Product Innovaon, Mgt - Squarespace Study: New Credit Card ... How do we get our target to know ... • Fill"in"sheet"using"pencil,"pen,"crayon"–"whatever"works"best"for"you" •

©KenKring2016–[email protected]

byKennethKring(e)[email protected],(t)@klkring,(l)linkedin.com/in/kenkring

basedonthebook:

BusinessStrategyMapping-Thepowerofknowinghowitallfitstogether

ProductInnova4on,Mgt&

BusinessStrategyMappingThePowerofKnowingHowitAllFitsTogether

©KenKring2016–[email protected] 2


Justimagine,Isnapmyfingerstoday,rightnow,andimmediately(insertdrama@cpausehere)...

YOUARETHESMARTESTPERSONONTHEPLANET!

Twoweeksfromnowyouwillwanttojumpfromavery

highplace.WHY?!?

Becausebeingthesmartestpersonontheplanetdoesn’tmeanmuchifyou

can’tgetpeopletodoanythingaboutit!


WesplitatomsWetransplanthearts

Butweares4lltripped

upbySILOS?!?!

REALLY?COME-ON!!!


Weteach,writeandworkinsilos

Andarethenmys4fied,

wehaveaproblemSILOS?!

REALLY?COME-ON!!!

©KenKring2016–[email protected] Kring&Co.6


Howthecustomerexplainedit

HowtheAnalystdesignedit

HowtheProjectLeaderunderstoodit

HowtheProgrammerwroteit

HowtheBusinessConsultantdescribedit

Whatthecustomerreallyneeded

Howitwassupported

Howthecustomerwasbilled

WhatOpera@onsinstalled

Howtheprojectwasdocumented

Whydoesthishappen? WeneedtoSTOPDOINGTHIS!


Someorganiza@onshavefocusedonproductinnova@onforsolongtheydon’tknowhowtoinnovateinanyotherareas.Forexample,in2010,MicrosoV—oneoftheworld’sbestproductinnovatorsforthelasttwodecades—launchedasocialphonecalledKin.Theproductwasacompletedisaster.Withinsixweeksofthelaunch,theen@reproductgroupwasshutdown,and,accordingtotheirearningsreports,MicrosoCtookatleasta$240millionwrite-off.Howcouldsuchagreatproductinnovatorstrikeoutsofast?Intoday’sclimate,ithappenstothebest.

Toachievesustainablegrowth,companiesmustbeYerintegrateproductinnova4onwithbusinessmodel,process,andserviceinnova4ons.

Kring&Co.8



1

2

3


4

5



Ques4ons:•  Howdoesallofthisfittogether?

•  Howdowereallybestopera@onalizeallofthis?

•  Culturallyisthisgoingtohavemorestayingpowerthanaconfebcanon?


Profitabilitybestensured

byknowinghowto

op4mizethewhole,

notjusttheparts


Whatarewereallytryingtosolvefor?

15


A

BTHEFLOWOFBUSINESS


ThereisabeYerway!Takethreegroupsofpeople--haveeachgroupassemblethesamejigsawpuzzle

•  Thefirstgroupwiththepuzzlepiecesfacedown

•  Thesecondgroupwiththepiecesfaceup

•  Thethirdgroupwiththepiecesfaceupandwithacopyofthepuzzleboxlid

Whichgroupisgoingtobethehappiest,thefastest,themostproduc4ve?WHY?


Profitabilityforwho?

Poten4al

Profitabilityforthe

Company

Profitabilityforthe

Customer


TheImportanceofBalance

Poten4alProfitabilityforthe

Company

Profitabilityforthe

CustomerBALANCING

POINT


ProfitabilityfortheCustomer:AnExercise

• Whatisthemostyouarewillingtopayforagallonofmilk?Beforeyouwon’tbuyitanymore?

•  Butwait...itisonlysoldingallons,andeveryonesellsitforthesameprice.

•  Nowwhatisthemostyouarewillingtopay?


