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You Experience Innovation Success ®
AN INTRODUCTION TO STRATEGYN UK 
AND OUTCOME‐DRIVEN INNOVATION
April 2009
60% of all new‐product 
 development efforts are 
        p
scuttled before they reach 
        the market
        the mar...
How can we increase the 
probability of innovation 
        success?

To achieve 70% success 
        rates?
Strategyn Outcome‐Driven Innovation is a set of proven 
  concepts and a systematic methodology for driving 
    predictab...
Strategyn s process operates at the front end of innovation 
  Strategyn’s process operates at the front‐end of innovation...
Outcome‐Driven Innovation has been proven effective 
  in multiple industries over 18 years of application 
  i    lti l i...
We Identified the opportunity that led to the creation of 
the fastest selling medical device in history – the stent
the f...
Outcome‐Driven Innovation is a 
Harvard‐Business Review best practice
Harvard‐Business Review best practice




Best Busin...
What is Stalling the 
Evolution of Innovation?
   li      f         i?




                           9
How important is 
innovation to your 
i      i
company? 
company?
Is there agreement in 
your company as to what 
                      h
innovation is?
innovation is?
Is understanding 
customer needs 
             d
important for innovation 
important for innovation
in your company?
in yo...
Is there agreement in 
your company as to what 
a customer need is?
a customer need is?
Is there 
Is there           Is there agreement 
                   Is there agreement
agreement in       in your company ...
“Studies comparing successful and unsuccessful 
innovation have found that the primary 
innovation have found that the pri...
Innovation: 
The State of Play Today




                          16
Innovation is the process of devising a product or service 
Innovation is the process of devising a product or service
   ...
It’s Like Solving an Algebraic Equation …




               Variables
Constants
                                         ...
Solutions‐first approach
                 pp
Solutions first approach
Companies devise solutions and 
        idi         li       d
test them with customers
“Refineme...
Solutions first approach
Successful innovation is a 
S       f li      ii
numbers game … the more 
ideas, the better
id   ...
Needs first approach
Needs‐first approach
Needs‐first approach
             pp
There is no consistent format 
for a customer need. The right 
f        t         d T...
Segment on the Wrong Things
Segment on the Wrong Things


 Segmenting the 
 market based on 
 market based on
 customer, p...
Multiple translations of customer needs 
               contributes to innovation failure

                               ...
Listening too literally
                          Voice of the Customer
                          Voice of the Customer
Ex...
Customers don’t know what 
they want
they want
Customers can’t articulate 
their needs
their needs
Customers have latent n...
Needs‐first approach
Companies do not know what inputs to 
capture
Customers do not know what inputs are 
needed
Customers...
What Do Companies 
Conclude?

Innovation is an iterative, 
non‐linear process
Innovation (getting the 
right answer) is an...
What is a Customer Need?
What is a Customer Need?




                           30
quot;People don't want to buy a
quarter‐inch d ill They want a
        i h drill. h
quarter‐inch hole!“
Theodore Levitt, 1...
There is a better way to think about market segmentation and new product
innovation. The structure of a market, seen from ...
JOB
  Defines the functional and/or 
  Defines the functional and/or
  emotional task, event, goal or 
   activity that pe...
Two Options for Innovation




Help a customer get          Help a customer get 
 more or new jobs            “a” job done...
The job is the primary unit of analysis

                                                   Functional
                   ...
The Job of Storing – Retrieving Music
   Technologies come and go, the job remains the same




1880        1935        19...
The Job Hierarchy Framework


                                                                                            ...
Manage Financial Security 


                                                                                             ...
When performing a job, 
When performing a job,                                      •   Metric 1
                         ...
Desired Outcomes …
                         Desired Outcomes

    Are the fundamental metrics used by customers to measure...
When capturing desired outcomes, we first build a Job 
Activity Map (JAM). Here, we depict a JAM for the job of 
Activity ...
Specific Questions Reveal Desired Outcomes
For each step of the job as defined in the job map, ask …


                   ...
The precise measurable structure of 
                       a desired outcome statement
                       a desired o...
Example desired outcomes for the job step of Assess Current 
   Expenditure in the job of Manage Financial Security
   Exp...
What is the Opportunity Algorithm?


•   If 90% of the respondents rate an 
     f % fh              d                    ...
When is a Need Unmet?


