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Turn Jobs to Be Done Theory into Practice - Tony Ulwick at Business of Software Conference 2014
The document outlines the principles of outcome-driven innovation (ODI) through the lens of jobs-to-be-done (JTBD) theory, emphasizing the importance of identifying and addressing unmet customer needs. It details the innovation process stages, strategies for market definition, and ways to segment customers based on unmet outcomes. The document ultimately advocates for a needs-first approach to innovation to improve product success rates.
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Turn Jobs to Be Done Theory into Practice - Tony Ulwick at Business of Software Conference 2014
- 1. Turn JTBD Theoryinto Practice With Outcome-Driven Innovation
- 2. We all sharea desire to create successful, game-changing products
- 3. Most of youwill never work on a successful product in your lifetime
- 4. Innovation = solutionsthat satisfy unmet needs
- 5. Innovation = solutionsthat satisfy unmet needs
- 6. Traditional innovation beginswith 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. Innovation should bea 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. Customer needs areelusive and misunderstood You can’t satisfy customer needs if you don’t know what they are
- 9. What constitutes alegitimate 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. 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.
- 12. ODI transforms JTBDtheory into practice Market definition Needs analysis Market strategy
- 13. How should a“market” be defined? Market definition Needs analysis Market strategy
- 14. Markets are oftendefined around products Market LP market CD market MP3 market Streaming market
- 15. People buy productsto get jobs done LP market CD market MP3 market Streaming market Listen to music Market
- 16. Don’t gamble oninnovation
- 17. Rule 1: definethe 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. Rule 2: definethe market as an executor/job Market Music enthusiasts Listening to music + Talk to music enthusiasts about the job of listening to music.
- 19. Rule 3: analyzethe job-to-be-done Confirm Define Locate Prepare Execute Monitor Modify Conclude The Customer-Centered Innovation Map, Harvard Business Review, 2008
- 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. MP3 players getmore 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. Streaming services getmore 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. Solutions evolve toget the whole job done The ultimate solution can be envisioned once the job is known
- 24. How should acustomer “need” be defined? Market definition Needs analysis Market strategy
- 25. Rule 4: definecustomer 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. Outcomes are perfectlydefined need statements Desired outcomes are the glue that holds the innovation process together
- 27. Listeners have desiredoutcomes 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. Confirm the musicplan 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. Confirm the musicplan 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. Confirm the musicplan 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. Confirm the musicplan 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. Outcomes power apredictive 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. How should a“market strategy” be defined? Market definition Needs analysis Market strategy
- 34. Rule 5: unmetoutcomes drive market strategy Deciding which unmet outcomes to target is the essence of strategy
- 35. The opportunity landscapepaints 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. The opportunity landscapepaints 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. Traditional segmentation doesnot work for innovation Not all job executors are alike
- 38. Gender does notreveal unique opportunities Overserved Satisfaction Importance Underserved
- 39. Age does notreveal unique opportunities Overserved Satisfaction Importance Underserved
- 40. Region does notreveal unique opportunities Overserved Satisfaction Importance Underserved
- 41. Size does notreveal unique opportunities Overserved Satisfaction Importance Underserved
- 42. Rule 6: segmentaround unmet outcomes Outcome-based segmentation reveals hidden opportunities
- 43. ODI reveals hiddensegments of opportunity Overserved Satisfaction Importance Underserved
- 44. Rule 7: thesegment type dictates the strategy Product improvement Disruptive innovation Sustaining innovation Breakthrough innovation The “right” strategy is the difference between success and failure
- 45. When will aproduct improvement strategy work? Few underserved outcomes – add features to get the job done better Overserved Satisfaction Importance Underserved
- 46. A winning productimprovement strategy • Uncovered segment with 14 unmet outcomes • Added the right features • Created a best seller in North America for 8 years
- 47. When will adisruptive innovation strategy work? Overserved segment – lower cost solution to get the job done worse Overserved Satisfaction Importance Underserved
- 48. A winning disruptiveinnovation strategy • Built a low-cost platform • Created a $300M electronic evidence discovery business • Led the industry for over a decade
- 49. When will asustaining innovation strategy work? Appropriately-served segment – add features to help get more jobs done Overserved Satisfaction Importance Underserved
- 50. A winning sustaininginnovation 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. When will abreakthrough strategy work? Highly underserved – new product to get the job done significantly better Overserved Satisfaction Importance Underserved
- 52. Winning breakthrough innovationstrategies 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. Now it istime 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. Rule 8: Getthe job done significantly better Success comes from getting the job done at least 20 - 30% better
- 55. Don’t gamble oninnovation
- 56.
- 57. Outcome-Driven Innovation® ulwick@strategyn.com Twitter: @ulwick
- 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