how to formulate a winning growth strategy · 2019. 4. 1. · outcome-driven innovation® (odi) odi...
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#ODInnovation #JTBD
@ulwick
HOW TO FORMULATE A
WINNING GROWTH STRATEGY
OUTCOME-DRIVEN INNOVATION® (ODI)ODI is a customer-centric, data-driven strategy and innovation process that ties
customer-defined metrics to the customer’s "job-to-be-done”.
05.Use the data model
to formulate a
winning growth
strategy
04.Discover hidden
segments of
opportunity
03.Quantify the
degree to which
each need is
under/overserved
02.Uncover the
customer’s
“needs”—metrics
used to measure
success
01.Define the market:
job executor and
“job-to-be-done”
A outcome is unmet when—
it’s important to the customer
population, but not satisfied by
existing solutions.
ODI-BASED RESEARCH REVEALS UNMET NEEDSStatistically valid quantitative research (180 – 1000+ completed surveys) reveals hidden
segments, competitive strengths, unmet outcomes and more.
When trying to [job step], how important is it to you
that you are able to:
When using [solution], how satisfied are you with your
ability to:
Not at all important
Somewhatimportant
ImportantVery
importantExtremely important
Not at all satisfied
Somewhatsatisfied
SatisfiedVery
satisfiedExtremely satisfied
Minimize the time it takes to get the songs in the
desired order for listening
Outcome 1
Outcome 2
0
2
4
6
8
10
0 2 4 6 8 10
Outcome
THE OPPORTUNITY LANDSCAPEOpportunity score = importance + max (importance – satisfaction, 0)
Minimize the time it takes to get
the songs in the desired order
for listening
Importance
- - - V E IMP
5 5 9 47 34 8.1 81%
Satisfaction
- - - V E SAT
12 28 30 17 13 3.0 30%
Opportunity Score
13.213.2
30% of the sample
rated the outcome very
or extremely satisfied.3.0
81% of the sample
rated the outcome very
or extremely important
8.1
0
2
4
6
8
10
0 2 4 6 8 10
Outcomes
THE OPPORTUNITY LANDSCAPEReveals precisely where the market is under- and over served—and by how much.
Importance
- - - V E IMP
5 5 9 47 34 8.1 81%
Satisfaction
- - - V E SAT
12 28 30 17 13 3.0 30%
Opportunity Score
13.213.2
3.0
8.1
Underserved
Overserved
Table
Stakes
ARE CUSTOMERS
WILLING TO PAY MORE?
We are able to use this input to answer the following
questions:
• Are underserved customers willing to pay more to
get the job done better?
• Compared to what customers are paying today,
how much more are they willing to pay to get the
job done perfectly?
• Given all the desired outcomes that are
underserved, which contribute most to the
customer’s willingness to pay more to get the job
done better.
How much more
are you willing to
pay to get the job
done perfectly?
OUTCOME-DRIVEN INNOVATION® (ODI)ODI is a customer-centric, data-driven strategy and innovation process that ties
customer-defined metrics to the customer’s "job-to-be-done”.
05.Use the data model
to formulate a
winning growth
strategy
04.Discover hidden
segments of
opportunity
03.Quantify the degree
to which each need
is under/overserved
02.Uncover the
customer’s
“needs”—metrics
used to measure
success
01.Define the market:
job executor and
“job-to-be-done”
SEGMENTATION
The process of… discovering
groups of job executors that
have different unmet outcomes.
NOT ALL JOB
EXECUTORS ARE ALIKE
Segments of customers with different unmet
outcomes exist because people struggle
differently when executing the job-to-be-done.
Demographic, psychographic and attitudinal
segment classifications do not reveal segments
of customers with different unmet outcomes.
Traditional segmentation methods cause
companies to target phantom segments.
GENDER DOES NOT REVEAL MEANINGFUL DIFFERENCESOur research proves that segmenting a market around gender
does not reveal significant customer differences.
0
2
4
6
8
10
0 2 4 6 8 10
AGE DOES NOT REVEAL MEANINGFUL DIFFERENCESOur research proves that segmenting a market around age
does not reveal significant customer differences.
0
2
4
6
8
10
0 2 4 6 8 10
REGION DOES NOT REVEAL MEANINGFUL DIFFERENCESOur research proves that segmenting a market around region
does not reveal significant customer differences.