    If a desired outcome is both important and unsatisfied, it is unmet
                          ...
Applications of Outcome Driven Insights
Applications of Outcome‐Driven Insights




                                      ...
Outcome‐Driven Innovation Insights can be applied for 
                multiple purposes
                multiple purposes...
Segment markets for growth by identifying under‐
       Segment Markets 
          For Growth
          For Growth        ...
Position To Current    Redefine position/message linked to the key opportunities that are 
 Under‐Messaged 
              ...
Reassess Resources 
                        Resources are placed on the likely winners in the current project 
Allocated t...
Generate Concepts 
to Address Growth 
     Strategy




          Ideas were brainstormed for the top 14 opportunities. Th...
Generate Concepts 
                        The Cutting Wood “Job Map”
                                  g             p
to...
Generate Concepts 
                                              Cutting Wood Opportunity Landscape
               to Addr...
Generate Concepts 
                                Creating the Bosch CS20 Circular Saw
to Address Growth 
     Strategy

...
Formulate Market
                                     When it comes to growth through innovation, 
Growth Strategy / 
    ...
What does the Opportunity Landscape reveal? 
         Sustaining or core market growth opportunity
         Sustaining or ...
Formulate Market
                                             Core or Sustaining Market Growth
     Growth Strategy / 
   ...
What does the Opportunity Landscape reveal? 
    Adjacent market growth opportunity
    Adjacent market growth opportunity...
Formulate Market
                                             Related Market Growth
     Growth Strategy / 
         Portf...
Formulate Market
                                           New Platform Creation
     Growth Strategy / 
         Portfol...
What does the Opportunity Landscape reveal? 
    Low‐end / new market disruption of existing over‐served 
    job and/or t...
Formulate Market
     Growth Strategy / 
                                           Core Platform Disruption
             ...
Formulate Market
     Growth Strategy / 
                                          Core Market Disruption
                ...
Formulate Market
     Growth Strategy / 
                                           Related Growth in a Disrupted Market
 ...
Formulate Market
                                           Six Market Growth Paths
     Growth Strategy / 
         Portf...
Formulate Market
                                                                              Customer Inputs → Growth Pa...
Formulate Market
                      Benefits of the Six Growth Path Framework
Growth Strategy / 
    Portfolio
        ...
Working with Strategyn UK
Strategyn UK Outcome‐Driven Innovation 
Service And Support Options


1      ODI PROJECTS, TRAINING, MENTORING AND PROGRAM...
Further reading


                     The Customer Centred 
                     The Customer‐Centred
                   ...
You Experience Innovation Success ®




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                            Strategyn UK
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You Experience Innovation Success ... Strategyn Uk 2009

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An Introduction to Outcome-Driven Innovation concepts with examples. Summarises the Strategyn UK client value proposition.

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You Experience Innovation Success ... Strategyn Uk 2009

