You Experience Innovation Success ... Strategyn Uk 2009
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You Experience Innovation Success ®AN INTRODUCTION TO STRATEGYN UK AND OUTCOME‐DRIVEN INNOVATIONApril 2009
60% of all new‐product development efforts are pscuttled before they reach
the marketthe market
40% that are launched fail to become profitable and
are withdrawn
75% of all innovation investments are wastedinvestments are wasted
SOURCE: Clayton Christensen, The Innovators Solution
How can we increase the probability of innovation
success?
To achieve 70% success rates?
Strategyn Outcome‐Driven Innovation is a set of proven concepts and a systematic methodology for driving predictable, repeatable innovation and growth…
Achieve predictable k t th th h1
Discover new important dd d k t2market growth through
innovation1 unaddressed market opportunities2
Instil a repeatable innovation process that3 4
Determine a successful market growth strategyinnovation process that
drives growth3 4 market growth strategy and plan
Strategyn’s process operates at the front‐end of innovationStrategyn s process operates at the front end of innovation and feeds all development activities …
Idea / Concept Generation
Strategy OpportunityDiscovery
Concept Development
Strategyn
SelectionConcept test
Develop Launch
OutcomeDriven
InnovationProcess
Outcome‐Driven Innovation has been proven effective i lti l i d t i 18 f li tiin multiple industries over 18 years of application
HEALTH / MEDICALMedtronicsG idant
BIOTECH /PHARMANovozymesMerck Serono
FINANCIALAXA UKFriends ProvidentGuidant
ColoplastAMODentsplyJohnson & JohnsonKimberley Clark
Merck SeronoPfizerSyngenta
CHEMICALS /MANUFACTURING
Friends ProvidentWashington MutualState FarmMorgan StanleyH&R BlockAetnaKimberley Clark
ColgateUnilever
IT / TELECOMS
Ingersoll RandBoschJohn DeereRohm and HaasBristan Group
MetLifeAIGGE Capital
PUBLIC SECTORITI ScotlandHMRCHarvard
OTHERHarvard UniversityEcolabH ll k
Hewlett PackardNortel NetworksMotorolaV‐TechPipex WirelessUnited Technologies
MascoHMRCKennedy School
Harvard
SOFTWAREMicrosoftIntuit
HallmarkMeadWestCoRH Donnelly
United TechnologiesTelstra
FOODSSimplotCargill
CeridianESRIReynolds & ReynoldsTurboTax
gChiquitaHills
6
We Identified the opportunity that led to the creation of the fastest selling medical device in history the stentthe fastest selling medical device in history – the stent
“Using Strategyn’s approach we reprioritizedresources so we could be the first to market withresources so we could be the first to market withthe stent, an opportunity that became a $1 billionproduct in less than 2 years – the fastest growingmedical device in history.”Cordis (J&J) VP of Marketing Rick Faleschini
Featured in Harvard Business ReviewJ 2002January 2002
Outcome‐Driven Innovation is a Harvard‐Business Review best practiceHarvard‐Business Review best practice
Best Business Idea Winner
"Strategyn's outcome‐driven concepts and method bring discipline and predictability to the often random process of innovation."
Clayton Christensen, Harvard Business School Professor and “innovation guru”
What is Stalling the l i f i ?Evolution of Innovation?
9
How important is i iinnovation to your company?company?
Is there agreement in hyour company as to what
innovation is?innovation is?
Is understanding dcustomer needs
important for innovationimportant for innovation in your company?in your company?
Is there agreement in your company as to what a customer need is?a customer need is?
Is there Is there agreementIs there agreement in
Is there agreement in your company
hyour company as to what
as to what a customer need is?
innovation is?
95% answer NO95% answer NOto Both
“Studies comparing successful and unsuccessful innovation have found that the primaryinnovation have found that the primary discriminator was the degree to which customer needs were fully understood.”y
David GarvinHarvard Business School
Innovation: The State of Play Today
16
Innovation is the process of devising a product or serviceInnovation is the process of devising a product or service concept that satisfies the customer’s unmet needs.
