coliquio summit the path to market leadership - turn customer input into innovation

The Path to Market Leadership –

Turn Customer Input into Innovation

Coliquio Summit

Martin Pattera, Berlin, October 29, 2015

Turn Customer Input into Innovation_Strategyniip_20151029.pptx 1

Content Page

Summary 3

A. Innovation fails…most of the time 5

B. Innovation must be needs based 12

C. Outcome-Driven Innovation ® – Successes and Outlook 40

Contact 53

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Management Summary

� Job-to-be-done Thinking gives new perspectives for profi table growth. Business Model Innovation further ensures to setup the entire value creat ion and delivery process.

� Strategyn iip is the corporate innovation and venturing firm for growth by market-orientiedinnovation . We support our clients to discover hidden innovation potential, to develop sustainable innovation strategies and to innovate and launch products, services and business models with outstanding success.

� Our approach is a comprehensive understanding of unmet and oversatisfied customer needs using Outcome-Driven Innovation ® - a methodology that transforms innovation from an unstructured process into a predictable, rule-based discipline with a success rate that is five times the industry average.

� The job-to-be-done viewpoint leverages innovation beyon d existing products and solutions. Major guideline for growth in adjacent and new markets is to create solutions that help customers get the whole job done , not just parts of it.

� Strategyn delivers its insights and concepts in close cooperation with its clients. That enables our clients to transfer methodological competency and implement a structured process for successful and repeatable new market creation .


20 Years Helping Companies Grow...

References in medical industries: Abbott, B.Braun, BD, Cochlear, Coloplas t, Cordis, Ethicon, Johnson&Johnson, ResMed, Sanofi, M edtronic, etc.


A. Innovation fails … most of the time


17%17%Success Rate of New Products

12 different studies on company growth and new product success rates


<5%<5%Success Rate of new Businesses

12 different studies on company growth and new product success rates


B. Innovation must be needs based


"Innovation begins with an

idea"

"Innovation begins with an

idea"


People don’t want a

quarter inch drill ...

... they want a

quarter inch hole!

- Theodore Levitt -

JOB TO BE DONE THINKING


People don't want

to buy a catheter...

...they want to

administer medication!


2 31

Define a marketbased on

the job-to-be-done

Uncover opportunities andmarket segments

Create solutionsthat get the whole

Job done!

Understand the joband the

desired outcomes

4

Outcome-Driven Innovation ®

Four Steps to Profitable Growth


1




the job-to-be-done


All products will eventually become a thing of the past. But just because a product goes away, it doesn’t mean the underlying market does

MARKET DEFINITION

LP market

Cassettemarket

CDmarket

MP3market

Streamingmarket


People don’t want LP’s any more than they want CD’s , MP3’s or 8 track tapes. They want to listen to music . That is the job-to-be-done

MARKET DEFINITION

LP market

Cassettemarket

CDmarket

MP3market

Streamingmarket

Listen to music

The job is the most stable parameter in a market!


?

Target Market: Medical Professionals that want to administer a med ication

= +

Market

Medical Professionals

Job-to-be-done

Job Executor

Administer a

Medication


MARKET DEFINITION

21




the job-to-be-done


desired outcomes


Create a job map that details the process steps the customer is trying to execute – it provides a framework for uncovering all customer needs

The Customer-Centered Innovation Map, Harvard Business Review, 2008

Job Map


Get the job donepredictably

Stability

Get the job donequickly

Speed

Get the job done effectively

Output

In each step, customers evaluate their success in g etting a job done based on speed, stability and output – these outcomes can be measured

DESIRED OUTCOMES


Create a job map that details the process steps the customer is trying to execute – it provides a framework for uncovering all customer needs

The Customer-Centered Innovation Map, Harvard Business Review, 2008

Job Map

Determine the need for IV therapy

Determine the medic. admin plan

Set up the equipment

Establish a peripheral access

Remove the access

Resolve a problem

Monitor thecondition ofthe access

Administer medication

PROJECT EXAMPLE


Minimize the time it takes to establish a peripheral venous

access in an emergency situation

Minimize the likelihood that an access device comes out of the vein when the patient

moves

Find ways to reduce the frequency of multiple

approaches to access a vein, e.g. needlesticks, pinches, etc.

2 31




the job-to-be-done



desired outcomes


Drawing on quantitative research with customers, we identify outcomes that are highly important but poorly satisfied by c urrent solutions

The opportunity landscape paints the picture

OPPORTUNITY LANDSCAPE


Traditional market segmentation is outperformed by a needs-based market segmentation – different strategies for diffe rent segments

Factor and cluster analysis: unmet needs

Broad MarketNeeds Based

Market Segments

OPPORTUNITY LANDSCAPE


2 31




the job-to-be-done


Create solutionsthat get the whole

Job done!


desired outcomes

4


Concept Development workshop with Lead Users and Lead E xperts

PROJECT EXAMPLE


Outcome : "Minimize the likelihood that an IV access comes out of the vein when the patient moves."

