What is Outcome-Driven Innovation ®?

Outcome-Driven Innovation ® (ODI) is a strategy and innovation process based on customer-defined metrics, making innovation measurable and predictable. The process employs qualitative, quantitative, and market segmentation methods that reveal hidden opportunities for growth. The result is predictable innovation and growth strategies that work.

ODI starts with a deep understanding of the job customers are trying to get done and the metrics they use to evaluate competing products and services. ODI generates strategies for product or service offerings that your customers will love and buy – with an 86% success rate.

Information from our partner Strategyn: strategyn.com

“Let us change the world by
creating innovative strategies that
will help people get their jobs done better.”

Outcome-Driven Innovation ® Process

Learn to know the patented ODI process developed by innovation pioneer Antony W. Ulwick:
Define the market around the Job-to-be-Done
Uncover the customer’s needs
Quantify over/underserved needs
Discover hidden segments of opportunity
Formulate the growth strategy

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.

Market Ecosystem

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-to-be-done.

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.

quantified outcomes

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.

segmentation analysis

Finally, Edizon will help you to build a market and product strategy around customers’ needs. Strategic growth paths are reviewed to identify specific opportunities for differentiated, dominant, discrete, disruptive or sustaining innovation. Existing solutions are evaluated to identify potential for additional value creation. New products, services, platforms, and business models are defined.

growth strategy matrix

This is what makes the Outcome-Driven Innovation® Process unique:

  • Outcome-Driven Innovation® is a customer-centric innovation approach: The customer’s job-to-be-done acts as the focal point value creation. It is defined independently from any solutions (that means products and services) and thus enables to view the market from a broader perspective.
  • Outcome-Driven Innovation® reveals customer needs at a granular level: The Jobs-to-be-Done Needs framework developed by Innovation pioneer Tony Ulwick helps to identify all types of needs (functional needs, emotional needs, consumption chain needs, etc.) in their comprehensiveness and on a highly granular level. A clearly defined syntax ensures that the needs are defined actionably and unambiguously, and can be communicated throughout different departments without loss of precision.
  • Outcome-Driven Innovation® is grounded in statistically valid data: While understanding all the customer’s needs ensures the ODI process is customer-centric, quantifying them ensures the process is data-driven. Therefore, the identified needs are quantified through a large-scale survey to reveal the level of satisfaction and importance for every single need.
  • Outcome-Driven Innovation® segments around customer needs: The most effective way to identify segments that have homogenous needs and that are mutually exclusive is to segment around customer needs. Using factor and cluster analysis, ODI uncovers segments for value creation even in seemingly saturated markets.
  • Outcome-Driven Innovation® informs growth decisions for years to come: The ODI process it delivers a comprehensive, predictive data model that focuses activities and guides strategic decisions throughout the whole company, from product management and product development, R&D and innovation management, marketing & sales to new business development.

Learn how Edizon can help you to implement ODI

Read more in our Blogs:
ODI Practitioner Insights: An Interview with Marco de Polo from Roche Diabetes Care (Part 1) and (Part 2)

The language of ODI:

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.

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