"INSTANT" Trade-off Mapping: Towards Automatic Strategic Planning, Performance Management, and Innovation

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The trade-offs, which customers make, play a central role in determine whether products succeed or fail. However, methods of visually representing trade-offs are not well developed. This presentation offers the Trade-off Map, which is a tool for simply mapping trade-offs and customer experiences of products as well as services. Several insights can be obtained from a Trade-off Map. For instance, you could observe the visual strategy and performance of a product. You could also see how best to developing strategies and tactics so that the product or service becomes a 'hit.'

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  • "INSTANT" Trade-off Mapping: Towards Automatic Strategic Planning, Performance Management, and Innovation

    1. 1. Inexpensively Leapfrogging the Competition<br />“INSTANT” TRADE-OFF MAPPINGA Tool for Mapping and Innovating on Customer ExperienceDr. Rod King<br />
    2. 2. CLASSIC BUSINESS PLAN<br />INSTANT TRADE-OFF MAP<br /><ul><li>One-page tool for mapping customer experience
    3. 3. Facilitates daily and group decision-making
    4. 4. Instantly communicates business strategy & vision
    5. 5. Bulky document containing a business/financial plan
    6. 6. Does not focus on performance management
    7. 7. Not effective in communicating business strategy</li></ul>WHAT IS<br /> “INSTANT” <br />TRADE-OFF MAPPING?<br /><ul><li>Simple and fast to use or prepare
    8. 8. Inexpensive; no extra software
    9. 9. Focuses on innovativetrade-off concept and visual idea generation
    10. 10. Complex/time-consuming to use
    11. 11. Expensive to prepare
    12. 12. Does not focus on delivering unique and delightful customer experiences
    13. 13. Scalable: applicable to elements of value chain
    14. 14. Uses universal metric of Trade-off Quotient (TQ), which is descriptive as well as predictive
    15. 15. Can be used to improve as well as innovate on strategic and operational customer experiences
    16. 16. Not scalable; expensive to modify or change
    17. 17. Uses various criteria/performance indicators
    18. 18. Usually excludes performance management; does not focus on facilitating the discovery of innovation opportunities</li></ul>Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    19. 19. THE COST OF POOR STRATEGY IN BUSINESS AND LIFEHighly Successful Businesses See and Manage Strategy Through the Lens of Desirable Customer Experiences<br />UNHAPPINESS<br />LOSS OF<br />JOBS<br />LOSS OF MONEY<br />DEATHS<br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    20. 20. “Business strategy revolves around 8 archetypal questions.”<br />What is the current customer experience or performance of the most critical competitors?<br /> What is the potential for a product/service to succeed?<br />What currently is the customer experience of your product/service/tool/<br /> business/organization? Why?<br /> What must be the customer experience? When? Why?<br />3. For a given market or customer job, why is product/ service/tool/business A (market leader) far more successful than product/ service/tool/business B?<br />4. What customer value propositions as well as competitive strategies and tactics are required so that competitor Y can leapfrog competitor X?<br />8 STRATEGY QUESTIONS<br />THAT YOU CAN<br />INNOVATIVELY ANSWER USING <br />A TRADE-OFF MAP<br />5. How to simply monitor the performance of a business or value chain as well as competitors in terms of customer experience?<br />7. How to simply design or generate scenarios for ‘hit’ products/services/tools/ business models/experiences that redefine a market or change the rules of the game?<br />How to innovatively get more customers, sales, or market share? From what sources?<br /> How to align employees and customers with the vision and strategy of the business/org.?<br />8. What would be the next generation or ideal species of ‘hit’ or ‘leapfrog-innovation’ products/services/tools/ business models?<br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    21. 21. “INSTANT” TRADE-OFF MAPPING for Starbucks Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal<br />TRADE-OFF VOICE<br />Description of Customer: ………………………….……………………….… Date: 2007-2009<br />10<br />6<br />(+): DELIGHT<br />TRADE-OFF MAP<br />TRADE-OFF MAP<br />3<br />3<br />6<br />10<br />0<br />(-): PAIN<br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    22. 22. “INSTANT” TRADE-OFF MAPPING Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal<br />TRADE-OFF VOICE<br />Description of Customer: SMEs – Strategists/Planners/Marketers Date: Sept. 2009<br />10<br />6<br />(+): DELIGHT<br />TRADE-OFF MAP<br />TRADE-OFF MAP<br />3<br />3<br />6<br />10<br />0<br />(-): PAIN<br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    23. 23. ‘HIT ZONE’ STRATEGY FOR IMPROVING X-CUSTOMER EXPERIENCE Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal<br />Description of Customer: SMEs – Strategists/Planners/Marketers Date: Sept. 2009<br />Disruption Spot<br />‘HIT ZONE’ STRATEGY:<br />Description of Customer Job/Need: To simply develop ideas and strategies for delivering unique and delightful customer experiences<br />Description of Customer Value Proposition: “Providing unique and delightful customer experiences”<br />Mission/Vision: Automatic customer experience innovation for everyone <br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    24. 