Identify Broad Market Opportunities

Simply stated, innovation is a two-step process in which companies must (1) identify opportunities in a market and (2) devise solutions that address them. Once the customer inputs have been successfully captured, companies should attempt to identify broad market opportunities. In the outcome-driven paradigm, an opportunity is defined as a desired outcome or a job that is underserved – in other words, an outcome or job that is important, but not well satisfied given the products and services that are currently available.

There are three reasons why traditional market research methods make it nearly impossible to surface these unmet needs. First, they go after the wrong inputs, an incomplete set of inputs, or a mix of inputs because they are unaware of what a good input is to begin with; second, because of the way questionnaires are typically structured and administered, companies often limit the number of attributes they test in a survey to about 30, although 50 to 150 statements ought to be evaluated; and third, companies often use scaling methods such as paired comparison and forced choice to get customers to make trade-offs between attributes – a practice that is totally inappropriate when asking customers to prioritize true customer needs. Although scaling methods may be useful when asking customers to choose between solutions, they hinder the discovery of hidden opportunities.

Strategyn’s approach is unique. Once customers' inputs are uncovered, Strategyn uses uniquely structured surveys that quantify—with statistical validity—the degree to which each outcome is important and unsatisfied. Our unique research methods ensure the right inputs are used to begin with, enable the prioritization of up to 150 customer inputs, employ optimal scaling methods, and use the opportunity algorithm to determine where the greatest opportunities for value creation exist. (See “Turn Customer Input into Innovation,” Harvard Business Review, January 2002.)

When underserved outcomes exist in a market, they are found using Strategyn’s research methods. Overserved outcomes – if they exist – are also discovered using these methods, revealing the degree to which a market is ripe for disruption.

Click here to view a Microsoft PowerPoint slide show of Strategyn's Opportunity Landscape Module™, illustrating this step.