The Innovator's Playbook
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Transcript of The Innovator's Playbook
3/26/2015
1
>> Playing the Game of Innovation to Win >>
The Innovator’s Playbook
Using the “Jobs-To-Be-Done”innovation framework to discover
and transform great ideas intobreakthrough new products
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Success Rates for New Products isDisappointingly Low
• Over 60% of all new-product-developmentefforts never reach the market
• Of the 40% that do, 40% fail to beprofitable and are withdrawn
• Add it all up: Three Quarters of the moneyinvested on NPD efforts results in productsthat do not succeed!
– Clayton Christensen – Innovator’s Solution
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3/26/2015
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A Change of Perspective
“You’ve got to study the hole, not the drill.The drill is just the [a] solution for it.”
– Theodore Levitt: Marketing Imagination
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They buy¼” holes
People don’t buy¼” drill bits
People “Hire” Products To Get JobsDone
When customers become aware of a job thatthey need to get done in their lives, they lookaround for a product or service that they can“hire” to get the job done.”
– Clayton Christensen
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3/26/2015
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Examples of hiring products to getjobs done
• People don’t need irons and ironingboards – what they need is wrinkle freecloths
• People don’t buy sanitizing soap toclean their hands – they buy soap keepbody free from germs
• People don’t want to hire hotels – theywant to hire rooms … AirBnB forhotel stay –
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What are jobs?
• A job is a task, objective or goal aperson or organization is trying toaccomplish or a problem they aretrying to resolve.
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As simple assatisfying asweet tooth
To ascomplexof buildinga skyscraper
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The Job is
• Important and peopleare dedicated to gettingthe job done
• Customers “hire”products that get thejob done best,according to theirdefinition of success:Desired Outcomes
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www.inpdcenter.com * [email protected] * 510.403.1727
The Dimensions of Jobs
Jobs to Be Done
Functional Jobs
Emotional Jobs
Personal Social
Source: Anthony W. Ulwick, Strategyn
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Example of Job Dimensions
• Dining Experience
– Functional Dimension
– Personal Dimension
– Social Dimension
• Managing a Production Floor
– Functional Dimension
– Personal Dimension
– Social Dimension
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“Jobs” as the unit of analysis
• Jobs are stable and provide long-termfocal point to create value around
• Products are point-in-time solutions
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Example: Illuminating aroom
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Three Distinct Types of Data
• The jobs customers are trying to get done(jobs-to-be-done)– The task or activities customers are trying to
carry out
• Outcomes customers are trying to achieve– The metrics customers use to define the
successful execution of a job
• Constraints that may prevent customersfrom adopting or using a new product orservice
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Primary Job, Job Trees and JobChains
• A primary job is the fundamental problema customer faces or the ultimate outcomehe desires
• All the sub-jobs required to execute theprimary job make up what’s called the “jobtree.”
• Each of the job nodes represents discretejobs-to-be-done with its own set of sub-jobsand desired outcomes, called “job chains”
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A Job Map for Constructing a House
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Job Statements
• A job statement is used to describeand frame a job-to-be-done (J2BD)
– Who has the job – also know as the Job-Executor
– What are they trying to get done andwhy? – The desired outcomes
– The context in which the job occurs –Circumstances, Constraints and Barriers
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3/26/2015
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Job Statement Construct
• [Customer] wants to[solve a problem] in[this circumstance]
• Example:
Construction workers want to findmissing tools quickly when working inmessy and cluttered work sites [toimprove their productivity.]
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Structure of a Job Statement Take 2
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Manage personal finances at home
Eat meal in car
Actionverb Object of action Contextual clarifier
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Desired Outcomes Define Customers’Success Metrics
Customers wantmore of what they
want
Customers wantless of what they
don’t want
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www.inpdcenter.com * [email protected] * 510.403.1727
Desired Outcomes- Metrics That DriveInnovation
• Jobs are processes, with a beginning, middle andend– Each step along the job process is an opportunity to
improve and innovate
• The key is to capture a set of metrics thatmeasures value– How they want to get the job done
– What it means to get the job done perfectly
• For most “jobs” there are typically 50 to 150 ormore “desired outcomes” – not just a handful
• Companies must captured information about all thedesired outcomes because you never know whichmay be underserved
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Dissection of an Outcome
• Desired Outcomes typically state
– A direction of improvement (minimize orincrease);
– Contains a unit of measurement (number,time, frequency, likelihood);
– What outcome is desired
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Uncovering Desired Outcomes
• Customers do not naturally share themetrics they use to judge the value ofthe product or service
• Companies need to engagecustomers in a conversation that isdesigned to extract the customer’sdesired outcomes
• Trained interviewers can extract fromthe customer their desired outcomes
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Identifying Constraints
• Overcoming constraints that prevent acustomer from getting a job done
– Altogether
– Under certain circumstances
• Overcoming constraints can uncoverexcellent growth opportunities
Jobs & Job Executor Opportunity Matrix
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Exercise – Why do customers hire yourproducts?
• What jobs are people trying to get done by hiringour products?
• What are the ultimate outcomes they want by doingthese jobs?
• Is this the primary job or is it one step in a chain ofjobs?
• What circumstances and constraints do they facein executing their jobs?
• From their perspective, how satisfied are they withthe outcomes they are currently achieving ingetting their jobs done?
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Recommend Reading
• The Innovator’s Playbook– Kevin McGourty
• Innovator’s Solution– Clayton Christensen
• What Customers Want”– Anthony Ulwick
• The Innovator’s Guide to Growth– Mark Johnson and all
• Discovery Driven Growth– McGrath and MacMillan
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3/26/2015
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Final Thought
“Don’t Fall In Love With YourSolution, Fall In Love With The
Problem Your Customers Are TryingTo Solve”
Brad Smith, President & CEO, Intuit
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>> Playing the Game of Innovation to Win >>
Contact Information
510.403.1727
www.inpdcenter.com
www.inpdcenter.com * [email protected] * 510.403.1727