoft Corporation
  3. 3. OUTCOME-DRIVEN INNOVATION CASE-STUDY Service Innovation at Advanced Medical Optics Abbott Medical Optics found it was losing customers due to poor customer service. Working with Strategyn and using the outcome-driven innovation (ODI) methodology, the company was able to: • Discover unique service innovation opportunities by looking at customer needs from the perspective of the job the customer is trying to get done • Satisfy customer needs with innovations in service delivery and new offerings • Realize a 10 percent increase in its Net Promoter score and a 14 percent increase in its customer loyalty index • Win a prestigious award for world-class customer service Drawing on the responses of 20 materials managers, AMO dissected the job of replenishing ophthalmic lenses for cataract implant surgeries, uncovering 83 outcomes that materials managers desired in The opportunity landscape revealed a number doing this job – outcomes relating to various steps in the job, from of underserved outcomes for materials determining lens replenishment needs to returning lenses to the vendor. By managers. Many of these opportunities are studying the job, AMO discovered that a traditional distinction between promising targets for service innovation. front-office and back-office responsibilities for materials management was artificial. AMO also uncovered 22 desired outcomes related to materials managers’ service and support interactions with an ophthalmic vendor. Next, using ODI-based quantitative research techniques, AMO had 192 materials managers prioritize the outcomes it had uncovered. The “Strategyn’s outcome-driven innovation approach was opportunity landscape revealed considerable opportunity for key to helping AMO develop a customer-driven innovation, with 46 of the 83 lens replenishment outcomes being strategy.” Angelo Rago, Senior Vice President, Global underserved and 19 of the 22 service and support interaction outcomes Customer Services, Abbott Medical Optics being underserved.
  4. 4. OUTCOME-DRIVEN INNOVATION CASE-STUDY Creating the Bosch CS20 Circular Saw Bosch faced many challenges when it decided to enter the North American professional circular saw market. Using Strategyn’s outcome-driven innovation (ODI) methodology, the company was able to: • Discover hidden opportunities in a mature market among a segment of circular saw users • Focus its idea generation on features to satisfy each of 14 underserved outcomes • Introduce a new product – the CS20 circular saw – that dramatically improved customer satisfaction and enabled Bosch to gain the distribution support of Lowe’s and Home Depot Drawing on the responses of 30 circular saw users, Bosch dissected the job of cutting wood in a straight line, uncovering 85 desired outcomes (unmet customer needs). Next, using ODI-based quantitative research The opportunity landscape for this outcome- techniques, Bosch had 270 users prioritize those needs. Not based segment revealed a number of targets surprisingly, the results showed that in the market as a whole, there were (unmet needs) for value creation. This segment no unmet needs. This meant that to discover unmet needs, powerful represented over 30 percent of all users and outcome-based segmentation practices would be required. Strategyn’s became the target for Bosch’s entry into the proprietary segmentation methods revealed four segments of North American market. opportunity, one of which made a perfect target for Bosch. This newly “Strategyn’s outcome-driven approach to innovation discovered target segment, which was comprised of primarily finish and made it possible for us to hit a home run in the mature advanced carpenters, represented over 30 percent of all users. The and competitive circular saw market. The Bosch CS20 opportunity landscape for this segment clearly revealed that 14 of the 85 is a breakthrough innovation and a hit with both users desired outcomes were unmet. and our channel partners.” Bosch product manager Jason Schickerling
  5. 5. OUTCOME-DRIVEN INNOVATION CASE-STUDY Innovation at Line 6: The BackTrack Digital Recorder Having already made a name for itself in the guitar business, Line 6 realized that it needed a detailed understanding of its customers’ needs if it wanted to continue to meet its aggressive growth goals. Using Strategyn’s outcome-driven innovation (ODI) methodology, the company was able to: • Discover opportunities for new market creation related to the jobs guitarists are trying to get done • Develop a revolutionary digital recording device called BackTrack, which focused squarely on the unmet needs of guitarists • Introduce a product to the market that is capturing significant market share and receiving glowing