Silence the Voice of the Customer (VOC)

transcript

Silence the Voice of the Customer

And Create Growth Plans that Work 4/20/11

Create growth plans that work

Accelerate growth – lower risk.

The Goal is to Succeed Nearly All the Time

Think from a Different Perspective

E= MC2

Markets Strategy Innovation

We Think Differently About …

What is a Market?

Traditional Definition

“A market is the set of actual and potential

buyers of a product.”

Philip Kotler Kellogg, Marketing Management

150 BC 1985 1940 1999 1670

0% Growth

We Define “Market” Differently

“A market is a group of job executors and the job they are trying to get done.”

The job of …

“communicating with a select group of people”

Breakthrough

Job map and 50 to 150 metrics per job

Mapping the Job-to-be-Done

Core Functional Job

Plan Locate Prepare

Job Map

Confirm

Conclude Modify Monitor Execute

The Customer-Centered Innovation Map, HBR, May 2008

•  Outcome 41 •  Outcome 42 •  Outcome 43 •  Outcome 44 •  Outcome 45

•  Outcome 1 •  Outcome 2 •  Outcome 3 •  Outcome 4 •  Outcome 5

50 – 150 metrics (needs) per job

Giving Customers a Fair Hearing, MIT Sloan, May 2008

Desired Outcome = Customer Need

Minimize the time it takes to confirm receipt of a communication

Direction Unit of

Measure Object of Control

VOC practices fail to uncover all the customer’s needs:

•  Focused on the product, not the job the customer is trying to get done

•  Assume customers have latent needs and needs they can’t articulate

•  Assume customer needs change quickly over time

Silence the Voice of the Customer

Possible Growth Opportunities

12 steps and over 100 outcomes …

1. Minimize the time it takes to confirm receipt of a communication

2. Minimize the likelihood that the communication is interrupted

3. Minimize the likelihood of interference when communicating

4. Increase the likelihood that the communication is discreet

5. Minimize the likelihood that a message is misunderstood

6. Minimize the time it takes to establish a record of the communication

7. Minimize the likelihood that a communication is intercepted

Complete set of well articulated needs that are stable over time

Opportunity Is …

An important but poorly satisfied outcome

Market Opportunity Landscape

Importance

Opportunity = Importance + max (Importance – Satisfaction, 0)

Over served

Under served

0% to 18% Growth

“Strategyn helped us create two of our bestselling radios to date.”

Dr. Robert Pennisi Director, Advanced Technology

Dr. Pennisi is currently an innovation professional with Strategyn

What is Strategy?

“Activities, then, are the basic unit of

competitive advantage.”

“Strategy is choosing to perform

activities differently than rivals do.”

Michael Porter Harvard Business School

Doctors who open a clogged artery

We Define “Strategy” Differently

“Customer needs are the basic unit of

competitive advantage.”

“Strategy is choosing which unmet

customer needs to target and how to

satisfy them.”

Breakthrough

Outcome-based market segmentation

Segments of Opportunity

Segment 1 65%

Segment 2 25%

Segment 3 10%

1. Which Needs Should We Target?

•  Minimize the time it takes to move through the vessel

•  Minimize the amount of damage inadvertently caused to a vessel

•  Minimize the amount of force required to cross the lesion

•  Minimize the likelihood of restenosis (recurrence of the blockage)

Importance

Opportunity = Importance + max (Importance – Satisfaction, 0)

Under served

High Segment

2. Which Job Executor?

Cardiac Surgeon

Interventional Cardiologist

Patient

3. Which Platform(s)?

Angioplasty Balloon

40 Projects in R&D

This is a Growth Strategy

Needs Executor Platform(s)

Segment 1

10x Increase in Market Share

“In 12 months, Cordis saw it market share grow from just 1% to 10% in the US, 20% in Europe, 30% in Canada and 18% in Japan.” In Vivo

HBR Best Business Idea

The stent went on to become a $1 billion business in less than 2 years – the fastest growth in medical device history. Cordis stock increased 5.5x as they were acquired by J&J.

What is Innovation?

“Orderly innovation is an oxymoronic phrase

believed by morons with ox-like brains.”

“Innovation is the creation of new

products and services.”

Tom Peters HSM 2007

Author of In Search of Excellence

IT managers who manage enterprise software licenses

We Define “Innovation” Differently

“Innovation is the creation of products that help customers get a job done

better and contribute to

growth.”

Innovation = Get a Job Done Better

Step 1

Step 2

Step 3

Step 4

Step 1

Step 2

Step 3

Step 4

Over 150 outcomes…

1.  Minimize the time it takes to determine if users have unlicensed copies of software

2.  Minimize the likelihood that backward compatibility affects other users 3.  Minimize the likelihood that an upgrade will impact previously written

code 4.  Minimize the time it takes to troubleshoot problems during deployment 5.  Minimize the likelihood that an upgrade causes problems with existing

files 6.  Minimize the overall time it takes to conduct an upgrade 7.  Minimize the time it takes to determine which applications will be

impacted by an upgrade 8.  Minimize the time it takes the vendor to fix deployment problems 9.  Minimize the time it get all users on the same version of the software 10. Minimize the likelihood that a deployment requires a physical visit to the

Step 1

Step 2

Step 3

Step 4

Minimize the likelihood that backward compatibility causes problems

Minimize the likelihood that power users can create security violations

Minimize the time it takes to troubleshoot deployment problems

IMP SAT OPP

9.1 3.2 15.0

9.1 5.1 13.1

9.1 3.4 14.8

NEEDS (3 of 150) IDEA

Application virtualization

Centralized permissions

Real-time metering

NEW SAT

Value Add = %∆ in Satisfaction 60% 75%

How much will you grow?

Breakthrough

The securable market

The Securable Market

Dollar volume of the Securable

Increased Satisfaction

Premium market

Underserved Executors

Need Curve™

Low cost market

What gain in revenue is expected if we succeed?

$1 Billion

Projected Revenue

35% Renewals 80% Renewals

This is Outcome-Driven Innovation®

STAGE 3

GATE 3

STAGE 4

STAGE 5

GATE 4

GATE 5

Idea Screen

STAGE 1

STAGE 2

GATE 2

GATE 1

Development Launch Testing and Validation

Create Business Case Scoping

= 17% Success

Rate Traditional Innovation Process

STAGE 3

GATE 3

STAGE 4

STAGE 5

GATE 4

GATE 5

STAGE 1

STAGE 2

GATE 2

GATE 1

Development Launch Testing and Validation

Concept Innovation

Market Strategy

STAGE 1

Market Selection

The Outcome-Driven Innovation® (ODI) Process

= 86% Success

The Outcome-Driven Innovation® Process

ODI can help you accelerate growth…

… throughout the product life cycle.

Market Selection

• Discover attractive markets and market segments • Discover “blue oceans” • Validate a big idea

Development

• Optimize the customer experience • Adjust the strategy in

response to a sudden market change

Launch • Position or reposition a

product to succeed • Resolve lingering product and

service quality issues

Market Strategy

• Define next-gen products • Define next-gen platforms • Disrupt a market •  Ideate breakthrough solutions

Our ideas are cited in …

… and over 200 other books and publications

We’ve authored … We’ve published our ideas in …

Learn More …

Tony Ulwick ulwick@strategyn.com

Contact us:

info@strategyn.com Toll Free: (866) 729-8400