Why Your Idea Is Worth Nothing
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September 2011 © Strategyn Consulting, LLC Why Your Idea Is Worth Nothing Tony Ulwick ... and how to create growth plans that work.
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Strategyn Founder and CEO, Tony Ulwick, provides insight into why most ideas are worth nothing and a jobs-to-be-done framework for overcoming this challenge. These insights will be useful for any organization who is trying to accelerate its growth through innovation.
Transcript of Why Your Idea Is Worth Nothing
September 2011
© Strategyn Consulting, LLC
Why Your Idea Is Worth Nothing
Tony Ulwick
... and how to create growth plans that work.
Innovation Begins with an Idea
Brainstorming
There Are No Bad Ideas
Open Innovation
IBM Idea Jam: 46,000 Ideas
Ideas Drive Innovation
Audience Question 1:
Do you agree or disagree that this thinking drives the types of innovation practices your company uses today?
AgreeDisagree
Endless Supply of Bad Ideas
It is exceptionally hard to have an idea that will accelerate a company’s growth.
“PC jr is a flop.”
WSJJanuary 1984
17%
< 2%
≃ 0%
Your Idea Is Worth Nothing
NeedsMarket Strategy
Your Idea Is Worth Nothing
Isn’t in an attractive market
Isn’t in an attractive market
Doesn’t address theright needs
Doesn’t address theright needs
Isn’t strategically sound
Isn’t strategically sound
Your Idea Is Worth Nothing
Growth Is Left to Chance
Idea
Growth Is Left to Chance
Idea Market
Growth Is Left to Chance
Idea Market Needs
Growth Is Left to Chance
Idea Market StrategyNeeds
Idea
Eliminate the Chance
Market Idea
Eliminate the Chance
Market Needs Idea
Eliminate the Chance
Market StrategyNeeds Idea
Eliminate the Chance
Creating Ideas for Growth
NeedsMarket Strategy
Creating Ideas for Growth
What is an Attractive Market?
Financially Attractive
Market potential is price times products times buyers.
Traditional Method
Philip KotlerKellogg, Marketing Management
Market potential is price times products times buyers.
The iPod Market
iPod Growth
-20%
20%
60%
100%
140%
180%
220%
06Q1 06Q3 07Q1 07Q3 08Q1 08Q3 09Q1 09Q3 10Q1 10Q3 11Q1 11Q3
0%
Source: Apple Quarterly Reports
Marketwatch July 29, 2009
“The market reception for Zune is so disappointing that many retailers have even stopped selling it
altogether.”
Audience Question 2:
What do you think the chances are that any given idea will be in a market that is financially attractive to the company?
less than 5%6% - 10%11% - 25%26% - 50%Over 50%
Traditional Markets
1948 1962 1984 2001
Products = past
Customers don’t want iPods any more than they want CDs or 8-track tapes.
Job:
Listen to Music
MarketJob Executor
= +
Market potential is number of job executors times
willingness to pay to get the job done better.
Get a Job Done Better
1948 1962 1984 2001
Get a Job Done Better
1948 1962 1984 2001 2005
80 million90,000 per day
Creating Ideas for Growth
NeedsMarket Strategy
Creating Ideas for Growth
What is a Customer Need?
What is a Customer Need?
95%Don’t havedefinition
MIT Sloan Management ReviewMay 2008
Voice of the Customer
Voice of the Customer
Focus on the Job
50 - 150 Customer Metrics
PredictablyQuickly Successfully
StabilitySpeed Output
150 BC 19851940 19991670
150 BC 19851940 19991670
0% Growth
Customers don’t want radios any more than they want
megaphones or smoke signals.
Communicate in a dangerous situation
Minimize the time it takes to confirm receipt
Minimize the time it takes to confirm receipt
Direction Object of ControlMetric
Minimize the time it takes to confirm receipt of a communication
Minimize the likelihood that the communication is interrupted
Minimize the likelihood of interference when communicating
Increase the likelihood that the communication is discreet
Minimize the likelihood that a message is misunderstood
Minimize the time it takes to establish a record of the communication
Minimize the likelihood that the communication is intercepted
0
2.5
5.0
7.5
10.0
0 2.5 5.0 7.5 10.0
Sat
isfa
ctio
n
Importance
Market Opportunities
0
2.5
5.0
7.5
10.0
0 2.5 5.0 7.5 10.0
Sat
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ctio
n
Importance
Market Opportunities
Minimize the time it takes to confirm receipt
IMP SAT OPP
7.3 3.2 11.4
“ODI was used to create two of our bestselling radios to date.”