  1. 1. You Experience Innovation Success ® AN INTRODUCTION TO STRATEGYN UK  AND OUTCOME‐DRIVEN INNOVATION April 2009
  2. 2. 60% of all new‐product  development efforts are  p scuttled before they reach  the market the market 40% that are launched fail  to become profitable and  are withdrawn 75% of all innovation  investments are wasted investments are wasted SOURCE: Clayton Christensen, The Innovators Solution
  3. 3. How can we increase the  probability of innovation  success? To achieve 70% success  rates?
  4. 4. Strategyn Outcome‐Driven Innovation is a set of proven  concepts and a systematic methodology for driving  predictable, repeatable innovation and growth… Achieve predictable  Discover new important  1 2 market growth through  kt th th h unaddressed market  dd d kt innovation opportunities Determine a successful  Instil a repeatable  4 3 market growth strategy  market growth strategy innovation process that  innovation process that and plan drives growth
  5. 5. Strategyn s process operates at the front end of innovation  Strategyn’s process operates at the front‐end of innovation and feeds all development activities … Strategy Opportunity Idea / Concept  Concept  Development Discovery Generation Strategyn  Outcome Concept  Driven  Selection Develop Launch test Innovation Process
  6. 6. Outcome‐Driven Innovation has been proven effective  in multiple industries over 18 years of application  i lti l i d t i 18 f li ti BIOTECH /PHARMA FINANCIAL HEALTH / MEDICAL Novozymes AXA UK Medtronics Merck Serono Merck Serono Friends Provident Friends Provident Guidant G idant Pfizer Washington Mutual Coloplast Syngenta State Farm AMO Morgan Stanley Dentsply CHEMICALS / H&R Block Johnson & Johnson MANUFACTURING Aetna Kimberley Clark Kimberley Clark Ingersoll Rand MetLife Colgate Bosch AIG Unilever John Deere GE Capital PUBLIC SECTOR Rohm and Haas ITI Scotland IT / TELECOMS Bristan Group Harvard HMRC Hewlett Packard Masco Kennedy School Nortel Networks Motorola OTHER SOFTWARE V‐Tech Harvard University Microsoft Pipex Wireless Ecolab Intuit United Technologies United Technologies Hallmark H ll k Ceridian Telstra MeadWestCo ESRI RH Donnelly Reynolds & Reynolds FOODS TurboTax Simplot Cargill g Chiquita Hills 6
  7. 7. We Identified the opportunity that led to the creation of  the fastest selling medical device in history – the stent the fastest selling medical device in history the stent “Using Strategyn’s approach we reprioritized resources so we could be the first to market with the stent, an opportunity that became a $1 billion product in less than 2 years – the fastest growing medical device in history.” Cordis (J&J) VP of Marketing Rick Faleschini Featured in Harvard Business Review January 2002 J 2002
  8. 8. Outcome‐Driven Innovation is a  Harvard‐Business Review best practice Harvard‐Business Review best practice Best Business  Idea Winner quot;Strategyn's outcome‐driven concepts and  method bring discipline and predictability to  the often random process of innovation.quot; Clayton Christensen, Harvard Business School  Professor and “innovation guru”
  9. 9. What is Stalling the  Evolution of Innovation? li f i? 9
  10. 10. How important is  innovation to your  i i company?  company?
  11. 11. Is there agreement in  your company as to what  h innovation is? innovation is?
  12. 12. Is understanding  customer needs  d important for innovation  important for innovation in your company? in your company?
  13. 13. Is there agreement in  your company as to what  a customer need is? a customer need is?
  14. 14. Is there  Is there Is there agreement  Is there agreement agreement in  in your company  your company as  as to what a  h to what  customer need is? innovation is? 95% answer NO 95% answer NO to Both
  15. 15. “Studies comparing successful and unsuccessful  innovation have found that the primary  innovation have found that the primary discriminator was the degree to which customer  needs were fully understood.” y David Garvin Harvard Business School
  16. 16. Innovation:  The State of Play Today 16
  17. 17. Innovation is the process of devising a product or service  Innovation is the process of devising a product or service concept that satisfies the customer’s unmet needs. 0 Growth Strategy Stage-Gate® is a trademark of Stage-Gate Corporation 1
  18. 18. It’s Like Solving an Algebraic Equation … Variables Constants Variables Constants
  19. 19. Solutions‐first approach pp
  20. 20. Solutions first approach Companies devise solutions and  idi li d test them with customers “Refinements” are made  through an iterative  testing/refinement process  This approach is time consuming  pp g and may never yield the correct  answer
  21. 21. Solutions first approach Successful innovation is a  S f li ii numbers game … the more  ideas, the better id th b tt The goal is to fail fast – quickly  evaluate ideas to see which are  best
  22. 22. Needs first approach Needs‐first approach
  23. 23. Needs‐first approach pp There is no consistent format  for a customer need. The right  f t d Th i ht inputs have not been defined CONC WANTS Delighters CEPT constraint Solutions N E E D Specification exciters WISHES must haves must haves latent need latent need table stakes BENEFIT expectations
  24. 24. Segment on the Wrong Things Segment on the Wrong Things Segmenting the  market based on  market based on customer, product or  value attributes leads  to innovation failure to innovation failure
  25. 25. Multiple translations of customer needs  contributes to innovation failure partner sales marketing R&D Customer Customer Customer Customer phrasebook phrasebook phrasebook phrasebook What Partners say customers want What Partners say customers want What Sales says customers want What Sales says customers want What Marketing says customers want What Marketing says customers want What R&D says customers want What R&D says customers want
