Creating Offerings

Updated 11/18/2019

Acknowledgements

This book is the work of a collaborative group.

Contributors
Larry Ball (Primary Author)
David Troness
Kartik Ariyur
Jason Huang
Steve Hickman
Petr Krupansky
Larry Miller
Krishnamurthy Vaidyanathan

Editors
Erika Ball
David Troness
Paul Dwyer
Robert Lang

Illustrators
Larry Ball
David Troness

Other Authors, Theoreticians, Practitioners Whose Writings or Teachings have Impacted This Work
Genrich Altshuller
Ellen Domb
Roni Horowitz
John Terninko
Alla Zusman
Boris Zlotin
Lev Shulyak
Yuri Salamatov
Victor Fey
Eugene Rivin
Darrell Mann
Sergei Ikovenko
Simon Litvin
Peter Ulan
Lane Desborough
Clayton Christensen
Renee Mauborgne
Kim Chan

Where the Material Comes From

Much of the material for this book was inspired by the thought leaders referenced. The original intent was to codify the insights of these thought leaders, but the process of codification ultimately led to the synthesis of other experimental methods. This is because codification requires recognizing patterns of similarity among tools. Once this was achieved, the various tools were grouped with key decisions. Decisions necessitate and generate information that flows to subsequent decisions. Patterns and gaps became evident during this formative process. Experimental methods were inserted into the gaps. The effectiveness of these experimental methods lies in whether they actually assist the reader in identifying product or process characteristics that will engage the market.

Intro to Creating Offerings

Prerequisite Knowledge:
Throughout this book, we will engage with the concepts of “Function” and “Job,” making it essential to understand the definitions of these two terms as they are applied in this book. If you have not yet read TRIZ Power Tools– Working with Functions, please do so before proceeding with this book.

Each book in the TRIZ Power Tools series is crafted to function as an algorithm.

Inputs: A Hypothetical Target Market
Discovering Markets provided the input for this book: a hypothetical target market segment. This market is defined as a job and a job executor. For instance, pruning trees is a job, with the individual performing the task being the job executor. The market is thus described as those who undertake the task of pruning trees.

In the context of this book, a market segment is defined by what obstructs certain job executors or prospective executors from completing their task. Each type of hindrance or constraint represents distinct market segments. The target market may be completely blocked from performing the job or only mildly inconvenienced. Disposing of pruned limbs may present an annoyance compared to the more dangerous task of cutting heavy fronds from the top of a tall palm tree. Each market segment would benefit from a product or service designed to help them overcome the obstacles preventing them from accomplishing the job.

While defining the market segments, we aimed to encompass the broadest group of individuals possible to maximize market size. This is crucial as finely segmenting the market may lead to identifying features that please only a small market, resulting in a less sustainable business outlook.

Outputs: Products and Services that Delight the Market
In this book, we are developing product services that:

Enable the target market to overcome the job constraints
Simplify the job
Allow the business to surpass its constraints to profitably produce the product or service

Offerings that delight customers are relatively rare. We recognize such products or services when we encounter them, but achieving this systematically has been elusive. The systematic delivery of features within products and services that will delight customers and businesses is the central focus of this book.

Why Discuss a Hypothetical Target Market?
It is important to remember that we are nearly always in a learning mode when creating offerings, rather than an execution mode. We simply don’t know what we don’t know. We must keep our biases to a minimum and allow the market to unfold completely as we immerse ourselves in our potential customers’ world and observe the jobs they are trying to accomplish from their perspective. Our hidden biases and agendas can be our greatest adversaries. It is easy to see only what we wish to see and shortcut this crucial step. It is only when we become fully open to what our potential customers are experiencing that we can genuinely comprehend their problems.

Reaching this understanding with a hypothetical market can lead to hidden and unintended biases. Tom and Dave Kelly of IDEO explain that their approach is to never come with a hypothetical market in mind, as it introduces too much bias. They acknowledge, however, that when conducting a true anthropological study and immersing themselves in the market, it demands considerable time and energy—a drawback of the IDEO method, given the time required to gather market data. More importantly, their approach inherently introduces a fundamental market bias by presuming where to study their market to find evidence that supports their hypothesis. They can completely overlook a significant target market because they visit the wrong location to study the market. Given that time is always limited, exploring many areas can impose constraints on their approach, and where one looks can create biases that remain unrecognized.

Having a hypothetical target market allows us to direct our efforts on where to search first. Unfortunately, this may also introduce some of the undesirable and hidden biases that Tom and Dave Kelly aim to evade. To counteract this bias, we need to adopt a scientific mindset and strive to seek out exceptions to our hypothetical market. Many so-called scientists and journalists seek evidence that reinforces their hypotheses. We must do the opposite and search for exceptions, welcoming insights that may emerge as we learn more about our hypothetical target market. This quest for exceptions is a powerful concept in both the scientific and marketing realms.

That being said, immersing ourselves in our customers’ worlds and being ready to be surprised is still crucial.

Different Types of Business Innovations
To establish a foundation for the processes in this book, we require a hypothesis on how consumer and business constraints are overcome. Larry Keeley[1] of Doblin has examined different types of innovations and the companies that utilize them, categorizing them into ten distinct types of innovation.

First: Business model innovations pertain to how the business creates value for customers, delivers it, and profits from it.

Second: Network and alliance innovations entail businesses sharing operational costs in exchange for a portion of the profits.

Third: Enabling process innovations occur when processes are modified or added, allowing an offering to be produced profitably.

Fourth: Core process innovations signify substantial deviations in a company’s core processes from industry standards to deliver an offering.

Fifth: Product performance innovations improve the performance of product offerings.

Sixth: Product system innovations involve platforms that connect numerous products.

Seventh: Service innovations enhance the services already provided.

Eighth: Channel innovations improve the methods of delivering the product or service to the market.

Ninth: Brand innovations focus on how a business communicates its offerings.

Tenth: Customer experience innovations emphasize enhancing the enjoyable experiences associated with the offerings.

Both Larry Keeley and Clayton Christensen[2] have noted that historically, the most common and least profitable types of innovations are product performance innovations. This observation raises the argument that businesses should avoid product innovations and instead concentrate on developing other types of business innovations. Supporting this perspective, Keeley argues that businesses can become more profitable by focusing resources on cultivating a broader range of business innovations.

A More Certain Path to Business Innovations
While we agree that businesses characterized by these varying types of innovation generate higher profits, we assert that the path to profitable business innovations is to concentrate on eliminating the customer and business constraints that hinder customers from accomplishing their jobs. The Theory of Constraints[3] proposed by Eli Goldratt asserts that any process system is limited by bottlenecks that appear between inputs and outputs. Enhancing the flow of money through these bottlenecks is vital for business growth. Bottlenecks can appear at any point along the process chain. The customer can become a bottleneck if obstructed from consuming (see Discovering Markets). Constraints may also emerge from processes within the business. In a broader view, each type of business innovation can be seen as removing customer and business constraints that restrict the flow of money throughout the process. Addressing the main constraint can lead to any of the aforementioned business innovations, including product innovations.

Overcoming Customer Constraints
To align the business with target market needs, the first step is to ask, “How can the business overcome the customer constraints in accomplishing their job?” The types of innovations that will naturally arise from this inquiry include: product performance innovations, product system innovations, service innovations, channel innovations, brand innovations, and customer experience innovations.

Customers seek to get jobs done in their preferred manner. Thus, it is vital to comprehend the reasons why the target market cannot accomplish their jobs as they wish. Understanding the customer, the limitations they encounter while performing the job, their environment, and methods to simplify the job are foundational for aligning the business and determining the features of the offering that will delight customers.

Some designers and inventors may prefer to defer this “front-end work” to marketing. While many businesses segment work across different organizations, this is typically inadvisable. Requiring designers to adopt the customer’s perspective nurtures an intuitive sense of when the offering is suitable. This ensures a focus on essential features and eliminates the distractions and subsequent costs related to developing features that the customer does not value or for which they will not pay.

Overcoming Business Constraints
The second step is to ask, “How can the business overcome its own constraints in profitably delivering the offering?” The types of innovations that can result from this inquiry include business model innovations, network and alliance innovations, enabling process innovations, core process innovations, and channel innovations.

Overcoming customer constraints when serving a specific market segment may be impossible unless the business also addresses its own constraints in serving that segment. Fortunately, many business constraints can be automatically alleviated by selecting a market segment that the business is prepared to serve.

The business model[4] represents a tightly integrated package, such that the failure of any component can result in the failure of the entire system. Achieving success presents a formidable challenge, especially considering changing economic and market conditions. An effective business model requires an offering that appeals to a substantial market. The business must have the ability to finance, create, and deliver this offering to the market in a manner acceptable to various market segments. All participants in the value chain must be capable of generating profits, and all processes must be sufficiently robust to withstand inevitable disruptions. We can view most sustainable business models as a type of secret sauce. The odds of failure for new products and services tend to be very high. One may wonder, “How can I increase the likelihood of success?”

The probability of accurately evaluating assumptions in the early stages is significantly increased by aligning the business model with customer needs.

Conversely, a recipe for failure involves first settling on a familiar business model and then compelling customers to adapt to that model. Most established businesses tend to approach new market segments this way. This tendency often arises from the disruptive nature of altering an established business model. The conventional business method is to create a new product or service first, then tailor it to a pre-existing business model that has been successful in other markets. Notice that the business is misapplying one of its “strengths” in this scenario. The business has learned to meet the needs of its current markets and market segments using the existing business model; so why not leverage this knowledge in other markets and segments? Although this approach is prevalent, it is flawed because new market segments often necessitate that their needs be met differently than those of existing segments. Christensen refers to efforts to fit new offerings into existing business models as “cramming[5].” This process distorts the offering so profoundly that the market cannot fully benefit.

A more enlightened approach is to acknowledge that new markets typically must be served with business models aligned with their unique requirements. Since altering business models can be disruptive, established companies would often be better off starting entirely new ventures to provide these new offerings. This dynamic is why small startups often find it easier to meet the needs of emerging markets compared to established businesses. Startups also tend to be content with smaller volumes and lower margins.

The concept of aligning the business model with the market is powerful because it synchronizes the business’s goals with those of the target market. They want to successfully complete a job using our offering, and we want them to effectively perform this job. They seek to consume, and we wish for them to consume. While this may seem obvious, ironically, many companies find themselves at odds with their own customers, as they provide offerings in ways that fulfill their own needs rather than those of their customers.

Removing the Constraints and Burdens of the Job
We will remove job constraints while idealizing the job. To idealize the job, we will strive to either enhance the job’s output or reduce its burdens. This typically involves minimizing the number of elements, thereby simplifying the system. Consider how customers might respond if we could assist them: make the job more convenient or straightforward; maximize productivity by undertaking additional functions; prevent or mitigate damage to other objects; or monitor processes involved in the job.

Remember that these are potential functions. Later, we will determine which of these should be preserved to deliver exceptional value to potential consumers.

Discovering Unexpected Markets
One unforeseen outcome of this step is the discovery of unexpected markets. Alternative methods for accomplishing the function often present possibilities for executing a new job, prompting us to revisit earlier steps.

Start by Simplifying the Super-System (Job)
Simplification should always commence at the super-system level. No single element (including your product or process) is essential, except within the context of accomplishing the job. The customer desires to execute the job with the fewest burdens and the least complexity possible; only the overall outcome of the completed job holds significance.

