Want faster growth? Better let customers surprise...
Transcript of Want faster growth? Better let customers surprise...
Adhesive & Sealants CouncilApril 5, 2017
Dan Adams, The AIM Institutedan.adams@theaiminstitute.comwww.newproductblueprinting.com
Want faster growth?Better let customers surprise you.
Do you want to be surprised whenoverseeing production?
Do you want to be surprised whentraveling for business?
Do you want to be surprised wheninstalling software?
Do you want to be surprised whenbuilding a new facility?
Do you want to be surprised wheninnovating new products?
New
Useful
Non-obvious
(Surprising)
But where and how should we be surprised?
Customers
1. Does your company have bright R&D people?2. Do your competitors have bright R&D people?3. Then how will your company win?
YourCompany
CompetitorA
CompetitorB
CompetitorD
CompetitorC
© The AIM Institute
What if your R&D worked only on problems that
truly cared about
while competitors kept guessingwhat to work on?
1. Which Problem consumes most of your innovation investment?1
2. Which Problem leads to most new product failures?2
© The AIM Institute1 Improving New Product Development Performance and Practices, American Productivity & Quality Center, 20032 The Conference Board, Adapted by Robert S. Cooper, Winning at New Products, from D. S. Hopkins & E. L. Bailey, “New Product Pressures” 1971
Problem 1
What’s theRight Question?
Problem 2
What’s theRight Answer?
Two Innovation Problems to Solve…
(Market Needs) (Your Solutions)
90% of project costsCause of most failures
Today’s best driver of organic growth
7 Ways to let customers surprise you
1. Be surprised early, not late
2. Optimize for B2B customers (not B2C)
3. Mine all possible customer outcomes
4. Let customers guide your interview
5. Use trigger methods during interviews
6. Interview many types of customers
7. Add quantitative interviews
Whose Idea?
SellDevelopIdea Validate
Yours … or Your Customer’s?
© The AIM Institute
Rule 1. Be surprised early, not late
SellDevelopValidateIdea
Assumed customer need
See if product sells
SupplierSolution
MarketNeed
When do most companies check market needs?
© The AIM Institute
One way to test market needs:
Launching products at customers
© The AIM Institute
“You’ll love our next product!”
Weekly blog at www.awkwardrealities.com
can usually offer more insight than
B2B Customers B2C Customers
EducationTraining
Time on the Job
1. Knowledge
Rule 2. Optimize for B2B customers (not B2C)
© The AIM Institute
Financial Impact
can usually offer more insight than
B2B Customers B2C Customers
2. Interest
Personal Recognition
HERO
© The AIM Institute
3. ObjectivityGroup Decisions
ProceduresAccountability
can usually offer more insight than
B2B Customers B2C Customers
© The AIM Institute
4. Foresight
Financial Objectives
Predictable Benefits
can usually offer more insight than
B2B Customers B2C Customers
© The AIM Institute
5. Concentration
Millions of Buyers
Fewer Buyers
can usually offer more insight than
B2B Customers B2C Customers
© The AIM Institute
Concentration
So What?
Knowledge
Interest
Objectivity
Foresight
are able to help the supplier design better products.
are willing to help the supplier design better products.
make rational, stable & understandable decisions.
can be directly engaged… and primed to buy later.
can discuss their needs before seeing a prototype.
B2B Customers B2C Customers
B2B Customers…
vs.
© The AIM Institute
Customer Outcomes
Increased abrasion resistance
Faster operating speed
Reduced maintenance costs
Quicker change-over timeImproved grease resistance
Greater weight capacity
Higher fill levelsReduced roller wear
Less slippage with wet ore
… desired customer end-results
1. Customer value is only created when an important, unmet outcome is improved.
2. Suppliers’ only path to profitable, sustainable growth is customer value creation.
Rule 3. Mine all possible customer outcomes
© The AIM Institute
The Science of B2B Customer Insight (aka Blueprinting)
1 Uncover all outcomes
2 Understand relevance
3 Define & set direction
4 Prioritize outcomes
5 Learn how to measure
6 Identify satisfaction points
7 Measure next best alternative
8 Quantity value created
9 Quantify value captured© The AIM Institute
Explained in…
DivergentDiscoveryInterviews
ConvergentPreferenceInterviews
Rest of New Product Blueprinting
www.aimwhitepapers.com
You become certain of your solution here.
Front-End Development Launch
Q: When do you resolve your technical risk?
TechnicalCertainty
© The AIM Institute
Front-End Development Launch
CommercialCertainty
Q1: When do you resolve your commercial risk?Q2: What if you built a Certainty Time Machine?
This machine is fueled by… Customer Outcomes
Diverge Converge
In most B2B, it’s knowable beforedevelopment.
© The AIM Institute
More in…
www.aimwhitepapers.com
Innovation Maturity Levels
Level 1
Solution PushWe start with our ideas and launch solutions we think customers will want.
Level 2
Solution ValidationWe start with our ideas and interview customers to “validate” our solutions.
Level 3
Market InsightWe start with customer needs using divergent & convergent interviews.
Customers reveal the most obvious “duds” before we enter the costly development stage.
We uncover the full range of outcomes… and only work on those customers care about.
Why Move Up a Level?
Market Needs vs. Market Reaction
© The AIM Institute
What should we ask customers about?Hint: What they want to talk about
Let’s drop ourquestionnaires.
Competent. Caring.