  26. 26. Listening too literally Voice of the Customer Voice of the Customer Expecting solutions i li Testing concepts
  27. 27. Customers don’t know what  they want they want Customers can’t articulate  their needs their needs Customers have latent needs Customer requirements  Ct i t change quickly over time Innovation Myths
  28. 28. Needs‐first approach Companies do not know what inputs to  capture Customers do not know what inputs are  needed Customers offer “needs” in a language  that is convenient to them Many firms try to translate the inputs  f into something useful A mix of input types results A i fi tt lt Bad inputs cause the failures managers  are trying to avoid ti t id
  29. 29. What Do Companies  Conclude? Innovation is an iterative,  non‐linear process Innovation (getting the  right answer) is an art Success rates greater than  10% to 30% are  unachievable
  30. 30. What is a Customer Need? What is a Customer Need? 30
  31. 31. quot;People don't want to buy a quarter‐inch d ill They want a i h drill. h quarter‐inch hole!“ Theodore Levitt, 1975
  32. 32. There is a better way to think about market segmentation and new product innovation. The structure of a market, seen from the customers' point of view, is very simple: They just need to get things done as Ted Levitt said When people find done, said. themselves needing to get a job done, they essentially hire products to do that job for them. Clayton Christensen, 2005
  33. 33. JOB Defines the functional and/or  Defines the functional and/or emotional task, event, goal or  activity that people want to  accomplish Defines the action for which a  product or service may be needed
  34. 34. Two Options for Innovation Help a customer get  Help a customer get  more or new jobs  “a” job done better “” done
  35. 35. The job is the primary unit of analysis Functional Emotional i l 1. Jobs come and go .. New jobs can be  discovered 2. 2 Products come and go – th j b i Pdt d the job is a more  stable, long‐term focal point around which  value creation must be centered  3. The job’s perfect execution reflects the  customer’s true definition of value 4. Requirements are not captured on the  i d h ACTIVITY JOB product – they are captured on the job the  product or service is intended to perform PROBLEM
  36. 36. The Job of Storing – Retrieving Music Technologies come and go, the job remains the same 1880 1935 1970 1990 2008
  37. 37. The Job Hierarchy Framework Consumption Chain Jobs i hi b Core Functional Job  • Purchase • Delivery Other Functional Jobs • Installation Emotional Jobs Emotional Jobs • Set‐up • Learn to Use • Interface • Store Jobs Indirectly  Jobs Directly  • Maintain Social Jobs Social Jobs Related to Core  Related to Core Related to Core  Related to Core Personal Jobs Personal Jobs • Upgrade Job Job • Replace • Dispose Job Map • Outcome 41 Process  Process  Process  • Outcome 42 Step 1 Step 3 Step 2 • Outcome 43 • Outcome 1 • Outcome 44 • Outcome 2 Process  Process  • Outcome 45 Step 4 Step 4 • Outcome 3 Ot 3 Step 5 • Outcome 4 • Outcome 6 Desired outcomes are the metrics customers use to  measure the successful execution of a job.
  38. 38. Manage Financial Security  Consumption  p Manage Financial  Chain Jobs Security • Purchase • Delivery Other Functional Jobs Emotional Jobs Emotional Jobs • Installation I t ll ti • Set‐up • Learn to Use • Interface Jobs Indirectly  Jobs Directly  • Store Social Jobs Social Jobs Related to Core  Related to Core Related to Core  Related to Core Personal Jobs Personal Jobs • Maintain Job Job • Upgrade • Replace • Dispose Job Map • Outcome 41 Process  Process  Process  • Outcome 42 Step 1 Step 3 Step 2 • Outcome 43 • Outcome 1 • Outcome 44 • Outcome 2 Process  Process  • Outcome 45 Step 4 Step 4 • Outcome 3 Ot 3 Step 5 • Outcome 4 • Outcome 6 Desired outcomes are the metrics customers use to  measure the successful execution of a job.
  39. 39. When performing a job,  When performing a job, • Metric 1 Job Activity Map Job Activity Map • Metric 2 Metric 2 • Metric 3 Customers intrinsically  • Metric 4 • Metric 5 use  metrics to define use “metrics” to define  the successful execution  Process  Process  Process  of a specific job of a specific job Step 3 Step 1 Step 2 These metrics (or desired  Process  Process  Step 5 Step 4 outcomes) ARE the  outcomes) ARE the customer’s needs • Metric 41 • Metric 42 • Metric 43 Metric 43 • Metric 44 • Metric 45 See The Customer‐Centred Innovation Map,  Harvard Business Review, May 2008
  40. 40. Desired Outcomes … Desired Outcomes Are the fundamental metrics used by customers to measure success • when getting a job done Are used by customers to assess the value of one product/service over • another Can be captured in markets where products and competitors do not • yet exist, e.g., white spaces, blue oceans, etc. Are the key to discovering opportunities for core market growth and • disruptive innovation Are integral to all downstream innovation tasks, e.g., identifying • opportunities, segmenting markets, evaluating ideas, etc. …are Customer Needs 40
  41. 41. When capturing desired outcomes, we first build a Job  Activity Map (JAM). Here, we depict a JAM for the job of  Activity Map (JAM). Here, we depict a JAM for the job of Manage Financial Security Assess Current  Income Search for Financial  Evaluate Financial  Options Options Assess Current  Expenditure Assess Current Debt  Assess Current Debt Position Evaluate Financial  Evaluate Timing of a  Services Providers Financial Decision Assess Current  Savings/Investments S i /I Make a Financial  Conclude Financial  Decision Assessment