Feature : “Catheter Hub/Stabilization Platform"

Outcome : "Minimize the likelihood of an IV access causing the vein to become inflamed/irritated."

Feature : “Catheter Material”

Outcome : “Find ways to reduce the frequency of multiple approaches to access a vein."

Feature : “Needle technology"

Outcome : "Minimize the time it takes to establish a peripheral venous access in an emergency situation

Feature : “Blood Control Septum”

Feature?� Adjacent Products� Adjacent Services� New Business Models

The result: Get the whole Job done

PROJECT EXAMPLE


DIGITAL TRANSFORMATION

C. Outcome-Driven Innovation® –Successes and Outlook


The ODI Approach Succeeds Nearly All the Time

86%SuccessRate

Source: Strategyn Track Record Study. Sample size: 21 new product or service launches. 18 successes based on revenue, customer satisfaction, or industry awards. Study available upon request.


W&H created the most advanced and best performing Periodon tal Scaler –an outstanding success as it is W&H's first product in that market segment

W&H TIGON+

PROJECT EXAMPLE – PLATFORM INNOVATION


Creating an Innovative Surgical Tool – addressing 21 underserved outcomes and reducing capital expenditures same tim e

Advanced Surgical Tools

Source: Advanced Surgical Tools, Strategyn

REFERENCE – SURGICAL TOOLS MANUFACTURER

1

Advanced Surgical Tools wanted to extend a

successful product line into attractive adjacent

markets. Using Strategyn’s Outcome-Driven

Innovation (ODI) methodology, the company was

able to:

Discover hidden opportunities for value creation in soft

tissue management

Create a new product—the JOC205 Coupled Arc

Blade—that addressed the 21 underserved soft-tissue

outcomes

Shave more than nine months off the overall original

development schedule while significantly reducing

capital expenditures

"Strategyn’s outcome-driven innovation approach enabled AST not only to develop a product that is exciting to targeted surgeons , but it also helped us to understand what our portfolioshould be for long-term success."

Stephanie Meyer, Director, Product Development, Advanced Surgical Tools


Source: Cochlear Magazin

REFERENCE: COCHLEAR


"The stent went on to become a $1 billion business in less than two years – the fastest growth in medical device history. Cordis stock increased 5.5x as they were acquired by J&J."

Harvard BusinessReview

New Business: 1 Billion USD in less than 2 yearsHarvard Business Review rated: "Best Business Idea"


Double Digit Growth in Six Months

"We identified a unique competitive position for our skin and wound care business. Upon repositioning, we went from stagnating growth to double digit growth in 6 months."

David HotchkissVP Sales & MarketingColoplast Corp.


"ODI is one of the few proven methods that is truly capable of identifying unfulfilled and not yet articulated cus tomer needs"

“Outcome-Driven Innovation® is one of the few proven methods at the front end of the innovation process that is truly capable of identifying unfulfilled and latent, that is, not yet articulated customer needs and turn them into opportunities for differentiation. It forms an integral part of our core lectures at the RWTH Rhineland-Westphalian Technical College (RWTH) in Aachen and at the TIM – and I am often amazed that not more companies have integrated ODI in their innovation management tool box.”

Prof. Dr. Frank T. PillerProfessorship for Technology and Innovation Management RWTH Aachen


Food for thought…Publications on Outcome-Driven Innovation®

86% success rate

ODI has a 22-year proven record

5-times greater success rate

Customer-centric, not product-centric


Contact


Martin PatteraManaging Partner Strategyn iip innovation in progress [email protected]

Martin Pattera is Managing Partner at Strategyn iip innovation in progress GmbH and leads Strategyn’sefforts in Germany, Austria and Switzerland. In addition, he is Speaker of the Advisory Board of PFI – Platform for Innovation Management , Austria’s leading association in the field of innovation management. PFI currently has 170 members who represent more than 40,000 employees worldwide. He is also a member of PDMA.

In addition to his work in consulting, Martin is a lecturer in the Executive MBA Program focused on entrepreneurship and innovation at the Vienna University of Technology and at Vienna University of Economics and Business Administration. He holds a Master (Mag.) from the Vienna University of Economics and Business Administration. Prior to his graduate work, he completed a course of study in industrial engineering.

Martin’s first consulting business focused on customer satisfaction analysis, while he was still at university. In 1998, he supported a German IT services company as it was beginning operations in Asia. During a three-month stay in Shanghai, he also completed his diploma work on market opportunities for IT services in China.

His professional career began with Roland Berger Strategy Consultants, where he gained experience in top management consulting with a focus on corporate development. As market manager for Mayr-Melnhof Karton, one of the largest producers of packaging board in Europe, he was responsible for the development of a new market region.


Founding member:

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