Designing Products and Services Customers Want To Buy Why is the batting average for product development approximately 20%? Why should you re-look at the traditional “voice of the customer” approach? If the traditional approach worked, then why do you have such a low batting average? If we had an accurate method of defining product requirements, then why do we call the product definition phase, the “fuzzy front end?” The primary reason is that companies are looking for innovation in the wrong places. This session will discuss what it takes to look for innovation in the right places and in the right way by taking a concern oriented rather than a solutions oriented approach. Customers know what job they want to get done, its importance, and their level of satisfaction with the current approaches. Approached this way developers can do what they do best. Provide innovative solutions.

1. Looking For InnovationIn All The Wrong PlacesRichard Eppel(512) 522-1371rceppel@denary.comwww.revenueintensity.com http://blog.revenueintensity.com

3. My Background Engineering Systems Engineer Product Manager Product Line Manager Engineering Executive Business General Manager CEO

4. Agenda Setting A Context for Innovation Exploring the Job-Needing-Done (JND) Approach Practice Session Application Example

5. What Are You Up Against 3,000 Raw Ideas 100 Exploratory Projects 10 Well-Developed Projects 2 Full-Fledged Product Launches Stevens, G A. and Burley, J. “3,000 Raw Ideas = 1 Commercial Success 1 Successful Product

6. How Can We Improve Our Odds? By Looking For Innovation In The Right Places And In The Right Way

7. Customers As A Source Of Innovation What questions do you ask your customers? What answers to you get? Do the answers help you target innovation? Do the questions and answers produce insight: To make powerful offers In your customer’s language

8. Typical Customer Feedback Vague statements Their solution Desired outcomes tainted with their solution

9. Two Key Questions How might we better utilize our customer’s knowledge to generate innovations that will accelerate our growth? How might we formulate the questions such that the answers are actionable?

10. What Do Customers Know? Their world What they are attempting to accomplish What works well What doesn’t work well What doesn’t work at all For the Job They Need To Get Done

11. What Do You Know? How To Provide Innovative Solutions For The Job They Need To Get Done

12. What Do You Need To Do Your Job? The jobs the customer needs to get done The outcomes they want to produce The level of importance of the job Their current level of satisfaction with their outcomes In A Precise And Disciplined Fashion

14. Determining

15. Capturing

16. Cutting

17. Repairing

19. Job Needing Done Approach with these outcomes personal finances Managing at home Action Verb Action Object Value Metrics Context/Circumstances with these outcomes the value of vintage cars during an auction Determining

20. Job Needing Done Outcomes Functional Job Statement Outcome Statement

21. Job Needing Done Outcomes Functional Job Statement Action Verb Action Object Value Metrics Circumstances Outcome Statement with these outcomes the value of vintage cars during an auction Determining

22. Practice

23. Practice Example

24. Practice Worksheet

25. Example You are in the business of selling: Guitar amplifiers Special guitars A full range of accessories Do you think you understand your customer? Are their customers you not serving? How do you find out?

26. Ask Guitarists Find out the job they are trying to get done Uncover the functional jobs Uncover the emotional jobs Survey a larger population to prioritize the level of importance and satisfaction Determine the parts of the job that are underserved

27. Formulate Strategic Alternatives 10 Opportunity = Importance + max(Importance-Satisfaction,0) Overserved Satisfaction >12 >15 Adequately Served Underserved 1 1 10 Importance

28. Develop A Market Category

30. Always on, and always listening