Playing

Field Objec- tives

Customer

Perception

of Value

Potential

(profit pools)

Offer Hook Key

Learn- ings

Perceive Future Trends

Value to the

Company

The Subject

Earnings

Fixed Costs

Variable Costs

Total Costs

Collect

Quantity

Price

Revenue

Learn

Like

Do

Value to the

Customer

Objectives = Strategy Anchors

Customer’s Strategy (Trial Purch. / Re-purchase)

Start of Operational Strategy

Result of BALANCED Strategy

Result of Financial Strategy

$£¥€

Experi- ence

HowitallfitstogetherinformsHOWWE...•  Establishingfounda4onalstrategyonwhichtobuild

•  BeYeriden4fying“whitespace”–idealcustomer&businessneeds

•  Priori4zingneedsofthecustomerwiththebusinessneeds

•  Coordinateandaccelerateproductidea4on/evalua4on

•  Blue-prin4ngproductdevelopmentanddesign

•  Developingbusinesscasesto:evaluate,securebuy-in&support

•  Op4mizetheproductmanagementandpornoliomanagement

•  BESTINFLUENCEPROFITABLEBEHAVIORS!!!21


Itisjustaconversa4on/astory...WITHWHATWEAREGIVEN...

•  DefinesubjecttoDrive

•  WhatdoesPlayingFieldlooklike

•  Business/CustomerObjecSves

•  CustomerPerceivedValue

•  WhatisthePotenSalgivenabove

WHATDOWEDOABOUTIT?

•  WhatdoweOffergivenabove

•  HookCustomerstoValueDelivered

•  WhataretheKeyLearnings

WHATARETHERESULTS?

•  WhataretheRevenues

•  WhataretheCosts

•  WhatistheProfitability

HOWSUCCESSFULWEREWE?

•  WhatarePerceivedFutureTrends

•  WhatValuetoShareholders

•  WhatistheBalancingPointbetweenValuetoCompanyandValuetotheCustomers

22


KringStrategyMapping-Thepowerofknowinghowitallfitstogether

23

Playing

Field Objec- tives

Customer

Perception

of Value

Potential

(profit pools)

Offer Hook Key

Learn- ings


Value to the

Company

The Subject

Earnings

Fixed Costs

Variable Costs

Total Costs

Collect

Quantity

Price

Revenue

Learn

Like

Do

Value to the

Customer






$£¥€

Experi- ence

Result of Marketing Strategy


This is all great

but really,

how do you

implement this? 24


ProductDesign&Evalua4on(ValuesIndexed)

0

2

4

6

8

10

12

Feature1 Feature2 Feature3 Feature4 Feature5(mandatory)

Feature6

CustVal/Rev

CostProductParity

=Featureschosenforfinaldesign*

*

**

*

25


Playing

Field Objec- tives

Customer

Perception

of Value

Potential

(profit pools)

Offer Hook Key

Learn- ings


Value to the

Company

The Subject

Earnings

Fixed Costs

Variable Costs

Total Costs

Collect

Quantity

Price

Revenue

Learn

Like

Do

Value to the

Customer






$£¥€

Experi- ence

26

CaseStudy:NewCreditCard

BusinessObjec4ve:Howdowegetpeopletopulloutourcreditcardfirst?

Subject:Weneedanewproducttodrivegrowth

Offer:Howaboutacardonakey-chain?

ResearchingIt:Learn–<wehaveexperience>Like–*Qualita4ve-Lost/Stolen-Keyssafer(wallet)*Quan4ta4ve-Same*Qualita4ve-Same*Right-Brain-Reeksofconvenience-Fearlosingcontrol-ProjectedontoothersDo–*ClubbingExperience–Value–*Ques4onable

Execu4ngIt:Learn–*Fulfilledinboxnotenvelope(feelingofsecurity)*Toneddownconvenience(security)Like–*Removablefromcase(security)Do–Experience–Value–