One Outcome May Be the Elimination of Your Product or Service
If you simplify the system from the customer’s viewpoint, the most compelling outcomes could involve the elimination of your system! This scenario indicates that the system producer may find themselves in conflict with market expectations. Ultimately, we wish to be entirely aligned with the market. Eliminating our system through the creation of new products that satisfy market demands may be one approach to addressing this conflict of interest. If this option is too difficult to accept, then allowing our system to adopt the functions of other objects in the system may be a more acceptable alternative.

Learning versus Executing
A second method to enhance the likelihood of success is through a form of business humility. Clayton Christensen[6] describes the path to greater success as a learning model that gradually aligns customer and business needs: First, identify the assumptions that you believe define an effective business model; then enter a learning phase to test and validate these assumptions. This period should not involve substantial investment but should instead focus on creatively exploring economical and rapid methods for testing these assumptions. This approach starkly contrasts with how most new businesses hastily execute their assumptions while bypassing the learning phase. While some of these businesses may ultimately succeed, they often find themselves compelled to undergo a learning process anyway. In other words, they made mistakes and were fortunate enough to have enough flexibility to correct them. Most successful businesses report needing multiple iterations before they accurately refine their offering.

Recall the Market Segment

Recall the Hypothetical Target Market Segment

Method

Step 1: What are the jobs, including new experiences?

Step 2: Who are the job performers?

Step 3: What are the job conditions?

Step 4: What are the job impediments or constraints that unify the segment?

Explanation

Target Market = Job + Job Performer + Job Conditions + Impediment

You should already have this information as it is an output from book 1: Discovering Markets. The market represents the job that needs to be done and the group of people who execute that job. The market segment is determined by the job conditions or environment and the common constraints affecting the job performance of the executors. These constraints can range from minor irritants to completely hindering the ability to perform the function.

We assume that the innovator has successfully followed the algorithm of Discovering Markets, ensuring that we understand the job—along with any added experiences— the job executor, and the constraints impacting the performance of the job.

It is also assumed that the business is willing to consider the chosen market segment. This is crucial, as the following steps will require business resources to understand the target segment and to design and create prototypes.

Example—Nourishing Outdoor Pets

Step 1: What are the jobs, including new experiences?

The primary task is nourishing an outdoor dog or cat.

Step 2: Who are the job performers?

The job executors are individuals responsible for nourishing animals that live and feed outdoors.

Step 3: What are the job conditions?

The conditions dictate that the job must be carried out outdoors, under the weather conditions that an outdoor dog would experience.

Step 4: What are the job constraints that unify the segment?

The constraint affecting job performance is an irritant: the food is frequently spoiled by various pests like birds, ants, bacteria, etc.

Example—Affordable Sewage System

Step 1: What are the jobs, including new experiences?

In functional terms:

Developer / Builder –> Installs –> Sewage System –> Processes –> Sewage

Step 2: Who are the job performers?

Developers/builders that require affordable off-grid human sewage systems, along with the people using the system.

Step 3: What are the job conditions?

In each case, the Developer/Builder must perform their job under typical building conditions while adhering to zoning and building ordinances.

Step 4: What are the job impediments or constraints that unify the segment?

The primary and most immediate impediment is the high costs associated with labor, materials, and land space required for typical sanitary systems.

Create a Requirement Targets and Capabilities Document

Method

Create a document that will track all of the requirement targets and capabilities. (Spreadsheets are good for this.)

Explanation

Clayton Christensen discusses execution versus learning. One of the surest ways to fail in the development process is to create a set of requirements and then build to those requirements based on your unproven assumptions about the markets, channels, and technical capabilities. Learning organizations always accommodate markets better than executing organizations. This is why smaller companies tend to excel at this, while larger companies that have evolved from learning into an execution culture usually perform poorly in the development of new markets. What is needed is a method to lay out assumptions and then validate those assumptions through a disciplined learning process. However, some things can be learned before others to make this more efficient. That is why we have the following processes in Creating Offerings.

One of the key revelations from Toyota Corporation is that flowing down requirements leads to churn, where the requirements become moving targets. This incurs significant costs for all involved. A much more efficient process is to flow down target requirements and ranges, and then flow back capabilities as they evolve. The capabilities can come from so-called “set-based” concepts and prototypes but should be grounded in actual rather than hypothetical capabilities. Toyota employs this approach in the building of cars and has demonstrated a fourfold improvement in development speed.

This method works effectively because it avoids subsystem resets. For instance, in the standard process of flowing down requirements from the super-system to sub-systems, a set of requirements is fixed in place, so to speak. If all other systems in the super-system work well together, then there would be no issues. Unfortunately, this almost never happens. When any subsystem fails to meet its requirements, the requirements for other subsystems need to be reset. This creates a tremendous amount of churn.

When targets and ranges are flowed down, it becomes clearer where there is flexibility. Capabilities flow up, and adjustments are made to the system. As the capability ranges tighten, so do the target ranges. Periodically, difficulties arise, and the affected subsystems come together to hold an integration meeting to make quicker decisions. Eventually, the capability ranges become tighter, and the targets are refined around the capabilities.

What has just been described is a disciplined learning process.

Example–Affordable Sewage System

Create a document that will track all of the requirement targets and capabilities. (Spreadsheets are good for this.)

A “Sheets” document was created to track the requirement targets and capabilities. Additionally, we are tracking these requirements in this eBook to make them more visible to the reader.

Value Network Stake Holder Requirements

Explanation of Value Network Stake Holder Requirements

Value Networks
The value network is the ecosystem in which our business model operates (note the figure below). It determines and limits our ability to meet the needs of the target market. It encompasses all factors that shape and influence the business model (note that the diagram below does not include all possible factors). Ultimately, it dictates how the business model is realized. It affects whether the offering will succeed and whether the target market will accept it. For highly constrained markets, it may be necessary to adopt an entirely new value network. For instance, you may not be able to implement the new business model within an existing business/company, especially if the new offering represents a market-creating innovation. It may be too disruptive to the legacy business. What is needed is a value network that acknowledges and supports the sustainability of the new business model.

Why Now
Studying the Value Network helps us to understand a great deal about our target market segment and the constraints they face. It also reveals a lot about what others are attempting to do to meet or resist the needs of our target market segment.

The Value Network includes the target market itself, as well as all other stakeholders that interact with this target market. Any insights we can gather online about this ecosystem will be beneficial to us later.

Stakeholders Included in the Value Network
Observing the red area of the figure below, we may find some unexpected stakeholders. For instance, the business that will need to adopt the new business model might hold different company values than those required for our model. Competitors may create strong barriers to our entry. Sales channels might be hesitant to embrace our new offering. Our offering may also be constrained by laws and regulations. Regulators may exert significant influence on what can be operated by the consumer.

Reevaluating Periodically Where You Stand
Many of the value network constraints imposed by the business should have already been recognized and minimized if you have determined where the business is willing to compete from Job #1: Discovering Markets. If you did, you would have only considered a market segment that the business is comfortable with. Unfortunately, challenges may arise as you discover what this market segment truly desires. The business may face difficulties in serving the target market segment. For instance, we may have initially concluded that a potential market segment would not require a new business model. Now, we suspect that it will. The business may be quite hesitant to pursue this since it is quite disruptive.

Summary
In this part of the algorithm, we will examine the Value Network constraints in serving the market segments and also explore ways to eliminate these constraints. The market segment, the business model, and the value network need to be aligned to offer a product or service that meets the needs of both the business and the consumer.

Study The Market Segment Online

Method

Step 1: Online Research

— Online Search Engines

— Nielsen MyBestSegments

— HubSpot Research

— Pew Research Center

— Social Media Groups relevant to your market segment

— Organizations that study your market segment

— Subscriptions tailored to your market segment

Government Statistics
— Census Data
— County Business Patterns
— Business Dynamics Statistics
— FedStats

Explanation

A wealth of information about your potential customers can be found online. Go and learn about them!

Identify Competitors

Method

Go online and identify who is trying to serve your target market already. Learn as much as you can about them.

Explanation

This is a great time to understand your competitors. It will give you a more realistic view of your target market and many of the constraints on serving them. It will also give you an idea of regulations that are facing you.

Identify and Study Stakeholders

Identify and interview stakeholders who can validate your assumptions up to this point. Take your time to build a relationship with these experts. Consider seeking input in business areas where your knowledge may be lacking, such as the following:

— Legal Counsel

— City, County, and State boards

— Standards Groups

— Zoning Authorities

— Business Mentors

Explanation

You can’t know everything. Many of your assumptions may be flawed, and you need to consult people with specialized knowledge in these areas.

Summarize Stakeholder Requirements/Targets

Method

Summarize the requirements/targets in your requirements document.

Explanation

These are the first requirements to put into your requirements documents.

Inspect Competing Systems

Explanation of Inspect Competing Systems

Before we can exercise empathy by observing people, we need to understand what they are already doing to accomplish their tasks. These are ultimately the individuals we will be observing, with the only exception being non-consumers.

Examining competing systems after we have designed our product or service can be risky. What if you are infringing on someone else’s patent? You may have invested significant time in developing your product only to discover that the competition has beaten you to the market. That is why we need to analyze the landscape now and not after our product has been developed. If you find that your idea is already covered by patents, do not lose hope. Finding ways around patents or discovering entirely different methods to deliver the required functions is a strength of these materials.

Competing systems often fulfill the required functions in ways that we may not have anticipated. We can glean a great deal from these competing systems.

Another reason we aim to understand competitive products and services is that, in a later section, we want to differentiate ourselves from the competition to such a degree that our offering cannot be overlooked. To achieve this, we need to comprehend what exists in the market and the competitive capabilities relative to our targets.

A competing system is not necessarily a competitor’s product, but rather any product or service that would be utilized if yours were unavailable. A competing system for air travel is travel by car. A competing system for a game of chess might be a card game. What people believe they are doing may differ from your perspective, and only they can inform you of the job they were trying to complete.

Study Competing Systems Online

Method

Step 1: Identify products or services that people use to complete the task. Keep a running list of these products or services along with the capabilities in the requirements targets and capabilities document.

Step 2: Research the sales of these products and their ratings (number of stars). What are people saying in the comments? Summarize the feedback in the requirements targets and capabilities document.

Step 3: Check search analytics to see what people are searching for regarding this product or service. What questions do they have? What are they looking for? What are their comments?

Search Analytics

— Facebook Audience Insights

— Google Trends

— Google Ads

— Think with Google: Marketer’s Almanac

Explanation

In many instances, you may not be able to visit the store to view the products. Even if you can, you often find a wider variety of products online and identify other store locations. The descriptions you obtain for products may differ from site to site. It may be possible to access product specifications that are not available by visiting a physical store. Conversely, if you are at the store, you can often use mobile internet-enabled devices to access product websites and view specifications.

Anticipate Indirect Competition

Method

Step 1: Beyond direct competitors, what products do people “hire” to get the job done? What are the indirect alternatives?

Step 2: What are the strengths and weaknesses of these alternative products?

Step 3: Consider that DOING NOTHING could also be a competitive alternative.

Explanation

Sometimes, it is possible to anticipate indirect competition. This includes products and services that would be used if they were fulfilling a more generalized job. A road trip can be considered competition for a flight. While direct competition may consist of other airlines, the broader objective is to transport a person or group from one city to another.

