silence the voice of the customer (voc)
DESCRIPTION
Recorded webinar given by Tony Ulwick, CEO of Strategyn. "Silence the Voice of the Customer" reveals why it's time to breakaway from VOC methodology and try a new approach. Original airdate: 4/20/11TRANSCRIPT
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© Strategyn Inc. 2011
Silence the Voice of the Customer
And Create Growth Plans that Work 4/20/11
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Create growth plans that work
Accelerate growth – lower risk.
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The Goal is to Succeed Nearly All the Time
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Think from a Different Perspective
E= MC2
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Markets Strategy Innovation
We Think Differently About …
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What is a Market?
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Traditional Definition
“A market is the set of actual and potential
buyers of a product.”
Philip Kotler Kellogg, Marketing Management
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150 BC 1985 1940 1999 1670
0% Growth
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We Define “Market” Differently
“A market is a group of job executors and the job they are trying to get done.”
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The job of …
“communicating with a select group of people”
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Breakthrough
Job map and 50 to 150 metrics per job
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Mapping the Job-to-be-Done
Core Functional Job
Plan Locate Prepare
Job Map
Confirm
Conclude Modify Monitor Execute
The Customer-Centered Innovation Map, HBR, May 2008
• Outcome 41 • Outcome 42 • Outcome 43 • Outcome 44 • Outcome 45
• Outcome 1 • Outcome 2 • Outcome 3 • Outcome 4 • Outcome 5
50 – 150 metrics (needs) per job
Giving Customers a Fair Hearing, MIT Sloan, May 2008
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Desired Outcome = Customer Need
Minimize the time it takes to confirm receipt of a communication
Direction Unit of
Measure Object of Control
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VOC practices fail to uncover all the customer’s needs:
• Focused on the product, not the job the customer is trying to get done
• Assume customers have latent needs and needs they can’t articulate
• Assume customer needs change quickly over time
Silence the Voice of the Customer
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Possible Growth Opportunities
12 steps and over 100 outcomes …
1. Minimize the time it takes to confirm receipt of a communication
2. Minimize the likelihood that the communication is interrupted
3. Minimize the likelihood of interference when communicating
4. Increase the likelihood that the communication is discreet
5. Minimize the likelihood that a message is misunderstood
6. Minimize the time it takes to establish a record of the communication
7. Minimize the likelihood that a communication is intercepted
Complete set of well articulated needs that are stable over time
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Opportunity Is …
An important but poorly satisfied outcome
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Market Opportunity Landscape
Sat
isfa
ctio
n
Importance
Opportunity = Importance + max (Importance – Satisfaction, 0)
Over served
Under served
Low
Low
High
High
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0% to 18% Growth
“Strategyn helped us create two of our bestselling radios to date.”
Dr. Robert Pennisi Director, Advanced Technology
Dr. Pennisi is currently an innovation professional with Strategyn
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Create growth plans that work
Accelerate growth – lower risk.
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Markets Strategy Innovation
We Think Differently About …
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What is Strategy?
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“Activities, then, are the basic unit of
competitive advantage.”
Traditional Definition
“Strategy is choosing to perform
activities differently than rivals do.”
Michael Porter Harvard Business School
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Doctors who open a clogged artery
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We Define “Strategy” Differently
“Customer needs are the basic unit of
competitive advantage.”
“Strategy is choosing which unmet
customer needs to target and how to
satisfy them.”
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Breakthrough
Outcome-based market segmentation
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Segments of Opportunity
Segment 1 65%
Segment 2 25%
Segment 3 10%
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1. Which Needs Should We Target?
• Minimize the time it takes to move through the vessel
• Minimize the amount of damage inadvertently caused to a vessel
• Minimize the amount of force required to cross the lesion
• Minimize the likelihood of restenosis (recurrence of the blockage)
Sat
isfa
ctio
n
Importance
Opportunity = Importance + max (Importance – Satisfaction, 0)
Under served
Low
Low
High
High Segment
1
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2. Which Job Executor?
Cardiac Surgeon
Interventional Cardiologist
Patient
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3. Which Platform(s)?