MeasuringIt:Learn–Like–Do–*Computerpurch.*NoincrementalspendExperience–Value–

Evalua4ngIt:Learn–*Sovcomm.Like–Do–*S4llfulfilledExperience–Value–*Appearedtos4llbeofvaluetocustomer*Netnega4veforcompany


Playing

Field Objec- tives

Customer

Perception

of Value

Potential

(profit pools)

Offer Hook Key

Learn- ings


Value to the

Company

The Subject

Earnings

Fixed Costs

Variable Costs

Total Costs

Collect

Quantity

Price

Revenue

Learn

Like

Do

Value to the

Customer






$£¥€

Experi- ence

27

CaseStudy:NewCreditCard

BEST PRODUCTS OF 2002


Lessons:• Whenyouaskalogicalques@on,yougetalogicalanswer

•  Buttherecanbeahugedifferencebetweenstatedvalueandwhatisactuallyvalued

HenryFord–

“If I had asked people what they wanted, they would have said ‘faster horses’.”


Lesson:Metricsaloneisnotenough,youneedtoknowhowtheyfittogether!

Isthisnumbersupposedtobe5Xhigher?

Howdothesenumbersrelatetoeachother?

Howdowepriori@zethese?

29

(c)[email protected] 30

THE GOAL!


Hereiswherewe

are

Hereiswherewewanttobe

GebngSupportForYourProductChangeManagement-DrivingAc4on(Turning"US"versus"THEM",into"WE")

BeYerideasashowtobestbridgethegap,andgetbeYerbuyin!

31


Giventhebusinessmodelsofmul4pleproducts,howdowebestinvestinthecompany...let'slookatthefacts!

ProductPornolioManagement(Usingmul4pleversionsofKringStrategyMapping)

Product#1Product#2Product#...

Yes,butIhaveawholesale/retail/endcustomerbusinessmodel...let'slookatthefacts!

Companyandendwholesalermap

Companyandendcustomermap

32


____________ Name subject ____________ Objective / desired outcome for filling out this map

Subject ___________�s Playing Field

___________�s Objectives ___________�s

Customer�s Perceived

Value

___________�s Potential

___________�s Offer ___________�s

Hook ___________�s

Keys ___________�s

$ Financial Details

___________�s $ Revenues

& Costs

___________�s $ Profitability

___________�s Potential

Future Trends

___________�s Total Value Delivered to

the Company

With what we are given . . . [ Situational Analysis ]

What do we do about it? [ Action Plan ]

What are the results? [ Results Measurement ]

* _____________ Who are the Customers? * _____________ Who are the Competitors? * _____________ Describe the Subject * _____________ Other environmental factors

* _____________ What is the Objective for the Subject? (Given the Playing Field) * _____________ What is our Customer objective? (Given the Playing Field)

* * * _____________ What are the things Customers perceive as valuable (Given the Playing Field)

* _____________ What is the market demand? (Given the Playing Field and Objectives) * _____________ What is the potential revenue from meeting the demand? (Given the Playing Field and Objectives)

* _____________ What does the product look like? * _____________ What is the pricing? * _____________ How do we distribute our product?

* _____________ How do we get our target to know about our product? * _____________ How do we get them to like it? * _____________ How do we get them to buy our product?

* _____________ What is working well? * _____________ What needs to be changed?

* _____________ What pricing? * _____________ What quantity? * _____________ How much can be collected?

* _____________ What total costs?

* _____________ What are earnings?

* _____________ What are short- term prospects? * _____________ What are long- term prospects?

* _____________ What value to Shareholders? * _____________ What value to Employees?

* _____________ How likely are our customers to recommend us to others?

___________ Objectives = Strategy Anchors




$ £ ¥ €

* _____________ What total revenue?

* _____________ What variable costs? * _____________ What fixed costs?

Customer�s Strategy (Trial Purch. / Re-purchase)

* ___________________________ How are we EXPLICITLY going to BALANCE - Marketing, Finance, Operations and the Customer�s Strategies, against our Objectives

How successful were our Actions?

