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

Turn JTBD Theory into PracticeWith Outcome-Driven Innovation

We all share a desire to create successful, game-changing

products

Most of you will never work on a successful productin your lifetime

Innovation = solutions that satisfy unmet needs

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CreateBusiness Case Development

Testing and Validation Launch

Traditional innovation begins with ideas

Ideas Scoping

Innovation ProcessWho 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

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Innovation Process

ProductStrategy Development


Innovation should be a needs-first process

Market& Needs

MarketStrategy

Who is the customer?




Development Process86%

succeed

You can’t satisfy customer needs if you don’t know what they are

Customer needs are elusive and misunderstood

What constitutes a legitimate need statement?

Att

rib

ute

s

Solu

tion

s

Sp

ecifi

cati

on

s

Pro

ble

ms

Req

uir

em

en

tsCustomer Needs

Wants

Mu

st

haves

Exciters

Delighters

Valu

e d

rivers

Latent needs

Unarticulatedneeds

Expectations

Characteristics

Desir

es Wishe

sFeatures

Benefits

Ideas

Job

s

Tab

le s

takes

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

Outcome-Driven Innovation

Market definition

Market strategyNeeds analysis

ODI transforms JTBD theory into practice

Market definition


How should a “market” be defined?

Market LP market MP3 marketCD marketStreaming

market

Markets are often defined around products

Listen to music

LP market MP3 marketStreaming

marketCD market

People buy products to get jobs done

Market

Don’t gamble on innovation

The support team is not the primary customer

The job executor is the primary customer

The buyer is not the primary customer

Rule 1: define the customer as the job executor

Talk to music enthusiasts about the job of listening to music.

Market Music enthusiasts Listening to music

+

Rule 2: define the market as an executor/job

Rule 3: analyze the job-to-be-done

Confirm

MonitorExecute

Define Locate Prepare

Modify Conclude

The Customer-Centered Innovation Map, Harvard Business Review, 2008

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

MP3 players get more of the job done





Organize the music

Modify the music

selection


Streaming services get more of the job done





Organize the music

Modify the music

selection


The ultimate solution can be envisioned once the job is known

Solutions evolve to get the whole job done

How should a customer “need” be defined?

Market definition


Rule 4: define customer needs as desired outcomes

Giving Customers a Fair Hearing,MIT Sloan Management Review 2008

Needs

Outcomes are perfectly defined need statements

Desired outcomes are the glue that holds the innovation process together

Listeners have desired outcomes





Organize the music

Modify the music

selection


Minimize the time it takes to determine how much music will be needed, e.g., minutes,

etc.





Organize the music

Modify the music

selection



Minimize the time it takes to determine what songs to include





Organize the music

Modify the music

selection



Minimize the time it takes to determine the order in which to play the songs





Organize the music

Modify the music

selection



Minimize the likelihood that the music sounds distorted





Organize the music

Modify the music

selection



Minimize the time it takes to remove songs that

you no longer want to hear

Outcomes power a predictive model for growth

Desired outcomes

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

-- -- + +

Solutions

How should a “market strategy” be defined?

Market definition


Deciding which unmet outcomes to target is the essence of strategy

Rule 5: unmet outcomes drive market strategy

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

DesiredOutcome

Sati

sfact

ion

Importance

Overserved

Underserved

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

DesiredOutcomes

Sati

sfact

ion

Importance

Overserved

Underserved

Traditional segmentation does not work for innovation

Not all job executors are alike

Gender does not reveal unique opportunities

Sati

sfact

ion

Importance

Overserved

Underserved

Age does not reveal unique opportunities

Sati

sfact

ion

Importance

Overserved

Underserved

Region does not reveal unique opportunities

Sati

sfact

ion

Importance

Overserved

Underserved

Size does not reveal unique opportunities

Sati

sfact

ion

Importance

Overserved

Underserved

Rule 6: segment around unmet outcomes

Outcome-based segmentation reveals hidden opportunities

ODI reveals hidden segments of opportunity

Sati

sfact

ion

Importance

Overserved

Underserved

Rule 7: the segment type dictates the strategy

The “right” strategy is the difference between success and failure

Product improvement Sustaining innovationDisruptive innovation Breakthrough innovation

When will a product improvement strategy work?Few underserved outcomes – add features to get the job done better

Sati

sfact

ion

Importance

Overserved

Underserved

Uncovered segment with 14 unmet outcomesAdded the right featuresCreated a best seller in North America for 8 years

A winning product improvement strategy

When will a disruptive innovation strategy work?Overserved segment – lower cost solution to get the job done worse

Sati

sfact

ion

Importance

Overserved

Underserved

Built a low-cost platformCreated a $300M electronic evidence discovery businessLed the industry for over a decade

A winning disruptive innovation strategy

When will a sustaining innovation strategy work?Appropriately-served segment – add features to help get more jobs done

Sati

sfact

ion

Importance

Overserved

Underserved

Discovered more jobs-to-be-doneDeveloped new ways to enhance its software assurance offering Increased subscription rate by 150% and grew revenue by over $1 billion

A winning sustaining innovation strategy

When will a breakthrough strategy work?Highly underserved – new product to get the job done significantly better

Sati

sfact

ion

Importance

Overserved

Underserved

Small share increase can generate a disproportionate share of profits

Winning breakthrough innovation strategies

Dyson5x more expensive24% market share59% profit share

Nest7x more expensive8% market share25% profit share

Apple3x more expensive12% market share70% profit share

Now it is time for idea generation

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Innovation Process

Ideation

Rule 8: Get the job done significantly better

Success comes from getting the job done at least 20 - 30% better

Don’t gamble on innovation

You decide.

Outcome-Driven Innovation®

[email protected]: @ulwick

Stage 1

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Gate2

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Innovation Process

ProductStrategy Development


Outcome-Driven Innovation process

Market& Needs

MarketStrategy





Development Process

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

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