  42. 42. Specific Questions Reveal Desired Outcomes For each step of the job as defined in the job map, ask … What makes [step x] unstable,  What makes [step x] time  What makes [step x] unreliable, consuming,  error prone, costly, wasteful,  unpredictable, etc. slow, etc. etc. This yields outcomes related to  This yields outcomes related to  This yields outcomes related to  STABILITY – eliminating  SPEED – getting the job done  OUTPUT –eliminating waste,  variability: faster: loss, etc: Outcomes Outcomes Outcomes Minimize the number of seeds Minimize the time it takes the Increase the percent of needed that fail to germinate seeds to germinate nutrients that are absorbed Minimize the time it takes to for Increase the percent of plants the plant to come out of the Minimize the yield loss due to that emerge at the same time ground excess heat during pollination yield
  43. 43. The precise measurable structure of  a desired outcome statement a desired outcome statement Direction of improvement Unit of measure Object of control Minimise the time it takes to determine the total amount of household spend in a given time period e.g., spend of all family members, spend on household bills, etc.  Contextual clarifier Example of object of control p j • The statement’s structure, content and format limit variability • The statement prompts a course of action h fi • It is not open to interpretation • Does not confound the way it or other statements are prioritized y p • We have captured over 15,000 such statements in all industry sectors  43
  44. 44. Example desired outcomes for the job step of Assess Current  Expenditure in the job of Manage Financial Security Expenditure in the job of Manage Financial Security Assess Current  1. Minimise the time it takes to determine the total amount of personal  Income Search for Financial  Evaluate Financial  expenditure for a given time period Options Options 2. Minimise the time it takes to determine the total amount of household  Assess Current  expenditure for a given time period Expenditure 3. Minimise the time it takes to determine the amounts spent on different  expenditures in a given time period, e.g., on food, petrol, utilities, etc. 4. Minimise the time it takes to determine changes in the amounts spent on  Assess Current Debt  Assess Current Debt different expenditures over a given time period, e.g., amounts going up,  Position Evaluate Financial  Evaluate Timing of a  down, etc. Services Providers Financial Decision 5. Minimise the time it takes to learn of a change in the cost of living, e.g.,  higher petrol prices, higher utility bills, higher interest rates, etc. Assess Current  Savings/Investments S i /I 6. Minimise the time it takes to determine how to reduce a level of  expenditure, e.g., spending on utility bills, petrol, food, etc. 7. Minimise the likelihood of forgetting to budget for a large item of household  Make a Financial  expenditure, e.g., an insurance renewal, a utility bill, a tax bill, etc. Conclude Financial  Decision Assessment These are actual outcomes from a financial services project on Manage  Financial Security – in total there were 143 need statements (outcomes)  y related to this job.
  45. 45. What is the Opportunity Algorithm? • If 90% of the respondents rate an  f % fh d OUTCOME IMP SAT OPP outcome a 4 or 5 for importance, the  Minimise the time it takes to determine  changes in the amounts spent on different  9.0 3.0 15.0 Importance value entered into the  expenditures over a given time period, e.g.,  amounts going up, down, etc. algorithm is a 9.0. l ith i 9 0 Minimise the likelihood of forgetting to budget  • for a large item of household expenditure,  If 30% of the respondents rate an  8.5 3.5 13.5 e.g., an insurance renewal, a utility bill, a tax  bill, etc. outcome a 4 or a 5 for satisfaction, the  Satisfaction value entered into the  Minimise the time it takes to determine the  8.0 5.0 11.0 total amount of personal expenditure for a  algorithm is a 3.0 given time period Minimise the time it takes to determine the  7.5 75 6.5 65 8.5 85 total amount of household expenditure for a  total amount of household expenditure for a given time period Opportunity = Importance + max (Importance – Satisfaction, 0) 45
  46. 46. When is a Need Unmet? If a desired outcome is both important and unsatisfied, it is unmet p , • The more important and less satisfied an outcome is (the more unmet it is) the • greater it represents an opportunity for value creation Outcomes are prioritized based on their attractiveness as opportunities for value • creation Importance Importance Opportunity Opportunity Satisfaction Satisfaction
  47. 47. Applications of Outcome Driven Insights Applications of Outcome‐Driven Insights 47
  48. 48. Outcome‐Driven Innovation Insights can be applied for  multiple purposes multiple purposes Formulate Market Segment Markets  Segment Markets Build Business Case  Build Business Case GROWTH Growth Strategy /  For Growth for Market Strategy STRATEGY Portfolio Undertake  Undertake Focus Review of IP  Focus Review of IP MARKET Focus Technology /  Competitive Analysis  Landscape /  EVALUATION Enablers Scouting (Current / Potential) Inventions Reassess Resources  Assess Internal /  Make Go ‐ Kill  RESOURCE  Allocated to Current  External Capabilities  ALLOCATION Decisions Projects to Execute Position To Current  Assist Channels to  Brand On The Job‐ MARKETING / Under‐Messaged  Focus On Unmet  COMMS to‐be‐Done Strengths Needs Generate Concepts  Build Internal  Align Open  INNOVATION to Address Growth  Engagement with  Innovation Inputs to  St ategy Strategy Innovation o at o St ategy Strategy
