A Systematic Approach To A Target Market

Even when an organisation is generally functioning well, problems with products or services may surface at any time:
  • Stagnation of demand due to market saturation
  • Lower labour costs in other countries make it harder to compete on price
  • Customers want more personalisation and customisation
  • Increasing global competition, accelerated by e-commerce
Similar to the failure rate of change initiatives, it has been estimated that during the last 20 years, over 50% of product and service initiatives in the US have failed at an estimated cost of $100 billion. Sometimes failures have been spectacular: New Coke for example flopped after expenditure of $4 million on market research alone. It is our contention that the underlying cause of these difficulties is a failure to truly grasp what customers want.

Asking the customer what he or she wants is fraught with difficulty because they answer you with imprecise language and insufficient understanding to do the question justice. Such responses will not lead to the creation of breakthrough products and services. Successful innovation actually requires an understanding of the criteria which customers use to judge the value of a product.

Anthony Ulwick, CEO of Strategyn, invented the term Outcome Driven Innovation (ODI) to describe the process of achieving that understanding. Outcome Driven Innovation is underpinned by three fundamental principles:
  1. Customers buy products and services to get jobs done
  2. Customers use up to 150 performance measures to judge how well a product helps them in getting a job done
  3. These measures are the key to the systematic and predictable creation of breakthrough products and services

Using our market innovation process it is possible to identify which outcomes are underserved in the marketplace and target your efforts at meeting those with the most potential. As a result, product and service portfolios will stand far more chance of success in the marketplace than they would if conventional approaches had been used.

We also offer expertise in the areas of Product Management, Product Design, Service Design, and Lean New Product Introduction. Contact us for a more detailed discussion.

Legal | Privacy