You Experience Innovation Success ... Strategyn Uk 2009

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You Experience Innovation Success ® AN INTRODUCTION TO STRATEGYN UK AND OUTCOMEDRIVEN INNOVATION April 2009

description

An Introduction to Outcome-Driven Innovation concepts with examples. Summarises the Strategyn UK client value proposition.

Transcript of 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

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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are withdrawn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

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How can we increase the probability of innovation 

success?

To achieve 70% success rates?

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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

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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

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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

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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

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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”

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What is Stalling the l i f i ?Evolution of Innovation?

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How important is i iinnovation to your company?company? 

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Is there agreement in hyour company as to what 

innovation is?innovation is?

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Is understanding dcustomer needs 

important for innovationimportant for innovation in your company?in your company?

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Is there agreement in your company as to what a customer need is?a customer need is?

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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

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“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

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Innovation: The State of Play Today

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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

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It’s Like Solving an Algebraic Equation …

ConstantsVariables

Variables

Constants

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Solutions‐first approachpp

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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

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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

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Needs‐first approachNeeds first approach

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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

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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

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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

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Listening too literally

i l i Voice of the CustomerExpecting solutions

Testing concepts

Voice of the Customer

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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

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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

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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

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What is a Customer Need?What is a Customer Need?

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"People don't want to buy ai h d ill hquarter‐inch drill. They want a

quarter‐inch hole!“Theodore Levitt, 1975

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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

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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

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Two Options for Innovation

Help a customer get  Help a customer get “ ”more or new jobs 

done“a” job done better

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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

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The Job of Storing – Retrieving MusicTechnologies come and go, the job remains the same

1880 1935 1970 1990 2008

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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.

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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.

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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

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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

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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

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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

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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 

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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.

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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

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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

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Applications of Outcome‐Driven InsightsApplications of Outcome Driven Insights

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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

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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

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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

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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

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Generate Concepts to Address Growth 

Strategy

Ideas were brainstormed for the top 14 opportunities. The new features could not add cost to the product.

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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

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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

Page 55: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 56: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 57: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 58: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 59: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 60: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 61: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 62: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 63: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 64: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 65: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 66: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 67: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 68: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 69: You Experience Innovation Success ... Strategyn Uk 2009

Working with Strategyn UK

Page 70: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 71: You Experience Innovation Success ... Strategyn Uk 2009

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

Page 72: You Experience Innovation Success ... Strategyn Uk 2009

You Experience Innovation Success ®

Strategyn UKStrategyn UKPortland House

Bressenden PlaceLondon

UNITED KINGDOM

www.strategyn.co.ukUK@strategyn com

UNITED KINGDOMSW13 1RE

72

[email protected]+ 44 (0)845 057 4091