When business is regarded as an artistic endeavor, it has the same potential as an art piece to challenge and impact every aspect of our lives. And to win and hold the public’s interest, just as any art form does, a business must be technically well-executed, as well as imaginative and engaging at the same time.
The Kano Model of Customer (Consumer) Satisfaction classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction. These classifications are useful for guiding design decisions in that they indicate when good is good enough, and when more is better.
there is a basic level of quality (“Must Be” )that customers assume the product will have. For example, all automobiles have windows and tires. If asked, customers don’t even mention the basic quality items, they take them for granted. However, if this quality level isn’t met the customer will be dissatisfied; note that the entire “Basic Quality” curve lies in the lower half of the chart, representing dissatisfaction. However, providing basic quality isn’t enough to create a satisfied customer.Threshold (or basic) attributes are theexpected attributes or “musts” of aproduct, and do not provide anopportunity for product differentiation.Increasing the performance of theseattributes provides diminishing returnsin terms of customer satisfaction,however the absence or poorperformance of these attributes results inextreme customer dissatisfaction. An example of a threshold attribute would be brakes on a car.
The expected quality (“More is Better”) line represents those expectations which customers explicitly consider. For example, the length of time spent waiting in line at a checkout counter. The model shows that customers will be dissatisfied if their quality expectations are not met; satisfaction increases as more expectations are met.
The exciting quality curve lies entirely in the satisfaction region. This is the effect of innovation. Exciting quality represents unexpected quality items. The customer receives more than they expected. For example, Cadillac pioneered a system where the headlights stay on long enough for the owner to walk safely to the door.Excitement attributes are unspoken and unexpected by customers but can result in high levels of customer satisfaction, however their absence does not lead to dissatisfaction. Excitement attributes often satisfy latent needs – real needs of which customers are currently unaware. In a competitive marketplace where manufacturers’ products provide similar performance, providing excitement attributes that address “unknown needs” can provide a competitive advantage. Although they have followed the typical evolution to a performance then a threshold attribute, cup holders were initially excitement attributes.
Creativity in business 7
inB U S iN E S S Richard Randolph Community Outreach Director Manasota SCORE Richard.ManasotaSCORE@gmail.com
Our Journey Today Why Business Creativity Matters It’s a Messy Process The Kano Model Practical Application (You do it!) Creativity Meter: 90%! Ready?
…creativity is themost importanthuman resourceof all. ~ Edward de Bono
Being good in business is themost fascinating kind of art…good businessis the best art. ~ Andy Warhol
...intuition and creativityare fast becoming theonlydifferentiatingfactors ~ John Maeda, Presidentamong competitors. Rhode Island School of Design
Creativity is notthe finding of a thing,butmaking somethingout of it after it is found. ~ James Russell Lowell
When NASA first started sending up astronauts,they quickly discovered that ballpoint penswould not work in zero gravity.To combat the problem, NASA scientists spenta decade and $12 million to develop a pen thatwrites in zero gravity, upside down, underwater, onalmost any surface, and at temperatures rangingfrom below freezing to 300 degrees Celsius.
Creative thinkingis not a talent, skill thatit is acan be learned. ~ Edward de Bono
Creativity is justconnectingthings. ~ Steve Jobs Wired, February 1996
The brain is awonderful organ;it starts workingthe moment youget up in the morningand does not stop untilyou get into the office. ~ Robert Frost
The chief enemyof creativity is‘good’ sense. ~ Pablo Picasso
The “9 Dots” Activity Think Outside the Box • • • • • • • • •Connect all the dots with no more than four straight lines.
The “9 Dots” Activity Think Outside the • Box • • • • • • • • Where is “the box”?
“The Squiggle” by Damien NewmanUNCERTAINTY / PATTERNS / INSIGHTS CLARITY / FOCUSResearch Concept Prototype Design
It’s a Process! Two Stages of Creative Thinking Divergence ConvergenceCreativity / Idea Generation Evaluation / Innovation Often seen as “messy” Viewed as “orderly / logical” “Agriculture” model “Industrial” model The gap is important!
