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Integrating Analysis of Customers’ Processes into Roadmapping: The Value-Creation Perspective
Marko Komssi, Marjo Kauppinen, Harri Töhönen, Laura Lehtola, Alan M. Davis
(1) “What kind of problems do software product companies encounter during roadmapping?” (2) “How can these problems be solved?”
Roadmapping
[1] Kappel, T., “Perspectives on Roadmaps: How Organizations Talk about the Future,” Journal of Product Innovation Management, vol. 18, no. 1, 2001, pp. 39–50.
Portfolio mgmt
Road- mapping
Release planning
Solution dev.
Sales transact.
Use of solution
Value Creation
An activity to support strategic and long-range planning [1]
(1) “What kind of problems do software product companies encounter during roadmapping?” (2) “How can these problems be solved?”
Company Number of Employees
Application Domain
Selected Solution
F-Secure 800 Computer security systems for companies and consumers
Protection Service for Consumers
Tekla 500 Model-based software solutions for infrastructure industries
Tekla Solution for Civil Engineering
Case Study Companies and Selected Solutions
Activity Description
Problem diagnosis Analyzing the current situation and defining the problem
Action Intervention Planning improvement actions and implementing the planned actions
Reflective Learning Analyzing the effects of the improvement actions and identifying what was learnt
Action Research Activities [2]
[2] Avison D., Lau, F., Myers, M.D., Nielsen, P.A., “Action Research,” Communications of the ACM, vol. 42, no. 1, 1999, pp. 94–97.
RQ1: Problems in Roadmapping
The Trouble with Linking Business Strategy to Solution Planning
Feature-Driven Mindset
Difficulty of Defining and Commercializing Services
Fragmented Customer Knowledge
RQ2: How Can These Problems Be Solved?
A series of collaborative workshops for cross-functional teams
A practical approach to analyze the customer’s entire experience with a solution
The perspective of customer value and corresponding value-creation logic
Value is created in the customers’ everyday activities or processes
The Approach [3] Initiated in the Collaborative Workshops
[3] MacMillan I., McGrath R., “Discovering New Points of Differentiation,” Harvard Business Review, vol. 75, no. 4, 1997, pp. 133–145.
Part 2
Part 1
Assemble a task force
Select a customer or market segment
Identify the customer’s activities
Evaluate the customer’s experience of the solution
Brainstorm new ideas
Linking the ideas with the organization’s skills, assets, and
systems
Adaptation
Part 2
Part 1
Assemble a task force
Select a customer or market segment
Identify the customer’s activities
Evaluate the customer’s experience of the solution
Brainstorm new ideas
Linking the ideas with the organization’s skills, assets, and
systems
Part 2
Part 1
Form a cross-functional team
Exam the business strategy
Select a customer segment
Identify the customer’s activities
Analyze the customer’s activities
Linking business potential of customer activities into
roadmapping
Protection Service for Consumers An ISP Finding Ways to Maximize Profits
Example: Identify the customer’s activities
Customer’s activities with the solution Awareness of SaaS security solutions for consumers
Evaluating needs/capabilities associated to the solution
Choosing the solution
Purchasing the solution
Building the entire service infrastructure
Marketing for consumers
Selling and order processing
Installing security solution for consumers
Invoicing the consumers
Updating protection for the consumers
Upgrading service infrastructure
Supporting (call center) for consumers
Handling ISP’s problems related to the solution
Lessons Learned
Customer’s activities with the solution Awareness of SaaS security solutions for consumers
Evaluating needs/capabilities associated to the solution
Choosing the solution
Purchasing the solution
Building the entire service infrastructure
Marketing for consumers
Selling and order processing
Installing security solution for consumers
Invoicing the consumers
Updating protection for the consumers
Upgrading service infrastructure
Supporting (call center) for consumers
Handling ISP’s problems related to the solution
Identifying and determining the customers’ activities promoted knowledge sharing among the companies’ personnel
Challenging to determine customers’ activities at an appropriate level of abstraction
Example: Analyze the customer’s activities