24. “INSTANT” TRADE-OFF MAPPING Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal<br />TRADE-OFF VOICE<br />Description of Customer: ………………………….……………………….… Date: …………..…<br />10<br />6<br />(+): DELIGHT<br />TRADE-OFF MAP<br />TRADE-OFF MAP<br />3<br />3<br />6<br />10<br />0<br />(-): PAIN<br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    25. 25. ‘HIT ZONE’ STRATEGY FOR IMPROVING X-CUSTOMER EXPERIENCE Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal<br />Description of Customer: ………………………….………….… Date: …………..…<br />…………………….…………………..<br />‘HIT ZONE’ STRATEGY:<br />Description of Customer Job/Need: ……………….…………………………………………………………………………………………………………………………….<br />Description of Customer Value Proposition: ………………………….………………………………………………………………………………………….………….<br />Mission/Vision: ………………………………….………….…………………………………………………………………………………………………………….……………….<br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    26. 26. CATEGORIES OF CUSTOMER NEEDS, SELECTIONS, AND EXPERIENCESStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal<br />Zero Trade-off-Experience<br />(cf. “Wrecking-ball moment”)<br />‘Hit’ Zone<br />MARKET (CUSTOMER JOB): ………………………………….<br />Period/Year: …………….…………………………………………..<br />High-end<br />SuperHit-Need/Experience<br />Sweet Spot-Need/Experience<br />Luxury Spot-Need/Experience<br />Disruption Spot-Need/Experience<br />Oasis-<br />Need/Experience<br />Volcano- Need/Experience<br />DELIGHT:<br />Fidelity<br />Low-end<br />Green Ocean- Need/Experience<br />No Man’s Land- Need/Experience<br />Red Ocean- Need/Experience<br />Fidelity Belly<br />Convenience<br />Inconvenience<br />PAIN: Inconvenience <br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    27. 27. CUSTOMER EXPERIENCES IN THE HIT ZONE AND FIDELITY BELLY Examples of Businesses with Archetypal Customer Experiences <br />‘Hit’ Zone<br />SuperHit<br /><ul><li> Google Search
    28. 28. Dell
    29. 29. Amazon
    30. 30. Swatch</li></ul>Sweet Spot<br /><ul><li> Cirque du Soleil
    31. 31. Target
    32. 32. FedEx
    33. 33. Borders</li></ul>Luxury Spot<br /><ul><li>iPhone
    34. 34. Disneyland
    35. 35. Porsche
    36. 36. Louis Vuitton</li></ul>High-end<br />Disruption Spot<br /><ul><li> Southwest Airlines
    37. 37. Nintendo – Wii
    38. 38. Wal-Mart
    39. 39. YouTube</li></ul>Oasis<br /><ul><li>Segway
    40. 40. Hulu
    41. 41. Starbucks
    42. 42. Mariott Hotels</li></ul>Volcano<br /><ul><li> Amazon – Kindle
    43. 43. Blu-Ray
    44. 44. Newton PDA
    45. 45. Movie Theaters</li></ul>DELIGHT:<br />Fidelity<br />Green Ocean<br /><ul><li> Small independent bookstores</li></ul> NHL – TV Broadcast<br />No Man’s Land<br /><ul><li> Traditional newspapers
    46. 46. Earthlink
    47. 47. Early Electric Cars</li></ul>Red Ocean<br /><ul><li>Yugo Car
    48. 48. Webvan
    49. 49. Teledesic
    50. 50. General Magic</li></ul>Low-end<br />Fidelity Belly<br />Convenience<br />Inconvenience<br />PAIN: Inconvenience <br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    51. 51. WHEEL OF CUSTOMER EXPERIENCEThe 4 Stages of the Customer Experience Cycle<br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    52. 52. DELIGHT-PAIN BALANCE Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal<br />MARKET (CUSTOMER MAIN DESIRED EXPERIENCE/INTENT/NEED/OBJECTIVE/JOB): …………………………………………………………………..……….<br />DELIGHT (Fidelity)<br />PAIN (Inconvenience)<br /><ul><li> Quality (Content/Performance)
    53. 53. Cost (Price)
    54. 54. Differentiation (Social Status/Cachet)
    55. 55. Inaccessibility/Unavailability
    56. 56. Personalization (Identity/Character)
    57. 57. Complexity (Time)</li></ul>TOOL<br />ALTERNATIVES: ………………<br />Trade-off Quotient (TQ)<br />= Pain/Delight<br />= Inconvenience/Fidelity<br />= Customer Exp. Quotient<br />SELECTION/ACTION: ………<br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    58. 58. “What gets measured and monitored, gets improved.”<br />BETTER BUSINESS ANALYSIS/PLANNING<br />GREATER CUSTOMER SATISFACTION<br />STRONGER COMPETITIVE ADVANTAGE<br />MORE DELIGHTED CUSTOMERS<br />BENEFITS OF<br />TRADE-OFF MAPPING:<br />… Obtain …<br />MORE CUSTOMER LOYALTY/REFERRAL<br />MORE SUSTAINABLE GROWTH<br />MORE SALES AND PROFIT<br />ROBUST DEFENSE AGAINST ATTACKS<br />Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing<br />
    59. 59. REFERENCES<br />Christensen, C.M. (1997) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press.<br />Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press.<br />King, R. (2009) Fractal Box Thinking: A Simple Visual Tool for Total Problem Solving and Innovation. Fresno, California: TOAD Publishing.<br />Maney, K. (2009) Trade-Off. New York: Broadway Books.<br />Verganti, R. (2009) Design-Driven Innovation. Boston: Harvard Business School (HBS) Press.<br />Dr. Rod King<br /> <br />Thought Leader, Speaker, Consultant, and Trainer on Trade-Off Mapping & Customer Experience Management<br />rodkuhnking@sbcglobal.net & http://tradeoffmap.ning.com<br />http://twitter.com/RodKuhnKing<br />

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