  49. 49. Segment markets for growth by identifying under‐ Segment Markets  For Growth For Growth served / over‐served segments served / over‐served segments • Identify unique opportunities when  none exist in the broad market • Discover high‐potential growth  segments – groups of customers  who have distinct opportunities  hh d related to executing the job • Traditional segmentation methods – based on product or demographic  based on product or demographic classifications such as price point,  business size, product type or age – y p g yield phantom targets • It is best to group customers into  segments based on what jobs  and/or outcomes they are trying to  achieve
  50. 50. Position To Current  Redefine position/message linked to the key opportunities that are  Under‐Messaged  can already be addressed by the product or service can already be addressed by the product or service Strengths “This insight enabled  • Product features are tied to  us to identify a  specific underserved outcomes specific underserved outcomes unique competitive  i titi position for our skin  • A meaningful competitive  and wound care  analysis is conducted business.  Upon  • repositioning, we  ii i The message connects solidly  went from  with the targeted customers stagnating growth to  double digit growth  in 6 months.” David Hotchkiss VP Sales & Marketing Prevent Coloplast Corp. p p Complications
  51. 51. Reassess Resources  Resources are placed on the likely winners in the current project  Allocated to Current  pipeline, speeding time to market i li di i k Projects • The initiatives with the best chance The initiatives with the best chance  OUTCOME OPP for success are identified Minimize restenosis, i.e., the recurrence of  15.3 the blockage • Likely product failures are identified  and aborted – the justification to kill a  project is made “Using this approach • Resources are placed on the likely  p y we reprioritized we reprioritized winners, speeding time to market resources so we • … more winning products, less  could be the first to market with the development expense development expense stent, an opportunity that became a $1 billion product in less than 2 years – the fastest  growing medical device in history.” Cordis (J&J) VP of Marketing Rick Faleschini
  52. 52. Generate Concepts  to Address Growth  Strategy Ideas were brainstormed for the top 14 opportunities. The new features could not  add cost to the product.
  53. 53. Generate Concepts  The Cutting Wood “Job Map” g p to Address Growth  Strategy Operate the  Adjust the Saw Plan the Cut Start the Cut Saw Outcomes Minimize the time it takes to change the blade Increase the accuracy of saw gauge calibrations, i.e., the angle/mitre and cut width calibrations Maintain the  Complete the  Minimize the movement in the handle position (angle) when setting the blade to a different depth Making a  Cut Saw Minimize the time it takes to set the blade to the desired cut depth Minimize the time it takes to set the blade to the desired cut depth Straight Cut Minimize the time it takes to set the saw to the desired cut angle Ensure Safety y
  54. 54. Generate Concepts  Cutting Wood Opportunity Landscape to Address Growth  Strategy 10 9 Over‐Served 8 Table Stakes Limited Opportunity 7 Ripe for  faction Opp >10 Disruption 6 Solid Opportunity Satisf 5 Opp >12 High Opportunity 4 Potential for  Disruption 3 2 Opp >15 Extreme Opportunity  Opportunity 1 Appropriately Served Under‐Served 1 2 3 4 5 6 7 8 9 10 Importance
  55. 55. Generate Concepts  Creating the Bosch CS20 Circular Saw to Address Growth  Strategy OUTCOME OPP Minimize the cost of repairs due to cut cords Minimize the cost of repairs due to cut cords 11.5 11 5 Direct Connect; removed the  Minimize the likelihood of snagging the cord on  12.7 cord the material Minimize the likelihood of dropping the saw when  10.5 lower it l i OUTCOME OPP Blower is aimed down and at  Minimize the amount of debris that is thrown up  the cut line to blow debris  11.4 into the users face away and provide line of  sight  Minimize the likelihood of inadvertently moving  13.5 off the cut line/path Served  Value Delivered perfectly
  56. 56. Formulate Market When it comes to growth through innovation,  Growth Strategy /  only six growth paths are possible only six growth paths are possible Portfolio f li New Platform Creation Related Growth in a Related Market Growth Disrupted Market (s) Construct a f C feature set on a Add a set of features to the ff Other Job( new platform to help Add a set of features to the core platform to help 2 2 2 customers get a job or new platform to help new customers get a related job group of related jobs done customers get a related job or jobs done. better. or jobs done. 3 6 2 Core Platform Disruption Core Market Disruption Core or Sustaining Market Growth Core Job(s) Construct a feature set on a Construct a feature set on a new platform to help new platform to enable new Add a set of features to the J customers get a core job or customers to perform the core platform to help jobs done cheaper and/or core job of a specialist. customers get a core job or better. jobs done better. 4 5 1 Core Platform New Value Delivery Platform Current Job Executor New Executor 56
  57. 57. What does the Opportunity Landscape reveal?  Sustaining or core market growth opportunity Sustaining or core market growth opportunity 10 1. Improve performance on current platform f f 9 2. Target underserved customers Table Stakes Limited Over‐Served 3. Help most profitable customers get current  386 Opportunity 8 job done better Table Stakes Limited Opportunity 4. How to move up the sustaining growth path 7 Opp >10 Solid Opportunity286 Ripe for  faction Opp >10 Disruption 6 Solid Opportunity 5 Satisf Opp >12 High Opportunity 4 Potential for  Disruption 3 2 Opp >15 Extreme Opportunity  Opportunity 1 Appropriately Served Under‐Served 1 2 3 4 5 6 7 8 9 10 Importance 57