Example—Pet Feeder

Step 1: Beyond direct competitors, what products do people “hire” to get the job done? What are the indirect alternatives?

Large buckets or storage containers are often used for water. Disposable containers are frequently used for food and water bowls.

Step 2: What are the strengths and weaknesses of the alternative products?

Strengths: Low cost—Disposable—The large water tubs can be filled and left for an extended period, which is especially important during the summer heat. Additionally, the large water tubs are difficult to knock over when full.

Weaknesses: Limited functions – Larger containers require more extensive cleaning operations.

Step 3: Consider that DOING NOTHING might be a viable competitive alternative.

Store Search

Method

Step 1: Go to a store that sells products which provide the necessary modifications.

Step 2: Note the brands and manufacturers. Do the manufacturers offer more than one product? Who are the primary producers?

Step 3: Look for product trends.

Step 4: Read the labels. What claims do they make?

Step 5: Take note of the prices.

Explanation

When a physical store is accessible, examining the products in person provides significantly more information. It is impossible to acquire the tacit knowledge of products solely by browsing the internet. Not only can you inspect the product itself, but you may also have the opportunity to test it, search for patent information, and converse with sales staff and other customers to gather their opinions on the products (more on this in the section about interviewing), as well as observe prices, labels, and product trends.

Example—Pet Feeder

Step 1: Go to a store that sells products which provide the necessary modifications.

I am interested in containers that hold pet food, so I visit a pet store or the pet section of a department or grocery store.

Step 2: Note brands and producers. Do the producers sell more than one product? Who are the primary producers?

I have noted that there are three main manufacturers offering products in the category that I am interested in.

Step 3: Look for product trends

The trend is to combine food bowls with large storage containers and to keep the food at a level that is comfortable for pets.

Step 4: Read the labels. What do they say?

One claims to deter bugs.

Step 5: Note the price

$5.00 to $35.00

Visually Inspect Competing Systems

Method

Step 1: If necessary, visit locations where these products are sold. Explore stores and online platforms.

Step 2: Carefully evaluate the entire system. Aim to understand the functions that the product provides within the overall task. Also assess the user interfaces and try to grasp how the user interacts with the system.

Step 3: Disassemble the product or deconstruct the process. Observe how it is put together and the methods likely used to create it.

Step 4: If there are known issues, pay attention to the components of the system related to those issues.

Explanation

If you are not currently creating this product or service, it is crucial to familiarize yourself with the versions that are actively in use. This is important because you will soon be observing people using them. More intricate products necessitate more thorough observation. If needed, you may have to visit places where these products are sold. Remember that you can observe these items in physical stores as well as online.

Product teardowns are a common method to comprehend competing systems. There are two types of teardowns. The first focuses on understanding the user interface. Here, we aim to discern how the product interacts with the users. This can provide us with valuable insights regarding how a potential customer may feel while using the system. Secondly, we need to understand the role that the product plays in the super-system. What part does it serve in the overall task that the market segment is trying to accomplish? Thirdly, we need to grasp how the offering is constructed. If it is a product, how is it manufactured? If it is a service, what sequence of steps makes it viable?

Example—Pet Feeding Systems

Step 1: If necessary, visit locations where these products are sold. Explore stores and online platforms.

The author decided to visit pet super-stores. A trip to pet stores is a straightforward and practical way to view these products.

Step 2: Carefully examine the entire system. Try to understand the functions that the product delivers in the overall task. Also, evaluate the user interfaces and understand how the user interacts with the system.

A variety of pet bowls were found among the pet foods. There are numerous products designed to nourish pets for varying durations—from short to extended periods. Many of these products, capable of providing nourishment for longer durations, feature large food and water compartments. The user interfaces are quite simple and have remained largely unchanged for decades. Self-replenishing feeding systems add an extra dimension, as they simplify the overall task by reducing the frequency with which a human must interact with the system.

Step 3: Disassemble the product or deconstruct the process. Observe how it is constructed and what methods were likely employed in its creation.

Most feeding systems are made from durable plastic materials and are most likely produced through injection molding.

Step 4: If there are known issues, observe the components of the system associated with these problems.

Our market segment has identified a concern that existing pet containers do not adequately protect food or water from animals, insects, or bacteria.

Empathy for Job Performers Understanding the Struggle

Explanation of Empathy for Job Performers Understanding the Struggle

Inputs and Outputs of Understanding the Struggle
The input for this step is a hypothetical target market segment (Job to be Done + Job Executor + Job + Circumstances + Impediments). The output of this step is a deep understanding of the struggles that people face with this JTBD; what the hypothetical target market segment considers a job well done and the common problems or constraints they encounter.

Empathy for Job Performers–Understanding the Struggle
The feelings surrounding why people choose to (or choose not to) perform a Job to be Done (JTBD) can be incredibly powerful. People usually encounter changing circumstances that increasingly motivate them to complete a JTBD in a new way. Conversely, individuals may have strong anxieties and habits that hinder them from doing what they want or need to do.

Truly understanding each person’s path to consumption (or non-consumption) provides insight into why others may feel similarly. It often does not take a large number of conversations to reveal patterns and insights that we can use to shape our offerings. Engage with enough people to identify repeated patterns of behavior.

Expressing to the Market that You Understand Them–Mirroring Their Whys
When we comprehend the Whys, we can express that we understand and respect the market’s desires when it is time to promote the offering. Ideally, word of mouth is the most effective form of promotion. Relating to the target market segment and ensuring that you connect with their needs can have a captivating effect on the markets you are serving. This also means that businesses must articulate the Whys of what they aim to achieve; those who resonate with these causes will feel more passionate about joining in. This will all come to fruition after the offering has reached the market, with advertising helping the market recognize that you are ready to serve them.

Studying Markets Depends on the Market Type
If the hypothetical target market segment is already a consuming market, then understanding the important competitive attributes is easier. We can observe and learn a lot from these users about how they utilize existing products and services. If we seek insights from lead users and user innovators, we can further comprehend the desired levels for many of the competitive attributes related to human factors. Most of the approaches in this section pertain to consuming markets.

Reaching Out to Non-Consumers
The target market may be a blocked, non-consuming market. In their book *Blue Ocean Strategy*, Kim Chan and Renee Mauborgne explain that most industries create new products in the red oceans of competition. These waters are stained red by the blood of competing businesses. Most marketing tools are used to devise a strategy to outshine the competition in the areas that the industry typically competes in.

In contrast, blue ocean markets are created by making competition irrelevant. Either the market is very new, or the offering is extremely appealing to non-consumers. If you have identified a hypothetical new market or new market segment during the Discovery of Market phase, then you are well on your way to creating blue ocean opportunities.

Blocked non-consumers can be categorized into two groups: those who are unaware that the function is possible and those who are aware of the JTBD but are hindered by their circumstances. Each of these groups can transform into blue ocean opportunities. Data has shown that the blue oceans of non-competition are highly profitable. Approximately 61% of the profits that companies generate come from products launched in blue oceans.

How do we create blue ocean opportunities? We must reach out to non-consumers and comprehend their struggles. We need to understand their changing circumstances that drive them to pursue a JTBD and the anxieties and habits that would prevent them from performing the JTBD if the means were available. This is more challenging than exploring consuming markets because we have to rely on expressed feelings rather than behavior.

The Importance of a Hypothesis–Engaging with the Right Audience
One challenge in this step is ensuring you connect with the right market segment to gather valuable insights. When you venture out and start talking to people, you may find it’s not easy to identify your intended target market. You might initially speak with individuals who don’t fit your audience, which could lead to insights that reflect their perspective rather than the segment you are pursuing. This information can mislead you, so proceed with caution.

This step is often the most vulnerable in the product development process. It’s tempting to rush through it or to simply imagine the customer experience. Be cautious! Immersing yourself in your customers’ environment will reveal many unexpected insights. You cannot effectively achieve this without visiting their homes, workplaces, and leisure spots. To properly test your hypothesis, you need to have a clear understanding of who your target market is.

The time spent immersing yourself can be significant. This is why having a hypothesis is crucial – it helps you know where to focus your efforts. If you wander around randomly, you risk introducing an unseen bias based on where you are looking and may not even realize it. Starting with a hypothetical target market and going to where you believe they are can help you manage this bias. If you find that your hypothesis is incorrect, you can adjust to a new hypothesis and go there instead. Being aware of your biases is essential.

The Need for Humility Regarding Our Hypothesis
Starting with a hypothetical target market can also create a bias where you only notice what you expect to see. To reduce bias, actively look for surprises and welcome them! This will help you know you’re on the right path. If you find no exceptions, you can confidently proceed. If you do find exceptions, they can help you rethink your hypothesis.

Meeting the Needs of Multiple Market Segments
When attempting to meet the needs of various market segments, the motivations for fulfilling a job may differ for each group. This is feasible, but typically, it’s advisable to focus on one hypothetical market segment at a time initially. Over time, you may discover that it’s more profitable to transition to a related segment.

Competitive Alternatives
Competitive alternatives encompass all the various ways individuals accomplish tasks, not just products from competitors. These options may be entirely different from conventional industry solutions. Identifying these alternatives is important, as some non-consumers may rely on them. For example, a scrapbook serves as a competitive alternative to a smartphone. Similarly, a pencil and paper can replace money-management software, and a movie can be considered a competitive alternative for a dinner date.

Competitive Attributes
Competitive attributes are the product features and functionalities that individuals use to differentiate between competitive alternatives. These same criteria are often applied when making trade-offs.

Industries frequently make assumptions without fully understanding their target market, resulting in offerings that do not address the attributes valued by their audience.

A Job Well Done
Since market segments exist with experience performing the job, we can gain a clear understanding of what these individuals consider a job well done. This understanding can come from observing existing products or services, talking to those who purchase and sell products, and engaging in discussions with people about how they use these products and services. At the same time, we can gain insights into various competing systems and the features they possess that enhance the job experience.

To envision what a job well done will look like in the future, we can engage with Lead Users. Lead users have extensive experience and a keen awareness of when the job is performed below optimal levels. They hold strong opinions that infrequent users often lack. Thus, lead users can provide us with insights into the future attributes that many individuals will come to value.

Talking to Typical Customers—Especially with Prototypes
Typical customers are skilled at expressing what they like and dislike about performing a Job To Be Done (JTBD). If we can observe them first and witness unexpected behaviors, then we can inquire about those behaviors for valuable insights. They will be particularly helpful in evaluating prototypes. Most people struggle to articulate what they want in an offering. However, when they see or experience the prototype, they will quickly form an opinion. Nevertheless, obtaining candid feedback on your prototypes isn’t always straightforward. People often hesitate to tell you that your creation is flawed. One effective strategy is to ask which prototype they prefer (if you have more than one) and the reasons behind their choice. Additionally, when asking questions about switching costs, such as “What circumstances would lead you to switch?” you are likely to receive a more honest response. Few individuals will outright deny their willingness to switch immediately. Whatever you do, it’s essential to convey to others that they are helping you by sharing what they genuinely dislike.

The context in which the prototype is presented can impact the feedback. Several years ago, IDEO participated in a special for Nova in which they developed a shopping cart. During their prototyping phase, they tested their prototypes publicly. Let’s consider a couple of scenarios and analyze which would yield the best feedback.

