Integrating Analysis of Customers’ Processes into Roadmapping: The Value-Creation Perspective

Marko Komssi, Marjo Kauppinen, Harri Töhönen, Laura Lehtola, Alan M. Davis

(1) “What kind of problems do software product companies encounter during roadmapping?” (2) “How can these problems be solved?”

Roadmapping

[1] Kappel, T., “Perspectives on Roadmaps: How Organizations Talk about the Future,” Journal of Product Innovation Management, vol. 18, no. 1, 2001, pp. 39–50.

Portfolio mgmt

Road- mapping

Release planning

Solution dev.

Sales transact.

Use of solution

Value Creation

An activity to support strategic and long-range planning [1]

(1) “What kind of problems do software product companies encounter during roadmapping?” (2) “How can these problems be solved?”

Company Number of Employees

Application Domain

Selected Solution

F-Secure 800 Computer security systems for companies and consumers

Protection Service for Consumers

Tekla 500 Model-based software solutions for infrastructure industries

Tekla Solution for Civil Engineering

Case Study Companies and Selected Solutions

Activity Description

Problem diagnosis Analyzing the current situation and defining the problem

Action Intervention Planning improvement actions and implementing the planned actions

Reflective Learning Analyzing the effects of the improvement actions and identifying what was learnt

Action Research Activities [2]

[2] Avison D., Lau, F., Myers, M.D., Nielsen, P.A., “Action Research,” Communications of the ACM, vol. 42, no. 1, 1999, pp. 94–97.

RQ1: Problems in Roadmapping

The Trouble with Linking Business Strategy to Solution Planning

Feature-Driven Mindset

Difficulty of Defining and Commercializing Services

Fragmented Customer Knowledge

RQ2: How Can These Problems Be Solved?

A series of collaborative workshops for cross-functional teams

A practical approach to analyze the customer’s entire experience with a solution

The perspective of customer value and corresponding value-creation logic

Value is created in the customers’ everyday activities or processes

The Approach [3] Initiated in the Collaborative Workshops

[3] MacMillan I., McGrath R., “Discovering New Points of Differentiation,” Harvard Business Review, vol. 75, no. 4, 1997, pp. 133–145.

Part 2

Part 1

Assemble a task force

Select a customer or market segment

Identify the customer’s activities

Evaluate the customer’s experience of the solution

Brainstorm new ideas

Linking the ideas with the organization’s skills, assets, and

systems

Adaptation

Part 2

Part 1

Assemble a task force

Select a customer or market segment

Identify the customer’s activities

Evaluate the customer’s experience of the solution

Brainstorm new ideas

Linking the ideas with the organization’s skills, assets, and

systems

Part 2

Part 1

Form a cross-functional team

Exam the business strategy

Select a customer segment

Identify the customer’s activities

Analyze the customer’s activities

Linking business potential of customer activities into

roadmapping

Protection Service for Consumers An ISP Finding Ways to Maximize Profits

Example: Identify the customer’s activities

Customer’s activities with the solution Awareness of SaaS security solutions for consumers

Evaluating needs/capabilities associated to the solution

Choosing the solution

Purchasing the solution

Building the entire service infrastructure

Marketing for consumers

Selling and order processing

Installing security solution for consumers

Invoicing the consumers

Updating protection for the consumers

Upgrading service infrastructure

Supporting (call center) for consumers

Handling ISP’s problems related to the solution

Lessons Learned

Customer’s activities with the solution Awareness of SaaS security solutions for consumers

Evaluating needs/capabilities associated to the solution

Choosing the solution

Purchasing the solution

Building the entire service infrastructure

Marketing for consumers

Selling and order processing

Installing security solution for consumers

Invoicing the consumers

Updating protection for the consumers

Upgrading service infrastructure

Supporting (call center) for consumers

Handling ISP’s problems related to the solution

Identifying and determining the customers’ activities promoted knowledge sharing among the companies’ personnel

Challenging to determine customers’ activities at an appropriate level of abstraction

Example: Analyze the customer’s activities

Current Customer’s activities with the solution Awareness of SaaS security solutions for consumers

