Presentation slides given by Scott Cook at Software 2005 conference. See http://onproductmanagement.net/2009/06/10/scott-cook for more info.

1. Stories of Invention
Scott Cook

2. 2

3. Our Mission
Revolutionize Peoples’ Lives
Changes so profound customers can’t
imagine going back to the old way
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4. The QuickBooks Story
4

5. Challenges in the QuickBooks Launch
 Unknown name
 Higher price...2X the market leader
 Tiny feature set…less than 1/2 the features
 Bad advertising
5

7. Challenges in the QuickBooks Launch
 Unknown name
 Higher price...2X the market leader
 Tiny feature set…less than 1/2 the features
 Bad advertising
 Bugs
 Vanishing data
 Tech support hell
7

8. QuickBooks Launch
Share of Retail Sales, 1992-93
% DOS Unit Volume
70%
Share of Retail Sales
60% QuickBooks
50%
40%
30%
Pacioli DacEasy
20%
10% Peachtree
Other
0%
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
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9. The Essence of the Invention
The Customer Problem Our Solution: QuickBooks
Most small firms hate The first accounting
& can’t do debit/credit software with no debits or
accounting credits
99

10. Customer Driven Invention
Find an Important
Solve
Customer Problem
It Well
that’s Unsolved
The Customer Problem Our Solution: QuickBooks
Most small firms hate The first accounting
& can’t do software with no debits or
debit/credit credits
accounting
10
10

11. What Drives Success…Our View
• High-performing org
Employees • Great place to work
• Invent better ways to live
Customers • Delight so they buy more & tell friends
• Big successful businesses
Shareholders • Profitable growth
11

12. Customer Driven Invention
Find an Important
Solve
Customer Problem
It Well
that’s Unsolved
12
12

13. The QB Point of Sale Story
Three mindsets had to change
That accounting was the area

we should address
That POS is complex and
custom installed by VARs for
$4,000
That Intuit sells software
13

14. Two Versions of QuickBooks
Point of Sale
Software Only - $799 Hardware + Software - $1499
Credit Card Swipe
Receipt
Printer
Bar Code
Scanner
Cash Drawer
14

15. Results: Nation’s #1 selling
POS system among small
retailers
15

16. Two Keys to Customer Driven Innovation
 The mindset most in need of

change is likely your own
The key to mindset change is to
study customers
16

17. The Barrier to Mindset Change
“Empathy is not just about walking in
another’s shoes...first you must remove
your own shoes.”
-- Indian proverb
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18. The Barrier to Mindset Change
“Empathy is not just about walking in
another’s shoes...first you must remove
your own shoes.”
-- Indian proverb
“Before you criticize someone, you should
walk a mile in their shoes. That way,
when you criticize them, you’re a mile
away and you have their shoes.”
-- Unknown
18

19. Victoria’s Secret
Situation: Share flat at just over 20%
Action: Follow-me-home…to the lingerie drawer
Discovery: Missing 5/7ths of usage as sexy underwear
isn’t thought comfortable
 New offering: Body by Victoria…seamless underwear
 Result: Growth rate doubled
victoriassecret.com
19

20. The Key to Customer Driven Innovation
 The mindset most in need of

change is likely your own
The key to mindset change is to
study customers
20

21. Visa/MC/AmEx Developers Financial Institutions
Mid-Sized
Businesses
Industry
Partners OFX
Customers
Startup
Federal & State
Government Accountants
21

22. What’s Driving Customers Now
Right For Me…
Return To On Demand Is
Simplicity Right Out Of In Demand
The Box
22
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23. What’s Driving Customers Now
Right For Me…
Return To On Demand Is
Simplicity Right Out Of In Demand
The Box
23
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23 September 15, 2004

24. 2003 edition
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27. 2004 edition
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28. 28

29. Results
 Leaps in customer ratings
FYTD 2004 2005 Gain
TurboTax Web 69 78 + 9 points
First time users 48 71 +23 points
 Driving TurboTax volume gains
 While leading competitor shrinks
29

30. 30

31. 31

32. After – Three Step Process
32

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34. Simplicity In Many Businesses
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35. What’s Driving Customers Now
Right For Me…
Return To On Demand Is
Simplicity Right Out Of In Demand
The Box
35
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36. Inc’s Fastest Growing Business, 2003
36
36

37. QuickBooks Enterprise Solutions
Priced at $3,500 QB Enterprise
a fraction of competitors’ cost Revenues
Revenue
Aug 03 Jan 05
83% Unit Growth Rate
FY04
37

38. Visa/MC/AmEx Developers Financial Institutions
Mid-Sized
Businesses
Industry
Partners OFX
Customers
Startup
Federal & State
Government Accountants
38

39. What’s Driving Customers Now
Right For Me…
Return To On Demand Is
Simplicity Right Out Of In Demand
The Box
39
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39 September 15, 2004

40. Intuit Hosts for 4 Million Customers
Revenue
Intuit ASP
Revenue
0
1999 2000 2001 2002 2003 2004
40

41. What’s Driving Customers Now
Right For Me…
Return To On Demand Is
Simplicity Right Out Of In Demand
The Box
41
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42. The QuickBase Story
Hosted Easy
Flexible Fast
“Database” Team Workflow
for for
Small Business Corporate Workgroups
Technology Out Customer In
42

43. Team Workflow for Corporate Workgroups
Workgroups Industries
 Project Management  Manufacturing  Banks
 Sales and Marketing  High Tech  Healthcare
 Customer Support  Telecommunications  Entertainment
 Finance and Treasury  Airlines  Retail
 Product Development  Real Estate  Builders
 Quality Assurance  Aerospace & Defense  Pharmaceuticals
 Operations  Beverages  Temporary Services
 HR and Training  Transport & Logistics  Apparel
24 of the Fortune 100, including Sprint, Bank of America
Top accounts average over 1000 users, and manage over
60 workflows
“Tivo and QuickBase… neither has ever let me down!”
-- Strategic Planning Lead, Fortune 100 Financial Services Company
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44. Our Mission
Revolutionize Peoples’ Lives
Changes so profound customers can’t
imagine going back to the old way
44

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46. Continuing Invention
46
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47. Changes so profound customers can’t
imagine going back to the old way
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47 September 15, 2004