0
Growth Strategy
1 Stage-Gate® is a trademark of Stage-Gate Corporation
It’s Like Solving an Algebraic Equation …
ConstantsVariables
Variables
Constants
Solutions‐first approachpp
Solutions first approach
i d i l i dCompanies devise solutions and test them with customers
“Refinements” are made through an iterative testing/refinement process
This approach is time consuming pp gand may never yield the correct answer
Solutions first approach
S f l i i iSuccessful innovation is a numbers game … the more id th b ttideas, the better
The goal is to fail fast – quickly evaluate ideas to see which are best
Needs‐first approachNeeds first approach
Needs‐first approachpp
There is no consistent format f t d Th i htfor a customer need. The right inputs have not been defined
Delighters WANTS
CONC
Specification
constraintSolutions
DCEPT
Specification
N E E
latent need
exciters
must havesWISHES
BENEFITlatent need
table stakes
must haves
expectations
Segment on the Wrong ThingsSegment on the Wrong Things
Segmenting the market based onmarket based on customer, product or value attributes leads to innovation failureto innovation failure
Multiple translations of customer needs contributes to innovation failure
s a l e s marketing R&D partnerCustomer Customer Customer
What Sales says customers want What Marketing says customers want What R&D says customers want
phrasebook phrasebook phrasebookCustomerphrasebookWhat Partners say customers wantWhat Sales says customers want What Marketing says customers want What R&D says customers want What Partners say customers want
Listening too literally
i l i Voice of the CustomerExpecting solutions
Testing concepts
Voice of the Customer
Customers don’t know what they wantthey want
Customers can’t articulate their needstheir needs
Customers have latent needs
C t i tCustomer requirements change quickly over time
Innovation Myths
Needs‐first approachCompanies do not know what inputs to capture
Customers do not know what inputs are needed
Customers offer “needs” in a language that is convenient to them
fMany firms try to translate the inputs into something useful
A i f i t t ltA mix of input types results
Bad inputs cause the failures managers t i t idare trying to avoid
What Do Companies Conclude?
Innovation is an iterative, non‐linear process
Innovation (getting the right answer) is an art
Success rates greater than 10% to 30% are unachievable
What is a Customer Need?What is a Customer Need?
30
"People don't want to buy ai h d ill hquarter‐inch drill. They want a
quarter‐inch hole!“Theodore Levitt, 1975
There is a better way to think about market segmentation and new productinnovation. The structure of a market, seen from the customers' point of view, is verysimple: They just need to get things done as Ted Levitt said When people findsimple: They just need to get things done, as Ted Levitt said. When people findthemselves needing to get a job done, they essentially hire products to do that job forthem.
Clayton Christensen, 2005
JOBDefines the functional and/orDefines the functional and/or emotional task, event, goal or activity that people want to
accomplish
Defines the action for which a product or service may be needed
Two Options for Innovation
Help a customer get Help a customer get “ ”more or new jobs
done“a” job done better
The job is the primary unit of analysis
Functionali l1. Jobs come and go .. New jobs can be
discovered
2 P d t d th j b i
Emotional
2. Products come and go – the job is a more stable, long‐term focal point around which value creation must be centered
3. The job’s perfect execution reflects the customer’s true definition of value
i d h4. Requirements are not captured on the product – they are captured on the job the product or service is intended to perform
JOB ACTIVITY
PROBLEM
The Job of Storing – Retrieving MusicTechnologies come and go, the job remains the same
1880 1935 1970 1990 2008
The Job Hierarchy Framework
i h i bCore Functional Job
Emotional JobsOther Functional Jobs
Consumption Chain Jobs
• Purchase• Delivery• InstallationEmotional Jobs
Social JobsPersonal JobsJobs Directly
Related to CoreJobs Indirectly Related to Core
• Set‐up• Learn to Use• Interface• Store• Maintain
Job Map
Social JobsPersonal JobsRelated to Core Job
Related to Core Job • Upgrade
• Replace• Dispose
• Outcome 1• Outcome 2O t 3
Process Step 1
• Outcome 41• Outcome 42• Outcome 43• Outcome 44• Outcome 45
Process Step 2
Process Step 3
Process Process Step 4• Outcome 3
• Outcome 4• Outcome 6
Step 5 Step 4
Desired outcomes are the metrics customers use to measure the successful execution of a job.