  58. 58. Formulate Market Core or Sustaining Market Growth Growth Strategy /  Portfolio f li New Platform Creation Related Growth in a Related Market Growth Disrupted Market (s) Construct a f C feature set on a Add a set of features to the ff Other Job( new platform to help Add a set of features to the core platform to help 2 2 2 customers get a job or new platform to help new customers get a related job group of related jobs done customers get a related job or jobs done. better. or jobs done. 3 6 2 Core Platform Disruption Core Market Disruption Core or Sustaining Market Growth Core Job(s) Construct a feature set on a Construct a feature set on a new platform to help new platform to enable new Add a set of features to the J customers get a core job or customers to perform the core platform to help jobs done cheaper and/or core job of a specialist. customers get a core job or better. jobs done better. 4 5 1 Core Platform New Value Delivery Platform Current Job Executor New Executor 58
  59. 59. What does the Opportunity Landscape reveal?  Adjacent market growth opportunity Adjacent market growth opportunity 10 9 Over‐Served 8 Table Stakes Limited Opportunity 1. Help current customers get new or  1 Help current customers get new or 7 underperforming related jobs done  Ripe for  faction better Opp >10 Disruption 6 2. Extend the current platform by adding  Solid Opportunity more important unsatisfied jobs 5 Satisf Opp >12 High Opportunity 4 Potential for  Disruption 3 2 Opp >15 Extreme Opportunity  Opportunity 1 Appropriately Served Under‐Served 1 2 3 4 5 6 7 8 9 10 Importance 59
  60. 60. Formulate Market Related Market Growth Growth Strategy /  Portfolio f li New Platform Creation Related Growth in a Related Market Growth Disrupted Market (s) Construct a f C feature set on a Add a set of features to the ff Other Job( new platform to help Add a set of features to the core platform to help 2 2 customers get a job or new platform to help new customers get a related job 2 group of related jobs done customers get a related job or jobs done. better. or jobs done. 6 2 3 Core Platform Disruption Core Market Disruption Core or Sustaining Market Growth Core Job(s) Construct a feature set on a Construct a feature set on a new platform to help new platform to enable new Add a set of features to the J customers get a core job or customers to perform the core platform to help jobs done cheaper and/or core job of a specialist. customers get a core job or better. jobs done better. 4 5 1 Core Platform New Value Delivery Platform Current Job Executor New Executor 60
  61. 61. Formulate Market New Platform Creation Growth Strategy /  Portfolio f li New Platform Creation Related Growth in a Related Market Growth Disrupted Market (s) Construct a f C feature set on a Add a set of features to the ff Other Job( new platform to help Add a set of features to the core platform to help 2 2 2 customers get a job or new platform to help new customers get a related job group of related jobs done customers get a related job or jobs done. better. or jobs done. 3 6 2 Core Platform Disruption Core Market Disruption Core or Sustaining Market Growth Core Job(s) Construct a feature set on a Construct a feature set on a new platform to help new platform to enable new Add a set of features to the J customers get a core job or customers to perform the core platform to help jobs done cheaper and/or core job of a specialist. customers get a core job or better. jobs done better. 4 5 1 Core Platform New Value Delivery Platform Current Job Executor New Executor 61
  62. 62. What does the Opportunity Landscape reveal?  Low‐end / new market disruption of existing over‐served  job and/or target non‐consumption j b d/ i 10 9 Over‐Served 8 Table Stakes Limited Opportunity 7 Ripe for  faction Opp >10 Disruption 6 Solid Opportunity 5 Satisf Opp >12 High Opportunity 1. Target over‐served customers or non‐ 4 Potential for  Disruption consumption with a lower‐cost/ poorer  pe o performing platform g p at o 3 2. Disrupt incumbents with a lower cost  platform‐ they will be focused on core  2 market growth (Asymmetric motivation) Opp >15 Extreme Opportunity  Opportunity 1 Appropriately Served Under‐Served 1 2 3 4 5 6 7 8 9 10 Importance 62
  63. 63. Formulate Market Growth Strategy /  Core Platform Disruption p Portfolio f li New Platform Creation Related Growth in a Related Market Growth Disrupted Market (s) Construct a f C feature set on a Add a set of features to the ff Other Job( new platform to help Add a set of features to the core platform to help 2 2 2 customers get a job or new platform to help new customers get a related job group of related jobs done customers get a related job or jobs done. better. or jobs done. 3 2 Core Platform Disruption Core Market Disruption Core or Sustaining Market Growth Core Job(s) Construct a feature set on a Construct a feature set on a new platform to help new platform to enable new Add a set of features to the J customers get a core job or customers to perform the core platform to help jobs done cheaper and/or core job of a specialist. customers get a core job or better. jobs done better. 4 5 1 Core Platform New Value Delivery Platform Current Job Executor New Executor 63
  64. 64. Formulate Market Growth Strategy /  Core Market Disruption Core Market Disruption Portfolio f li New Platform Creation Related Growth in a Related Market Growth Disrupted Market (s) Construct a f C feature set on a Add a set of features to the ff Other Job( new platform to help Add a set of features to the core platform to help 2 2 2 customers get a job or new platform to help new customers get a related job group of related jobs done customers get a related job or jobs done. better. or jobs done. 3 6 2 Core Platform Disruption Core Market Disruption Core or Sustaining Market Growth Core Job(s) Construct a feature set on a Construct a feature set on a new platform to help new platform to enable new Add a set of features to the J customers get a core job or customers to perform the core platform to help jobs done cheaper and/or core job of a specialist. customers get a core job or better. jobs done better. 4 5 1 Core Platform New Value Delivery Platform Current Job Executor New Executor 64
