Cadi 2010 Modulo 4 Outcome Driven Innovation

MODULO 4CADI - INNOVACIÓN DE MODELOS DE NEGOCIO

ITESM CAMPUS MONTERREY, FEB 2010

Tuesday, March 2, 2010

REFLECTIONS DAY 1


http://prezi.com/w0tbeu06yqwp/




http://www.ted.com/talks/lang/eng/richard_st_john_s_8_secrets_of_success.html

Can we use link our evaluation criteria to the 8 Key Factors for Success?




http://www.ted.com/talks/lang/eng/ken_robinson_says_schools_kill_creativity.html

Are we facilitating that the full creative potential of our students, or killing their inspiration and passion with OUR lack of vision?




Innovación de Modelos de Negocio CADI - Campus Monterrey, 25. & 26.02.2010Instructor: Daniel Pandza ([email protected])

IDEATION


mailto:[email protected]



WHERE TO START THE IDEATION

PROCESS?




WHERE TO START LOOKING?


BECAUSE...

MOST ENTREPRENEURS COUNT WITH RELATIVELY LOW RESOURCES, EXPERIENCE & CONNECTIONS


BECAUSE...

ENTREPRENEURIAL PROJECTS SHOULD START IN THE EARLY STAGES OF NEW CATEGORY LIFE CICLES...


IT IS RECOMMENDED TO START WITH A FRESH CUSTOMER

PERSPECTIVE



CASE DISCUSSION





http://cic.gda.itesm.mx/CIC/index.php?ver=busqueda.php&query=emprendedores%20de%20internet






KEY ACTIVITIES...1. READ CASE2. DISCUSS CASE IN TEAMS OF 53. DESIGN 3 DIFFERENT BUSINESS MODEL IDEAS BY

FOLLOWING THE BUSINESS MODEL CANVAS.4. PRESENT YOU BUSINESS MODEL IDEAS 5. COMPARE YOUR IDEAS WITH THE IDEAS OF THE

OTHER TEAMS. ARE YOUR IDEAS DIFFERENTIATED?6. HOW CAN YOU IMPROVE THE DIFFERENTIATION OF

YOUR BUSINESS MODEL?7. HOW CAN YOU IMPROVE THE PROFITABILITY OF

YOUR BUSINESS MODEL IDEAS?8. WHAT DID THE ENTREPRENEURS DO? (VIDEO)


SPOTTING UNDERSERVED CUSTOMER NEEDS


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DUE TO VALUE MIGRATION, COMPANIES NEED TO CONSTANTLY EXPLORE NEW OPPORTUNITIES FOR DIFFERENTIATION.

Recommended Reading - Adrian Slywotzky (1996) Value Migration.


YESTERDAY TOMORROW

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WHAT DOES ALL THIS MEAN?


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UNDERSTANDING CUSTOMER NEEDS, WE CAN DESIGN A PORTFOLIO OF NEW PRODUCT IDEAS & BUSINESS MODELS


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Source: Tim Brown (2008). Design Thinking. Harvard Business Review. June 2008.


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ON WHICH OF THESE INGREDIENTS SHOULD WE BUILD THE FOUNDATION OF OUR NEW BUSINESS?


MASLOW’S HIERARCHY OF NEEDS


• WHAT COMPANIES COMPLAIN ABOUT

• Customers do not know what they want.

• Customers cannot articulate their needs.

• Customers have latent needs - they don’t know they have.

• Customer requirements change quickly over time.

• THE TRUTH IS…

• Companies do not know what a need is or how to listen to customers.

Source - Anthony Ulwick (2009). What is Outcome Driven Innovation. Whitepaper. www.strategyn.com.


JOB TO BE DONE...

Ulwick, Anthony (2009). What is outcome driven innovation (ODI). Strategyn.

...a fundamental problem in a given situation that needs a solution.

Customer hire products in order to get a JOB® done!


A CUSTOMER NEED MUST...

• Be based on a system of value measurement that is universally accepted by customers

• Be relevant now and in the future

• Not be left open to interpretation

• Not confound the way it or other need statements are prioritized

System of Measurement

Structure, Content and Format



WAIT A MINUTE!


DOES THIS SOUND FAMILIAR?


YES, YESTERDAY WE HAVE SEEN THE FOLLOWING SLIDES ON

CUSTOMER VALUE PERCEPTION



Source - Woodall (2005) Conceptualizing Value for the Customer.




THE QUESTION IS HOW TO ORGANIZE THE INFORMATION


SPOTTING UNDERSERVED NEEDS• The metrics can be uncovered using any of the

popular interviewing methods...

• Personal interview, focus groups, ethnographic interviews, etc.

• Desired outcome statements must conform to a specific structure and follow a set of stringent rules in order to avoid unwanted sources of variability that alter the importance and satisfaction ratings customers give the statements.




WHEN IS A NEED UNMET?