0
2
4
6
8
10
0 2 4 6 8 10
OUTCOME-BASED SEGMENTATIONThe best way to find segments of customers with different unmet needs
is to segment the market around unmet needs.
Factor
Group
1
Factor
Group
2
Factor
Group
3
Outcome 10
Outcome 3
Outcome 4
Outcome 11
Outcome 5
Outcome 8
Outcome 2
Outcome 9
Outcome 6
Outcome 1
Outcome 7
The variables serve as
a solid basis for
segmentation.
Variable 1
Variable 2
Variable 3
Statistical-based clustering process
Cluster analysis places respondents into a predetermined number
of groups (segments) based on how they rated the importance
and satisfaction of the segmentation variables.
Segment profiling exercise
The most important insight is figuring out what is causing
respondents in one segment to struggle more/differently than
others. This insight leads to the creation of statistically valid
“personas” or segment descriptions.
ON AVERAGE THE MARKET MAY APPEAR WELL SERVEDBut the average customer does not exist. There are always segments
of customers with different unmet outcomes.
0
2
4
6
8
10
0 2 4 6 8 10
0
2
4
6
8
10
0 2 4 6 8 10
DISCOVER HIDDEN SEGMENTS OF OPPORTUNITYOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
19% of respondents
57%24%
0
2
4
6
8
10
0 2 4 6 8 10
21% of respondents
45%
34%
DISCOVER HIDDEN SEGMENTS OF OPPORTUNITYOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
0
2
4
6
8
10
0 2 4 6 8 10
31%
34%
35%
DISCOVER HIDDEN SEGMENTS OF OPPORTUNITYOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
0
2
4
6
8
10
0 2 4 6 8 10
18% of respondents
26%
56%
DISCOVER HIDDEN SEGMENTS OF OPPORTUNITYOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
0
2
4
6
8
10
0 2 4 6 8 10
15% of respondents
21%
33%
31%
DISCOVER HIDDEN SEGMENTS OF OPPORTUNITYOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
JTBD MATRIX
The matrix ties the opportunity to
the appropriate strategy.
Get job done
BETTER
Get job done
WORSE
Charge MORE Charge LESS
People buy products and services to get a
job done better and/or more cheaply.
The growth strategy options available given
these parameters can be described in a matrix:
Better + charge more Better + charge less
Worse + charge lessWorse + charge more
BUILDING A GROWTH
STRATEGY MODEL
People buy products and services to get a
job done better and/or more cheaply.
Each of these options will appeal to only
certain types of customers:
Better + charge more
Win underserved
customers only
Better + charge less
Win all types of customers
(under- overserved, etc.)
Worse + charge less
Win overserved customers
and nonconsumers
Worse + charge more
Win customers
with limited options
Get job done
BETTER
Get job done
WORSE
Charge MORE Charge LESS
BUILDING A GROWTH
STRATEGY MODEL
People buy products and services to get a
job done better and/or more cheaply.
We have identified and classified 5 types of
growth strategies that are possible when
looking at a market through a jobs-to-be-done
lens:
Get job done
BETTER
Get job done
WORSE
Differentiated strategy
Win underserved
customers only
Dominant strategy
Win all types of customers
(under- overserved, etc.)
Disruptive strategy
Win overserved customers
and nonconsumers
Discrete strategy
Win customers with
limited options
Charge MORE Charge LESS
BUILDING A GROWTH
STRATEGY MODEL
Sustaining
strategy
STRATEGY
The process of determining which
segments and unmet customer
outcomes to target—and how.
OPPORTUNITIES DICTATE STRATEGYThe Opportunity Landscape reveals where the market is under- and
overserved—and to what degree. This informs what strategy to pursue.
0
2
4
6
8
10
0 2 4 6 8 10
DIFFERENTIATED
STRATEGY
V1V2
V3
CUSTOMERS MAY NOT BE WILLING TO SPEND MOREIf customers aren’t willing to spend more to get the job done better, than
a dominant strategy would be more effective than a differentiated strategy.
0
2
4
6
8
10
0 2 4 6 8 10
DOMINANT
STRATEGY
V1V2
V3
OPPORTUNITIES DICTATE STRATEGYThe Opportunity Landscape reveals where the market is under- and
overserved—and to what degree. This informs what strategy to pursue.