Manage Financial Security
Consumption Manage Financial
Security
Emotional JobsOther Functional Jobs
pChain Jobs
• Purchase• DeliveryI t ll tiEmotional Jobs
Social JobsPersonal JobsJobs Directly
Related to CoreJobs Indirectly Related to Core
• Installation• Set‐up• Learn to Use• Interface• Store• Maintain
Job Map
Social JobsPersonal JobsRelated to Core Job
Related to Core Job
• Maintain• Upgrade• Replace• Dispose
• Outcome 1• Outcome 2O t 3
Process Step 1
• Outcome 41• Outcome 42• Outcome 43• Outcome 44• Outcome 45
Process Step 2
Process Step 3
Process Process Step 4• Outcome 3
• Outcome 4• Outcome 6
Step 5 Step 4
Desired outcomes are the metrics customers use to measure the successful execution of a job.
When performing a job, Job Activity Map• Metric 1• Metric 2When performing a job,
Customers intrinsically use “metrics” to define
Job Activity Map • Metric 2• Metric 3• Metric 4• Metric 5
Process Step 1
use metrics to define the successful execution of a specific job
Process Step 2
Process Step 3of a specific job
These metrics (or desired outcomes) ARE the
Process Step 4
Process Step 5
outcomes) ARE the customer’s needs
• Metric 41• Metric 42• Metric 43• Metric 43• Metric 44• Metric 45
See The Customer‐Centred Innovation Map, Harvard Business Review, May 2008
Desired OutcomesDesired Outcomes …
• Are the fundamental metrics used by customers to measure success when getting a job done
• Are used by customers to assess the value of one product/service over anotheranother
• Can be captured in markets where products and competitors do not yet exist, e.g., white spaces, blue oceans, etc.yet exist, e.g., white spaces, blue oceans, etc.
• Are the key to discovering opportunities for core market growth and disruptive innovation
• Are integral to all downstream innovation tasks, e.g., identifying opportunities, segmenting markets, evaluating ideas, etc.
…are Customer Needs
40
When capturing desired outcomes, we first build a Job Activity Map (JAM). Here, we depict a JAM for the job ofActivity Map (JAM). Here, we depict a JAM for the job of
Manage Financial Security
Search for Financial Options
Evaluate Financial Options
Assess Current Income
Assess Current Expenditure
Assess Current DebtEvaluate Timing of a Financial Decision
Evaluate Financial Services Providers
Assess Current Debt Position
Assess Current S i /I
Conclude Financial Assessment
Savings/Investments
Make a Financial DecisionAssessment
Specific Questions Reveal Desired Outcomes
For each step of the job as defined in the job map, ask …
What makes [step x] time consuming, slow, etc.
What makes [step x] unstable, unreliable,unpredictable, etc.
What makes [step x]error prone, costly, wasteful, etc.
This yields outcomes related to SPEED – getting the job done faster:
This yields outcomes related to STABILITY – eliminating variability:
This yields outcomes related to OUTPUT –eliminating waste, loss, etc:
Outcomes
Minimize the time it takes the
OutcomesOutcomes
Minimize the number of seeds Minimize the time it takes the seeds to germinate
Minimize the time it takes to for the plant to come out of the ground
Increase the percent of needed nutrients that are absorbed
Minimize the yield loss due to excess heat during pollination
that fail to germinate
Increase the percent of plants that emerge at the same time
yield
The precise measurable structure of a desired outcome statement
Direction of improvement Unit of measure Object of control
a desired outcome statement
Minimise the time it takes to determine the total amount of household spend
in a given time period e.g., spend of all family members, spend on household bills, etc.
Contextual clarifier Example of object of controlp j
• The statement’s structure, content and format limit variability
h f i• The statement prompts a course of action
• It is not open to interpretation
• Does not confound the way it or other statements are prioritizedy p
• We have captured over 15,000 such statements in all industry sectors
43
Example desired outcomes for the job step of Assess Current Expenditure in the job ofManage Financial SecurityExpenditure in the job of Manage Financial Security
Search for Financial Options
Evaluate Financial Options
Assess Current Income 1. Minimise the time it takes to determine the total amount of personal
expenditure for a given time period2. Minimise the time it takes to determine the total amount of household
Assess Current Expenditure
Assess Current Debt
expenditure for a given time period3. Minimise the time it takes to determine the amounts spent on different
expenditures in a given time period, e.g., on food, petrol, utilities, etc.4. Minimise the time it takes to determine changes in the amounts spent on
Evaluate Timing of a Financial Decision
Evaluate Financial Services Providers
Assess Current Debt Position
Assess Current S i /I
different expenditures over a given time period, e.g., amounts going up, down, etc.