If a desired outcome is both important and unsatisfied, it is unmet

✦ 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



SPOTTING UNDERSERVED NEEDS

• Companies must ...

• ...analyze the job of interest

• ...ascertain from customers what must be measured and controlled to ensure the job is executed with the speed, predictability and output customers desire.

• The metrics customer use to measure the successful execution of a job are called DESIRED OUTCOMES.

• Desired outcomes are customer needs!




JOB BASED VIEW OF THE MARKET

• What fundamental problem is the customer trying to solve?

• What objectives to customers use to evaluate solutions?

• What barriers limit the solution?

• What solutions do customers consider?

• What opportunities exist for innovative solutions?Ulwick, Anthony (2009). What is outcome driven innovation (ODI). Strategyn.


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WHAT IS THE JOB TO BE DONE OF A TRASH BIN?


JOB MAPS...• The map serves as a framework around which customer needs (desired

outcomes) are gathered.

• Once a job map is created for a specific functional job, customer needs can be captured for each step in the job map.

• When need statements that describe issues related to the speed, stability and output of each process step are captured, all needs are known.

• Most jobs consist of 8 to 12 process steps, that 6-12 needs exist per process step, and that approximately 50-150 needs exist for any given job.

• When the job is the unit of analysis, there is no such thing as an unarticulated or latent customer need - customers clearly know what jobs they are trying to get done and how they measure success.




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• The map does not show what the customer is doing (solution view); rather it describes what the customer is trying to get done (needs view).

• All jobs consist of some or all of the eight fundamental process steps:

WHY THE JOB MAP IS SO IMPORTANT...Ulwick, Anthony (2009). What is outcome driven innovation (ODI). Strategyn.


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WHAT ARE THE KEY “JOBS” OF A WALL?

PROTECT

SUSTAIN BUILDINGS

HOLD FLAT SCREEN TV’S


… AND WHY DO WE HAVE WINDOWS?


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… AND WHY D

O

WE USE DOORS?

AND WHY DOORS HAVE DOOR LOCKS?


USUALLY PRODUCTS ARE GREAT FOR DOING SOME JOBS,...BUT TERRIBLE AT DOING OTHER JOBS...


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A JOBS TO BE DONE VIEW OF THE CUSTOMER WILL EXPAND YOUR VISION & ENABLE YOU TO SENSE OPPORTUNITIES FOR BUSINESS MODEL INNOVATIONS. ...


THAT’S WHY WE HAVE TO LOOK AT THE JOB HOLISTICALLY….


SITUATIONSUBJECT SATISFACTION


IF WE DO THAT, WE MIGHT JUST DISCOVER THE NEXT BIG THING!


NOW LET’S TAKE A LOOK AT SEGMENTATION...


MARKET SEGMENTATION = A MARKET TECHNIQUE THAT TARGETS A GROUP OF CUSTOMERS WITH SPECIFIC

CHARACTERISTICS...


TRADITIONAL SEGMENTATION CRITERIA


TRADITIONAL SEGMENTATION CRITERIA

MAYBE USEFUL FOR MEDIA SELECTION, BUT NOT FOR NEW PRODUCT DEVELOPMENT


WHAT DOES THIS MEAN?


WE USE SEGMENTATION CRITERIA AS THE BASIS FOR IDEA GENERATION

THAT MIGHT SATISFY THE NEEDS OF THE CONSUMER?


WHY DON´T WE JUST TRY TO COMPREHEND THE CUSTOMER NEEDS

DIRECTLY? WOULDN´T THIS BE MUCH EASIER &

INCREASE THE PROBABILITY OF SUCCESS?


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WHY NOT JOB BASED SEGMENTATION...Ulwick, Anthony (2009). What is outcome driven innovation (ODI). Strategyn.


OVERSERVED APPROPRIATELY SERVED

UNDERSERVED

60Tuesday, March 2, 2010

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IF WE NEED NEW REVENUE STREAMS

FROM NEW CUSTOMER SEGMENTS

OR NEW VALUE PROPOSITIONS

WE MIGHT HAVE TO GET NEW

RESOURCES OR COMPETENCIES

IN ORDER TO PERFORM NEW TASKS & BE

EFFECTIVE

OR DEAL WITH NEW PARTNERS


THE ART OF INNOVATION

Core

Capabiliti

es &

Ressourc

es

Ressourc

e-

fullness

Custom

er

Needs

Partner

Network

Value

Migration

Business

Model

COMPETITIVE ADVANTAGE

Diffusio

n

& Adopt

ion

IN THIS WORKSHOP WE HAVE SEEN DIFFERENT TOOLS AND

METHODOLOGIES THAT CAN GUIDE OUR CLIENTS IN THE PURSUIT OF CONVERTING THEIR DREAMS INTO PROFITABLE BUSINESS MODELS.

YOUR TASK IS TO INVEST TIME AND EFFORT AND PRACTICE THE APPLICATION OF THESE TOOLS.


Cadi 2010 Modulo 4 Outcome Driven Innovation

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