Current Customer’s activities with the solution Awareness of SaaS security solutions for consumers
Evaluating needs/capabilities associated to the solution
AP Level Ability
2
1
Low
Medium
Choosing the solution
Purchasing the solution
1
1
Medium
Low
Building the entire service infrastructure
Marketing for consumers
2
1
Medium
Low
Selling and order processing 0 —
Installing security solution for consumers
Invoicing the consumers
2
1
Low
High
Updating protection for the consumers
Upgrading service infrastructure
3
3
High
Medium
Supporting (call center) for consumers 1 Low
Handling ISP’s problems related to the solution 2 Medium
Activity-Performing Level 0 = The customer performs the activity; no support from the provider 1 = The customer performs the activity; some support from the provider 2 = The provider performs the activity; some support from the customer 3 = The provider performs the activity fully
Thinking Tool Current
Customer’s activities with the solution Awareness of SaaS security solutions for consumers
Evaluating needs/capabilities associated to the solution
AP Level Ability
2
1
Low
Medium
Choosing the solution
Purchasing the solution
1
1
Medium
Low
Building the entire service infrastructure
Marketing for consumers
2
1
Medium
Low
Selling and order processing 0 —
Installing security solution for consumers
Invoicing the consumers
2
1
Low
High
Updating protection for the consumers
Upgrading service infrastructure
3
3
High
Medium
Supporting (call center) for consumers 1 Low
Handling ISP’s problems related to the solution 2 Medium
customer value = benefits – sacrifices
to evaluate how the customers perceive the solution in the each activity
Lessons Learned Current
Customer’s activities with the solution Awareness of SaaS security solutions for consumers
Evaluating needs/capabilities associated to the solution
AP Level Ability
2
1
Low
Medium
Choosing the solution
Purchasing the solution
1
1
Medium
Low
Building the entire service infrastructure
Marketing for consumers
2
1
Medium
Low
Selling and order processing 0 —
Installing security solution for consumers
Invoicing the consumers
2
1
Low
High
Updating protection for the consumers
Upgrading service infrastructure
3
3
High
Medium
Supporting (call center) for consumers 1 Low
Handling ISP’s problems related to the solution 2 Medium
Identifying and analyzing the activity chains of customers was a helpful way to gain a holistic view of customers’ entire experience with the solution
The absence of marketing personnel and customers in the workshops might have limited the sharing of customer knowledge
Opportunities for service development
Example: Linking Business Potential of Customer Activities into Roadmapping
Future Current Customer’s activities with the solution Awareness of SaaS security solutions for consumers
Evaluating needs/capabilities associated to the solution
AP Level Ability Potential Priority
2
1
Low
Medium
Medium
High
Medium
High
Choosing the solution
Purchasing the solution
1
1
Medium
Low
High
High
Low
Low
Building the entire service infrastructure
Marketing for consumers
2
1
Medium
Low
Low
High
Medium
High
Selling and order processing 0 — High Low
Installing security solution for consumers
Invoicing the consumers
2
1
Low
High
Low
Low
High
Low
Updating protection for the consumers
Upgrading service infrastructure
3
3
High
Medium
Low
Medium
High
Medium
Supporting (call center) for consumers 1 Low Medium Low
Handling ISP’s problems related to the solution 2 Medium Low Low
An Example of Customers’ Activities in the Solution Roadmap
2012 2013 2011
Large ISPs Marketing for consumers
Small ISPs
Selling and order processing
Selling and order processing
Call center for consumers
Installing (for consumers)
Installing (for consumers)
Evaluating capabilities
RQ2: How Can These Problems Be Solved?
1. The Trouble with Linking Business Strategy to Solution Planning 2. Feature-Driven Mindset 3. Difficulty of Defining and Commercializing Services 4. Fragmented Customer Knowledge
Cross-functional team
Collaborative workshops
The adapted approach
Holistic view 4. Shared customer
knowledge
Insights of the customers’ entire process activities
1. Big picture 2. Higher-level
long-term solution planning
3. New service business
opportunities
The value-creation logic
Conclusions
Promotes value creation from the customers’ perspective and discovery of new service business opportunities
From lower-level feature prioritization to the prioritization of higher-level customer activities