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Turn Jobs to Be Done Theory into Practice - Tony Ulwick at Business of Software Conference 2014

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Presented at Business of Software USA, Tony Ulwick (Strategyn) shares insights on how to deliver products that do useful jobs for customers, practical steps you can take to discover these jobs and strategies for success.

Watch if you are involved in product strategy or development, or simply want to make something great for your customers.

Published in: Business
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Turn Jobs to Be Done Theory into Practice - Tony Ulwick at Business of Software Conference 2014

  1. 1. Turn JTBD Theory into Practice With Outcome-Driven Innovation
  2. 2. We all share a desire to create successful, game-changing products
  3. 3. Most of you will never work on a successful product in your lifetime
  4. 4. Innovation = solutions that satisfy unmet needs
  5. 5. Innovation = solutions that satisfy unmet needs
  6. 6. Traditional innovation begins with ideas Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Gate 2 Gate 3 Gate 1 Gate 4 Gate 5 Create Business Case Development Testing and Validation Launch Ideas Scoping Innovation Process Who is the customer? What problem are they trying to solve? What customer segment makes the most attractive target? What unmet customer needs should we address? 5% succeed
  7. 7. Innovation should be a needs-first process Stage 1 Product Strategy Development Stage 2 Stage 3 Stage 4 Stage 5 Gate 2 Gate 3 Gate 1 Gate 4 Gate 5 Innovation Process Testing and Validation Launch Market & Needs Market Strategy Who is the customer? What problem are they trying to solve? What customer segment makes the most attractive target? What unmet customer needs should we address? Development Process 86% succeed
  8. 8. Customer needs are elusive and misunderstood You can’t satisfy customer needs if you don’t know what they are
  9. 9. What constitutes a legitimate need statement? Wants Attributes Solutions Specifications Unarticulated needs Problems Requirements Desires Customer Needs Must haves Exciters Delighters Value drivers Latent needs Expectations Characteristics Wishes Features Benefits Ideas Jobs Table stakes
  10. 10. Through a jobs-to-be-done lens, new possibilities emerge “People don’t want a quarter inch drill, they want a quarter inch hole.” Theodore Levitt - 1962
  11. 11. Outcome-Driven Innovation
  12. 12. ODI transforms JTBD theory into practice Market definition Needs analysis Market strategy
  13. 13. How should a “market” be defined? Market definition Needs analysis Market strategy
  14. 14. Markets are often defined around products Market LP market CD market MP3 market Streaming market
  15. 15. People buy products to get jobs done LP market CD market MP3 market Streaming market Listen to music Market
  16. 16. Don’t gamble on innovation
  17. 17. Rule 1: define the customer as the job executor The support team is not the primary customer The job executor is the primary customer The buyer is not the primary customer
  18. 18. Rule 2: define the market as an executor/job Market Music enthusiasts Listening to music + Talk to music enthusiasts about the job of listening to music.
  19. 19. Rule 3: analyze the job-to-be-done Confirm Define Locate Prepare Execute Monitor Modify Conclude The Customer-Centered Innovation Map, Harvard Business Review, 2008
  20. 20. Job map for ‘listening to music’ Confirm the music plan Monitor the experience Assess the situation Gather the desired music Organize the music Modify the music selection Assess the experience
  21. 21. MP3 players get more of the job done Confirm the music plan Monitor the experience Assess the situation Gather the desired music Organize the music Modify the music selection Assess the experience
  22. 22. Streaming services get more of the job done Confirm the music plan Monitor the experience Assess the situation Gather the desired music Organize the music Modify the music selection Assess the experience
  23. 23. Solutions evolve to get the whole job done The ultimate solution can be envisioned once the job is known
  24. 24. How should a customer “need” be defined? Market definition Needs analysis Market strategy
  25. 25. Rule 4: define customer needs as desired outcomes Giving Customers a Fair Hearing, MIT Sloan Management Review 2008 Needs Direction Metric Object of Control Minimize the time it takes to get the songs in the desired order
  26. 26. Outcomes are perfectly defined need statements Desired outcomes are the glue that holds the innovation process together
  27. 27. Listeners have desired outcomes Confirm the music plan Monitor the experience Assess the situation Gather the desired music Organize the music Modify the music selection Assess the experience Minimize the time it takes to determine how much music will be needed, e.g., minutes, etc.
  28. 28. Confirm the music plan Monitor the experience Assess the situation Gather the desired music Organize the music Modify the music selection Assess the experience Listeners have desired outcomes Minimize the time it takes to determine what songs to include
