2. OUTCOME-DRIVEN INNOVATION CASE-STUDY
Growing Microsoft’s Software Assurance Business
Microsoft’s Software Assurance was a business under pressure, facing
declining renewals that put substantial revenue at risk. Using Strategyn’s
outcome-driven innovation (ODI) methodology, Microsoft was able to:
• Discover hidden opportunities for value creation over the lifecycle of PC
software
• Repackage and reposition the Software Assurance offering to meet
customer needs without developing new products
• Turn Software Assurance into a growth business and dramatically
increase annual renewal rates
Drawing on the responses of 28 procurement managers, Microsoft
dissected the job of purchasing a license agreement, uncovering 76 desired
outcomes (customer needs). Microsoft then conducted interviews with 30
IT professionals, uncovering 58 desired outcomes related to their role in The opportunity landscape for purchasing and
purchasing, 81 outcomes on the job of managing a software license, and 34 managing software licenses revealed a
other jobs related to managing software licenses. Next, using ODI-based number of jobs and desired outcomes that
quantitative research techniques, Microsoft had 100 procurement were underserved. Many could be addressed
managers and 298 IT professionals prioritize those needs. Not surprisingly, by products already developed but not
the results revealed dissatisfaction with current licensing practices, with 94 previously integrated into the offering.
of 215 desired outcomes (39 for procurement managers, 55 for IT
professionals) being underserved. The same was true of 10 of the related
jobs. Importantly, the ODI results revealed many opportunities for “In a market under immense price
pressure, Strategyn’s outcome-driven approach to
innovation that Microsoft had not previously considered.
innovation allowed us to grow a struggling business.”
Dave Wascha, Director – Microsoft Corporation
3. OUTCOME-DRIVEN INNOVATION CASE-STUDY
Service Innovation at Advanced Medical Optics
Abbott Medical Optics found it was losing customers due to poor customer
service. Working with Strategyn and using the outcome-driven innovation
(ODI) methodology, the company was able to:
• Discover unique service innovation opportunities by looking at customer
needs from the perspective of the job the customer is trying to get done
• Satisfy customer needs with innovations in service delivery and new
offerings
• Realize a 10 percent increase in its Net Promoter score and a 14 percent
increase in its customer loyalty index
• Win a prestigious award for world-class customer service
Drawing on the responses of 20 materials managers, AMO dissected the
job of replenishing ophthalmic lenses for cataract implant
surgeries, uncovering 83 outcomes that materials managers desired in
The opportunity landscape revealed a number
doing this job – outcomes relating to various steps in the job, from
of underserved outcomes for materials
determining lens replenishment needs to returning lenses to the vendor. By
managers. Many of these opportunities are
studying the job, AMO discovered that a traditional distinction between
promising targets for service innovation.
front-office and back-office responsibilities for materials management was
artificial. AMO also uncovered 22 desired outcomes related to materials
managers’ service and support interactions with an ophthalmic vendor.
Next, using ODI-based quantitative research techniques, AMO had 192
materials managers prioritize the outcomes it had uncovered. The “Strategyn’s outcome-driven innovation approach was
opportunity landscape revealed considerable opportunity for key to helping AMO develop a customer-driven
innovation, with 46 of the 83 lens replenishment outcomes being strategy.” Angelo Rago, Senior Vice President, Global
underserved and 19 of the 22 service and support interaction outcomes Customer Services, Abbott Medical Optics
being underserved.
4. OUTCOME-DRIVEN INNOVATION CASE-STUDY
Creating the Bosch CS20 Circular Saw
Bosch faced many challenges when it decided to enter the North American
professional circular saw market. Using Strategyn’s outcome-driven
innovation (ODI) methodology, the company was able to:
• Discover hidden opportunities in a mature market among a segment of
circular saw users
• Focus its idea generation on features to satisfy each of 14 underserved
outcomes
• Introduce a new product – the CS20 circular saw – that dramatically
improved customer satisfaction and enabled Bosch to gain the
distribution support of Lowe’s and Home Depot
Drawing on the responses of 30 circular saw users, Bosch dissected the job
of cutting wood in a straight line, uncovering 85 desired outcomes (unmet
customer needs). Next, using ODI-based quantitative research The opportunity landscape for this outcome-
techniques, Bosch had 270 users prioritize those needs. Not based segment revealed a number of targets
surprisingly, the results showed that in the market as a whole, there were (unmet needs) for value creation. This segment
no unmet needs. This meant that to discover unmet needs, powerful represented over 30 percent of all users and
outcome-based segmentation practices would be required. Strategyn’s became the target for Bosch’s entry into the
proprietary segmentation methods revealed four segments of North American market.
opportunity, one of which made a perfect target for Bosch. This newly “Strategyn’s outcome-driven approach to innovation
discovered target segment, which was comprised of primarily finish and made it possible for us to hit a home run in the mature
advanced carpenters, represented over 30 percent of all users. The and competitive circular saw market. The Bosch CS20
opportunity landscape for this segment clearly revealed that 14 of the 85 is a breakthrough innovation and a hit with both users
desired outcomes were unmet. and our channel partners.”
