Outcome-Driven Innovation® (ODI) is an innovation market research and strategy process that ties customer-defined metrics to the Job-to-be-Done, making innovation measurable and predictable. The process employs qualitative, quantitative, and market segmentation methods that reveal hidden opportunities for growth.
ODI starts with a deep understanding of the job the customer is trying to get done and the metrics they use to evaluate competing product and service offerings. ODI generates product and service offerings that your customers will buy.
Information from our partner Strategyn: strategyn.com
The first step in applying JTBD Theory is to define the target market as a group of people plus the job they are trying to get done. This is a prerequisite for innovation success and more complex than it seems. The challenge is to define the Job-to-be-Done at the right level of abstraction. Defining the job too narrowly will limit the discovery of growth opportunities. Defining the job too broadly will result in non-actionable insights.
Edizon has extensive experience and the tools to identify the job your customers are ultimately trying to get done just at the perfect abstraction level.
In the second step of the ODI process, customer needs are being identified through qualitative market research. The results are organized as “job maps” containing the core functional job, related jobs and emotional jobs as well as consumption chain Jobs. A job map is a visual depiction of the core functional job, which explains step-by-step exactly what the customer is trying to get done, independent of the solution they are using.
For each job step in the job map, we identify the outcomes customers use to measure success when trying to get their job done, using our proprietary interview methodology. Outcomes are perfectly defined and highly actionable customer needs statements. Typically we identify 100 to 150 outcomes that will be defined exhaustively, without ambiguity and free from solutions and product features for a given job.
While understanding all the customers’ desired outcomes ensures the ODI process is customer-centric, quantifying them ensures the process is data-driven. With a complete set of desired outcome and job statements in hand, a company is able to obtain quantitative insights into its market that were never before possible. Therefore, the outcomes are quantified through a large-scale survey to identify the level of satisfaction and importance for each single outcome.
The results of the quantification are organized in an Opportunity Landscape that details potentials for sustainable growth as well as for disruptive innovation. To identify customer groups with similar need profiles, we segment markets around customer needs (= outcomes). The outcome-based segmentation analysis reveals the most attractive and profitable target customer segments for growth and it provides a new segmentation typology for your market based on true needs.
Finally, Edizon will help you build a market and product strategy around customers’ needs. Strategic growth paths for innovation are reviewed to identify specific opportunities for disruption or sustaining innovation (see figure Growth Strategy Matrix). Existing solutions (e.g. products, services, channels) are evaluated to identify potential for additional value creation, and to evaluate the need for new platforms.
Innovation – The process of devising a product or service concept that addresses the customer’s unmet needs, thus enabling the customer to get a job done better.
Market – A group of people (end users) and the core functional jobs they are trying to get done.
Outcome-Based Segmentation – A method by which segments of customers with uniquely different unserserved desired Outcome can be discovered, sized and targeted.
Unmet need – A desired outcome or related or emotional job that is both important and poorly satisfied.