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Anthony Ulwick - What Customers Want: Using Outcome-Driven Innovation to Create Breakthrough Products and Services

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Anthony Ulwick What Customers Want: Using Outcome-Driven Innovation to Create Breakthrough Products and Services
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A world-renowned innovation guru explains practices that result in breakthrough innovations

Ulwicks outcome-driven programs bring discipline and predictability to the often random process of innovation.


-Clayton Christensen

For years, companies have accepted the underlying principles that define the customer-driven paradigm--that is, using customer requirements to guide growth and innovation. But twenty years into this movement, breakthrough innovations are still rare, and most companies find that 50 to 90 percent of their innovation initiatives flop. The cost of these failures to U.S. companies alone is estimated to be well over $100 billion annually.

In a book that challenges everything you have learned about being customer driven, internationally acclaimed innovation leader Anthony Ulwick reveals the secret weapon behind some of the most successful companies of recent years. Known as outcome-driven innovation, this revolutionary approach to new product and service creation transforms innovation from a nebulous art into a rigorous science from which randomness and uncertainty are eliminated.

Based on more than 200 studies spanning more than seventy companies and twenty-five industries, Ulwick contends that, when it comes to innovation, the traditional methods companies use to communicate with customers are the root cause of chronic waste and missed opportunity. In What Customers Want, Ulwick demonstrates that all popular qualitative research methods yield well-intentioned but unfitting and dreadfully misleading information that serves to derail the innovation process. Rather than accepting customer inputs such as needs, benefits, specifications, and solutions, Ulwick argues that researchers should silence the literal voice of the customer and focus on the metrics that customers use to measure success when executing the jobs, tasks or activities they are trying to get done. Using these customer desired outcomes as inputs into the innovation process eliminates much of the chaos and variability that typically derails innovation initiatives.

With the same profound insight, simplicity, and uncommon sense that propelled The Innovators Solution to worldwide acclaim, this paradigm-changing book details an eight-step approach that uses outcome-driven thinking to dramatically improve every aspect of the innovation process--from segmenting markets and identifying opportunities to creating, evaluating, and positioning breakthrough concepts. Using case studies from Microsoft, Johnson & Johnson, AIG, Pfizer, and other leading companies, What Customers Want shows companies how to:

  • Obtain unique customer inputs that make predictable innovation possible
  • Recognize opportunities for disruption, new market creation, and core market growth--well before competitors do
  • Identify which ideas, technologies, and acquisitions have the greatest potential for creating customer value
  • Systematically define breakthrough products and services concepts

Innovation is fundamental to success and business growth. Offering a proven alternative to failed customer-driven thinking, this landmark book arms you with the tools to unleash innovation, lower costs, and reduce failure rates--and create the products and services customers really want.

Anthony Ulwick: author's other books


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WHAT CUSTOMERS WANT WHAT CUSTOMERS WANT USING OUTCOME-DRIVEN INNOVATION TO - photo 1

WHAT CUSTOMERS WANT

WHAT CUSTOMERS WANT

USING OUTCOME-DRIVEN INNOVATION TO CREATE BREAKTHROUGH PRODUCTS AND SERVICES

ANTHONY ULWICK

Copyright 2005 by The McGraw-Hill Companies Inc All rights reserved - photo 2

Copyright 2005 by The McGraw-Hill Companies Inc All rights reserved - photo 3

Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

0071501126

The material in this eBook also appears in the print version of this title: 0-07-140867-3.

All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps.

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This is a copyrighted work and The McGraw-Hill Companies, Inc. ("McGraw-Hill") and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill's prior consent. You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms.

THE WORK IS PROVIDED "AS IS." McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill has no responsibility for the content of any information accessed through the work. Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise.

DOI: 10.1036/0071408673

What Customers Want Using Outcome-Driven Innovation to Create Breakthrough Products and Services - image 4

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We hope you enjoy this McGraw-Hill eBook! If you'd like more information about this book, its author, or related books and websites, please .

Dedicated to my parents, Lorena and Anthony W. Ulwick Sr., my sources of strength and discipline.

Contents
Acknowledgments

.

For almost two decades now I have been interested in understanding the process of innovationthe set of steps that people and companies take to create products and services that customers value. I have always believed that the process of innovation could somehow be broken down into steps and controlled by companies in such a way that they could achieve a consistent and predictable resultmuch like companies have accomplished with other business processes. In my journey to understand this process and help companies achieve this goal, I have had the great pleasure and honor to work with some of the most brilliant minds in this field. In the academic world, Harvard Business School professor Clayton M. Christensen has asked me hard questions and motivated me to solidify my ideas about outcome-driven innovation. His thinking and willingness to share those thoughts are greatly appreciated. Likewise, Harvard Business School professor Clark Gilbert has been exceptional at providing personal guidance and insight. They are both leaders in this field.

In the business world I have been blessed to work with exceptional individuals who are also motivated to demystify the innovation process. Jeff Baker, Jeff Hansen, Joel Block, Dave Wascha, Bobby Bakshi, Steven Silverman, and other researchers at Microsoft have spent countless hours contributing to the evolution of our outcome-driven thinking. Others who have selflessly contributed their time and thinking include Moira McGuire and Joe Post of Protocol; Michael Lee of Medtronic; Mike Favet of Guidant; Ken Dobler and Rick Faleschini of Johnson & Johnson; Michael Fons of Ecolab; Kim Westover of J. R. Simplot; Paul Zarookian of Imperial A.I. Credit Corporation; Judy Maritato, Randall Coe, Andrew Reed, and Jason Schickerling of Robert Bosch Tool Corporation; David Lund of Chiquita; Dr. Jerome Grossman of the Harvard Kennedy School of Government; Linda Applestein of Rohm and Haas Company; Matthew Nightingale of MeadWestvaco; Marshall Kostiuk of Syngenta; Dave Hotchkiss of Coloplast; Kevin Reeth and Michael Maron of Intuit; Robert Leonhardt and Eric Eskey of HP; and Ben Allen of Kroll Ontrack.

Most importantly, I have a profound debt to all my colleagues here at Strategyn. The contributions made by Sandy Bates, Dr. Robert Pennisi, Dr. Lance Bettencourt, Rob Schade, Chris Cordes, Andrew Johnson, Bill Nordeen, Roger Chevalier, Jerry Rossow, Matt Graham, and Joseph Winiarski have been discerning and valuable. Their ongoing inputs and improvements to our innovation process have accelerated its evolution. They are a great team who compliment and motivate each other to excellence. I'd also like to give special thanks to Sandy Bates and Andrew Johnson for their efforts and support in editing and preparing this book for publication.

As peers, Matt Eyring, Mark Johnson, and Scott Anthony, who are all part of Clayton M. Christensen's team at Innosight, have provided me with not only friendship but constant support and a partnership that has been enjoyable and rewardingI wish them ongoing success.

Lastly, I owe the deepest debt to my son, Anthony, and my wife, Heather, for sacrificing with me as we spent time apart so that this book could be written. I thank them for sharing my joy, being patient, and giving me encouragement as it was needed.

Over the past twenty years I have traveled many roads and enjoyed meeting dozens of wonderful, insightful, motivated, and brilliant people. They have taught me much about innovation. I thank all of you who have made this a joyful, rewarding, and meaningful experience for me and for the chance to share this knowledge.

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