5. Minimise the time it takes to learn of a change in the cost of living, e.g., higher petrol prices, higher utility bills, higher interest rates, etc.
Conclude Financial Assessment
Savings/Investments
Make a Financial Decision
6. Minimise the time it takes to determine how to reduce a level of expenditure, e.g., spending on utility bills, petrol, food, etc.
7. Minimise the likelihood of forgetting to budget for a large item of household expenditure, e.g., an insurance renewal, a utility bill, a tax bill, etc.
Assessment
These are actual outcomes from a financial services project on Manage Financial Security – in total there were 143 need statements (outcomes) yrelated to this job.
What is the Opportunity Algorithm?
f % f h d• If 90% of the respondents rate an outcome a 4 or 5 for importance, the Importance value entered into the l ith i 9 0
OUTCOME IMP SAT OPP
Minimise the time it takes to determine changes in the amounts spent on different expenditures over a given time period, e.g., amounts going up, down, etc.
9.0 3.0 15.0
algorithm is a 9.0.
• If 30% of the respondents rate an outcome a 4 or a 5 for satisfaction, the
Minimise the likelihood of forgetting to budget for a large item of household expenditure, e.g., an insurance renewal, a utility bill, a tax bill, etc.
8.5 3.5 13.5
Satisfaction value entered into the algorithm is a 3.0
Minimise the time it takes to determine the total amount of personal expenditure for a given time period
8.0 5.0 11.0
Minimise the time it takes to determine the total amount of household expenditure for a 7 5 6 5 8 5
Opportunity = Importance + max (Importance – Satisfaction, 0)
total amount of household expenditure for a given time period
7.5 6.5 8.5
45
When is a Need Unmet?
• If a desired outcome is both important and unsatisfied, it is unmetp ,• 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 Outcomes are prioritized based on their attractiveness as opportunities for value
creation
Importance
Importance
Importance
SatisfactionSatisfaction
Opportunity Opportunity
Applications of Outcome‐Driven InsightsApplications of Outcome Driven Insights
47
Outcome‐Driven Innovation Insights can be applied for multiple purposesmultiple purposes
Formulate MarketSegment Markets Build Business Case
Growth Strategy / Portfolio
Segment Markets For Growth
Build Business Case for Market Strategy
Undertake Focus Review of IP
GROWTHSTRATEGY
Undertake Competitive Analysis (Current / Potential)
Focus Technology / Enablers Scouting
Focus Review of IP Landscape / Inventions
MARKETEVALUATION
Reassess Resources Allocated to Current
Projects
Make Go ‐ Kill Decisions
Assess Internal / External Capabilities
to Execute
RESOURCE ALLOCATION
Position To Current Under‐Messaged
Strengths
Assist Channels to Focus On Unmet
Needs
Brand On The Job‐to‐be‐Done
MARKETING /COMMS
Generate Concepts to Address Growth
Strategy
Build Internal Engagement with
Innovation
Align Open Innovation Inputs to
Strategy
INNOVATION
St ategy o at o St ategy
Segment markets for growth by identifying under‐served / over‐served segments
Segment Markets For Growth served / over‐served segments
• Identify unique opportunities when
For Growth
none exist in the broad market
• Discover high‐potential growth segments – groups of customers h h dwho have distinct opportunities
related to executing the job
• Traditional segmentation methods –based on product or demographicbased on product or demographic classifications such as price point, business size, product type or age –yield phantom targetsy p g
• It is best to group customers into segments based on what jobs and/or outcomes they are trying to achieve
Redefine position/message linked to the key opportunities that are can already be addressed by the product or service
Position To Current Under‐Messaged can already be addressed by the product or service
Strengths
• Product features are tied to specific underserved outcomes
“This insight enabled us to identify a
i titispecific underserved outcomes
• A meaningful competitive analysis is conducted
unique competitive position for our skin and wound care business. Upon
i i i• The message connects solidly with the targeted customers
repositioning, we went from stagnating growth to double digit growth
Prevent
in 6 months.”
