Rick Norman - pCamp DC April 2011 - Silence the VOC - Growth Plans That Work

7/29/2019 Rick Norman - pCamp DC April 2011 - Silence the VOC - Growth Plans That Work

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Strategyn Inc. 2011

Silence the

Voice of the Customer

And CreateGrowth Plans that Work

Rick NormanApril 30, 2011


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Thanks Again To Our Sponsors

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Strategyn Inc. 2011

Question #1

Yes

No

In 12 studies that we uncovered, the average

product/service innovation success ratereported was about 20%. Based on yourexperience, do you agree that the averageinnovation success rate is about 20% or less?

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Question #2

In the company you work for today,approximately what percent of the products thatenter product development are ultimatelylaunched?

Less than 10%

10% 20%

21% - 30%

31% 40%

Over 40%

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Question #3

And of those products that are launched,approximately what percent are a success inthe marketplace?

Less than 10%

10% 20%

21% - 30%

31% 50%

Over 50%

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Create growthplans that work

Accelerate grow th lower r isk.

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20 Years Helping Companies Grow

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Turn Around a Business Decline

$150 Million to $1.2 Billion

In a market under immenseprice pressure, Strategynhelped us grow a strugglingbusiness.

Dave WaschaSenior Director

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Disrupt Entrenched Competitors

$11 Million to $200 Million

Strategyn helped usinnovate in a way that ledus to a position of market

leadership.

Ben AllenCEO

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Improve Customer Service

NorthFace Service Award

The Strategyn ODIprocess is particularlyvaluable for service

innovation.

Angelo RagoSenior VP

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The Goal Is To Succeed Nearly All the Time

86%Success

Rate

Source: Strategyn Track Record Study. Sample size: 21 launches. 18declared a successes by the companies based on r evenue, customer

satisfaction, or industry awards. Study available upon request.

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Think from a Different Perspective

e= mc2

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Market GrowthThrough

Innovation


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Markets Strategy Innovation

We Think Differently About

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from the customers perspective


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What is a Market?

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Traditional Definition

A market is the setof actual and

potential buyers of aproduct.

Philip KotlerKellogg, Marketing Management

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Size =# sold * price


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150 BC 19851940 19991670

0% Growth

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Innovation requires a forward look that will inform companies onwhat they should be selling

Remote Communications Products


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We Define Market Differently

A market is a groupof people

(job executors)and thejob they aretrying to get done.

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We know that people buy products and services to get jobs done

Drucker

Levitt


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The job of

communicating with a select group of people

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a forward-looking perspective that can be used to understand howcustomers define value beyond todays solutions

What customers want


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Question #4

Have you ever worked on any project in yourcareer where all the customer needs wereknown?

Yes

No

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Question #5

Do you think it is impossible to know all yourcustomers needs?

Yes

No

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Breakthrough

Job map and 50 to 150metrics per job


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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

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Customer needs, when viewed from this perspective, are discoverable and actionable


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Desired Outcome = Customer Need

Minimize the time it takes to confirmreceipt of a communication

DirectionUnit of

Measure

Object of

Control

Strategyn Inc. 2011 23

Motorola example communicating remotely


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VOC practices fail to uncover all thecustomers needs; most

approaches:

Lack a clear definition of what aneed is use benefit statementspreserving customers own words

Lack the precision needed to tellinnovators how to innovate

Assume customers cant articulate

all their needs

Silence the Voice of the Customer

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Traditional VOC methods introduce toomuch variability into the process for

creating growth plans that work


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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 interrupted3. Minimize the likelihood ofinterference 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 needsthat are stable over time


Jobs and Outcomes perspective


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Opportunity Is

An important but poorly

satisfied outcome

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Market Opportunity Landscape

Satisfaction

Importance

Opportunity = Importance + max (Importance Satisfaction, 0)

Over served

Under served

Low

Low

High

High


Accuratelypinpoints growth

opportunities


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A market is a group

ofjob executorsand thejob they aretrying to get done.


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What is Strategy?

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Activities, then,are the basic unit ofcompetitiveadvantage.


Strategy ischoosing to performactivities differently

than rivals do.

Michael PorterHarvard Business School

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Company perspective


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Doctors who open aclogged artery

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Customer perspective


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We Define Strategy Differently

Customer needsare the basic unit ofcompetitiveadvantage.

Strategy ischoosing whichunmet customer

needs to target andhow to satisfy them.

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So how do we create growth strategies that work?Answer 3 key questions


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Question #6

Do the market segmentation techniques that you

use enable you to find segments of customerswith different unmet needs?