The Principle of The Winning EdgeSmall improvements in specific areas over time produce HUGE changes in results.If you “win by a nose” you collect double theprize money of the second-place finisher. +1% = 100%
2008 U.S. Open Golf Tournament – Torrey Pines, La Jolla, CA 1 Tiger Woods 69–71–72–71= 283–71– 4 Payday: $1,350,000 2 Rocco Mediate 72–68–70–73= 283–71–5 Payday: $810,000
Small Differences Mean Big Rewards How much margin of victory do you need? You only need to win by “ a nose”
The Kano Model Dr. Noriaki Kano Professor Emeritus A technique to classify customer Tokyo Rika Universityneeds and determine appropriate (1984) levels of innovation
The Kano Model ElementsMust-be LinearIndifferent Attractive
“Must-Be” (Basic) Factors The ‘table stakes’The least acceptable• Absence leads to dissatisfaction• Satisfying does not create satisfaction – it merely minimizes dissatisfactionExamples:• Toilet rolls in a hotel room. Zero toilet rolls = unhappy Customer Three extra toilet rolls = not unhappy, but not happy
Linear – More is Better ‘Performance’ FactorsConsciously evaluated by the CustomerExpressly in their minds when making a purchase decision • Satisfaction is proportional • Often ‘stated’ needsExamples: • Miles per gallon • Waiting time in line
Indifferent Factors No Impact on PurchaseCustomers just don’t care one way or anotherProduces a “so what?” reaction.
Attractive (Delighters) Excitement FactorsNot expected – Absence will not dissatisfyPresence will delight and increase satisfaction.Provides unexpected satisfaction – a “ wow! ”Example:• Internet access on a plane is not expected so will not upset if not present, but will delight if it is.
Hands-free Bluetooth calling Example: Rear View CameraList the Delighters… Pandora Internet Radio Integration A recent Honda TV ad featuring three “Delighters”
The Kano Model Diagram Completely Satisfied Attractive features delight when present but produce no dissatisfaction when not present Indifferent Dysfunctional Fully Functional Must-be (Basics)Linear attributes / needs Satisfying basic needs minimizesare on their minds when dissatisfaction. Absence or poorpurchasing and are execution leads to dissatisfactionconsciously evaluatedby the customer Completely Dissatisfied
Kano Model Elements Must-be Linear Indifferent Attractive (Basics) (One-dimensional) (Don’t care) (Delighters) Table Stakes More is better So what? Wow! Phone answer “On-hold” music “One Click” Pay on-line speed shopping Ambient 24-hour earlyFlight Ticket / Check-in lines background music on-line check-in;Boarding Pass Business Lounge More cell phone Lower Price features Multiple auto- Lower Interest function camera Rate buttonsPackage arrives Faster Package Color of trucks / Same-day unbroken Delivery uniforms deliveryNot defective Longer Product Automatic, free in the box Life Span upgrades
Kano Model Elements For A Hotel – Business Client Must-be Linear Indifferent Attractive (Basics) (One-dimensional) (Don’t care) (Delighters)Fast Check-in Price Local Newspaper Fitness CenterFast Check-out Location Phone in room Swimming PoolWireless Internet Restaurant Covered parking JacuzziComfortable bed Quality of Towels Multi-color linens Cable / HBOQuick breakfast Room size “Office” SpaceTV in room Size of TV Brand of Control Big-Screen TVToilet Rolls in Quality of paper Hotel Staff Free Valet Parkingroom Uniforms
Kano Model ElementsFor The Same Hotel – Vacation Client Must-be Linear Indifferent Attractive (Basics) (One-dimensional) (Don’t care) (Delighters) Location Price Local Newspaper Swimming Pool Fitness Center Phone in room Wireless Internet Wireless Internet Restaurant Covered parking Comfortable bed Quality of Towels “Office” Space Room size Free Valet Parking Cable TV / HBO Fast Check-in Hotel Staff Big-Screen TV Uniforms Toilet Rolls in Fast Check-out room Restaurant Continental Breakfast
Your Turn! List the Kano Model Elements for Your Own OrganizationMust-be Linear Indifferent Attractive(Basics) (One-dimensional) (Don’t care) (Delighters)
Attractive Basic The innovations of yesterdaybecome the hygiene factors of tomorrow.
