want faster growth? better let customers surprise...

Adhesive & Sealants CouncilApril 5, 2017

Dan Adams, The AIM Institutedan.adams@theaiminstitute.comwww.newproductblueprinting.com

Want faster growth?Better let customers surprise you.

mailto:[email protected]

http://www.newproductblueprinting.com/

Do you want to be surprised whenoverseeing production?

Do you want to be surprised whentraveling for business?

Do you want to be surprised wheninstalling software?

Do you want to be surprised whenbuilding a new facility?

Do you want to be surprised wheninnovating new products?

New

Useful

Non-obvious

(Surprising)

But where and how should we be surprised?

Customers

1. Does your company have bright R&D people?2. Do your competitors have bright R&D people?3. Then how will your company win?

YourCompany

CompetitorA

CompetitorB

CompetitorD

CompetitorC

© The AIM Institute

What if your R&D worked only on problems that

truly cared about

while competitors kept guessingwhat to work on?

1. Which Problem consumes most of your innovation investment?1

2. Which Problem leads to most new product failures?2

© The AIM Institute1 Improving New Product Development Performance and Practices, American Productivity & Quality Center, 20032 The Conference Board, Adapted by Robert S. Cooper, Winning at New Products, from D. S. Hopkins & E. L. Bailey, “New Product Pressures” 1971

Problem 1

What’s theRight Question?

Problem 2

What’s theRight Answer?

Two Innovation Problems to Solve…

(Market Needs) (Your Solutions)

90% of project costsCause of most failures

Today’s best driver of organic growth

7 Ways to let customers surprise you

1. Be surprised early, not late

2. Optimize for B2B customers (not B2C)

3. Mine all possible customer outcomes

4. Let customers guide your interview

5. Use trigger methods during interviews

6. Interview many types of customers

7. Add quantitative interviews

Whose Idea?

SellDevelopIdea Validate

Yours … or Your Customer’s?


Rule 1. Be surprised early, not late

SellDevelopValidateIdea

Assumed customer need

See if product sells

SupplierSolution

MarketNeed

When do most companies check market needs?


One way to test market needs:

Launching products at customers


“You’ll love our next product!”

Weekly blog at www.awkwardrealities.com

http://www.awkwardrealities.com/

can usually offer more insight than

B2B Customers B2C Customers

EducationTraining

Time on the Job

1. Knowledge

Rule 2. Optimize for B2B customers (not B2C)


Financial Impact



2. Interest

Personal Recognition

HERO


3. ObjectivityGroup Decisions

ProceduresAccountability




4. Foresight

Financial Objectives

Predictable Benefits




5. Concentration

Millions of Buyers

Fewer Buyers




Concentration

So What?

Knowledge

Interest

Objectivity

Foresight

are able to help the supplier design better products.

are willing to help the supplier design better products.

make rational, stable & understandable decisions.

can be directly engaged… and primed to buy later.

can discuss their needs before seeing a prototype.


B2B Customers…

vs.


Customer Outcomes

Increased abrasion resistance

Faster operating speed

Reduced maintenance costs

Quicker change-over timeImproved grease resistance

Greater weight capacity

Higher fill levelsReduced roller wear

Less slippage with wet ore

… desired customer end-results

1. Customer value is only created when an important, unmet outcome is improved.

2. Suppliers’ only path to profitable, sustainable growth is customer value creation.

Rule 3. Mine all possible customer outcomes


The Science of B2B Customer Insight (aka Blueprinting)

1 Uncover all outcomes

2 Understand relevance

3 Define & set direction

4 Prioritize outcomes

5 Learn how to measure

6 Identify satisfaction points

7 Measure next best alternative

8 Quantity value created

9 Quantify value captured© The AIM Institute

Explained in…

DivergentDiscoveryInterviews

ConvergentPreferenceInterviews

Rest of New Product Blueprinting

www.aimwhitepapers.com

http://www.aimwhitepapers.com/

You become certain of your solution here.

Front-End Development Launch

Q: When do you resolve your technical risk?

TechnicalCertainty


Front-End Development Launch

CommercialCertainty

Q1: When do you resolve your commercial risk?Q2: What if you built a Certainty Time Machine?

This machine is fueled by… Customer Outcomes

Diverge Converge

In most B2B, it’s knowable beforedevelopment.


More in…

www.aimwhitepapers.com


Innovation Maturity Levels

Level 1

Solution PushWe start with our ideas and launch solutions we think customers will want.

Level 2

Solution ValidationWe start with our ideas and interview customers to “validate” our solutions.

Level 3

Market InsightWe start with customer needs using divergent & convergent interviews.

Customers reveal the most obvious “duds” before we enter the costly development stage.

We uncover the full range of outcomes… and only work on those customers care about.

Why Move Up a Level?

Market Needs vs. Market Reaction


What should we ask customers about?Hint: What they want to talk about

Let’s drop ourquestionnaires.

Competent. Caring.