  65. 65. Formulate Market Growth Strategy /  Related Growth in a Disrupted Market p Portfolio f li New Platform Creation Related Growth in a Related Market Growth Disrupted Market (s) Construct a f C feature set on a Add a set of features to the ff Other Job( new platform to help Add a set of features to the core platform to help 2 2 2 customers get a job or new platform to help new customers get a related job group of related jobs done customers get a related job or jobs done. better. or jobs done. 3 6 2 Core Platform Disruption Core Market Disruption Core or Sustaining Market Growth Core Job(s) Construct a feature set on a Construct a feature set on a new platform to help new platform to enable new Add a set of features to the J customers get a core job or customers to perform the core platform to help jobs done cheaper and/or core job of a specialist. customers get a core job or better. jobs done better. 4 5 1 Core Platform New Value Delivery Platform Current Job Executor New Executor 65
  66. 66. Formulate Market Six Market Growth Paths Growth Strategy /  Portfolio f li To optimize growth, a Which growth path(s) to pursue are dictated by the opportunities that exist company must be able to in the market … discover and address the opportunities that exist for value creation. Jobs Jobs Jobs … customers (and their (s) opportunities) dictate the t iti ) di t t th Other Job( strategy that should be 2 taken – not the company All markets evolve through these six growth Outcomes Outcomes Outcomes paths Core Job(s) Knowing how a market evolves i a prerequisite l is i it J to formulating a proactive and effective growth strategy 1 Core Platform New Value Delivery Platform Current Job Executor New Executor 66
  67. 67. Formulate Market Customer Inputs → Growth Paths Growth Strategy /  Portfolio f li Core Functional Job Other Functional Jobs Emotional Jobs Jobs Jobs Directly Indirectly Personal Social Jobs Related to Related to Jobs Core Job Core Job Job Map • Outcome 41 Process Process Process • Outcome 42 Step 1 Step 2 Step 3 • Outcome 43 • Outcome 1 • Outcome 44 • Outcome 2 Process Process • Outcome 45 Step 4 • Outcome 3 Step 5 • Outcome 4 Jobs Jobs Jobs • Outcome 6 Desired outcomes are the metrics customers use s) Other Job(s to measure the successful execution of a job job. 2 Outcomes Outcomes Outcomes Co Job(s) ore 1 Core Platform New New Value Delivery Platform Value Delivery Platform Core Platform Current Job Executor New Executor 67
  68. 68. Formulate Market Benefits of the Six Growth Path Framework Growth Strategy /  Portfolio f li • Companies know when to abandon an old platform and move to a  new one • It takes the mystery out of  disruption and explains how and when  It takes the mystery out of “disruption” – and explains how and when to architect a disruptive strategy • It reveals those strategies that will work – and those that will not • Drives predictable innovation 68
  69. 69. Working with Strategyn UK
  70. 70. Strategyn UK Outcome‐Driven Innovation  Service And Support Options 1 ODI PROJECTS, TRAINING, MENTORING AND PROGRAMMES Execute ODI Projects  Train Employees as  Obtain Ongoing  Build a Corporate  using Strategyn g gy ODI Practitioners Strategyn Expertise gy p O Capab ty ODI Capability Strategyn UK consultants  Strategyn consultants  Strategyn UK consultants  Strategyn UK consultants  undertake your ODI  train you to become  mentor you to run your  support you to establish  project quickly and with  proficient in ODI own ODI projects (post‐ your own internal ODI  needed precision training) process / capability 2 GROWTH STRATEGY, CONCEPT GENERATION AND CONSULTANCY  Map your Markets  Formulate a Growth  Generate Powerful  Build Robust  and Strategy for ODI and Strategy for ODI Strategy Ideas / Concepts Id /C t Business Cases Bi C Strategyn UK frames  Strategyn UK analyses  Strategyn UK facilitates  Strategyn UK models the  your market(s) and your  and recommends growth  the generation of new  market growth potential  ODI project programmes strategy options using  concepts from ODI  of your new concepts the Six Growth Paths opportunities 3 CUSTOMER‐CENTRED AND MARKET OPPORTUNITY ANALYSIS Segment Markets  Assess Competitive  Assess Technology  Align Market  for Growth Situation Enabler Potential Positioning / Brand Strategyn UK reviews  Strategyn UK completes  Strategyn UK completes  Strategyn UK completes your current and  precise segmentation of  opportunity‐based  market opportunity‐ potential market  market opportunities for  competitive assessment oriented technology  p positioning and branding g g innovation scouting
  71. 71. Further reading The Customer Centred  The Customer‐Centred Innovation Map, Harvard  Business Review, May 2008 Giving Customers a Fair  What Customers Want What Customers Want The Innovator’s Solution Th I t ’ S l ti Hearing, MIT Sloan  l a bestselling book by  In Professor Clayton  Management Review, Spring  Strategyn CEO Tony  Christensen's book ‐ The  2008 Ulwick, details the  Innovator's Solution ‐ he  theory and practice of  explains why Strategyn's p y gy outcome‐driven  thinking and segmentation  innovation methods are critical to the  successful management of  Best Business Idea Winner new market creation Turn Customer Input into  Innovation, Harvard Business  Review, January 2002
  72. 72. You Experience Innovation Success ® Strategyn UK Strategyn UK Portland House Bressenden Place London UNITED KINGDOM UNITED KINGDOM SW13 1RE www.strategyn.co.uk UK@strategyn.com UK@strategyn com + 44 (0)845 057 4091 72

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