1. A single shopping cart is presented to a group for examination.
2. A single shopping cart is made available in a store for anyone to use.
3. A single shopping cart is utilized in a store by someone who has agreed to test it.
4. Half of the shopping carts are substituted with prototypes.
5. Almost all of the shopping carts are replaced with the prototype.

Note that different group dynamics influence outcomes in each instance. For example, if all but one or two shopping carts were substituted, many would be compelled to use the new carts, creating a situation where those opting for the standard cart might be seen as unusual. We could ask the solitary users why they chose the standard cart, thereby gaining insights about the features of the prototype cart that some in the target market found undesirable. This could provide valuable feedback. Similarly, we could observe others using the new prototype cart and glean significant information from them. Conversely, if only one prototype cart were used, group pressure might deter individuals from selecting that lone prototype. Those opting for the solitary shopping cart would experience social pressure similar to those avoiding the lone prototype cart. If it were commonly selected among a group of shopping carts, this could yield beneficial insights. However, if it were never chosen, it might indicate that group dynamics favor conformity, which could be misleading. In every instance, varying group dynamics come into play. What is most critical is recognizing that the most useful information arises from using the offering in the context in which it is most likely to be employed, allowing the appropriate group dynamics to be observed. Simulating group activities with actual groups would be advisable. Using the prototype in scenarios akin to those described above requires careful consideration to ensure that the relevant metrics are being accurately measured.

A Highly Constrained User is Also Useful
While Lead Users and even infrequent users can offer valuable insights into desirable future features, they often struggle to explain why individuals are hindered or blocked from performing the task. (From their perspective, everyone should aspire to carry out the job and find joy in the process.) To comprehend the reasons why people do not engage, we need to talk to them. This task is challenging since you can’t observe them, and there are no guarantees that an individual who wishes to undertake a task will genuinely feel that way when the obstacles are removed.

The Product Life Cycle
We will be conducting interviews to identify constraints, features, and environments throughout the product life cycle. For this purpose, a product life cycle map[7] is included. Its use is prevalent throughout all of the more detailed steps.

Incremental Price Based on Context
The incremental price is defined as the amount a person or organization is willing to pay for an additional feature or function. The willingness to pay for an added feature or function must be assessed within the context of the tasks that need to be accomplished. One aspect of this context is the main function being performed. If the additional function or feature is not directly related to the main function, it must still be considered concerning the primary function and the situational context. For example, the ability to listen to a podcast while driving a car or being a passenger differs from simply listening on a computer. The main function of a car is to transport people, while the user experience of listening to a podcast is an incremental addition to the act of transporting individuals, relevant in the context of being either a driver or a passenger.

Focus Groups
Similar to other forms of market feedback, focus groups can be used in ways that either clarify or obscure the understanding of the offering. If the offering is intended for use in public settings or groups, utilizing group feedback is appropriate. Some companies have chosen to solely observe and interview consumers due to concerns that responses to products may be less reliable.

Personally Use or Simulate the Product or Service

Method

Step 1: Use the product or service yourself.

Step 2: Look for instances where usage is difficult or awkward. Try various scenarios or tasks as much as possible. Create a unique lifecycle map for these products. Note your own unexpected behaviors.

Step 3: Assess the completion of tasks and constraints: “How did you know when the job was done correctly at each stage of the lifecycle?” What are the constraints on performing the job? Are they what you anticipated for the market segment? Is this altering your perception of the constraints, or are you considering a different market segment than you initially thought? Try to determine what motivates you to complete the job and the reasons behind those motivations. Then, identify what hinders you from performing the job and the reasons behind those barriers. Aim to understand the functional, social, and emotional factors related to completing the job.

Step 4: Competitive Attributes: “What factors would you examine to determine which product to purchase? What factors would you consider when thinking about upgrading or downgrading?” At the same price point, identify four improvements you would like to see, balanced against four aspects you perceive as having less value.

Step 5: How do you measure competitive attributes? Which senses did you engage, and what insights did they provide regarding the various options? Examples include: sight, smell, sound, texture, weight, taste, awkwardness of use, etc. “What product attributes serve as indirect indicators of quality? For example: maintenance, aesthetics, simplicity, price, and attention to detail.”

Step 6: Non-commercial alternatives: “What non-commercial products have you utilized to achieve the goal? What are the strengths and weaknesses of these non-commercial alternatives?” Remember that doing nothing is a valid alternative.

Step 7: Determine the additional amount you would be willing to pay for each feature. Ensure you capture the value of features related to the human interfaces you have envisioned.

Explanation

Strive to be as objective as possible while conducting this assessment. It is easy to develop strong biases when evaluating something personally. Remember that you possess extensive knowledge, so remain open to the perspectives of others.

Observe New Users (Friends) then talk to them

Method

Step 1: Enlist a friend or family member to help you experience existing or “alternative” products or services. Remain vigilant to exceptions to your hypothesis; these exceptions may become the new norm. Prepare yourself to be a good and patient observer of human behavior.

Step 2: Watch them as they use the product or service. If possible, observe them in ways that will not influence their usage. Look for situations where they find the product difficult or awkward to use. Observe the task being performed in as many different contexts or scenarios as possible. Utilize your unique life cycle map for these products and observe them during various life cycle jobs. Take note of unexpected behaviors.

Step 3: Talk to them after your observations. Ask about unexpected behaviors you noticed. “I observed that you use this a bit differently than others. Why do you use this product or process in this manner?” Ask them the story of how they came to use the product or service and discuss the decisions they made along the way. Try to discern the changing circumstances that led them to complete the job and the underlying “whys” behind those factors. Then, identify what held them back from accomplishing the job and the reasons behind those barriers.
Seek to understand the functional, social (how they wish to be perceived by others), and emotional forces (how they want to feel) that drive job completion. What shifting circumstances or new ideas motivate them to perform the Job to be Done? What habits and anxieties hindered them?

Step 4: Recognizing when the job is completed correctly and understanding constraints:
“How do you know when the job is completed correctly?” What makes it hard or painful? What do you really dislike about doing it?

Step 5: Competitive Attributes for the User:
“What factors would you consider in deciding which product to purchase? What aspects would you evaluate when trading up or down?” At the same price point, identify things you would like to improve at the expense of others that you value less.

Step 6: How do individuals assess the competitive attributes? What senses do you rely on, and what feedback do they have regarding the various choices?” Examples include: sight, smell, sound, texture, weight, taste, use awkwardness, etc. “What attributes of the product serve as indirect measures of quality? For instance: maintenance, aesthetics, simplicity, price, and attention to detail.”

Step 7: Non-commercial alternatives: “What non-commercial products have you used? What are the strengths and weaknesses of those non-commercial alternatives?” Remember that doing nothing can also be a valid alternative.

Step 8: Have them sign a non-disclosure agreement.

Step 9: Collect feedback on prototypes (if available at this stage). “What do you like and dislike?” If you had to choose one of the prototypes, which would it be and why? Gather feedback on potential new functions and how well the offering will meet job needs throughout its life cycle. Formulate questions to elicit genuine feelings. Encourage them to recognize that it is acceptable to express honest criticism.

Step 10: Understanding Switching Costs and Other Resisting Forces: To gain deeper insights regarding switching costs, ask: “What would need to change in your life for you to consider switching to such a product or service?” Understand switching costs from their perspective and the conditions that would prompt them to switch. Remember that these costs may also involve time or the decision to relinquish an already owned product. What other negative forces deter these users from adopting something new?

Step 11: Next, consider their apparent conditions for satisfaction and inquire about what they would do if those conditions were fulfilled. Their responses will provide significant insights. If they say they would make a purchase, then you likely have all of their conditions for satisfaction. If they express interest, they probably lack something in their conditions for satisfaction. Strive to dig a little deeper.

Step 12: Determine the incremental amount each user would be willing to pay for each feature. Ensure you capture the value of features associated with the human interfaces you have idealized.

Step 13: Have them sign your patent log to confirm their understanding of the idea.

Explanation

This is a first look at how a person unacquainted with the product will react to it. This is actually quite valuable because it tells shows you how intuitive it is. The more intuitive, the better.

Talk to Sales People, Customers and Gift Givers

Method

Step 1: Go to where these products are sold. Stay vigilant for exceptions to your hypothesis. These exceptions may become the new norm. Prepare yourself to be a patient and attentive student of human nature.

Step 2: Talk to salespeople, customers, and gift-givers (if possible): “What are the strengths and weaknesses of the competing products? What are you looking for?” If they are buying a gift, ask “What did they request?” or “What are you seeking in this kind of gift?”

Step 3: Determine why they are purchasing the gift. Understand the changing circumstances that prompted them to buy. Include their journey to success or to giving up. Note their frustrations and obstacles. What motivated them to make the purchase? What anxieties or habits held them back? Try to comprehend the functional, social, and emotional forces behind their actions.

Step 4: Ask salespeople, “Which products are the most popular, and what feedback are you receiving about these items?”

Step 5: Job Conditions and Potential Environments: “Where are most people using the product or service?” Note all extreme conditions: temperatures, pressures, harmful objects, potential mishaps, use by unqualified individuals, vibrations, stress and strain, bumping or dropping, chemical exposure, moisture exposure, mildew or fungus, sand and dust, and extreme operating conditions…

Step 6: Competitive Attributes: “What factors did you consider in deciding which product to purchase? What criteria would you evaluate when contemplating a trade-up or trade-down?” At the same price, identify what you would like to see improved at the expense of aspects you perceive as having significantly less value. What elements would you be willing to forgo to acquire them at one-third of the price? What compromises are you consistently compelled to make? For which specific missions is our offering least suited?^[9]

Step 7: How do individuals assess the competitive attributes? What senses did you engage, and what are their opinions about the different choices?” Examples include: sight, smell, sound, texture, weight, taste, ease of use, etc. “What attributes of the product serve as indirect indicators of product quality? For instance: maintenance, aesthetics, simplicity, price, and attention to detail.”

Step 8: Non-commercial Alternatives: “What are you currently using? Beyond the direct competitors, which products do consumers (or you) “hire” to accomplish the Job? What are the strengths and weaknesses of the non-commercial alternatives?” Remember that doing nothing is also a viable alternative.

Step 9: Have them sign a non-disclosure agreement.

Step 10: Gather feedback on prototypes (if available at this point). “What do you like and dislike?” If you could select one of the prototypes, which would it be and why? Collect feedback on potential new functions and how well the offering will meet job needs throughout its life cycle. Ensure questions are designed to elicit genuine feelings. Help them understand that expressing why they find your product unappealing is acceptable.

Step 11: Switching Costs and Other Resistance Forces: To gain further feedback and understand switching costs, ask: “What would need to occur in your life for you to consider switching to such a product or service?” Understand the switching costs from their perspective and comprehend the conditions necessary for switching. Keep in mind that these costs may also involve time or giving up an already-owned product. What other resistance forces deter these users from adopting something new?

Step 12: Next, reflect on their apparent conditions for satisfaction, and then ask what they would do if those conditions were met. Their response will reveal significant insight. If they say they would purchase, then you likely have identified all their conditions for satisfaction. If they express interest, they might not be genuinely interested or may be missing something in their conditions for satisfaction. Try to dig a little deeper.

Step 13: Establish the incremental amount each person interviewed would be willing to pay for each feature. Ensure you capture the value of features related to the human interfaces you have envisioned.