Angioplasty Balloon
40 Projects in R&D
Stent
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This is a Growth Strategy
Needs Executor Platform(s)
Segment 1
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10x Increase in Market Share
“In 12 months, Cordis saw it market share grow from just 1% to 10% in the US, 20% in Europe, 30% in Canada and 18% in Japan.” In Vivo
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HBR Best Business Idea
The stent went on to become a $1 billion business in less than 2 years – the fastest growth in medical device history. Cordis stock increased 5.5x as they were acquired by J&J.
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Create growth plans that work
Accelerate growth – lower risk.
![Page 34: Silence the Voice of the Customer (VOC)](https://reader034.vdocument.in/reader034/viewer/2022042714/54c7415d4a795927458b46c5/html5/thumbnails/34.jpg)
Markets Strategy Innovation
We Think Differently About …
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What is Innovation?
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“Orderly innovation is an oxymoronic phrase
believed by morons with ox-like brains.”
Traditional Definition
“Innovation is the creation of new
products and services.”
Tom Peters HSM 2007
Author of In Search of Excellence
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IT managers who manage enterprise software licenses
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We Define “Innovation” Differently
“Innovation is the creation of products that help customers get a job done
better and contribute to
growth.”
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Innovation = Get a Job Done Better
Step 1
Step 2
Step 3
Step 4
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Innovation = Get a Job Done Better
Step 1
Step 2
Step 3
Step 4
Over 150 outcomes…
1. Minimize the time it takes to determine if users have unlicensed copies of software
2. Minimize the likelihood that backward compatibility affects other users 3. Minimize the likelihood that an upgrade will impact previously written
code 4. Minimize the time it takes to troubleshoot problems during deployment 5. Minimize the likelihood that an upgrade causes problems with existing
files 6. Minimize the overall time it takes to conduct an upgrade 7. Minimize the time it takes to determine which applications will be
impacted by an upgrade 8. Minimize the time it takes the vendor to fix deployment problems 9. Minimize the time it get all users on the same version of the software 10. Minimize the likelihood that a deployment requires a physical visit to the
PC
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Step 1
Step 2
Step 3
Step 4
Minimize the likelihood that backward compatibility causes problems
Minimize the likelihood that power users can create security violations
Minimize the time it takes to troubleshoot deployment problems
IMP SAT OPP
9.1 3.2 15.0
9.1 5.1 13.1
9.1 3.4 14.8
Innovation = Get a Job Done Better
NEEDS (3 of 150) IDEA
Application virtualization
Centralized permissions
Real-time metering
NEW SAT
5.6
7.1
6.3
Value Add = %∆ in Satisfaction 60% 75%
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How much will you grow?
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Breakthrough
The securable market
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The Securable Market
Dollar volume of the Securable
Increased Satisfaction
Premium market
Underserved Executors
Wil
lin
gne
ss t
o P
ay
Low
Low
High
High
Need Curve™
Low cost market
What gain in revenue is expected if we succeed?
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$1 Billion
Projected Revenue
35% Renewals 80% Renewals
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Create growth plans that work
Accelerate growth – lower risk.
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Markets Strategy Innovation
This is Outcome-Driven Innovation®
(ODI)
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STAGE 3
GATE 3
STAGE 4
STAGE 5
GATE 4
GATE 5
Idea Screen
STAGE 1
STAGE 2
GATE 2
GATE 1
Development Launch Testing and Validation
Create Business Case Scoping
= 17% Success
Rate Traditional Innovation Process
STAGE 3
GATE 3
STAGE 4
STAGE 5
GATE 4
GATE 5
STAGE 1
STAGE 2
GATE 2
GATE 1
Development Launch Testing and Validation
Concept Innovation
Market Strategy
STAGE 1
Market Selection
The Outcome-Driven Innovation® (ODI) Process
= 86% Success
Rate
The Outcome-Driven Innovation® Process
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ODI can help you accelerate growth…
… throughout the product life cycle.
Market Selection
• Discover attractive markets and market segments • Discover “blue oceans” • Validate a big idea
Development
• Optimize the customer experience • Adjust the strategy in
response to a sudden market change
Launch • Position or reposition a
product to succeed • Resolve lingering product and
service quality issues
Market Strategy
• Define next-gen products • Define next-gen platforms • Disrupt a market • Ideate breakthrough solutions
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Our ideas are cited in …
… and over 200 other books and publications
We’ve authored … We’ve published our ideas in …
Learn More …