0
2
4
6
8
10
0 2 4 6 8 10
Better
More cheaply
DOMINANT
STRATEGY
OPPORTUNITIES DICTATE STRATEGYThe Opportunity Landscape reveals where the market is under- and
overserved—and to what degree. This informs what strategy to pursue.
0
2
4
6
8
10
0 2 4 6 8 10
DISRUPTIVE
STRATEGY
OPPORTUNITIES DICTATE STRATEGYThe Opportunity Landscape reveals where the market is under- and
overserved—and to what degree. This informs what strategy to pursue.
0
2
4
6
8
10
0 2 4 6 8 10
SUSTAINING
STRATEGY
Table stakes
Better
OPPORTUNITIES DICTATE STRATEGYThe Opportunity Landscape reveals where the market is under- and
overserved—and to what degree. This informs what strategy to pursue.
0
2
4
6
8
10
0 2 4 6 8 10
SUSTAINING
STRATEGY
PORTFOLIO STRATEGY
The data shows you what
strategies to pursue to win
across the entire market.
OUTCOME-BASED SEGMENTATIONThe only way to find segments of customers with different unmet needs
is to segment the market around unmet needs.
Factor
Group
1
Factor
Group
2
Factor
Group
3
Outcome 10
Outcome 3
Outcome 4
Outcome 11
Outcome 5
Outcome 8
Outcome 2
Outcome 9
Outcome 6
Outcome 1
Outcome 7
The variables serve as
a solid basis for
segmentation.
Variable 1
Variable 2
Variable 3
Statistical-based clustering process
Cluster analysis places respondents into a predetermined number
of groups (segments) based on how they rated the importance
and satisfaction of the segmentation variables.
Segment profiling exercise
The most important insight is figuring out what is causing
respondents in one segment to struggle more/differently than
others. This insight leads to the creation of statistically valid
“personas” or segment descriptions.
ON AVERAGE THE MARKET MAY APPEAR WELL SERVEDBut the average customer does not exist. There are always segments
of customers with different unmet outcomes.
0
2
4
6
8
10
0 2 4 6 8 10
0
2
4
6
8
10
0 2 4 6 8 10
DISCOVER HIDDEN SEGMENTS OF OPPORTUNITYOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
19% of respondents
57%24%
People buy products and services to get a
job done better and/or more cheaply.
Companies can create products that get a job
done better and/or more cheaply. The strategy
that should pursued is dependent on what
opportunities exist.
A disruptive strategy will not work when
targeted at an underserved segment. Nor
would a differentiated strategy when targeted
at an overserved segment.
Sustaining
strategy
Get job done
BETTER
Get job done
WORSE
Differentiated strategy
Win underserved
customers only
Dominant strategy
Win all types of customers
(under- overserved, etc.)
Disruptive strategy
Win overserved customers
and nonconsumers
Discrete strategy
Win customers with
limited options
Charge MORE Charge LESS
JTBD GROWTH
STRATEGY MATRIX
0
2
4
6
8
10
0 2 4 6 8 10
MULTIPLE STRATEGIES ARE OFTEN REQUIREDOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
57%24%
Differentiated
Sustaining
Disruptive
0
2
4
6
8
10
0 2 4 6 8 10
45%
34%
MULTIPLE STRATEGIES ARE OFTEN REQUIREDOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
Differentiated
Disruptive
0
2
4
6
8
10
0 2 4 6 8 10
31%
34%
35%
MULTIPLE STRATEGIES ARE OFTEN REQUIREDOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
Better
Dominant strategy
Cheaper
0
2
4
6
8
10
0 2 4 6 8 10
26%
56%
MULTIPLE STRATEGIES ARE OFTEN REQUIREDOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
Dominant
0
2
4
6
8
10
0 2 4 6 8 10
21%
33%
31%
MULTIPLE STRATEGIES ARE OFTEN REQUIREDOutcome-Based Segmentation reveals under- and overserved segments,
their size, and which outcomes to target for growth.
Differentiated
Disruptive
Understanding a market
through a JTBD lens
increases a company’s
chances for success
5-FOLD
Q & A
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