Bob PennisiAdvanced Technology Center
From 0% to 18% Growth
Dr. Pennisi is currently a senior Strategyn professional
Audience Question 3:
What do you think the chances are that any given idea will better satisfy a significant number of the right 50 to 150 needs in a market?
less than 5%6% - 10%11% - 25%26% - 50%Over 50%
Creating Ideas for Growth
NeedsMarket Strategy
Creating Ideas for Growth
Product Strategy
SustainingProduct
Improvement
Low Cost Disruption
Breakthrough or Radical
?
50% 20%
20% 10%
?
30% 10%
10% 50%
?
Audience Question 4:
What do you think the chances are that any given idea will have correctly chosen the right product strategy?
less than 5%6% - 10%11% - 25%26% - 50%Over 50%
The Market Decides, Not You
SustainingProduct
ImprovementLow Cost Disruption
Breakthroughor Radical
Opportunities Dictate Strategy
0
2.5
5.0
7.5
10.0
0 2.5 5.0 7.5 10.0
Sat
isfa
ctio
n
Importance
0
2.5
5.0
7.5
10.0
0 2.5 5.0 7.5 10.0
Sat
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ctio
n
Importance
Opportunities Dictate Strategy
0
2.5
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7.5
10.0
0 2.5 5.0 7.5 10.0
Sat
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Importance
Opportunities Dictate Strategy
0
2.5
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Sat
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Importance
0
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Sat
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Importance
Product Improvement
Existing Platform
0
2.5
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Sat
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ctio
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Importance
Product Improvement
Existing Platform
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Sat
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Importance
0
2.5
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Sat
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ctio
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Importance
New Platform
Breakthrough - Radical
0
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7.5
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Sat
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Importance
New Platform
Breakthrough - Radical
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Sat
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Importance
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10.0
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Sat
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ctio
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Importance
Sustaining
Existing Platform
0
2.5
5.0
7.5
10.0
0 2.5 5.0 7.5 10.0
Sat
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ctio
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Importance
Sustaining
Existing Platform
Low Cost Disruption
0
2.5
5.0
7.5
10.0
0 2.5 5.0 7.5 10.0
Sat
isfa
ctio
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Importance
Low Cost Disruption
0
2.5
5.0
7.5
10.0
0 2.5 5.0 7.5 10.0
Sat
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ctio
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Importance
New Platform
Low Cost Disruption
0
2.5
5.0
7.5
10.0
0 2.5 5.0 7.5 10.0
Sat
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ctio
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Importance
New Platform
Dissatisfaction Getting the Job(s) Done
Inab
ility
of C
urre
nt P
latfo
rm to
Add
ress
Nee
ds
- +-
+
SustainingProduct
Improvement
Low Cost Disruption
Breakthrough or Radical
Eliminate the Chance
Market Needs Strategy
Eliminate the Chance
Market Needs Strategy Idea
Idea Types
FeaturesBiz Model
Idea Types
Platform Go To Market
FeaturesBiz Model
Sequence
Platform Go To Market
1 2 3 4
Criteria to Judge= Metrics
Metrics, Cost, Risk
Experts
TechnicalDomain
Triggers
Triggers
Platform Biz Model Features
26 41 14
Criteria
Minimize the time it takes to confirm
receipt
Experts
Idea GenerationType Triggers
Growth Is Left to Chance
Idea Market StrategyNeeds
Growth Is Left to Chance
Idea Market StrategyNeeds
25% x 5% x 25% = .003%
Predictable Growth
$500M
Predictable Growth
$500M 95%
Predictable Growth
$500M 95%95%
Predictable Growth
$500M 95%95% Idea
5x Better
Source: Strategyn Track Record Study. Sample size: 22 launches. 19 declared a successes by the companies based on revenue, customer satisfaction, or industry awards. Study available upon request.
86% Success
Source: Strategyn Track Record Study. Sample size: 21 launches. 18 declared a successes by the companies based on revenue, customer satisfaction, or industry awards. Study available upon request.
Companies 43
Products 49
Pipeline 28
Launched 21
Success 18
Rate 86%
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