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Listening to Customers in the Correct way to drive Innovation 

 

 
 
Tags:  saas  swell  innovationentrepreneurshipcustomersoutcome-driven  how to 
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Published:  September 10, 2010
 
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Slide 1: (based on Anthony W Ulwick- What Customers Want) 1
Slide 2: Innovation  Innovation = a systematic process for creating products or services that delivers new value Customer Opportunity Offering
Slide 3: Market Research = New Product Failure (often)  PCjr of IBM  New Coke 3
Slide 4: Do not ask Customers what solutions they want  Find out what jobs they want done  Find out what metrics the customer will use  Find out what outcomes/metrics are underserved. Customer Research Find out what solutions (features) customers want Outcome Driven Approach Find out what outcomes customers want to achieve Customers do not know best about what is the optimum solution ….We should if we deserve our jobs 4
Slide 5: Innovation  Product/Service Innovation  Existing Product/Service  Focus on underserved success metrics  New Market Innovation  New Market/Service  Focus on underserved outcomes  Operational Innovation  New/Improved Operations  Focus on outcomes in customer/employee interaction  Disruptive Innovation  New Technology to disrupt an existing model  Focus on overserved customers with low cost technology OR  Focus on new (underserved) csutomers with existing technology 5
Slide 6: All Customers are important  Consider End Users (especially if you sell to OEM)  Consider all relevant customers (not just your purchasers)  Consider inputs directly (do not accept proxy) 6
Slide 7: Understanding customer outcomes ≠ Listening to the customer Capturing Customer Needs
Slide 8: We are already listening to Customer  Benefits  “Easy to use”  Needs  “Durable”  Specifications  “lighter”  Solutions  “give me a sweeter drink” Challenges: First : Customers are rarely qualified to define solutions Second: Benefits, Needs and Specifications are not precise enough
Slide 9: We need to ask and probe  What are the Jobs the Customers want to achieve?  Jobs can be functional, personal, social.  What are the Desired Outcomes of the Job?  Define metrics by breaking down the process of the job  What are the constraints?  Constraints can be physical, regulatory or environmental Asking for the right inputs is important The method of seeking customer inputs is not 9
Slide 10: This examples are derived from my experience : 10
Slide 11: Examples Drawn from … 1) From the area of Talent Management where I have worked for a decade From the health and wellness industry where I have worked with a few entrepreneur friends 1) 11
Slide 12: Applying to Talent Mangement Jobs Outcomes 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 Get up and going quickly? technology Could established organizations have foreseen rise of SaaS vendors? Can organizations develop a “break thru” integrated Talent Management apps 12 Implement hikes (functional) Minimize the effort in setting up goals
Slide 13: Applying to Health & Wellness Jobs 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) Outcomes 13
Slide 14: Constraints  Requires mental discipline  Requires motivation  Requires physical “push” 14
Slide 15: What to specifically focus on  Existing products – focus on Outcomes  In other cases focus on Jobs and Constraints (generally!) 15
Slide 16: Identifying Opportunities Applying the Outcome Driven Model
Slide 17: Identify Opportunities  Opportunity arises when job, outcome or constraint is underserved (or over-served)  The Process of Identification:  List all jobs, outcomes, constraints  Rate importance of all above  Rate satisfaction of all above  Enter data in algorithm:  Opportunity = Importance + max (Importance – Satisfaction) 17
Slide 18: Satisfaction Over Served Satisfaction >> Importance Adequately Served Under Served Satisfaction << Importance Importance 18
Slide 19: Outcomes Company A Outcome 1 Company B Company C Outcome 2 Outcome 3 Outcome move over time Satisfaction scores4 Opportunities disappear as competitors/alternate options appear Competitive opportunities appear when a competitor shows a gap 19
Slide 20: Bring precision to the language of innovation Wednesday, January 02, 2008

   
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