What are the key principles of Outcome-Driven Innovation?

"Strive to build a car and not a faster horse." Determining job-to-be-done is important for Outcome Driven Innovation. The aim should be to determine the crux of the problem for each customer persona and determine the favourable outcome for each, to build innovative products .

We approach innovation from a human centered design perspective. Step 1 is to understand the market. That involves a market scan and talking with experts. Step 2 we call "empathy"; talking in depth to stakeholders to understand their needs, wants, and frustrations with products and services in their context. Step 3 focuses on massive ideation, ideally with people outside the industry. Volume is the key here. We then down select using feasibility, desirability, and viability as our vetting guide. From there (4) we create narratives, storyboards, and/or prototypes for quantitative feedback. From this bake off we are ready to head to MVP. We routinely double back as we test & learn. A proven process resulting in winning concepts.

It's not just important to know what the customer wants but to what degree does the solution fit the problem. E g. When a customer wants to be told about a certain event, many a times a simple WhatsApp message will work, rather than building out a complex product to convey the same information. Context of the problem helps determine the scope of the problem and what kind of solution is the best for it. And we must be wary of overloading the user with information. When a customer wants a burger, let's just give them a burger and not a 5 course dinner.

Through many years of testing, it’s proven that what a consumer says and what a consumer actually does may be two different things- so it’s important to consider how to test concepts both qualitatively and quantitatively as much as possible, when possible. And it’s also important to look longitudinally at the results, which can be a challenge for many companies and teams who have to report results on a quarterly basis. Short-term decisions can impact long-term gains. It’s great when people have the agility to adjust without wholesale abandoning what could be a long term gain. Thus the ODI can hopefully be realized.

One thing I've found very useful is to put yourself in the customer's shoes and think from a broad perspective with a touch of empathy. Identifying and communicating the jobs to be done is crucial but they will be meaningful if you are able to connect with the customer on their level and exhibit empathy towards their goals.

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Defining the outcomes at the outset is one important principle to help customer achieve the value they strive to. This may be trivial for us however it aligns to their overall strategy and vision and sometimes to the commitments made my leadership. I always ensure I work with customer to pen down the desires, apply thr Must have, Shkuld have, could have and would have rule to filter and prioritise them and then move ahead. As a next step I put together some measureable outcomes that help customers realise those benefits in a more tangible way.

Once we have established that customer is willing to pay to solve a problem, then comes to question of what is the outcome. One good way to find this out is to observe customer as they perform this task and as "WHY" they are doing what they are doing. Sometimes, people may ask you for certain solution with their limited knowledge. But there can be better ways to solve that.

In my experience it's good to have a finite list of outcomes. I've defined outcomes as "answers to customer business challenges that our product is capable of solving". By making this list finite, you create a common language that can be persistent across the customer journey. Impact then are the specific metrics and benchmarks across those finite outcomes.

Don't forget to think about how the individual is compensated which can drastically affect behavior. And don't ignore the emotional aspect of how you can help someone progress their career.

This "space" is really for inventors and creative minds. In my experience I am more a developer of ideas than a creator. Satisfaction in this case is the key of creating any new revolutionary product.

At the core of the Opportunity Landscape is the recognition that customers buy products and services to get jobs done. These jobs are tasks or objectives they are aiming to achieve, which can be functional, emotional, or social. The first step in constructing an Opportunity Landscape is to articulate these jobs in a way that is both comprehensive and precise. Once the job is defined, the next step is to break it down into specific outcomes that customers desire when trying to complete the job. These outcomes are the variables customers use to measure success. They are not just features or benefits but are expressed in terms of the functional and emotional progress the customer seeks.

Just to be clear here - you can have the best strategies, the best plans, the best tactics but in my opinion without the right company culture and mindset you have not achieve outcome based innovation. Have a nice day!

This is essentially a visual representation of where your product stands in terms of market potential and competitive positioning, all centered around what your customers desire to achieve. The opportunity landscape itself comprises two critical dimensions: importance and satisfaction Importance: Satisfaction: Gaps and Opportunities for Innovation: These gaps represent fertile ground for innovation. It's in these areas that customers are deeply concerned about something but existing solutions fall short. Validation of Product Assumptions and Hypotheses: It provides a clear picture of where your product's potential lies and whether it aligns with what truly matters to your customers.