Step 14: Have them sign your patent log confirming their understanding of the idea.

Explanation

It is often necessary to go into the field to identify the competitive attributes. Visit locations where consumers must make decisions about what they wish to purchase and converse with those selling the product^[8]. Most salespeople and many shoppers will readily discuss those products that are selling quickly. The larger the shelf space, the higher the likelihood that a product is being sold in significant quantities. Salespeople can offer insights into competitive attributes based on the inquiries they receive.

Don Norman, author of The Design of Everyday Things, is often regarded as the father of Design Thinking. He observes (on page 14) that “I learned that a successful product must appeal to customers and the criteria they use to determine what to purchase may have surprisingly little overlap with the aspects that are significant during usage.” Gift-givers typically do not use the product but often represent the majority of revenue for many retail businesses. It is disheartening to consider that the concerns and needs of the end-user are not always taken into account by those giving gifts. They primarily aim to maximize the joy for the gift receiver at the lowest possible cost. It is not uncommon for a gift-giver to be unaware of product attributes. Likewise, it cannot be ensured that the final user has any influence over whether the final product will satisfy their needs. Nonetheless, it is crucial to understand what gift-givers are seeking.

Observe Users then talk to them

Method

Step 1: Visit locations where people utilize existing or “alternative” products or services to observe and talk to them. Be alert to exceptions to your hypothesis. These exceptions may become the new standard. Prepare yourself to be a patient and attentive observer of human behavior.

Step 2: Watch people using the product or service. If possible, observe them in ways that do not influence their usage. Look for instances where users employ the product for tasks that are difficult or cumbersome. Observe the task being performed in various contexts or scenarios. Utilize your unique lifecycle map for these products. Observe individuals during as many lifecycle jobs as possible. Note any unexpected behaviors.

Step 3: Talk to the users after observing them. Ask about unexpected behaviors you noticed. “I observed that you use this a bit differently than most people. Why do you use this product or process in this way?” Ask them the story of how they began using the product or service; what were the changing circumstances that prompted them to make the change? Determine the factors that motivate them to perform the job and the “whys” behind their actions. Then examine what inhibits them from completing the job and the “whys” behind those obstacles. Attempt to understand the functional, social (how they wish to be perceived), and emotional (how they want to feel) influences affecting their job performance. What changing circumstances or new concepts drive them to perform the Job to be Done? What habits and anxieties hinder them?

Step 4: Seek to identify the job: “What are you trying to accomplish?” (What job have you “hired” this product to do?) “Do you use the system for any other unconventional purposes or tasks?”

Step 5: Storyboard their location and activities when they decided to accomplish the task. Include their journey to complete the job until they succeeded. What are their hopes, dreams, secret fears, and group identities?

Step 6: Missions: “What are the various operating missions? What do you do when it is non-operational or failing?”

Step 7: Evidence of competing systems: Look for alternative systems. “What are you currently using, and what other methods have you tried to complete the job? What are the strengths and weaknesses of the competing products? Which are the most popular, and what are people saying about these products?”

Step 8: Job Conditions and Potential Environments: “What conditions must be met for the job to be performed? Where are you using the product or service? What environments affect the product’s competitive attributes?” Note all extreme conditions: temperatures, pressures, harmful objects, potential mishaps, use by unqualified individuals, vibration, stress and strain, impacts or drops, chemical exposure, moisture exposure, mildew or fungus, sand and dust, extreme operating conditions…

Step 9: Job well done and constraints on performing the job: “How can I tell when the job is done correctly at each stage of the life cycle?” What constraints exist on executing the job? Ask yourself, are these what you anticipated for the market segment? Has this changed your perception of the constraints, or are you considering a different market segment than you initially thought?

Step 10: Competitive Attributes: “What factors did you consider to determine which product you wanted to purchase? What factors would you weigh when considering trading up or down?” At the same price, identify aspects you would like to see improved at the expense of things you perceive as much less valuable. What aspects would you be willing to sacrifice if you could obtain it for a third of the price? What compromises do you frequently have to make? For which missions is our offering the least suitable?^[11]

Step 11: How do individuals assess the competitive attributes? What senses did you use, and what feedback do they provide regarding the different options? Examples include: sight, smell, sound, texture, weight, taste, awkwardness of use, etc. “What attributes of the product serve as indirect measures of product quality? For example: maintenance, aesthetics, simplicity, pricing, and attention to detail.”

Step 12: Non-commercial alternatives: “What non-commercial products have you utilized to complete the job? What strengths and weaknesses do these non-commercial alternatives have?” Remember that doing nothing is a valid alternative.

Step 13: Have them sign a non-disclosure agreement.

Step 14: Gather feedback on prototypes (if you have one at this stage). “What do you like and dislike?” If you could choose one of the prototypes, which would you select and why? Collect feedback on new potential functions and how well the offering meets job needs throughout its life cycle. Remember to frame questions in a way that elicits genuine feelings. Help them understand that expressing criticism of your product is acceptable.

Step 15: Switching Costs and other Resisting Forces: To gain further insights and understand switching costs, inquire: “What would need to happen in your life for you to consider switching to such a product or service?” Understand the switching costs from their perspective and the conditions necessary for switching. Remember that these costs could also include time or relinquishing an existing product. What other resisting forces hinder these individuals from adopting something new?

Step 16: Next, reflect on their apparent conditions for satisfaction and ask what they would do if those conditions were met. Their response will reveal a lot. If they indicate they would purchase, you likely have all their conditions for satisfaction. If they express interest without commitment, they may not be fully engaged or could be missing something important in their conditions for satisfaction. Attempt to probe a bit deeper.

Step 17: Assess the incremental amount that each interviewed individual would be willing to pay for each feature. Ensure you capture the value of features related to the human interfaces you have envisioned.

Step 18: Have them sign your patent log confirming their understanding of the idea.

Step 19: Industry Competitive Attributes: After completing the interviews, ask yourself which factors the industry appears to compete on and invest in. This provides insights into the advantages your product will have compared to what the industry deems important.

Explanation

Observing users is a fundamental principle of “Design Thinking.” The sequence of action is to observe and then inquire. The longer you observe, and the more questions you ask, the more you will learn. What people believe they are doing may vary from your perception of their actions. Only they can clarify the job they were attempting to perform. You gather this information by asking questions about their behaviors. It’s crucial to ask them after your observation.

To comprehend what is hindering a person or organization from accomplishing their tasks, we need to observe the job performer in action throughout each part of the life cycle. It is also essential to watch the system in operation where the “mission” varies. Sometimes, you may find that while existing products effectively serve one mission, they perform poorly for others.

Alternative Systems — The market may not be entirely saturated if potential markets are fulfilling the function with alternative products or services. If the price is prohibitively high, consumers often find ways to complete the job, even if it involves considerable disadvantages. For instance, an alternative for flying a family on vacation is to travel by car. This serves as an alternative service where the core function of transporting the family is achieved, albeit through a different method. In terms of entertainment, there may be many similar alternatives.

Given that this is a time-intensive step, we may want to limit the number of target market segments that we will examine.

Example—Pet Feeding System

In this scenario, we will be observing typical users of pet bowls in outdoor environments. Anyone with an outdoor pet is a suitable candidate. Visiting pet owners’ homes is a sound strategy.

It is interesting to note that during the summer, many pet owners fill large buckets of water each day for their pets. Carrying these large containers around can be quite cumbersome.

Step 3: Talk to the users after observing them. Ask about unexpected behaviors you noticed. “I observed that you use this a bit differently than most people. Why do you use this product or process in this way?” Ask them the story of how they began using the product or service; what were the changing circumstances that led them to make the change? Determine the factors that motivate them to perform the job and the “whys” behind their actions. Then examine what inhibits them from completing the job and the “whys” behind those obstacles. Attempt to understand the functional, social (how they wish to be perceived), and emotional (how they want to feel) influences affecting their job performance. What changing circumstances or new concepts drive them to perform the Job to be Done? What habits and anxieties hinder them?

“Why do you fill large buckets of water each day?” Answer: “The water seems to stay cleaner for a longer time. Additionally, my dog has difficulty tipping over the water; it’s too heavy.” This is an intriguing observation since the playful nature of some dogs was not initially anticipated.

The users are attempting to hydrate and feed their pets. Beyond this, many owners appear to personify their pets. “We are trying to keep our pet as comfortable as possible while we’re away at work or running errands. We consider our pet to be a member of the family.”

Step 5: Storyboard their location and activities when they set out to accomplish the task. Include their journey to complete the job until they succeeded. What are their hopes, dreams, secret fears, and group identities?

The owners feel a sense of duty or love for their animals. Sometimes they feel guilt about their pets living outdoors and want them to be as happy and comfortable as possible.

Step 6: Missions: “What are the different operational missions? What do you do when it is non-operational or failing?”

Different missions may include feeding various species of pets. Different sizes of animals may require accommodation. A failure of the system is unacceptable unless the owner is negligent. Ideally, the watering system should be tolerant of some minor owner negligence.

Step 7: Evidence of competing systems: Look for competing systems. “What are you currently using, and what other methods have you tried to get the job done? What are the strengths and weaknesses of these competing products? Which are the most popular, and what are people saying about these products?”

At one home, an unusual pet watering system is observed, which consists of a valve operated by a rod protruding from the nozzle. The pet moves the rod, and water flows out, but only for the duration of the movement.

Strengths: The pet engages with the product, providing enhanced benefits of entertainment and play.

Weaknesses: “Why do you place this on the lawn instead of the patio?” Answer: “There is consistent or occasional leakage that damages the concrete.”

Step 8: Job Conditions and Potential Environments: “What conditions must the job be performed under? Where are you using the product or service? What environments affect the competitive attributes of the product?” Note all extreme conditions: temperatures, pressures, harmful objects, potential mishaps, use by unqualified individuals, vibration, stress and strain, bumping or dropping, chemical exposure, moisture exposure, mildew or fungus, sand and dust, extreme operating conditions…

This system is designed for outdoor use and must be very reliable, as pet owners sometimes leave their animals alone. The feeding system is occasionally utilized on very cold or extremely hot days. If it is cold enough, the water can freeze. In very hot conditions, the water can putrefy. The system may be used over surfaces that can be damaged or stained by food and water spills. Since pets are notorious for this behavior, it may be necessary to prevent spills or address them promptly.

Step 9: Job well done and constraints on performing the job: “How do I know when the job is done correctly at each stage of the life cycle?” What are the constraints on performing the job? Are these what you anticipated for the market segment? Is this changing your perception of the constraints, or are you evaluating a different market segment than you originally thought?

“There is clean and healthy food and water in the container when the pet needs it. There is no mess around the feeder. The pet appears healthy.” It is straightforward for the owner to set up and use the feeding system, and there is minimal need for ongoing checks. The constraints still revolve around issues of cleanup and protecting the food from bacteria, animals, and insects.

Step 10: Competitive Attributes: “What factors did you consider to determine which product you wanted to purchase? “What factors would you assess when considering trading up or down?” At the same price point, identify aspects you would like to see improved at the expense of things you perceive as much less valuable. What aspects are you willing to sacrifice if you could obtain the product for a third of the price? What compromises do you frequently encounter? For which missions is our offering the least suitable?^[11]

Factors being evaluated include: price, size, durability, color, styling, and ease of cleaning.