If it’s not done well it could have theopposite effect!
Money – How to Lose it; How to Make itMust Be – where money is lost! “A market is never saturated with a good product, but it is very quickly saturated with a bad one.” ~ Henry FordAttractive – where money is MADE!“If I had asked people what they wanted, they would have said faster horses.” ~ Henry Ford
A lot of times, peopledont know what they wantuntil you show itto them. ~ Steve Jobs Business Week
StrategiesMust Be’s – fulfill 100% – first priorityExciters/Delighters – differentiateLinear – Position for profit
Strategies – New Products and ServicesMust-be (Basics) – Be sure to match competition Exclude these at your peril – but don’t overdo them!Linear (One-dimensional) – Each one adds greater value Try for severalIndifferent – you don’t need them Minimize or eliminateAttractive (Delighters) – Key differentiators Emphasize / Market
Where to Look for IdeasCategory Look to… • Competitors Must Be • Customer Complaints / Lost Sales • Sales Force Feedback • Competitor Advertising • Customer Complaints Linear • Customer Requests • Sales Force Feedback • Customer Comments Indifferent • Customer Expectations / Specifications • Price Resistance • Customer Complaints Attractive • “Lead Users” • “Innovators” and “Early Majority”
Lead Users1,193 successful innovations9 industries60% came from customers
Every good product I’ve ever seenis because a group of people careddeeply about making somethingwonderful they and their friendswanted.They wanted touse it themselves.
The best way tohave a good ideais to have alot of ideas. ~ Dr. Linus Pauling
SCAMPERSubstitute Combine Adapt Modify Put to other uses Eliminate Reverse
How-ToFollow Up Customers – VOC Voice of the Customer • Complaints • Suggestions Those who did NOT buy from you Sales Force Internal Competitive AnalysisNew Opportunities Gaps New wants / needs
Strategies Distort time Make waiting in lines fun Help people solve problemsRescue Me! (Get people back on track) Make the first experience fun
TacticsPersonalize and Customize nameUse their – welcome back,remember preferencesCustomers will remember you if you canremember their name
A person’s nameis to that personthe sweetest andmost importantsound in anylanguage. —Dale Carnegie
Action TipsThere are few things customers talk aboutmore than a pleasant surpriseDesign matters!Your customers are a great resource
People will forgetwhat you said,they will forgetwhat you did,but they willnever forgethow you ~ Maya Angeloumake them feel .
Why This Matters to You Attract new Customers Increase your ‘wallet share’ Increase their purchase frequency Increase spontaneous referrals Block competition
Innovation distinguishesbetween a leader anda follower.The Innovation Secretsof Steve Jobs
Dont worry about peoplestealing your ideas. If yourideas are any good, you’ll haveto ram them downpeople’s throats. ~ Howard Aiken
The true sign of intelligenceis not knowledge but imagination
Heres to the crazy ones, the misfits, the rebels, thetroublemakers, the round pegs in the squareholes... the ones who see things differently –theyre not fond of rules... You can quote them,disagree with them, glorify or vilify them, but theonly thing you cant do is ignore them because theychange things... they push the human race forward,and while some may see them as the crazy ones,we see genius, because the ones who are crazyenough to think that they can change the world, arethe ones who do. ~ Steve Jobs
inB U S iN E S S Richard Randolph Community Outreach Director Manasota SCORE Richard.ManasotaSCORE@gmail.com