David HotchkissVP Sales & MarketingColoplast Corp.
Complicationsp p
Resources are placed on the likely winners in the current project i li di i k
Reassess Resources Allocated to Current
pipeline, speeding time to market
• The initiatives with the best chance
Projects
• The initiatives with the best chance for success are identified
• Likely product failures are identified 15.3
OPP
Minimize restenosis, i.e., the recurrence of the blockage
OUTCOME
and aborted – the justification to kill a project is made
• Resources are placed on the likely “Using this approachwe reprioritized
p ywinners, speeding time to market
• … more winning products, less development expense
we reprioritizedresources so wecould be the firstto market with thedevelopment expensestent, an opportunitythat became a$1 billion product in less than 2 years – the fastest growing medical device in history.”
Cordis (J&J) VP of MarketingRick Faleschini
Generate Concepts to Address Growth
Strategy
Ideas were brainstormed for the top 14 opportunities. The new features could not add cost to the product.
The Cutting Wood “Job Map”Generate Concepts to Address Growth g p
Strategy
Plan the Cut Adjust the Saw Start the CutOperate the
Saw
Outcomes
Minimize the time it takes to change the blade
Complete the Cut
Maintain the SawMaking a
Increase the accuracy of saw gauge calibrations, i.e., the angle/mitre and cut width calibrations
Minimize the movement in the handle position (angle) when setting the blade to a different depth
Minimize the time it takes to set the blade to the desired cut depth
Ensure Safety
Straight CutMinimize the time it takes to set the blade to the desired cut depth
Minimize the time it takes to set the saw to the desired cut angle
y
Cutting Wood Opportunity LandscapeGenerate Concepts to Address Growth
10
Strategy
Over‐ServedLimited
Opportunity
8
9
Table Stakes
faction Opp >10
Solid Opportunity
5
6
7Ripe for Disruption
Satisf
Opp >12High Opportunity
3
4
5
Potential for Disruption
Opp >15ExtremeOpportunity1
2
3
Opportunity
Under‐ServedAppropriately Served1
1 2 3 4 5 6 7 8 9 10
Importance
Creating the Bosch CS20 Circular SawGenerate Concepts to Address Growth
OUTCOME OPP
Minimize the cost of repairs due to cut cords 11 5
Strategy
Minimize the cost of repairs due to cut cords 11.5
Minimize the likelihood of snagging the cord on the material
12.7
Minimize the likelihood of dropping the saw when l i
10.5
Direct Connect; removed the cord
lower it
OUTCOME OPP
Minimize the amount of debris that is thrown up into the users face
11.4
Blower is aimed down and at the cut line to blow debris away and provide line of
Minimize the likelihood of inadvertently moving off the cut line/path
13.5 sight
Served perfectlyValue Delivered
Formulate MarketGrowth Strategy /
f li
When it comes to growth through innovation, only six growth paths are possiblePortfolio only six growth paths are possible
(s)
Related Market Growth
f f
New Platform Creation
C f
Related Growth in a Disrupted Market
Oth
er J
ob(
2
Add a set of features to the core platform to help customers get a related job or jobs done.
2
Construct a feature set on a new platform to help customers get a job or group of related jobs done better.
2Add a set of features to the new platform to help new customers get a related job or jobs done.
Job(
s)
Core or Sustaining Market Growth
Add a set of features to the
Core Platform Disruption
Construct a feature set on a new platform to help
Core Market Disruption
Construct a feature set on a new platform to enable new
2 3 6
Cor
e J Add a set of features to the
core platform to help customers get a core job or jobs done better.
1
new platform to help customers get a core job or jobs done cheaper and/or better.
4
new platform to enable new customers to perform the core job of a specialist.