accolades from customers and professionals Drawing on the responses of 51 guitarists, Line 6 uncovered 108 functional jobs (jobs related to the act of playing the guitar) and 18 emotional jobs (jobs related to how guitarists want to feel when playing) in a broad The opportunity landscape for guitarists’ jobs spectrum of areas, including preparing to play, learning revealed a number of opportunities for product material, developing skills, playing for inspiration, composing, and innovation. Underserved functional and capturing a performance. Next, using ODI-based quantitative research emotional jobs led to the development and techniques, Line 6 had 668 guitarists prioritize those jobs. The opportunity launch of the BackTrack, which opened up a landscape revealed that 17 of the guitarists’ functional jobs and 13 of their completely new market for Line 6. emotional jobs were underserved – that is, current offerings by Line 6 and others were not helping customers get the jobs done satisfactorily. These “When you are trying to provide solutions, knowing underserved jobs highlighted opportunities for Line 6 and provided the prioritization of customer needs can have a big indispensable direction to the company’s innovation efforts. impact on what features you include and how you communicate with customers about a new product.” Michael Murphy – BackTrack Product Manager, Line 6
  6. 6. Outcome-Driven Innovation allows innovators to… • Embed a new way of thinking about how to understand, discover and address customer needs across the organisation. • Identify new and highly valuable market opportunities for product and service innovation. • Define robust, market-driving strategies for predictable organic growth. • Help you to instil a repeatable innovation process • Achieve continuity, transparency and alignment of the innovation effort whilst removing variability and risk. • Build advanced opportunity-based segmentation practices for multiple business and marketing decision-making purposes. • Focus your idea and concept generation efforts and remove redundancy from the current and future project pipelines 6
  7. 7. Strategyn UK Outcome-Driven Innovation Consultancy Typical Project, Training, Mentoring and Programme Pathways A Execute ODI Projects We demonstrate the process and the benefits of using ODI Execute ODI Projects using Strategyn Execute ODI Projects quickly on a significant job / market opportunity , enabling Execute ODI Projects using Strategyn using Strategyn you to move to Pathway B with confidence. Many clients using Strategyn Strategyn UK consultants prefer us to continue to deliver their projects… undertake your ODI project quickly and with needed precision Review Current Frame your Markets Segment markets for Assess competitive Assess technology Innovation & Additional services can be growth situation enabler potential / ODI Programmes Marketing added on a per engagement Map your Markets Formulate a growth basis Generate powerful Build robust business and Strategy for ODI strategy ideas / concepts cases B OPTIONAL OPTIONAL OPTIONAL Train Employees as Execute 1st Project Obtain Ongoing Build a Corporate ODI Practitioners using Strategyn Strategyn Expertise ODI Capability Strategyn UK consultants Strategyn UK consultants Strategyn UK consultants Strategyn UK consultants train you to become undertake your ODI mentor you to run your support you to establish proficient in ODI project quickly and with own ODI projects (post- your own internal ODI needed precision training) process / capability NOTE: Pathway B requires the client to nominate at least 1 employee to complete the 5-day education program and for the organisation to license Strategyn’s IP and tool set. The license package includes rights to Strategyn's patented innovation process, web-based data analysis and reporting tool, and the 100-plus tools and templates housed on Strategyn’s web-portal.
  8. 8. Further reading The Customer-Centred Innovation Map, Harvard Business Review, May 2008 Giving Customers a Fair Hearing, MIT Sloan What Customers Want The Innovator’s Solution Management Review, Spring a bestselling book by In Professor Clayton 2008 Strategyn CEO Tony Christensen's book - The Ulwick, details the Innovator's Solution - he theory and practice of explains why Strategyn's outcome-driven thinking and segmentation innovation methods are critical to the Best Business Idea Winner successful management of new market creation Turn Customer Input into Innovation, Harvard Business Review, January 2002
  9. 9. You Experience Innovation Success ® Strategyn UK Cranfield Innovation Centre Cranfield University Technology Park Cranfield Bedfordshire UNITED KINGDOM MK43 0BT Tel: +44(0)844 561 0401 Email: Web: 9