Prioritize opportunities for innovation This step involves assessing each unmet outcome for its potential impact on the market and its alignment with your business's strengths and goals. By focusing on outcomes that are both highly important to the customer and poorly satisfied by existing solutions, you can pinpoint areas where there's a strong demand for better solutions. Prioritizing in this manner ensures that your product development efforts target areas with the highest potential return on investment, allowing you to create products that truly resonate with customer needs.

Using segmenting criteria is a fundamental concept in Outcome-Driven Innovation (ODI) and is crucial for understanding customer needs and preferences. Here's a breakdown of the concept and its importance: 1. Definition of Segmenting Criteria 2. Not Demographic, Geographic, or Psychographic 3. Examples of Segmenting Criteria - Traditional Demographic Segmentation - Criteria-based Segmentation 4. Importance of Using Segmenting Criteria - Customer-Centric - Customized Solutions - Competitive Advantage - Resource Allocation -Innovation and Development Using segmenting criteria in Outcome-Driven Innovation is a customer-focused approach that allows you to categorize customers based on the specific factors that impact their desired outcomes.

Behavioral, situational and attitudinal factors underpin demographics in a lot of scenarios, so it is definitely best to focus on the former. This way, companies can focus on what truly matters to the end user of the product and tailor their offering more precisely.

In applying ODI's fourth principle within AI/ML-driven FinTech products, how do we ensure our segmenting criteria remain dynamic, adapting to evolving financial behaviors and market trends? Moreover, in a sector where trust and security are paramount, what balance should we strike between personalized offerings and the need for privacy? It'd be enlightening to see examples where real-time data has been effectively used to refine these behavioral segments and enhance customer satisfaction without compromising security. How are others tackling these challenges?

The segmenting criteria are the factors that can be used to divide the customer base into different groups. It is important to segment the customer base in order to develop products and services that are tailored to the specific needs of each group. Example: The segmenting criteria for smartphones might include demographics (e.g., age, gender, income), psychographics (e.g., lifestyle, interests), and usage patterns (e.g., how often the customer uses their smartphone, what features they use most).

Empathy and customer psychology is critical here. Take a high-stress commute: here, a traveler's immediate needs—like punctuality—trump usual preferences. Stress alters priorities, leading to choices based more on context and emotional state than on habitual behavior. To truly meet these needs, a business must empathize, understand, and predict how emotions and stress shape decisions. This empathetic approach ensures solutions not only fit the customer's practical job-to-be-done but also resonate with their psychological state, leading to products that are genuinely valued in specific, often challenging, situations.

As a VP of Product, the fifth ODI principle, "Creating the product concept," is where the magic happens ?. It's about distilling your product idea into a clear and compelling description that speaks to the customer's needs. It's not about detailed specs or prototypes, but a simple statement summarizing your product's value, features, and benefits. For example, a product concept for smartphone users: "A smart assistant that filters calls and messages based on user preferences and context." ?? In today's fast-paced market, the product concept is the cornerstone of product development. It ensures innovation aligns with customer demands and feasibility ??.

Outcome-Driven Innovation (ODI) is a customer-centric approach that emphasizes delivering specific outcomes and benefits, rather than just features. By defining clear outcome statements, using data-driven metrics, and continuously iterating based on customer feedback, ODI ensures that products truly meet customers’ needs and drive market success.

- Product Concept in ODI: ODI emphasizes creating a clear and compelling product concept. - Addressing Customer Needs: The product concept is centered around addressing the customer's job-to-be-done and their desired outcomes. -Not Technical Details: It's not a detailed specification, prototype, or mockup but a high-level description of your product's value, key features, and benefits. -Clear and Compelling: A well-crafted product concept is clear and resonates with customers. -Testing and Validation -Fit and Feasibility -Customer-Centric Approach: ODI starts with understanding real customer needs. -Innovation and Success: Guides innovation by focusing on delivering what matters most to customers. -Value Proposition:

The product concept is the high-level vision for the product or service that you are developing. It should describe what the product or service is, who it is for, and what benefits it will provide to customers. Example: The product concept for a new smartphone might be to develop a phone that is more durable and has a longer battery life than existing smartphones.

