Voice of the Market to Spur Innovation

COPYRIGHT 2014 QDI STRATEGIES, INC.

Click to edit Master title style Voice of the Market: To Spur Innovation


The following slides show how to bring Voice of the Market into your innovation process


Customer Needs

Your Capabilities*

Classic Breakthrough Dilemma:

Customers don’t know what they need, but using insight to understand and continuously blend customer needs with your capabilities* will allow you generate new innovations.

*Your Capabilities include skills you have or can acquire

Innovations

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The Process for Generating New Ideas Requires Two Linked Processes

• Generate enough new idea “sparks” to find a few major opportunities

– (An idea “spark” is a customer need that you think you may be able to satisfy)

• Follow-up the sparks to turn them into viable concepts

– Explore the concepts to determine if they have any potential for your organization based on known technologies or business capabilities technologies

Customer

Needs

Technology

Capabilities

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There are 6 Requirements to a Successful Voice of the Market Process:

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1. Make Voice of the Market Integral to the

innovation team

2. Identify / structure who you talk to

3. Provide a process of customer / market dialogs to

discover unmet customer needs

4. Capture / organize “market findings” to stimulate

innovation ideas

5. Define / validate / quantify value

6. Quantify the business opportunity


1: Make Voice of the Market Integral to the Team

Market Discovery requires expertise in discovery market dialogs and the process of managing and learning from these dialogs Innovation comes from the intersection of customer needs and internal capabilities, therefore Team members responsible for Marketing, Technology and Business Capabilities should be fully engaged in the market discovery learning process.

The Market Discovery activities should be part of the team’s timeline /project management • Defining what we need to learn • Determining which customers/prospects to work with • Bring the customer perspective into brainstorming sessions

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2: Identify / Structure Who You Talk to

• Who do you talk with? • How are dialogs started? • Who communicates with whom? • How are ideas tested for viability

Teams Need A Process to Initiate and

Maintain Dialogs with External Sources

Target Interviewees • Customers / Prospects • Technical Experts

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3: Provide a Process of Customer / Market Dialogs to Discover Unstated Customer Needs

The Path to Learning What You Don’t Know – to Discover Unstated Customer Needs

• Discovery Research starts at the beginning of the learning process when you are going from data to a hypothesis.

• Use Discovery Research when you don’t know how customers will buy, or are willing to take a fresh look at how the market works, or what solution customers want, or what strengths you could apply to the problem, or simply put, “You don’t know what you don’t know!”

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QDI recommends using Discovery Research to

uncover unstated customer needs


Discovery Research....

• Discovery research is designed to provide a broad understanding of market behavior, letting the market dictate what is important and what topics or issues we should explore. This leads to learning what is really important to the market and for your strategy

• Discovery research involves open, unbiased listening to what customers are saying. It is from understanding the patterns and consistency in what customer are saying and doing and why they are behaving as they are that enables project teams to build hypotheses about customer behavior.

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Discovering customer needs requires understanding the customer through the life cycle of interactions with a product

Goal of the dialog:

Learning: Behaviors, Thoughts,

Feelings and Why

Need

Creation

Customer

Self-education

Purchase

Use

Replacement/

Termination

Customer Needs Arise Throughout the Product Life

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4: Capture / Organize “Market Learnings” to Stimulate Innovation Ideas

The customer discussions need to captured in detail so that you can:

• Provide everyone on the team with the insights learned at each customer interaction

• Compare findings from one discussion to the next to create a hypothesis about common opportunities.

• Constantly compare what you are learning from different parts of the market to see if there is consistency in behavior that supports the hypotheses.

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QDI recommends training or outside assistance to

help new teams succeed and develop these skills


5: Define / Validate / Quantify the Value

• Value Measurement THE COMPONENTS OF VALUE

– ValueP = Value Perceived

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BP = Benefits Perceived

Product, Service,

Relationship, Brand

(Benefits)

$CT = Total Costs

Purchase Price / Buying

and Adoption Costs /

Risks (Costs)

Quantify Your Value Using

QDI’s Value Management WorkbookTM


Evaluate

Identify

Classify

Qualify

6. Quantify the Potential Business Opportunity to Determine Where to Invest Development Resources

• Maximize Input of Ideas

– Classify which opportunities meet basic screening criteria

– Customer Interviews are used to Qualify which opportunities go on to Market Investigation

– Assessing customer research helps Identify what moves to Stage Zero

– Evaluate which opportunities go to Stage One

Ideas

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Gathering Voice of the Customer and Market

Whether developing new product and business concepts or testing & validating a Stage 4 Product, gathering the right voice of the customer and market dynamics present specific challenges:

– Getting prospects to spend time helping you

– Matching the conversation to the team’s scope

– Seeing past the prospect’s requests to the unstated needs

– Determining which needs are common

– Assessing the value to customers (Pricing)

– Detecting potential competitor/market dynamics

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Critical Steps for an Innovation Team

• Efficiently learn • Use structured Voice of the Market Research whether developing new

products and business concepts or testing & validating stage 4 products

• Find the right contacts, get them to open up, spot unstated needs and track what’s being learned – so your team can be productive immediately

• The research team members must represent the customer in the brainstorming sessions so your team can focus on finding the innovations

• Use tools – Value Management to determine market viability

– Value Capture to determine potential pricing

– Market modeling to determine the size and adoption rate

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QDI recommends bringing an experienced Voice of

the Market resource into new innovation team


Contact Us

To discuss your customer journey and mapping plans, call: Steve Bassill President QDI Strategies, Inc. 847-566-2020 x229 [email protected] www.qdistrategies.com

To read more about QDI’s tools and methodology

Visit us at:

www.qdistrategies.com

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