5
Core Platform New Value Delivery Platform
Current Job Executor New Executor
56
What does the Opportunity Landscape reveal? Sustaining or core market growth opportunity
10
Sustaining or core market growth opportunity
f f
Over‐ServedLimited
Opportunity
8
9
Table Stakes
LimitedOpportunity
Table Stakes
386
1. Improve performance on current platform2. Target underserved customers3. Help most profitable customers get current
job done better4. How to move up the sustaining growth path
faction Opp >10
Solid Opportunity
5
6
7Ripe for Disruption
Opp >10Solid Opportunity286
Satisf
Opp >12High Opportunity
3
4
5
Potential for Disruption
Opp >15ExtremeOpportunity1
2
3
Opportunity
Under‐ServedAppropriately Served1
1 2 3 4 5 6 7 8 9 10
57
Importance
Core or Sustaining Market GrowthFormulate MarketGrowth Strategy /
f liPortfolio
Related Market Growth
f f(s)
New Platform Creation
C f
Related Growth in a Disrupted Market
2
Add a set of features to the core platform to help customers get a related job or jobs done.O
ther
Job
(
2
Construct a feature set on a new platform to help customers get a job or group of related jobs done better.
2Add a set of features to the new platform to help new customers get a related job or jobs done.
Job(
s)
Core or Sustaining Market Growth
Add a set of features to the
Core Platform Disruption
Construct a feature set on a new platform to help
Core Market Disruption
Construct a feature set on a new platform to enable new
2 3 6
Cor
e J Add a set of features to the
core platform to help customers get a core job or jobs done better.
1
new platform to help customers get a core job or jobs done cheaper and/or better.
4
new platform to enable new customers to perform the core job of a specialist.
5
Core Platform New Value Delivery Platform
Current Job Executor New Executor
58
What does the Opportunity Landscape reveal? Adjacent market growth opportunityAdjacent market growth opportunity
10
Over‐Served8
9
LimitedOpportunity
Table Stakes
1 Help current customers get new or
faction
5
6
7Ripe for Disruption Opp >10
Solid Opportunity
1. Help current customers get new or underperforming related jobs done better
2. Extend the current platform by adding more important unsatisfied jobs
Satisf
Opp >12High Opportunity
3
4
5
Potential for Disruption
Opp >15ExtremeOpportunity1
2
3
Opportunity
Under‐Served1
1 2 3 4 5 6 7 8 9 10
Appropriately Served
59
Importance
Related Market GrowthFormulate MarketGrowth Strategy /
f liPortfolio
Related Market Growth
f f(s)
New Platform Creation
C f
Related Growth in a Disrupted Market
2
Add a set of features to the core platform to help customers get a related job or jobs done.O
ther
Job
(
2
Construct a feature set on a new platform to help customers get a job or group of related jobs done better.
2
Add a set of features to the new platform to help new customers get a related job or jobs done.
Job(
s)
Core or Sustaining Market Growth
Add a set of features to the
Core Platform Disruption
Construct a feature set on a new platform to help
Core Market Disruption
Construct a feature set on a new platform to enable new
23
6
Cor
e J Add a set of features to the
core platform to help customers get a core job or jobs done better.
1
new platform to help customers get a core job or jobs done cheaper and/or better.
4
new platform to enable new customers to perform the core job of a specialist.
5
Core Platform New Value Delivery Platform
Current Job Executor New Executor
60
New Platform CreationFormulate MarketGrowth Strategy /
f liPortfolio
Related Market Growth
f f(s)
New Platform Creation
C f
Related Growth in a Disrupted Market
2
Add a set of features to the core platform to help customers get a related job or jobs done.O
ther
Job
(
2
Construct a feature set on a new platform to help customers get a job or group of related jobs done better.
2Add a set of features to the new platform to help new customers get a related job or jobs done.
Job(
s)
Core or Sustaining Market Growth
Add a set of features to the
Core Platform Disruption
Construct a feature set on a new platform to help
Core Market Disruption
Construct a feature set on a new platform to enable new
2 3 6
Cor
e J Add a set of features to the
core platform to help customers get a core job or jobs done better.
1
new platform to help customers get a core job or jobs done cheaper and/or better.
4
new platform to enable new customers to perform the core job of a specialist.