In the FinTech AI/ML domain, how might we refine a product concept to not only fulfill but anticipate the 'jobs-to-be-done'? For instance, could a concept like an AI-driven financial concierge that proactively tailors financial advice and risk management, based on real-time economic shifts and individual spending patterns, resonate? How do we balance the predictive power of AI with the need for user control and transparency in our product concepts?

Think it is key here not to be too rigid in following the framework and tailor your approach based on the complexity of the problem. For a well defined and structured area it is often easy to define clear outcomes which already have established measurement methods and ensure that every step ensures value delivered to those outcomes. For other more unstructured issues perhaps it is more important to build towards measurement of desired outcomes before focusing immediately on value delivery. It’s important to throw some caution to the wind (in a measured and risk mitigated manner) and be agile to get to an outcome when appropriate

Great execution of a product starts with a roadmap — a strategic overview that plots the course of product development. Traditionally product roadmaps have been a list of features to be developed over a set timeline, but with the rapid pace in which markets evolve, product teams require a more flexible, dynamic approach. Enter outcome-based roadmapping. Unlike traditional roadmaps that focus on how fast you are building, outcome-based roadmaps focus on why you’re building. They emphasize the value a product brings to its users and how it contributes to business objectives. This holistic approach enables product teams to adapt to changes, customer feedback, and new insights, ensuring the product remains relevant and valuable over time.

Persona based approach and establishing scalable mechanisms is key to measuring product outcomes. 1. Persona focussed :: Product outcomes should be holistic considering all personas involved including end customers, partners, and other business stakeholders 2. Continuous approach :: Establishing mechanisms to baseline the measures, defining systemic approach to capture and report is crucial to driven data driven insights for product growth

Outcome-driven innovation is a product development approach that focuses on achieving specific, customer-centric outcomes. Its key principles include: 1. Customer Needs: Identify unmet customer needs and prioritize them. 2. Outcome Definition: Define desired outcomes or job-to-be-done. 3. Metrics-Driven: Use quantifiable metrics to measure success. 4. Hypothesis Testing: Continuously test and refine hypotheses. 5. Rapid Iteration: Iterate quickly to adapt to changing customer needs. 6. Data-Backed Decisions: Base decisions on data, not assumptions. 7. Market Validation: Validate solutions in the target market. These are some approaches which creates products and services that better satisfy customer demands.

An outcome-based roadmap builds the long-term vision for a product and its features. These features could provide value to the customer and organization backed by data analysis. Additionally, an outcome-based roadmap helps build qualitative features valuable to the customer, which are seldom deprioritized because they do not provide incremental monetary value.

In my view any product that creates value to the persona using it will always succeed in long run. Because company's value creation activities is directly proportional to the customer-defined metrics. Innvovation done with the consideration of customer needs is one of the most successful approach.

In our product development journey, we embraced Outcome-Driven Innovation (ODI) wholeheartedly. Our team went for a few sprints focused on understanding and defining our customer's "job-to-be-done" and their desired outcomes. We dove deep into the market, conducted extensive empathy interviews, and engaged in massive ideation sessions. During these alternate sprints, we didn't create detailed product specifications or prototypes; instead, we honed in on our product concept, a simple yet compelling description of how we could help customers achieve their desired outcomes better.

More to consider: - deliverability at scale - costs of delivering - how to get together a GTM strategy to take the innovation to market, again, at scale

Appreciate the MVP! In many cases, non-product internal stakeholders do not understand the true value of building and failing fast. We all fall into the trap of believing that our ideas and perceptions of what a product should look like are always correct, especially if backed by hand-picked data that validates those perceptions. At the end of the day, only the end user decides what works and what doesn't; being able to collectively agree on what an MVP should look like, and then work towards that as quickly as possible is the most robust approach to validating a hypothesis.

Jeff Bezos says-"Customers are always beautifully, wonderfully dissatisfied....Even when they don’t yet know it, customers want something better, and your desire to delight customers will drive you to invent on their behalf.” Amazon as a company places 'customer obsession' as central to all that we do; I also lean into it for decisiveness and(or) to tie-break dilemmas. I also advocate for customer journey mapping to truly get into customers' shoes and understand their perspective- helps create a truly differentiated CX.? It's equally important to study how choices/needs evolve so that a business can pivot and stay relevant, extending the offerings' utility in-line with demand.