Recorded webinar given by Tony Ulwick, CEO of Strategyn. "Silence the Voice of the Customer" reveals why it's time to breakaway from VOC methodology and try a new approach. Original airdate: 4/20/11

1. Silence the
Voice of the
Customer
And Create
Growth Plans that Work
4/20/11
© Strategyn Inc. 2011

2. Create growth
plans that work
Accelerate growth – lower risk.

3. The Goal is to Succeed Nearly All the Time

4. Think from a Different Perspective
2
E= MC

5. We Think Differently About …
Markets
Strategy
Innovation

6. What is a Market?

7. Traditional Definition
“A market is the set of
actual and potential
buyers of a product.”
Philip Kotler
Kellogg, Marketing Management

8. 0% Growth
150 BC
1670
1940
1985
1999

9. We Define “Market” Differently
“A market is a group
of job executors
and the job they are
trying to get done.”

10. The job of …
“communicating with a select group of people”

11. Breakthrough
Job map and 50 to 150
metrics per job

12. Mapping the Job-to-be-Done
Core Functional
Job
Job Map
• Outcome 41
• Outcome 1
• Outcome 42
• Outcome 2
• Outcome 43
Plan
Locate
Prepare
Confirm
• Outcome 44
• Outcome 3
• Outcome 4
• Outcome 45
• Outcome 5
Conclude
Modify
Monitor
Execute
50 – 150 metrics (needs) per job
The Customer-Centered Innovation Map, HBR, May 2008
Giving Customers a Fair Hearing, MIT Sloan, May 2008

13. Desired Outcome = Customer Need
Unit of Object of
Direction
Measure
Control
Minimize the time it takes to confirm
receipt of a communication

14. Silence the Voice of the Customer
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

15. 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

16. Opportunity Is …
An important but poorly
satisfied outcome

17. Market Opportunity Landscape
Opportunity = Importance + max (Importance – Satisfaction, 0)
High
Satisfaction
Over served
Under served
Low
Low
Importance
High

18. 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

19. Create growth
plans that work
Accelerate growth – lower risk.

20. We Think Differently About …
Markets
Strategy
Innovation

21. What is Strategy?

22. Traditional Definition
“Strategy is choosing “Activities, then,
to perform are the basic unit of
activities differently competitive
than rivals do.”
advantage.”
Michael Porter
Harvard Business School

23. Doctors who open a
clogged artery

24. We Define “Strategy” Differently
“Strategy is choosing “Customer needs
which unmet are the basic unit of
customer needs to competitive
target and how to advantage.”
satisfy them.”

25. Breakthrough
Outcome-based
market segmentation

26. Segments of Opportunity
Segment 1
Segment 2
Segment 3
65%
25%
10%

27. 1. Which Needs Should We Target?
Opportunity = Importance + max (Importance – Satisfaction, 0)
High
Segment
• Minimize the time it takes to move
1
through the vessel
Satisfaction
• 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
Low
Under served
(recurrence of the blockage)
Low
Importance
High

28. 2. Which Job Executor?
Cardiac
Interventional
Patient
Surgeon
Cardiologist

29. 3. Which Platform(s)?
Angioplasty
40 Projects
Stent
Balloon
in R&D

30. This is a Growth Strategy
Needs
Executor
Platform(s)
Segment
1

31. 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
In Vivo
Japan.”

32. 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.

33. Create growth
plans that work
Accelerate growth – lower risk.

34. We Think Differently About …
Markets
Strategy
Innovation

35. What is Innovation?

36. Traditional Definition
“Innovation is the “Orderly innovation is
creation of new an oxymoronic phrase
products and services.”
believed by morons
with ox-like brains.”
Tom Peters
HSM 2007
Author of In Search of Excellence

37. IT managers who
manage enterprise
software licenses

38. We Define “Innovation” Differently
“Innovation is the
creation of products
that help customers
get a job done
better and
contribute to
growth.”

39. Innovation = Get a Job Done Better
Step
Step
Step
Step
1
2
3
4

40. Innovation = Get a Job Done Better
Step
Step
Step
Step
1
2
3
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
PC

41. Innovation = Get a Job Done Better
Step
Step
Step
NEW
Step
NEEDS (3 of 150)
1
IMP
SAT
OPP
2
IDEA
3
4
SAT
Minimize the likelihood that backward Application
9.1
3.2
15.0
5.6
compatibility causes problems
virtualization
Minimize the likelihood that power Centralized
9.1
5.1
13.1
7.1
users can create security violations
permissions
Minimize the time it takes to Real-time
9.1
3.4
14.8
6.3
troubleshoot deployment problems
metering
Value Add = %∆ in Satisfaction
60%
75%

42. How much
will you grow?

43. Breakthrough
The securable market

44. The Securable Market
High
Increased Satisfaction
Willingness to Pay
Need Curve™
Premium market
Dollar volume of the
Securable
Low cost
market
Low
Low
Underserved Executors
High
What gain in revenue is expected if we succeed?

45. 35% Renewals
80%
$1 Billion
Projected
Revenue

46. Create growth
plans that work
Accelerate growth – lower risk.

47. ®
This is Outcome-Driven Innovation (ODI)
Markets
Strategy
Innovation

48. ®
The Outcome-Driven Innovation Process
Idea
Create
Testing and
Screen
Scoping
Business Case
Development
Validation
Launch
GATE
1
STAGE
1
GATE
2
STAGE
2
GATE
3
STAGE
3
GATE
4
STAGE
4
GATE
5
STAGE
5
= 17%
Success
Traditional Innovation Process
Rate
Market
Market
Concept
Testing and
Selection
Strategy
Innovation
Development
Validation
Launch
STAGE
1
GATE
1
STAGE
1
GATE
2
STAGE
2
GATE
3
STAGE
3
GATE
4
STAGE
4
GATE
5
STAGE
5
= 86%
Success
The Outcome-Driven Innovation® (ODI) Process
Rate

49. ODI can help you accelerate growth…
… throughout the product life cycle.
• Discover attractive markets
and market segments
• Discover “blue oceans”
Market Selection
• Validate a big idea
• Define next-gen products
• Define next-gen platforms
• Disrupt a market
Market Strategy
• Ideate breakthrough solutions
• Optimize the customer
experience
• Adjust the strategy in Development
response to a sudden market
change
• Position or reposition a
product to succeed
• Resolve lingering product and
Launch
service quality issues

50. Learn More …
We’ve authored …
We’ve published our ideas in …
Our ideas are cited in …
… and over 200 other books and publications

51. Contact us:
info@strategyn.com
Toll Free: (866) 729-8400
Tony Ulwick
ulwick@strategyn.com