5
Core Platform New Value Delivery Platform
Current Job Executor New Executor
61
What does the Opportunity Landscape reveal? Low‐end / new market disruption of existing over‐served j b d/ ijob and/or target non‐consumption
10
Over‐ServedLimited
Opportunity
8
9
Table Stakes
faction Opp >10
Solid Opportunity
5
6
7Ripe for Disruption
Satisf
Opp >12High Opportunity
3
4
5
Potential for Disruption
1. Target over‐served customers or non‐consumption with a lower‐cost/ poorer performing platform
Opp >15ExtremeOpportunity1
2
3pe o g p at o
2. Disrupt incumbents with a lower cost platform‐ they will be focused on core market growth (Asymmetric motivation)
Opportunity
Under‐ServedAppropriately Served1
1 2 3 4 5 6 7 8 9 10
62
Importance
Core Platform DisruptionFormulate MarketGrowth Strategy /
f lip
Portfolio
Related Market Growth
f f(s)
New Platform Creation
C f
Related Growth in a Disrupted Market
2
Add a set of features to the core platform to help customers get a related job or jobs done.O
ther
Job
(
2
Construct a feature set on a new platform to help customers get a job or group of related jobs done better.
2Add a set of features to the new platform to help new customers get a related job or jobs done.
Job(
s)
Core or Sustaining Market Growth
Add a set of features to the
Core Platform Disruption
Construct a feature set on a new platform to help
Core Market Disruption
Construct a feature set on a new platform to enable new
2 3
Cor
e J Add a set of features to the
core platform to help customers get a core job or jobs done better.
1
new platform to help customers get a core job or jobs done cheaper and/or better.
4
new platform to enable new customers to perform the core job of a specialist.
5
Core Platform New Value Delivery Platform
Current Job Executor New Executor
63
Core Market DisruptionFormulate MarketGrowth Strategy /
f li Core Market DisruptionPortfolio
Related Market Growth
f f(s)
New Platform Creation
C f
Related Growth in a Disrupted Market
2
Add a set of features to the core platform to help customers get a related job or jobs done.O
ther
Job
(
2
Construct a feature set on a new platform to help customers get a job or group of related jobs done better.
2Add a set of features to the new platform to help new customers get a related job or jobs done.
Job(
s)
Core or Sustaining Market Growth
Add a set of features to the
Core Platform Disruption
Construct a feature set on a new platform to help
Core Market Disruption
Construct a feature set on a new platform to enable new
2 3 6
Cor
e J Add a set of features to the
core platform to help customers get a core job or jobs done better.
1
new platform to help customers get a core job or jobs done cheaper and/or better.
4
new platform to enable new customers to perform the core job of a specialist.
5
Core Platform New Value Delivery Platform
Current Job Executor New Executor
64
Related Growth in a Disrupted MarketFormulate MarketGrowth Strategy /
f lip
Portfolio
Related Market Growth
f f(s)
New Platform Creation
C f
Related Growth in a Disrupted Market
2
Add a set of features to the core platform to help customers get a related job or jobs done.O
ther
Job
(
2
Construct a feature set on a new platform to help customers get a job or group of related jobs done better.
2Add a set of features to the new platform to help new customers get a related job or jobs done.
Job(
s)
Core or Sustaining Market Growth
Add a set of features to the
Core Platform Disruption
Construct a feature set on a new platform to help
Core Market Disruption
Construct a feature set on a new platform to enable new
2 3 6
Cor
e J Add a set of features to the
core platform to help customers get a core job or jobs done better.
1
new platform to help customers get a core job or jobs done cheaper and/or better.
4
new platform to enable new customers to perform the core job of a specialist.
5
Core Platform New Value Delivery Platform
Current Job Executor New Executor
65
Six Market Growth PathsFormulate MarketGrowth Strategy /
f li
To optimize growth, a company must be able to discover and address the
Which growth path(s) to pursue are dictated by the opportunities that exist in the market …
Portfolio(s
)
Jobs Jobs Jobs
discover and address the opportunities that exist for value creation.