Rule 4. Let customers guide your interviews
© The AIM Institute
CustomerOutcome
Grid
QuietOperation
NetworkCapability
Low-CostInk
NoJamming
B&WPrinting
Print onGlossy Paper
1st PageTime
Walk-UpControls
NoSmearing
VividInk Color
Labels
Legal Paper
BindingFeature
No InkFading
EasyMaintenance
EnergyEfficient
LowSolid Waste
LowWeight
FastWarm-up
CardStock
LowInitial Cost
Easy InkChange
EnveloPrintin
PostcardPrinting
ing
er
Spillage3-HolePunch
No InkWaste
EasyCalibration
Appearance
FastSet-u
SmallFootprint
High PrintSpeed
Photo-QualityResolution
OnlineDiagnostics
2-SidedPrinting
Combo InkCartridges
Lo-PaperAlarm
sswordotection
24-HourSupport
Fast PaperChange
StaplingCapability
LargePaper Capacity
© The AIM Institute
Supplier-Directed Interview(Traditional)
Customer-Directed Interview(New Product Blueprinting)
What Else?
Is it… this?
© The AIM Institute
Supplier-Directed Interview(Traditional)
Customer-Directed Interview(New Product Blueprinting)
First answer
1. First question
Second answer
2. Second question
Third answer
3. Third question
No idea where they’re going!
What else?
Better Outcomes
More Engagement
Less Effort
© The AIM Institute
5 parts of Discovery Interviews (with Blueprinter® 5.0 Software)
1. Current State 2. Problems 3. Ideal State 4. Triggered Ideas 5. Top Picks
© The AIM Institute
The moderator begins the Problems section of Discovery Interview.
Problems
Moderator keeps probing an idea
Moderator asks “what else?”
Watch for these cases:
Go to Module 15, Slide 14
© The AIM InstituteVideo also at www.blueprintingforsales.com (Section 1, Slide 24)
Getting out of the box…
1. Empty
2. Get Out
Problems
Ideal State
Trigger Methods
Rule 5. Use trigger methods during interviews
© The AIM Institute
Too SimilarToo SimilarToo PredictableToo PredictableToo Confining
Too Similar
© The AIM Institute
More DivergentMore DivergentMore UnexpectedMore UnexpectedMore Liberating
More Divergent
© The AIM Institute
Trigger MethodsTrigger Methods
New Ideas
NewArena
ofThought
MetaphorSimilarities
OriginalArena
ofThought
© The AIM Institute
Trends Map
© The AIM Institute
Existing Customer
Former Customer
Prospect
Co-Supplier
Industry Consultant
Customer’s Customer
Charter Customer*
Design Technical Production OtherMgmnt Marketing
© The AIM Institute*A charter customer is someone you work closely with throughout product development.
Rule 6. Interview many types of customers
YourIdeas
DiscoveryInterviews
NewProduct
PreferenceInterviews
Most Important + Least Satisfied?Rule 7. Add quantitative customer interviews
© The AIM Institute
YourIdeas
DiscoveryInterviews
NewProduct
PreferenceInterviews
CompetitiveTesting
ProductObjectives
Divergent Convergent
© The AIM Institute
Outcome Importance vs. Current Satisfaction
Satisfaction
Importance
High
Low
HighLow
© The AIM Institute
Market Satisfaction Gap
Scrub Resistance
Crayon Removal
Hiding Power
24-Hr Window Stick
Brushmark Leveling
Fading Resistance
Sprayability
Stain Resistance
Brushability
Factory Mix Time
0% 10% 20% 30% 40%
21%
25%
12%
16%
13%
11%
8%
HighMarket
Eagerness
32%
35%
36%
MSG = IMP x (10 – SAT)Ex: Avg. IMP=9; SAT=6MSG = 9 x (10-6) = 36%
© The AIM Institute
to all potential customer outcomes
Diverge
to important, unsatisfied outcomes
Converge
Qualitative Discovery Interviews Quantitative Preference Interviews
Market Satisfaction Gaps
Eliminating innovation errors…
© The AIM Institute
But does it work?Research from The AIM Institute
Download at www.aimwhitepapers.com
• 35 Project teams• 14 Companies• 675 Interviews
• 150 Respondents• 23 Companies• >700 Interviews
© The AIM Institute
20%
31%32%
7%
10%
Strongly Agree
Agree
Somewhat Agree
Neutral
Disagree*
We learned unexpectedinformation.
© The AIM Institute
Describe your experience with Discovery interviews…
*Includes:• Strongly Disagree• Disagree• Somewhat Disagree
Discovery Interview Research Report, Page 8
46%
40%
14%0%0%
Great Impact
Significant Impact
Moderate Impact
Slight Impact
No Impact
How much have interviews impacted the design of your new offering?
Impact of interviews on product design
Preference Interview Research Report, Page 10© The AIM Institute
26%
23%29%
11%
11%
Great change
Significant Change
Moderate change
Slight Change
No change at all
How much have these interviews changed your original project scope?
Impact of interviews on project scope
Preference Interview Research Report, Page 10© The AIM Institute
Stage-gate in isolation: Analytical thinking Checklist mentality Internal focus
How does this fit with a Stage-Gate® process?1
1 Stage-Gate is a registered trademark of the Product Development Institute © The AIM Institute
Questions?You can surprise me
Dan Adams, The AIM Institutedan.adams@theaiminstitute.comwww.newproductblueprinting.com
Want faster growth?Better let customers surprise you.