Rule 4. Let customers guide your interviews


CustomerOutcome

Grid

QuietOperation

NetworkCapability

Low-CostInk

NoJamming

B&WPrinting

Print onGlossy Paper

1st PageTime

Walk-UpControls

NoSmearing

VividInk Color

Labels

Legal Paper

BindingFeature

No InkFading

EasyMaintenance

EnergyEfficient

LowSolid Waste

LowWeight

FastWarm-up

CardStock

LowInitial Cost

Easy InkChange

EnveloPrintin

PostcardPrinting

ing

er

Spillage3-HolePunch

No InkWaste

EasyCalibration

Appearance

FastSet-u

SmallFootprint

High PrintSpeed

Photo-QualityResolution

OnlineDiagnostics

2-SidedPrinting

Combo InkCartridges

Lo-PaperAlarm

sswordotection

24-HourSupport

Fast PaperChange

StaplingCapability

LargePaper Capacity


Supplier-Directed Interview(Traditional)

Customer-Directed Interview(New Product Blueprinting)

What Else?

Is it… this?


Supplier-Directed Interview(Traditional)

Customer-Directed Interview(New Product Blueprinting)

First answer

1. First question

Second answer

2. Second question

Third answer

3. Third question

No idea where they’re going!

What else?

Better Outcomes

More Engagement

Less Effort


5 parts of Discovery Interviews (with Blueprinter® 5.0 Software)

1. Current State 2. Problems 3. Ideal State 4. Triggered Ideas 5. Top Picks


The moderator begins the Problems section of Discovery Interview.

Problems

Moderator keeps probing an idea

Moderator asks “what else?”

Watch for these cases:

Go to Module 15, Slide 14

© The AIM InstituteVideo also at www.blueprintingforsales.com (Section 1, Slide 24)

http://www.blueprintingforsales.com/

Getting out of the box…

1. Empty

2. Get Out

Problems

Ideal State

Trigger Methods

Rule 5. Use trigger methods during interviews


Too SimilarToo SimilarToo PredictableToo PredictableToo Confining

Too Similar


More DivergentMore DivergentMore UnexpectedMore UnexpectedMore Liberating

More Divergent


Trigger MethodsTrigger Methods

New Ideas

NewArena

ofThought

MetaphorSimilarities

OriginalArena

ofThought


Trends Map


Existing Customer

Former Customer

Prospect

Co-Supplier

Industry Consultant

Customer’s Customer

Charter Customer*

Design Technical Production OtherMgmnt Marketing

© The AIM Institute*A charter customer is someone you work closely with throughout product development.

Rule 6. Interview many types of customers

YourIdeas

DiscoveryInterviews

NewProduct

PreferenceInterviews

Most Important + Least Satisfied?Rule 7. Add quantitative customer interviews


YourIdeas

DiscoveryInterviews

NewProduct

PreferenceInterviews

CompetitiveTesting

ProductObjectives

Divergent Convergent


Outcome Importance vs. Current Satisfaction

Satisfaction

Importance

High

Low

HighLow


Market Satisfaction Gap

Scrub Resistance

Crayon Removal

Hiding Power

24-Hr Window Stick

Brushmark Leveling

Fading Resistance

Sprayability

Stain Resistance

Brushability

Factory Mix Time

0% 10% 20% 30% 40%

21%

25%

12%

16%

13%

11%

8%

HighMarket

Eagerness

32%

35%

36%

MSG = IMP x (10 – SAT)Ex: Avg. IMP=9; SAT=6MSG = 9 x (10-6) = 36%


to all potential customer outcomes

Diverge

to important, unsatisfied outcomes

Converge

Qualitative Discovery Interviews Quantitative Preference Interviews

Market Satisfaction Gaps

Eliminating innovation errors…


But does it work?Research from The AIM Institute

Download at www.aimwhitepapers.com

• 35 Project teams• 14 Companies• 675 Interviews

• 150 Respondents• 23 Companies• >700 Interviews



20%

31%32%

7%

10%

Strongly Agree

Agree

Somewhat Agree

Neutral

Disagree*

We learned unexpectedinformation.


Describe your experience with Discovery interviews…

*Includes:• Strongly Disagree• Disagree• Somewhat Disagree

Discovery Interview Research Report, Page 8

46%

40%

14%0%0%

Great Impact

Significant Impact

Moderate Impact

Slight Impact

No Impact

How much have interviews impacted the design of your new offering?

Impact of interviews on product design

Preference Interview Research Report, Page 10© The AIM Institute

26%

23%29%

11%

11%

Great change

Significant Change

Moderate change

Slight Change

No change at all

How much have these interviews changed your original project scope?

Impact of interviews on project scope

Preference Interview Research Report, Page 10© The AIM Institute

Stage-gate in isolation: Analytical thinking Checklist mentality Internal focus

How does this fit with a Stage-Gate® process?1

1 Stage-Gate is a registered trademark of the Product Development Institute © The AIM Institute

Questions?You can surprise me

Dan Adams, The AIM Institutedan.adams@theaiminstitute.comwww.newproductblueprinting.com

Want faster growth?Better let customers surprise you.

mailto:[email protected]

http://www.newproductblueprinting.com/

want faster growth? better let customers surprise...

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