… customers (and their t iti ) di t t th
Oth
er J
ob(
2
opportunities) dictate the strategy that should be taken – not the company
All markets evolve
Job(
s)
Outcomes Outcomes Outcomes
All markets evolve through these six growth paths
Knowing how a market l i i it
Cor
e J
1
evolves is a prerequisite to formulating a proactive and effective growth strategy
Core Platform New Value Delivery Platform
Current Job Executor New Executor
66
Customer Inputs → Growth PathsFormulate MarketGrowth Strategy /
f li
Core Functional Job
Portfolio
Emotional Jobs
Social JobsPersonal Jobs
Emotional Jobs
Social JobsPersonal Jobs
Jobs Directly Related to Core Job
Jobs Indirectly Related to Core Job
Other Functional Jobs
Jobs Directly Related to Core Job
Jobs Indirectly Related to Core Job
Other Functional Jobs
• Outcome 1• Outcome 2• Outcome 3• Outcome 4• Outcome 6
Process Step 1
Job Map
• Outcome 41• Outcome 42• Outcome 43• Outcome 44• Outcome 45
Process Step 2
Process Step 3
Process Step 5
Process Step 4
Desired outcomes are the metrics customers use to measure the successful execution of a job s)s)
Jobs Jobs Jobsto measure the successful execution of a job.
Oth
er J
ob(s
Oth
er J
ob(s
2
ore
Job(
s)or
e Jo
b(s)
Outcomes Outcomes Outcomes
Current Job Executor New ExecutorCurrent Job Executor New Executor
Co
Co
Core Platform New Value Delivery PlatformCore Platform New Value Delivery Platform
1
Core Platform New Value Delivery Platform
67
Benefits of the Six Growth Path FrameworkFormulate MarketGrowth Strategy /
f liPortfolio
• Companies know when to abandon an old platform and move to a new one
• It takes the mystery out of “disruption” – and explains how and whenIt takes the mystery out of disruption and explains how and when to architect a disruptive strategy
• It reveals those strategies that will work – and those that will not
• Drives predictable innovation
68
Working with Strategyn UK
Strategyn UK Outcome‐Driven Innovation Service And Support Options
Execute ODI Projects using Strategyn
Obtain Ongoing Strategyn Expertise
Train Employees as ODI Practitioners
Build a Corporate ODI Capability
ODI PROJECTS, TRAINING, MENTORING AND PROGRAMMES1g gy gy p O Capab ty
Strategyn UK consultants mentor you to run your own ODI projects (post‐training)
Strategyn UK consultants undertake your ODI project quickly and with needed precision
Strategyn consultants train you to become proficient in ODI
Strategyn UK consultants support you to establish your own internal ODI process / capability
Map your Markets and Strategy for ODI
Formulate a Growth Strategy
GROWTH STRATEGY, CONCEPT GENERATION AND CONSULTANCY
Build Robust B i C
Generate Powerful Id / C t
2and Strategy for ODI Strategy Business Cases
Strategyn UK models the market growth potential of your new concepts
Ideas / Concepts
Strategyn UK facilitates the generation of new concepts from ODI opportunities
Strategyn UK frames your market(s) and your ODI project programmes
Strategyn UK analyses and recommends growth strategy options using the Six Growth Paths
Assess Competitive Assess Technology Segment Markets
CUSTOMER‐CENTRED AND MARKET OPPORTUNITY ANALYSIS
Align Market 3
Situation Enabler Potential
Strategyn UK completes opportunity‐based competitive assessment
Strategyn UK completesmarket opportunity‐oriented technology scouting
for Growth
Strategyn UK completes precise segmentation of market opportunities for innovation
Positioning / Brand
Strategyn UK reviews your current and potential market positioning and brandingscoutinginnovation p g g
Further reading
The Customer‐CentredThe Customer Centred Innovation Map, Harvard
Business Review, May 2008
Giving Customers a Fair l What Customers Want Th I t ’ S l tiHearing, MIT Sloan
Management Review, Spring 2008
What Customers Wanta bestselling book by Strategyn CEO Tony Ulwick, details the
theory and practice of
The Innovator’s SolutionIn Professor Clayton
Christensen's book ‐ The Innovator's Solution ‐ he explains why Strategyn's
Best Business Idea Winner
outcome‐driven innovation
p y gythinking and segmentation methods are critical to the successful management of
new market creation
Turn Customer Input into Innovation, Harvard Business
Review, January 2002
You Experience Innovation Success ®
Strategyn UKStrategyn UKPortland House
Bressenden PlaceLondon
UNITED KINGDOM
www.strategyn.co.ukUK@strategyn com
UNITED KINGDOMSW13 1RE
72
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