Why do so many companies suck at going from product/service ideation to finding product/market fit? The numbers speak for themselves.
● 72% of all new product/service introductions fail to live up to expectations.
● Less than 2% of new products significantly impact company growth and recoup their development cost.
● Less than 10% of all venture investments get to any capital liquidity.
The numbers get worse the younger and smaller the company.
The majority of the current business, product, and service development models focus on the wrong elements, at the wrong time, and from the wrong frame of reference.
The current paradigm assumes that all customers know what they want and need and that these wants and needs are homogenous across groups of customers (markets).
Steve Jobs famous quote from three decades ago pretty much sums up the flaws in current paradigms beautifully.
Far too many companies spend far too much time designing, building, and testing in endless incremental sprints based on what the company thinks the customer "want and need" and far too little time upfront truly understanding customers are not homogenous and the underlying true motivations of why customers do what they do.
Instead of focusing on nebulous and constantly changing "wants and needs," companies need to focus on understanding the "job(s) customers want to complete" based on how individual customers define success.
This approach involves investing far more time upfront in truly understanding customers, which results in far less time on the endless cycle of product development sprints.
This framework is called Outcome Driven Innovation®, based on Jobs-to-be-Done Theory.
The Jobs-To-Be-Done (JTBD) model is based on Theodore Levitt's thesis.
Using the ODI/JTBD model, it is far more likely to create and deliver extraordinarily successful products and services.
WHICH RESULT WOULD YOU RATHER ACHIEVE?
WE THOUGHT SO.
Outcome-Driven Innovation®, copyright, and trademark Strategyn