Yes

No

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Breakthrough

Outcome-basedmarket segmentation

Cordis case: over 100 outcomes


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Segments of Opportunity

Segment 165% Segment 225% Segment 310%

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1. Which Needs Should We Target?

Minimize the time it takes to movethrough the vessel

Minimize the amount of damageinadvertently caused to a vessel

Minimize the amount of forcerequired to cross the lesion

Minimize the likelihood of restenosis(recurrence of the blockage)

Satisfaction

Importance

Opportunity = Importance + max (Importance Satisfaction, 0)

Under served

Low

Low

High

High

Segment1

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The growth strategy foundation


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2. Which Job Executor?

CardiacSurgeon

InterventionalCardiologist

Patient

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3. Which Platform(s)?

AngioplastyBalloon

40 Projectsin R&D

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Minimize the time it takes to move

through the vessel

Minimize the amount of damageinadvertently caused to a vessel

Minimize the amount of forcerequired to cross the lesion

Minimize the likelihood ofrestenosis (recurrence of theblockage)

Stent

Minimize the likelihood ofrestenosis (recurrence of theblockage)


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This is a Growth Strategy

Needs Executor Platform(s)

Segment1

41

2 platforms


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10x Increase in Market Share

In 12 months, Cordis saw itmarket share grow from just1% to 10% in the US, 20% inEurope, 30% in Canada and18% in Japan.In Vivo

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HBR Best Business Idea

The stent went on to become a$1 billion business in less than2 years the fastest growth inmedical device history. Cordisstock increased 5.5x as theywere acquired by J&J.

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A market is a group


Which

needs

job executor

platform


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What is Innovation?

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Orderly innovation

is an oxymoronicphrase believed bymorons with ox-like

brains.


Innovation is the

creation of newproducts and

services.

Tom PetersHSM 2007

Author of In Search of Excellence

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IT managers whomanage enterprisesoftware licenses

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We Define Innovation Differently

Innovation is the

creation of productsthat help customers

get a job donebetterand

contribute togrowth.

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The output of innovationis the input into productdevelopment, marketingand sales.

The goal of innovation isto ensure that onlysuccessful productsenter productdevelopment process

a business process that can be managed


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Innovation = Get a Job Done Better

Step1

Step2

Step3

Step4

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Microsoft example manage enterprise software


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Step1

Step2

Step3

Step4

Over 150 outcomes

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

copies of software2. Minimize the likelihood that backward compatibility affects otherusers

3. Minimize the likelihood that an upgrade will impact previouslywritten code

4. Minimize the time it takes to troubleshoot problems duringdeployment

5. Minimize the likelihood that an upgrade causes problems withexisting files

6. Minimize the overall time it takes to conduct an upgrade

7. Minimize the time it takes to determine which applications will beimpacted by an upgrade

8. Minimize the time it takes the vendor to fix deployment problems9. Minimize the time it get all users on the same versionof thesoftware

10.Minimize the likelihood that a deployment requires a physical visitto the PC

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Step1

Step2

Step3

Step4

Minimize the likelihood that

backward compatibility causesproblems

Minimize the likelihood that powerusers can create security violations

Minimize the time it takes totroubleshoot 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

Centralizedpermissions

Real-timemetering

NEWSAT

5.6

7.1

6.3

Value Add = % in Satisfaction 60% 75%

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A market is a group


Which

needs

job executor

platform

Focus on

opportunities

to get a job done

better


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STAGE3

GATE3

STAGE4

STAGE5

GATE4

GATE5

IdeaScreen

STAGE1

STAGE2

GATE2

GATE1

Development LaunchTesting andValidation

CreateBusiness CaseScoping

= 17%Success

RateTraditional Innovation Process

STAGE3

GATE3

STAGE4

STAGE5

GATE4

GATE5

STAGE1

STAGE2

GATE2

GATE1

Development LaunchTesting andValidation

ConceptInnovation

MarketStrategy

STAGE1

MarketSelection

The Outcome-Driven Innovation (ODI) Process

= 86%Success

Rate

Think Differently

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Create growth plans that work

ODI can help you accelerate growth


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throughout the product life cycle.

Market Selection

Discover attractive marketsand market segments

Discover blue oceans

Validate a big idea

Development

Optimize the customerexperience

Adjust the strategy in response

to a sudden market change

Launch

Position or reposition aproduct to succeed

Resolve lingering product andservice quality issues

Market Strategy

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

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Our ideas are cited in

and over 200 other books and publications

Weve authored Weve published our ideas in

Learn More

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Thanks Again To Our Sponsors


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Rick Norman

[email protected]

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Rick Norman - pCamp DC April 2011 - Silence the VOC - Growth Plans That Work

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