  29. 29. Confirm the music plan Monitor the experience Assess the situation Gather the desired music Organize the music Modify the music selection Assess the experience Listeners have desired outcomes Minimize the time it takes to determine the order in which to play the songs
  30. 30. Confirm the music plan Monitor the experience Assess the situation Gather the desired music Organize the music Modify the music selection Assess the experience Listeners have desired outcomes Minimize the likelihood that the music sounds distorted
  31. 31. Confirm the music plan Monitor the experience Assess the situation Gather the desired music Organize the music Modify the music selection Assess the experience Listeners have desired outcomes Minimize the time it takes to remove songs that you no longer want to hear
  32. 32. Outcomes power a predictive model for growth Desired outcomes Solutions Minimize the time it takes to determine the order in which to play the songs -- -- + ++ Minimize the likelihood that the music sounds distorted -- ++ + ++ Minimize the time it takes to remove songs that you no longer want to hear -- -- + +
  33. 33. How should a “market strategy” be defined? Market definition Needs analysis Market strategy
  34. 34. Rule 5: unmet outcomes drive market strategy Deciding which unmet outcomes to target is the essence of strategy
  35. 35. The opportunity landscape paints the picture Opportunity score = importance + max (importance – satisfaction, 0) Importance Satisfaction Outcome 1 2 3 4 5 IMP 1 2 3 4 5 SAT OPP Minimize the time … 5 5 9 47 34 8.1 12 28 30 17 13 3.0 13.2 Desired Outcome Overserved Satisfaction Importance Underserved
  36. 36. The opportunity landscape paints the picture Opportunity score = importance + max (importance – satisfaction, 0) Importance Satisfaction Outcome 1 2 3 4 5 IMP 1 2 3 4 5 SAT OPP Minimize the time … 5 5 9 47 34 8.1 12 28 30 17 13 3.0 13.2 Desired Outcomes Overserved Satisfaction Importance Underserved
  37. 37. Traditional segmentation does not work for innovation Not all job executors are alike
  38. 38. Gender does not reveal unique opportunities Overserved Satisfaction Importance Underserved
  39. 39. Age does not reveal unique opportunities Overserved Satisfaction Importance Underserved
  40. 40. Region does not reveal unique opportunities Overserved Satisfaction Importance Underserved
  41. 41. Size does not reveal unique opportunities Overserved Satisfaction Importance Underserved
  42. 42. Rule 6: segment around unmet outcomes Outcome-based segmentation reveals hidden opportunities
  43. 43. ODI reveals hidden segments of opportunity Overserved Satisfaction Importance Underserved
  44. 44. Rule 7: the segment type dictates the strategy Product improvement Disruptive innovation Sustaining innovation Breakthrough innovation The “right” strategy is the difference between success and failure
  45. 45. When will a product improvement strategy work? Few underserved outcomes – add features to get the job done better Overserved Satisfaction Importance Underserved
  46. 46. A winning product improvement strategy • Uncovered segment with 14 unmet outcomes • Added the right features • Created a best seller in North America for 8 years
  47. 47. When will a disruptive innovation strategy work? Overserved segment – lower cost solution to get the job done worse Overserved Satisfaction Importance Underserved
  48. 48. A winning disruptive innovation strategy • Built a low-cost platform • Created a $300M electronic evidence discovery business • Led the industry for over a decade
  49. 49. When will a sustaining innovation strategy work? Appropriately-served segment – add features to help get more jobs done Overserved Satisfaction Importance Underserved
  50. 50. A winning sustaining innovation strategy • Discovered more jobs-to-be- done • Developed new ways to enhance its software assurance offering • Increased subscription rate by 150% and grew revenue by over $1 billion
  51. 51. When will a breakthrough strategy work? Highly underserved – new product to get the job done significantly better Overserved Satisfaction Importance Underserved
  52. 52. Winning breakthrough innovation strategies Small share increase can generate a disproportionate share of profits Dyson • 5x more expensive • 24% market share • 59% profit share Nest • 7x more expensive • 8% market share • 25% profit share Apple • 3x more expensive • 12% market share • 70% profit share
  53. 53. Now it is time for idea generation Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Ideation Gate 2 Gate 3 Gate 1 Gate 4 Gate 5 Innovation Process Who is the customer? What problem are they trying to solve? What customer segment makes the most attractive target? What unmet customer needs should we address?
  54. 54. Rule 8: Get the job done significantly better Success comes from getting the job done at least 20 - 30% better
  55. 55. Don’t gamble on innovation
  56. 56. You decide.
  57. 57. Outcome-Driven Innovation® ulwick@strategyn.com Twitter: @ulwick
  58. 58. Stage 1 Product Strategy Development Stage 2 Stage 3 Stage 4 Stage 5 Gate 2 Gate 3 Gate 1 Gate 4 Gate 5 Innovation Process Testing and Validation Launch Outcome-Driven Innovation process Market & Needs Market Strategy Who is the customer? What problem are they trying to solve? What customer segment makes the most attractive target? What unmet customer needs should we address? Development Process

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