Evaluating needs/capabilities associated to the solution

AP Level Ability

2

1

Low

Medium

Choosing the solution

Purchasing the solution

1

1

Medium

Low

Building the entire service infrastructure

Marketing for consumers

2

1

Medium

Low

Selling and order processing 0 —

Installing security solution for consumers

Invoicing the consumers

2

1

Low

High

Updating protection for the consumers

Upgrading service infrastructure

3

3

High

Medium

Supporting (call center) for consumers 1 Low

Handling ISP’s problems related to the solution 2 Medium

Activity-Performing Level 0 = The customer performs the activity; no support from the provider 1 = The customer performs the activity; some support from the provider 2 = The provider performs the activity; some support from the customer 3 = The provider performs the activity fully

Thinking Tool Current

Customer’s activities with the solution Awareness of SaaS security solutions for consumers

Evaluating needs/capabilities associated to the solution

AP Level Ability

2

1

Low

Medium

Choosing the solution

Purchasing the solution

1

1

Medium

Low

Building the entire service infrastructure

Marketing for consumers

2

1

Medium

Low

Selling and order processing 0 —

Installing security solution for consumers

Invoicing the consumers

2

1

Low

High

Updating protection for the consumers

Upgrading service infrastructure

3

3

High

Medium

Supporting (call center) for consumers 1 Low

Handling ISP’s problems related to the solution 2 Medium

customer value = benefits – sacrifices

to evaluate how the customers perceive the solution in the each activity

Lessons Learned Current

Customer’s activities with the solution Awareness of SaaS security solutions for consumers

Evaluating needs/capabilities associated to the solution

AP Level Ability

2

1

Low

Medium

Choosing the solution

Purchasing the solution

1

1

Medium

Low

Building the entire service infrastructure

Marketing for consumers

2

1

Medium

Low

Selling and order processing 0 —

Installing security solution for consumers

Invoicing the consumers

2

1

Low

High

Updating protection for the consumers

Upgrading service infrastructure

3

3

High

Medium

Supporting (call center) for consumers 1 Low

Handling ISP’s problems related to the solution 2 Medium

Identifying and analyzing the activity chains of customers was a helpful way to gain a holistic view of customers’ entire experience with the solution

The absence of marketing personnel and customers in the workshops might have limited the sharing of customer knowledge

Opportunities for service development

Example: Linking Business Potential of Customer Activities into Roadmapping

Future Current Customer’s activities with the solution Awareness of SaaS security solutions for consumers

Evaluating needs/capabilities associated to the solution

AP Level Ability Potential Priority

2

1

Low

Medium

Medium

High

Medium

High

Choosing the solution

Purchasing the solution

1

1

Medium

Low

High

High

Low

Low

Building the entire service infrastructure

Marketing for consumers

2

1

Medium

Low

Low

High

Medium

High

Selling and order processing 0 — High Low

Installing security solution for consumers

Invoicing the consumers

2

1

Low

High

Low

Low

High

Low

Updating protection for the consumers

Upgrading service infrastructure

3

3

High

Medium

Low

Medium

High

Medium

Supporting (call center) for consumers 1 Low Medium Low

Handling ISP’s problems related to the solution 2 Medium Low Low

An Example of Customers’ Activities in the Solution Roadmap

2012 2013 2011

Large ISPs Marketing for consumers

Small ISPs

Selling and order processing

Selling and order processing

Call center for consumers

Installing (for consumers)

Installing (for consumers)

Evaluating capabilities

RQ2: How Can These Problems Be Solved?

1. The Trouble with Linking Business Strategy to Solution Planning 2. Feature-Driven Mindset 3. Difficulty of Defining and Commercializing Services 4. Fragmented Customer Knowledge

Cross-functional team

Collaborative workshops

The adapted approach

Holistic view 4. Shared customer

knowledge

Insights of the customers’ entire process activities

1. Big picture 2. Higher-level

long-term solution planning

3. New service business

opportunities

The value-creation logic

Conclusions

Promotes value creation from the customers’ perspective and discovery of new service business opportunities

From lower-level feature prioritization to the prioritization of higher-level customer activities