[ Evaluation of Results ]

Kring Strategy Mapping – Worksheet * KSM Worksheet © Kenneth Kring 2013 [email protected] - 847.461.3028

___________�s Total Value Delivered to

the Customer


*"Recommenda+ons:""•  Print"sheet"out"on"11”x17”"paper"•  Fill"in"sheet"using"pencil,"pen,"crayon"–"whatever"works"best"for"you"•  Answers"should"be"tailored"to"the"unique"situa+on"you"face"–"as"outlined"in"the"first"box"

(People(in(the(roles(of:(marke4ng,(finance,(opera4ons,(CEOs,(product(management,(etc.,((will(fill(out(the(sheet(differently)(

•  The"first"pass"should"be"filled"in"quickly"–"include"addi+onal"detail"in"subsequent"passes"

33

QuicklyMappingOutOpportunityForYourProduct:BusinessCase


Product&ServiceMapping–DiscoveryVersionTargetStores(TGT)KringStrategyMap

34


•  DiscoveryTool-touncoveranddescribethecurrentstate

•  Diagnos4cTool-tohighlightareasofopportunity&risk

•  Prescrip4veTool-togenerateandar@culaterecommendedcoursesofac@on

•  TreatmentTool-ac@ngasaguidewhenexecu@ngcoursesofac@on(communica@on)

•  MeasurementTool-tomonitorprogress

•  Evalua4onTool-togaugerela@velevelofsuccessoftheeffortandgivecluesastowhentore-examineoureffortsinthenextquarter

WhatcanyoudowithKringStrategyMapping?

35


1.)StartwiththeissueyouwanttounderstandbeYer2.)Useexis4nginforma4on(Goals,IniSaSves,Measures,etc.)3.)Concentrateonareasofgreatestconcernfirst4.)Ini4allybebrief5.)Theprocessshouldgoquickly

QuicklyImplemen4ngKringStrategyMapping

36


Whatyoushoulddonow...•  Letmeknowifyouhaveanyques4ons

o  KenKring--(e)[email protected],(t)@klkring,(l)linkedin.com/in/kenkring

•  Addi4onalContent&Connec4ono  Addi@onalContentat:businessstrategymapping.wordpress.como  SendmeaLinkedIninvite–

greattobeconnectedtopeoplewhowanttomakeadifference

•  LinkedInmessageifyouwouldlikealinktoacopyofthe:o  KSMworksheeto  DiscoveryVersionoftheKSM

•  Checkout“BusinessStrategyMapping–Thepowerofknowinghowitallfitstogether”o  Readit,thenlendittoafriendo  Whendone,donateittoahighschoollibrary

STARTTODAY!SHAREWITHFRIENDS!(TOHELPDRIVECHANGE!)

GETONWITHITALREADY!EVERYDAYDELAYEDISADAYLOST!37


Answers:•  Cannowseehowallfitstogether

•  Howtobestopera@onalizeallofthis

• Howini4a4vescanhavegreaterstayingpowerthanconfebcanons?



Toimproveanything...Youhavetochangethings!Changegeneratesmovement...Movementgeneratesfric4on...Fric4ongeneratesheat!Thetrickistoinsuretheheatisconstruc4veandnotdeconstruc4ve!Knowyourlid!

40


KringStrategyMapping-Thepowerofknowinghowitallfitstogether

41

Playing

Field Objec- tives

Customer

Perception

of Value

Potential

(profit pools)

Offer Hook Key

Learn- ings


Value to the

Company

The Subject

Earnings

Fixed Costs

Variable Costs

Total Costs

Collect

Quantity

Price

Revenue

Learn

Like

Do

Value to the

Customer






$£¥€

Experi- ence


Op4mizingProductInnova4on-------------knowyourpuzzleboxlid!

Documents

Product Innovaon, Mgt - Squarespace Study: New Credit Card ... How do we get our target to know ... • Fill"in"sheet"using"pencil,"pen,"crayon"–"whatever"works"best"for"you" •