Trading up or down: pet feeders are generally not traded up or down.

Things that could be improved: price, ease of cleaning, durability.

Aspects holding less value: styling, color.

Willing to sacrifice: styling and color.

Compromises: none.

Offering is least suited: The mission for which it is least suitable is for dogs that drink indoors, as water tends to scatter everywhere, particularly with large dogs.

Step 11: How do people assess the competitive attributes? What senses did you utilize and what do they reveal about the different choices?” Examples include: sight, smell, sound, texture, weight, taste, and ease of use. “What attributes of the product are indirect measures of product quality? For instance: maintenance, aesthetics, simplicity, price, and attention to detail.”

Price: price tag.

Size: visual volume.

Durability: material (steel versus plastic).

Color: visual.

Styling: angles and curvature.

Ease of cleaning: surface texture of material (shiny versus rough).

Step 12: Non-commercial alternatives: “What non-commercial products have you utilized to get the job done? What are the strengths and weaknesses of the non-commercial alternative products?” Remember that doing nothing is a valid alternative.

Large buckets or storage containers are used for water. Disposable containers are often employed for food and water bowls.

Strengths: Low cost—Disposable—The large water tubs can be filled and left for extended periods. This is especially important during the summer heat. The large water tubs are difficult to knock over when full.

Weaknesses: Limited functions –Large containers require more extensive cleaning efforts.

Step 13: Have them sign a non-disclosure agreement.

Step 14: Gather feedback on prototypes (if available at this stage). “What do you like and dislike?” If you could choose one of the prototypes, which would you select and why? Collect input on potential new functions and how effectively the offering will meet the job needs throughout its lifecycle. Remember to ask questions in a manner that will elicit honest opinions. Help them understand that it’s okay to express that your idea may not be perfect.

Step 15: Switching Costs and Resistive Forces: To gain additional feedback and to understand switching costs, ask: “What would need to happen in your life for you to consider switching to such a product or service?” Understand the switching costs from their perspective and the conditions for making a switch. Keep in mind that these costs may also relate to time or the need to let go of a product they already own. What other resisting forces prevent these users from adopting something new?

Step 16: Next, reflect on their apparent conditions for satisfaction and then ask what they would do if those conditions were satisfied. Their response will reveal a lot. If they say they would purchase, then you have likely identified all their conditions for satisfaction. If they indicate interest but not commitment, they may not be fully convinced or could be missing something in their conditions for satisfaction. Try to probe a little deeper.

Step 17: Determine the additional amount that each person interviewed would be willing to pay for each feature. Be sure to capture the value of features related to the human interfaces you have envisioned.

Step 18: Have them sign your patent log, acknowledging their understanding of the concept.

Talk to Blocked Consumers

Method

Step 1: Go to where you believe the market segment is. While some under similar circumstances may be consuming, those you will be conversing with are not consuming. Something may differentiate them. Remain vigilant to exceptions to your hypothesis. These exceptions may become the new norm. Prepare yourself to be a good and patient student of human nature.

Step 2: Determine how much they already know about the job and the products available to those who are consuming. Chances are good that if they know something, they are interested in performing the job. “Do you know what is available that accomplishes this job? What have you heard about them? Which are the most popular, and what are people saying about these products? What are the strengths and weaknesses of the competing products? What are you waiting for?”

Step 3: Identify the changing circumstances that are motivating them to want to perform the job. Include their journey to complete the job until they were blocked from finishing it. Note their frustrations and obstacles. What are their hopes, dreams, secret fears, and group identities? Try to determine the factors that encourage them to perform the job and the “whys” behind them. Then see what holds them back from completing the job and the “whys” behind that. Examine the functional, social (how they wish to be perceived by others), and emotional forces (how they want to feel) related to performing the job. What are the habits and anxieties that prevent them from doing it?

Step 4: Job Conditions and Potential Environments: “What conditions must the job be performed under? Where would you most likely be using the product or service? What environments influence the competitive attributes of the product?” Note all extreme conditions: temperatures, pressures, harmful objects, potential mishaps, use by unqualified individuals, vibrations, stress and strain, bumping or dropping, chemical exposure, moisture exposure, mildew or fungus, sand and dust, extreme operating conditions…

Step 5: Job well done: “How would you know when the job has been done correctly?”

Step 6: Competitive attributes: “What factors would you consider to determine which products you might think about purchasing?”

Step 7: Non-commercial alternatives: “What products do you currently use to accomplish the job? What are the strengths and weaknesses of the non-commercial alternative products?” Consider that doing nothing is a valid alternative.

Step 8: Have them sign a non-disclosure agreement.

Step 9: Get feedback on prototypes (if you have one at this point). “What do you like and dislike?” If you could pick one of the prototypes to use, which would you choose and why? Gather feedback on potential new functions and how well the offering will meet the job’s needs throughout its life cycle. Remember to ask questions in a way that elicits true feelings. Make them aware that telling you why your baby is ugly is acceptable.

Step 10: Switching Costs and Other Negative Forces: To gain further feedback and to understand switching costs, ask: “What would need to take place in your life for you to consider switching to (acting on) such a product or service?” Understand the switching costs from their perspective and the conditions for switching. Remember that these costs may also be in time or in giving up an already owned product. What other resisting forces prevent these users from adopting something new?

Step 11: Next, reflect on their apparent conditions for satisfaction and then ask what they would do if those conditions were met. Their response will reveal much. If they say they would purchase, then you likely have all of their conditions for satisfaction. If they say they would be interested, then they are probably not fully committed or may be missing something in their conditions for satisfaction. Try to dig a little deeper.

Step 12: Determine the incremental amount that each person interviewed would be willing to pay for each feature. Be sure to capture the value of features related to the human interfaces that you have idealized.

Step 13: Obtain feedback on new potential functions.

Step 14: Have them sign your patent log, acknowledging that they understand the concept.

Explanation

Non-Users do not perform the function at all, even with an alternative product. Interviewing non-users is tricky because it is difficult to ascertain whether they would consume if given the opportunity. Additionally, if they wouldn’t immediately consume, who can say that they wouldn’t eventually consume if they observed others performing the job?

Observe and then Talk to Lead Users and User Innovators

Method

Step 1: Is the job to be done performed with products or services that can be modified by individuals with shared resources? If so, there are likely lead users and user innovators attempting to modify these products.

Step 2: Identify lead users or user innovators. This is often achieved through internet searches and blogs. These individuals are usually well-connected and can identify others pursuing similar goals. One connection can lead to another. Occasionally, a fortunate event occurs where someone shares ad hoc modifications they have made to your product.^[14]

Step 3: Make contact with the lead user or user innovator and, if possible, arrange to observe them at work. Stay vigilant for exceptions to your hypothesis. These exceptions may become the new norm. Prepare yourself to be a good and patient student of human behavior.

Step 4: Spend time with them and observe them performing their job under various circumstances. If possible, watch them in ways that won’t influence their usage of the system. Look for instances where users utilize the product for a task that is challenging or cumbersome. Observe the job being performed in as many different scenarios as feasible. Using the template at the beginning of the chapter, create your unique life cycle map for these products.

Step 5: Interview lead users after observing them. Inquire about unexpected behaviors you noticed. “I observed that you use this a bit differently than others. Why do you use this product or process in this way?” What is their narrative of becoming a lead user? What was their decision path? Try to discern what motivates them to perform the job and the “whys” behind those motivations. Next, explore what hinders them from accomplishing the job and why this hinders them. Seek to understand the functional, social (how they wish to be perceived), and emotional forces (how they wish to feel) driving the job.

Step 6: Try to identify the job: “What are you trying to achieve?” (What job have you “hired” this product to do?) “Do you use the system for other unusual purposes or tasks?”

Step 7: Determine the changing circumstances that led them to perform the job. Include their journey to succeed in getting it done. What are their hopes, dreams, secret fears, and group identities? What are the changing circumstances or new ideas pushing them toward performing the Job to be Done? What habits and anxieties prevent them from it?

Step 8: Missions: “What are the different operational missions? What do you do when it is not operational or malfunctioning?”

Step 9: Evidence of competing systems: Look for competing systems. “What other methods have you attempted to accomplish the job? What are the strengths and weaknesses of the competing products? Which are the most popular, and what are people saying about these products?” Lead users may have experimented with various products. Strive to understand the differences among them; the strengths and weaknesses.

Step 10: Job Conditions and Potential Environments: “What conditions must the job be performed under? Where are you using the product or service? What environmental factors affect the competitive attributes of the product?” Note all extreme conditions: temperatures, pressures, harmful objects, potential mishaps, use by unqualified individuals, vibrations, stress and strain, dropping, chemical exposure, moisture exposure, mildew or fungus, sand and dust, extreme operating conditions…

Step 11: Job well done and constraints on performing the job: “How do I know when the job is completed correctly at each stage of the life cycle?” What constraints exist on performing the job? Are they what you initially thought they would be for the market segment? Ask yourself if this is reshaping your view of the constraints or if you are examining a different market segment than you anticipated? This is where lead users shine. They likely have strong opinions about what they like and dislike.

Step 12: Competitive Attributes: “What factors were you considering to determine which product you wanted to buy? “What factors would you contemplate when considering upgrading or downgrading?” At the same price point, identify aspects you would like to see improved at the cost of aspects you consider much less valuable. What items would you be willing to sacrifice if you could obtain them at a third of the price? What compromises are you consistently compelled to make? For which specific missions is our offering the least suited?^[15] These are pertinent questions for lead users, given their vast experience. They are likely to have strong opinions, and their insights regarding strengths and weaknesses reveal what users will likely think in the future, especially as they gain more experience.

Step 13: How individuals measure at each stage of the life cycle: “How would you assess the ease of transport, setup, powering, adjusting, using, stowing, storage, cleaning messes, accidents, and disposal? What senses did you use, and what do they have to say about the different options?” Examples include: sight, smell, sound, texture, weight, taste, awkwardness of use, etc. “What product attributes serve as indirect measures of product quality? For example: maintenance, aesthetics, simplicity, price, and attention to detail.”

Step 14: Non-commercial alternatives: “What non-commercial products have you utilized to complete the job? What are the strengths and weaknesses of the non-commercial alternative products?” Remember, doing nothing is a legitimate alternative. User innovators may excel in addressing these inquiries since they have adapted non-standard equipment.

Step 15: Have them sign a non-disclosure agreement.

Step 16: Gather feedback on prototypes (if you have one at this point). “What do you like and dislike?” If you could choose one of the prototypes, which would you select and why? Get feedback on new potential functions and how well the offering will meet the job requirements throughout the product life cycle. Remember to frame questions in a way that will elicit genuine feelings. Help them understand that it’s acceptable to express why they feel your creation is unsatisfactory.

Step 17: Switching Costs and other Resisting Forces: To gather additional feedback and comprehend switching costs, ask: “What would have to happen in your life for you to consider switching to such a product or service?” Understand the switching costs from their perspective and recognize the conditions under which they would switch. Remember that these costs may also include time or relinquishing an existing product. What other resisting forces deter them from adopting something new?

Step 18: Next, reflect on their apparent conditions for satisfaction, and then ask what they would do if those conditions were met. Their response will reveal a lot. If they state they would purchase, then you likely have all their conditions for satisfaction. If they express interest but not commitment, they may not be fully motivated or are missing some elements of their satisfaction criteria. Try to probe deeper.

