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Innovation Resourcces
 























This complete interview, Addressing the Issues of Innovation,  is available as a pdf. Login or Register to Download

Outcome-Driven Innovation
Home: Innovation Resources: FAQ

FAQ

1. What is innovation and what skills must a company possess in order to innovate?
2. Why is it that companies struggle to innovate?
3. What is outcome-driven innovation?
4. How does the outcome-driven innovation methodology fit into the StageGate process?
5. What types of innovation initiatives can benefit from using the outcome-driven methodology?
6. What exactly is disruptive innovation?
7. What long-held VOC myths are shattered by outcome-driven thinking?
8. How should companies work with lead users?
9. Where does TRIZ – the Theory of Inventive Problem Solving – fit into the innovation picture?
   
10. Why is the House of Quality (QFD) the wrong tool for the job of innovation?

Although the philosophy behind QFD is solid – that is to use customer inputs to create products that customers want – the house of quality, which is the multifaceted matrix used pervasively as the tool for implementing QFD is the wrong tool for the job of innovation. Innovation is the process of finding solutions that address unmet customer needs. The house of quality emerged as a tool to ensure the product was designed as conceptualized as it went through the product development process – not to enable the innovation process. Using the house of quality for innovation has forced QFD practitioners to execute workarounds and employ questionable practices that introduce variability into the innovation process.

For example, QFD practitioners limit the number of customer inputs they place into the house of quality to a workable number, usually setting the limit at about 30 inputs. This means that when 100 inputs exist, some two-thirds of the potential customer inputs are ignored, no doubt some of them critical. Furthermore, the actions taken to limit the number of inputs, by either excluding them or combining them, make the process inherently unstable. Who decides which of the inputs to exclude or combine, and how? If a company does decide to include all 100 inputs in the matrix, it would take a team of people 167 hours – or nearly 21 8-hour days to complete the relationship analysis assuming one minute of analysis per relationship. Ironically, this exercise is not even needed when desired outcomes are used as the inputs into the innovation process, because pure, solution-independent inputs have no relationships.

As another example, the inputs used to make decisions in the house of quality are twice removed from the customer’s actual inputs – once when the company defines engineering metrics and again when it prioritizes them through relationship analysis. Rightfully so, most companies prefer to base decisions on direct customer inputs as prioritized by the customer. Why introduce unneeded variability?

Lastly, and probably most incriminating, the house of quality can be gamed. By knowing how to work the relationship analysis or by using marketing factors as they are called or other factors to adjust the prioritization of the metrics, a clever employee can ensure certain customer inputs get a top priority. All these structural limitations introduce a source of variability and uncertainty to the process.

Our view is that the outcome-driven innovation methodology is a far superior method for identifying solutions that address unmet customer needs and to deliver on the philosophy behind QFD. And the house of quality – if it has a place in the development process – should be to help with the quality deployment of the solution through the development process to ensure the product is designed and manufactured as conceptualized.


11. Why should outcome-driven thinking be adopted by voice-of-the-customer (VOC) practitioners?
12. Why are traditional market research techniques inadequate when it comes to innovation?
13. What market segmentation techniques are best for the purpose of  innovation?
14. How can using outcome-driven research techniques transform market research departments into key drivers of strategy and innovation within a firm?
15. How do outcome-driven customer inputs make ideation and brainstorming methods more effective?
16. What is the best approach for creating a culture of innovation?
17. What is the key to success in innovation?

 

 

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