Listening to Customers in the Correct way to drive Innovation


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Listening to Customers in the Correct way to drive Innovation

  1. 1. <ul><li>(based on Anthony W Ulwick- What Customers Want) </li></ul>
  2. 2. Innovation <ul><li>Innovation = a systematic process for creating products or services that delivers new value </li></ul>Customer Opportunity Offering
  3. 3. Market Research = New Product Failure (often) <ul><li>PCjr of IBM </li></ul><ul><li>New Coke </li></ul>
  4. 4. Do not ask Customers what solutions they want <ul><li>Find out what jobs they want done </li></ul><ul><li>Find out what metrics the customer will use </li></ul><ul><li>Find out what outcomes/metrics are underserved . </li></ul>Customers do not know best about what is the optimum solution … .We should if we deserve our jobs Customer Research Outcome Driven Approach Find out what solutions (features) customers want Find out what outcomes customers want to achieve
  5. 5. Innovation <ul><li>Product/Service Innovation </li></ul><ul><ul><li>Existing Product/Service </li></ul></ul><ul><ul><li>Focus on underserved success metrics </li></ul></ul><ul><li>New Market Innovation </li></ul><ul><ul><li>New Market/Service </li></ul></ul><ul><ul><li>Focus on underserved outcomes </li></ul></ul><ul><li>Operational Innovation </li></ul><ul><ul><li>New/Improved Operations </li></ul></ul><ul><ul><li>Focus on outcomes in customer/employee interaction </li></ul></ul><ul><li>Disruptive Innovation </li></ul><ul><ul><li>New Technology to disrupt an existing model </li></ul></ul><ul><ul><li>Focus on overserved customers with low cost technology OR </li></ul></ul><ul><ul><li>Focus on new (underserved) csutomers with existing technology </li></ul></ul>
  6. 6. All Customers are important <ul><li>Consider End Users (especially if you sell to OEM) </li></ul><ul><li>Consider all relevant customers (not just your purchasers) </li></ul><ul><li>Consider inputs directly (do not accept proxy) </li></ul>
  7. 7. <ul><li>Understanding customer outcomes ≠ Listening to the customer </li></ul><ul><li>Capturing Customer Needs </li></ul>
  8. 8. We are already listening to Customer <ul><li>Benefits </li></ul><ul><ul><li>“ Easy to use” </li></ul></ul><ul><li>Needs </li></ul><ul><ul><li>“ Durable” </li></ul></ul><ul><li>Specifications </li></ul><ul><ul><li>“ lighter” </li></ul></ul><ul><li>Solutions </li></ul><ul><ul><li>“ give me a sweeter drink” </li></ul></ul>Challenges: First : Customers are rarely qualified to define solutions Second: Benefits, Needs and Specifications are not precise enough
  9. 9. We need to ask and probe <ul><li>What are the Jobs the Customers want to achieve? </li></ul><ul><ul><li>Jobs can be functional, personal, social. </li></ul></ul><ul><li>What are the Desired Outcomes of the Job? </li></ul><ul><ul><li>Define metrics by breaking down the process of the job </li></ul></ul><ul><li>What are the constraints? </li></ul><ul><ul><li>Constraints can be physical, regulatory or environmental </li></ul></ul>Asking for the right inputs is important The method of seeking customer inputs is not
  10. 10. <ul><li>This examples are derived from my experience : </li></ul>
  11. 11. Examples Drawn from … <ul><li>From the area of Talent Management where I have worked for a decade </li></ul><ul><li>From the health and wellness industry where I have worked with a few entrepreneur friends </li></ul>
  12. 12. Applying to Talent Mangement Could established organizations have foreseen rise of SaaS vendors? Can organizations develop a “break thru” integrated Talent Management apps Jobs Outcomes Implement hikes (functional) Minimize the effort in setting up goals Minimize the effort of getting industry data Search for skill sets Minimize the effort in getting competency maps Minimize effort to capture on the job learning Track recruitment efficiency? Match performance evaluation with recruting? Loop back on recruiting process? Provide career ownership Show career maps Identify the talent crown jewels Experiment with a upcoming technology Get up and going quickly?
  13. 13. Applying to Health & Wellness Jobs Outcomes Reduce expenditure on health (functional) Reduce the possibility of loss of income (functional) Improve career prospects (functional) Improve chances with the opposite sex (emotional) Improve self esteem (emotional) Improve sex life (functional)
  14. 14. Constraints <ul><li>Requires mental discipline </li></ul><ul><li>Requires motivation </li></ul><ul><li>Requires physical “push” </li></ul>
  15. 15. What to specifically focus on <ul><li>Existing products – focus on Outcomes </li></ul><ul><li>In other cases focus on Jobs and Constraints (generally!) </li></ul>
  16. 16. <ul><li>Identifying Opportunities </li></ul><ul><li>Applying the Outcome Driven Model </li></ul>
  17. 17. Identify Opportunities <ul><li>Opportunity arises when job, outcome or constraint is underserved (or over-served) </li></ul><ul><li>The Process of Identification: </li></ul><ul><ul><li>List all jobs, outcomes, constraints </li></ul></ul><ul><ul><li>Rate importance of all above </li></ul></ul><ul><ul><li>Rate satisfaction of all above </li></ul></ul><ul><ul><li>Enter data in algorithm: </li></ul></ul><ul><ul><ul><li>Opportunity = Importance + max (Importance – Satisfaction) </li></ul></ul></ul>
  18. 18. Importance Satisfaction Over Served Under Served Satisfaction >> Importance Satisfaction << Importance Adequately Served
  19. 19. Satisfaction scores move over time Opportunities disappear as competitors/alternate options appear Competitive opportunities appear when a competitor shows a gap Outcomes Company A Company B Company C Outcome 1 Outcome 2 Outcome 3 Outcome 4
  20. 20. <ul><li>Bring precision to the language of innovation </li></ul>Wednesday, January 02, 2008