Step 19: Ascertain the additional amount each interviewee would be willing to pay for each feature. Be sure to account for the value of features associated with the human interfaces you have conceptualized.

Step 20: Have them sign your patent log indicating they understand the concept.

Step 21: Industry Competitive attributes: After conducting interviews, reflect on what factors appear to be the focus of competition and investment in the industry. This will provide insight into the advantages your product will possess in comparison to what the industry values.

Explanation

Lead users and User Innovators[13] are individuals who aspire to achieve a high level of performance in their tasks. They often set market trends and are invaluable because they are already aware of the quirks of existing products and how to modify them to be useful for their specific tasks. These individuals are essential to consult when seeking to understand the desired level of performance (one of the competitive attributes) that users may want in the future. They may be the ultimate Jury-Riggers or merely push your products to their limits. Lead users and user innovators exhibit two main traits: First, they are dissatisfied with the product as it currently exists. The product does not adequately adapt to their needs. They have surpassed average usage and are striving for a higher level of performance. Second, they possess the capability and resources to modify the product to suit their needs. One interesting aspect of lead users is that they may not only signify a new market but might also be identifying new products for use within that market. Lead users and user innovators frequently desire to freely share their creations with a broader community. Their modifications hold value within their own spheres, and this free sharing enables them to better meet their needs within the larger community. Another notable characteristic of lead users is that they may be pursuing a different job than you assume.

Examples of lead users and user innovators can be found in the sports, entertainment, and surgical industries. In sports, mountain bikes were developed by user innovators long before they were embraced by the mainstream industry. In the entertainment world, the modification of musical instruments and audio equipment has been widespread for many years. Within the surgical field, many surgical instruments are inexpensive to modify, leading to numerous patents held by surgeons for their modified instruments that perform their jobs more effectively.

A yet-to-be-achieved goal is collaboration between established companies and user innovators. Industries could potentially provide resources to these individuals and allow them to innovate, with the possibility of acquiring the resulting business at a later date. Such collaboration can benefit both the user innovator and the business.

It’s essential to note that lead users may not be ideal for understanding competitive factors (for a specific market segment) beyond comprehending what constitutes “good” performance. For example, the desired level of performance by certain market segments may not be very high; however, lead users provide valuable insights into what defines high performance. In this regard, lead users give us a glimpse of what may be necessary for “good performance” in the future for a particular market segment.

Observe and talk to Installers

Method

Step 1: Is the job to be done performed with products or services that require professional installation? If so, installers may have valuable insights into how users will react to the products and services. This holds true because they receive callbacks and hear many comments when things do not work well.

Step 2: Identify installers. This can often be accomplished through internet searches and blogs.

Step 3: Make contact with the installers and arrange to observe them at work if possible. Remain vigilant to exceptions to your hypothesis. These exceptions may become the new rule. Prepare yourself to be a good and patient student of human nature.

Step 4: Spend time with them and watch them installing products. If possible, observe them in ways that will not influence how they install the system. Look for instances where installation is awkward. Note unexpected behaviors.

Step 5: Interview the installers after observing them. Ask about the unexpected behaviors that you noted. “I noticed that you did this a little differently than other installers. Why do you install this product or process in this manner?” Try to determine the factors that motivate the installers and the reasons behind them.

Step 6: Missions: “What are the different operational missions? What do you do when it is non-operational or failing?”

Step 7: Evidence of competing systems: This is a great opportunity to learn about different products that the installers have experience with. “What other products do you install? What are the strengths and weaknesses of the competing products? Which are the most popular, and what are people saying about these products?”

Step 8: Job conditions and potential environments: “What conditions must the job be performed under? What environments impact the competitive attributes of the product?” Note all extreme conditions: temperatures, pressures, harmful objects, potential mishaps, use by unqualified individuals, vibration, stress and strain, bumping or dropping, chemical exposure, moisture exposure, mildew or fungus, sand and dust, extreme operating conditions…

Step 9: Job well done and constraints on performing the job: “How do I know when the job is done correctly at each stage of the life cycle?” What are the constraints on performing the job? Are they what you thought they would be for the market segment? Is this changing your perception of the constraints or do you see a different market segment than you thought? This is where installers may receive valuable feedback from users, especially those who are dissatisfied with the installations.

Step 10: Competitive attributes: “What factors do people seem to be choosing between when selecting the products to install?”

Step 11: How people measure at each stage of the life cycle: “How would you measure ease of transport, setup, powering, adjusting, using, stowing, storage, cleaning up messes, accidents, disposing? What senses did you use and what do they report about the different options?” Examples include sight, smell, sound, texture, weight, taste, awkwardness of use, etc. “What attributes of the product serve as indirect measures of product quality? For example: maintenance, aesthetics, simplicity, price, and attention to detail.”

Step 12: Non-commercial alternatives: “What non-commercial products have you seen used to accomplish the job? What are the strengths and weaknesses of the non-commercial alternative products?”

Step 13: Have them sign a non-disclosure agreement.

Step 14: Get feedback on prototypes (if available at this stage). “What do you like and dislike?” If you could choose one of the prototypes, which would you pick and why? Gather feedback on new potential functions and how well the offering will meet the job needs throughout its life cycle. Remember to ask questions in a way that elicits genuine feelings. Help them to understand that it’s okay to express honest critiques.

Step 15: Switching costs and other negative forces: To gain further feedback and understand switching costs, ask: “What would need to happen in your life for you to consider switching to such a product or service?” Understand the switching costs from their perspective, including conditions for switching. Keep in mind that these costs may also involve time or the sacrifice of an existing product. What other resisting forces prevent these users from adopting something new?

Step 16: Next, reflect on their apparent conditions for satisfaction, and then ask what they would do if those conditions were met. Their response will reveal a lot. If they say they would purchase, then you likely have identified all their conditions for satisfaction. If they express just interest, they may not be fully convinced or could be lacking something in their criteria for satisfaction. Try digging a little deeper.

Step 17: Determine the incremental amount each person interviewed would be willing to pay for each feature. Be sure to capture the value of features related to the human interfaces you have idealized.

Step 18: Have them sign your patent log to confirm their understanding of the idea.

Step 19: Industry competitive attributes: After interviewing, ask yourself which factors the industry seems to be competing on and investing in. This provides insight into the advantages your product will have compared to what the industry considers important.

Explanation

Now we arrive at the point of empathy. If possible, it helps us develop a perspective on what people experience as they use your product or service. We need to become avid users of our own products so we can identify their shortcomings. If feasible, we should consider performing the job under various conditions and missions, particularly challenging ones. Use it in the wind, in the rain, underwater. Use it in every mission you can think of.

It is most ideal to observe actual users with products or services. Unfortunately, this is not always possible. Such situations may occur when jobs or experiences are entirely new. In these cases, simulating the job as closely as possible may be wise to understand the customer experience. It may be necessary to prototype the job as much as possible.

Prototypes can range from very simple to complex, depending on their purpose. The author has seen instances where prototypes were created that were overly expensive for their intended use. At this stage, the prototype should be as simple as possible to provide insights to the product developer, rather than to persuade potential customers, financiers, or licensees that the ideas are sound.

Observe and Talk to Repair and Maintenance People

Method

Step 1: Visit a repair facility. It is best to visit in person rather than call.

Step 2: Observe and interview service and repair personnel. They can inform you about what commonly goes wrong. They may also provide insights into the unusual ways people misuse the products. Remain alert to exceptions to your hypothesis. These exceptions may become the new standard. Prepare yourself to be a good and patient student of human nature.

Step 3: Spend time with them and watch them repair products. “What are common problems with these products?”

Step 4: Evidence of competing systems: This is an excellent opportunity to learn about different products that the repair personnel have experience with. “What other similar products do you repair? What are the strengths and weaknesses of those competing products?”

Step 5: Job Conditions and Potential Environments: Repair personnel may have insights into how the products appear to be misused. “How do people seem to be abusing or misusing these products?”

Step 6: Have them sign a non-disclosure agreement.

Step 7: Get feedback on prototypes (if you have one at this stage). “What do you like and dislike?” If you could choose to use one of the prototypes, which would you choose and why? Obtain feedback on new potential functions and how well the offering will meet job needs throughout the offering life cycle.

Step 8: Switching Costs and Other Resisting Forces: “What would need to happen in your life for you to consider switching to such a product or service?” Understand the switching costs from their perspective. Remember that these costs may also involve time or giving up an already owned product. What other resisting forces prevent these users from adopting something new?

Step 9: Determine the incremental amount that each interviewee would be willing to pay for each feature. Be sure to capture the value of features that are related to the human interfaces you have idealized.

Step 10: Have them sign your patent log to acknowledge their understanding of the idea.

Explanation

This is an effective way to observe the various ways that our products can be misused, worn out, or operate incorrectly. However, be cautious; repair centers often make it seem as if reliable products are unreliable when you see many broken items around. The interviews are similar to those conducted when engaging with installers.

Use Data from Customer Feedback Systems

Method

Step 1: Determine whether customer feedback systems are available.

Step 2: From the responses, try to ascertain the job: “What were people trying to accomplish?” (What job did they “hire” this product to perform?) “Do they use the system for any unusual purposes or tasks?”

Step 3: Evidence regarding competing systems: What do users say about competing products?

Step 4: Job Conditions and Potential Environments: “Under what conditions must the job be executed? Where are people using the products? Note all extreme conditions: temperatures, pressures, harmful objects, potential mishaps, use by unqualified individuals, vibration, stress and strain, bumping or dropping, chemical exposure, moisture exposure, mildew or fungus, sand and dust, and extreme operating conditions…”

Step 5: Job well done and constraints on performing the task: “How do people indicate when the job is completed correctly at each stage of the life cycle?” What constraints exist on performing the task? Are they what you expected for the market segment? Is this changing your perception of the constraints, or are you evaluating a different market segment than you initially considered?

Step 6: How users evaluate at each stage of the life cycle: “How do people seem to assess the ease of transport, setup, powering, adjusting, using, storing, cleaning up messes, accidents, and disposal? What senses did you use, and what do they report about the various choices?” Examples include: sight, smell, sound, texture, weight, taste, awkwardness of use, etc. “What attributes of the product serve as indirect measures of product quality? For example: maintenance, aesthetics, simplicity, price, and attention to detail.”

Explanation

Customers often express their dissatisfaction with your offerings, communicating this directly or indirectly. Being attentive to customer needs and requests can provide valuable insights without needing to question them directly. Sometimes, a straightforward inquiry to the customer will be suitable.

Talk to Business Customers

Method

Step 1: Visit your direct business customers to observe and interview them. Remain vigilant to exceptions to your hypothesis. These exceptions may become the new rule. Prepare yourself to be a good and patient student of human nature.

Step 2: Ask questions that allow you to understand the customer’s business model. It is crucial to grasp many of the details and what the customer believes will make the most difference to their bottom line.

Step 3: Inquire about unexpected behaviors that you observed. “I noticed that you use this differently than other customers.” Try to determine the factors that encourage them to complete the job and the “whys” behind those factors. Then, identify what holds them back from carrying out the task and the “whys” behind those obstacles. Understand the functional, social, and emotional forces involved in completing the job.