Bosch product manager Jason Schickerling
5. OUTCOME-DRIVEN INNOVATION CASE-STUDY
Innovation at Line 6: The BackTrack Digital Recorder
Having already made a name for itself in the guitar business, Line 6 realized
that it needed a detailed understanding of its customers’ needs if it wanted
to continue to meet its aggressive growth goals. Using Strategyn’s
outcome-driven innovation (ODI) methodology, the company was able to:
• Discover opportunities for new market creation related to the jobs
guitarists are trying to get done
• Develop a revolutionary digital recording device called BackTrack, which
focused squarely on the unmet needs of guitarists
• Introduce a product to the market that is capturing significant market
share and receiving glowing accolades from customers and professionals
Drawing on the responses of 51 guitarists, Line 6 uncovered 108 functional
jobs (jobs related to the act of playing the guitar) and 18 emotional jobs
(jobs related to how guitarists want to feel when playing) in a broad The opportunity landscape for guitarists’ jobs
spectrum of areas, including preparing to play, learning revealed a number of opportunities for product
material, developing skills, playing for inspiration, composing, and innovation. Underserved functional and
capturing a performance. Next, using ODI-based quantitative research emotional jobs led to the development and
techniques, Line 6 had 668 guitarists prioritize those jobs. The opportunity launch of the BackTrack, which opened up a
landscape revealed that 17 of the guitarists’ functional jobs and 13 of their completely new market for Line 6.
emotional jobs were underserved – that is, current offerings by Line 6 and
others were not helping customers get the jobs done satisfactorily. These “When you are trying to provide solutions, knowing
underserved jobs highlighted opportunities for Line 6 and provided the prioritization of customer needs can have a big
indispensable direction to the company’s innovation efforts. impact on what features you include and how you
communicate with customers about a new product.”
Michael Murphy – BackTrack Product Manager, Line 6
6. Outcome-Driven Innovation allows innovators to…
• Embed a new way of thinking about how to understand, discover and address customer
needs across the organisation.
• Identify new and highly valuable market opportunities for product and service innovation.
• Define robust, market-driving strategies for predictable organic growth.
• Help you to instil a repeatable innovation process
• Achieve continuity, transparency and alignment of the innovation effort whilst removing
variability and risk.
• Build advanced opportunity-based segmentation practices for multiple business and
marketing decision-making purposes.
• Focus your idea and concept generation efforts and remove redundancy from the current
and future project pipelines
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7. Strategyn UK Outcome-Driven Innovation Consultancy
Typical Project, Training, Mentoring and Programme Pathways
A
Execute ODI Projects
We demonstrate the process and the benefits of using ODI Execute ODI Projects
using Strategyn
Execute ODI Projects quickly on a significant job / market opportunity , enabling
Execute ODI Projects
using Strategyn
using Strategyn you to move to Pathway B with confidence. Many clients using Strategyn
Strategyn UK consultants prefer us to continue to deliver their projects…
undertake your ODI
project quickly and with
needed precision
Review Current
Frame your Markets Segment markets for Assess competitive Assess technology
Innovation & Additional services can be
growth situation enabler potential
/ ODI Programmes Marketing
added on a per engagement
Map your Markets Formulate a growth
basis
Generate powerful Build robust business
and Strategy for ODI strategy ideas / concepts cases
B
OPTIONAL OPTIONAL OPTIONAL
Train Employees as Execute 1st Project Obtain Ongoing Build a Corporate
ODI Practitioners using Strategyn Strategyn Expertise ODI Capability
Strategyn UK consultants Strategyn UK consultants Strategyn UK consultants Strategyn UK consultants
train you to become undertake your ODI mentor you to run your support you to establish
proficient in ODI project quickly and with own ODI projects (post- your own internal ODI
needed precision training) process / capability
NOTE: Pathway B requires the client to nominate at least 1 employee to complete the 5-day education program and for the
organisation to license Strategyn’s IP and tool set. The license package includes rights to Strategyn's patented innovation
process, web-based data analysis and reporting tool, and the 100-plus tools and templates housed on Strategyn’s web-portal.
8. Further reading
The Customer-Centred
Innovation Map, Harvard
Business Review, May 2008
Giving Customers a Fair
Hearing, MIT Sloan What Customers Want The Innovator’s Solution
Management Review, Spring a bestselling book by In Professor Clayton
2008 Strategyn CEO Tony Christensen's book - The
Ulwick, details the Innovator's Solution - he
theory and practice of explains why Strategyn's
outcome-driven thinking and segmentation
innovation methods are critical to the
Best Business Idea Winner successful management of
new market creation
Turn Customer Input into
Innovation, Harvard Business
Review, January 2002
9. You Experience Innovation Success ®
Strategyn UK
Cranfield Innovation Centre
Cranfield University Technology Park
Cranfield
Bedfordshire
UNITED KINGDOM
MK43 0BT
Tel: +44(0)844 561 0401
Email: uk@strategyn.com
Web: www.strategyn.co.uk
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