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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?

The first myth that comes to mind is the long held belief that customers have latent or unarticulated needs. In the outcome-driven paradigm this is simply not true. What is true is that customers are often unaware of solutions that are on the horizon or unable to articulate a solution, but this is to be expected. Innovation is the process of devising solutions that address unmet customer needs. When approaching customers, a company should only be expecting to understand their needs. Solutions, for the most part, should be devised buy qualified scientists, technologists, engineers and the occasional lead user.

What we have found is that without exception customers are able to articulate all their desired outcomes related to a specific job. This is true even if a product or service designed to execute that job does not yet exist. This is why an outcome-driven approach to innovation is effective for new market creation. For example, in the 1970s consumers did not know they wanted or could not articulate their need for a microwave oven – which is a solution, but they did know they wanted to “minimize the time it takes to prepare a meal” and to “minimize the time it takes to clean up after the meal is prepared” – which are two desired outcomes.

Models and theories that suggest customers have latent or unarticulated needs simply confuse solutions with needs. The Kano Model, for example, refers to “must haves” and “exciters”. This language is referring to solutions – not needs. There are “must have” solutions and “excitement” solutions – but there is no such thing as “must have” and “excitement” needs. Excitement comes from a solution that does an outstanding job of satisfying an unmet need.

A second myth that comes to mind is that certain methods of requirements gathering are far superior to others. Some experts, for example, swear by observational research, while others back group interviews and personal interviews. In the outcome-driven paradigm we find that they are all effective methods – as long as you know that the goal of the interview is to capture desired outcomes. We have had great success with all these methods because we know the structure, content and format of the customer input we are looking for. If you do not know what you are looking for, then no method will be effective.

I think that understanding the difference between solutions and needs and understanding the goal of the innovation process brings clarity to some of the myths that have long hindered predictable innovation.


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?
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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