Step 4: Evidence of competing systems: Look around for competing systems. “What are you currently using, and what other methods have you attempted to accomplish the job? What are the strengths and weaknesses of the competing products?”

Step 5: Competitive Attributes: “What aspects were you looking for to determine which product you wanted to purchase? What factors would you consider when thinking about trading up or down?” At the same price, identify four things you would like to see improved at the cost of four things you find less valuable. What four things would you be willing to sacrifice if you could obtain it at a third of the price? What compromises are you frequently required to make? For what specific missions is our offering least suited?^[16]

Step 6: Ask[17] “What are your conditions for satisfaction?” And “What will you do if I can meet those conditions?”

Step 7: Have them sign a non-disclosure agreement.

Step 8: Get feedback on prototypes (if you have one at this point). “What do you like and dislike?” If you could choose to use one of the prototypes, which one would you choose and why? Gather feedback on new potential functions and how well the offering will meet the job needs throughout the offering’s life cycle. Remember to ask questions in a way that elicits genuine feelings. Help them understand that telling you why your creation is flawed is acceptable.

Step 9: Switching Costs and other Resisting Forces: To gain further feedback and understand switching costs, ask: “What would need to happen in your life for you to consider switching to such a product or service?” Understand the switching costs from their perspective and the conditions for switching. Remember that these costs may also include time or the loss of an already owned product. What other resisting forces keep these users from adopting something new?

Step 10: Next, reflect their apparent conditions for satisfaction and then ask what they would do if those conditions were met. Their answer will reveal a great deal. If they say they would purchase, then you likely have all their conditions for satisfaction. If they say they would be interested, then they might not be fully engaged or are lacking something in their conditions for satisfaction. Try digging a little deeper.

Step 11: Determine the incremental amount that each person interviewed would be willing to pay for each feature. Be sure to capture the value of features related to the human interfaces that you have idealized.

Step 12: Industry Competitive attributes: After interviewing, ask yourself what factors the industry seems to compete against and invest in. This will provide insights into the advantages your product will have compared to what the industry considers important.

Explanation

Business customers are those who buy your products or services to incorporate into their own products or services or serve as a middleman to other customers. If you provide an offering to be integrated into a larger system, it is essential to understand the needs of this type of customer, which are generally centered around financial concerns. It is important to understand how these businesses generate revenue. In other words, you need to comprehend and respond to their business models. You may need to educate the customer on complex systems regarding why they might want certain features and what the ultimate benefits to their bottom line are.

Note that while the needs may be very different from the end user, your understanding of the end user remains extremely valuable. Your business customer needs to feel they can capture a significant portion of the value you offer to the end customer.

Further Investigate Price Sensitivity

Method

Step 1: Use a de-rated survey. A de-rated survey attempts to determine price sensitivity by asking a general or targeted population about their interest. Taking the percentage of positive responses in a region and multiplying it by the population in that region provides an overly optimistic estimate of interest. Now, we move on to the de-rating process. Since there is a significant risk that many respondents may exaggerate their interest, it is necessary to multiply the calculated price by a factor that is considerably less than one.

Step 2: Auctions—offer fake products on public internet auctions. Respondents should be incentivized for participating in a mock auction. Adjust the responses of the respondents accordingly. Only conduct this where it is permissible under the auction’s terms.

Explanation

This is one of the riskiest steps due to the challenges of assessing non-consuming markets. These markets are inherently difficult to study. Here, we will present some experimental methods for determining the price sensitivity of non-consuming markets. The volume of the market that will respond to your offering is largely influenced by product attributes, particularly price.

Summarize Requirements from Interviews and observations

Summarize Requirements From Interviews

Method

Step 1: Summarize the job to be done.

Step 2: Summarize the constraints involved in performing the job. What hinders them from completing the task? What frustrates them? What hidden burdens do they bear?

Step 3: In what environments must the offering operate?

Step 4: What additional competitive attributes are they seeking?

Step 5: Summarize the requirements/targets in your requirements document.

Explanation

Now that you have completed the interviews, you are ready to compile everything. Remember that having a clear understanding of the constraints the target market is trying to overcome, as well as the environments in which your offering needs to operate, is essential for determining the requirements we will use to design the product or service.

Summarize WHYs and Deeper Functional, Social and Emotional Reasons

Method

Step 1: Based on your insights from the interviews, summarize the reasons behind the target segment’s desire to complete the job. Why is this job so important to them? This understanding helps to identify the compelling functional, social, and emotional reasons that motivate them to overcome the challenges they face in executing the job.

Step 2: Summarize the shared functional, social, and emotional aspirations and motivations that drive them to perform the job.

Step 3: Summarize the functional, social, and emotional fears that hinder them from executing the job.

Step 4: Explore the deeper functional, social, and emotional reasons behind their significant hopes, dreams, and fears.

Explanation

Now that we have a clear understanding of the job to be done, we can summarize why the market segment aims to accomplish the job and the emotional aspects associated with its completion. To create products and services tailored to the chosen market segment, we must comprehend the job’s requirements and the obstacles faced during its execution. Gaining insight into why the target market segment wishes to complete the job allows us to address many gaps in understanding and empathize with them more effectively. Additionally, we can convey the reasons behind our offerings, demonstrating to the market that we acknowledge and respect their desires. Ideally, this will enable market segments to connect in promoting the offering.

Understanding the underlying causes of hopes, dreams, and fears provides further insights. Clayton Christensen, in a presentation on YouTube, discussed Hyundai’s realization regarding why consumers hesitated to buy cars during the recession. They discovered that potential buyers were worried about job security and the risk of being unable to afford car payments if they were laid off. In response, Hyundai decided to alleviate this concern by guaranteeing a buyback in the event of a layoff, restoring consumer confidence and boosting car sales.

When catering to the needs of multiple market segments, the motivations for completing the job may differ among them. In this scenario, we can assist them in achieving their diverse objectives by providing a unified solution.

Ensuring that you resonate with the target market’s needs can create a compelling effect on the markets you serve. When leaders articulate the reasons behind their goals, individuals who share these beliefs are likely to feel a stronger passion to support the initiative. This will become evident once the offering is launched and advertising signals to the market that you are prepared to serve them. At this stage, it is crucial to understand the deeper needs of the consumer segment.

Summarize Switching Costs and Resisting Forces

Method

Step 1: When are the most likely occasions for frustration or the potential for a better life to be significant enough to overcome habit?

Step 2: What losses are likely, and what requirements need to be increased to mitigate these losses?

Step 3: What switching costs are anticipated, and what requirements need to be enhanced or introduced to overcome these switching costs? Remember that these costs may also include time or the loss of an already owned product.

Step 4: Is your proposed price sufficiently low to alleviate any anxiety concerning the cost? If not, what is the appropriate price point to ease this anxiety?

Step 5: Will there be anxiety over learning something new? What requirements need to be increased to alleviate this anxiety?

Step 6: Is your proposed solution (after the first iteration) clear to the target market in terms of how it works? If not, how can it be made more apparent?

Explanation

Clayton Christensen [24] informs us that there is an inherent bias toward continuing the use of products and services that one is accustomed to. In other words, it is challenging to overcome the habits of usage that we have formed. Depending on the circumstances, the level of frustration or potential for a better life may need to be substantial to switch or select the new offering.

1. We find comfort in the notion that this requires no deliberation.

2. What we currently possess is plausibly a solution.

3. There is a perceived loss associated with what we are using.

4. There is anxiety about the cost.

5. There is anxiety about learning something new.

6. There is anxiety about the unknown.

The timing and opportunity for such a choice are crucial, as the stronger feelings of frustration or potential for a better life do not always manifest. For instance, when what we are using breaks, we are often frustrated enough to consider trying something new, but not on any ordinary day. Gift-givers’ frustrations usually stem not from the product itself, but rather from the process of selecting a gift. If such opportunities are rare, the threshold for convincing someone to change their method while performing a task in another way is considerably high. Conversely, if someone is unable to carry out the function in the first place, simply realizing that there is a way to finally accomplish it may be sufficient to prompt the choice.

Verify the Market Segment is Large Enough

Verify that the Market Segment is Large Enough

Method

After numerous interviews, do we believe that the market segment is substantial enough to continue? Can we justify continuing with this market segment, or should we consider switching to another?

Explanation

At the beginning of this book, we only had a hypothesis regarding the viability of the market segment. Once we had the opportunity to interview consumers and present them with a prototype, we gained insight into how prevalent they are, their willingness to pay, and the costs associated with providing the offering. We are nearing the ability to assemble a comprehensive business model. Unfortunately, this information remains somewhat vague, so we don’t have the complete picture; however, one key aspect we should ascertain at this stage is whether the market is too small to justify pursuing. Remember that we will invest considerable time trying to satisfy these consumers. Time is a valuable resource, and we should not commit ourselves to a market that is too small to be viable.

If this market segment proves to be too small, we should transition to one that is larger. It is likely that during the interviewing process, we have identified other market segments. Additionally, we can refer back to TRIZ Power Tools—Discovering Markets to explore an alternative segment.

Create Market Segment Personas

Method

Step 1: Identify the different personas that will represent the target market.

Step 2: Consider giving them names and stories that relate to their goals in performing the job, as well as their hopes, dreams, and aspirations.

Step 3: Consider using: MakeMyPersona

Explanation

Now that we have understood the job to be done, why it needs to be done, and the constraints on performing the job, we can succinctly describe a persona for our market segment. A persona details the job and the type of person who will be performing it. The persona can become quite personal and may even have a name or a story associated with it. The value of the persona is to create in the innovator’s mind a clear picture of who is being served by your product or service.

Additional User Experience Requirements

Explanation of Additional User Experience Requirements

Beyond the user requirements gathered from the interviews, there are additional user experience requirements we would like to incorporate to ensure we enhance the user experience without imposing additional burdens.

The Human Experience Versus Just Getting the Job Done
The holistic human experience should be treated as a system requirement. Our goal is to achieve the ideal human experience. When we idealize the job, we aim for the user experience to be flawless, enabling the task to be completed without imposing extra requirements on the user. Often, there are mental, emotional, or social elements crucial to achieving the perfect user experience.

The Human Interface
If the job itself becomes a burden for the performer, we would prefer that the performer not undertake the task at all. In this scenario, the interface of our product is one of the last things we consider. This is because we must first ascertain what the product or service needs to accomplish and what elements are involved in the task. In situations where tasks feel burdensome, we strive to simplify the system, minimizing human involvement. The human interactions that remain are either aspects that people choose to engage in (such as entertainment or exercise) or those we cannot avoid. We recognize that if the task must be done, the human interface must be designed appropriately.

If the job is one that a person genuinely wants to do, such as entertainment or exercise, then the human interface—which encompasses the overall human experience—should be considered one of the most significant aspects of the requirements. We have reached this point to examine this aspect to eliminate all burdensome tasks.

When it comes to the user interface included in the human experience, few customers care about what is inside a product. What they truly care about are the high-level features of the product or service. A key high-level feature of an offering is how the customer directly interacts with, communicates with, or manipulates the product or service. How comfortable is it? How intuitive is it? From the customer’s perspective, the interface to the offering is the offering. When the designer understands the customer’s needs, they will be better equipped to perfect the user interface.

For service offerings, the user experience generates the majority of the excitement and repeat business. This is particularly relevant when these services typically involve some degree of sacrifice or discomfort. Often, there may be lower barriers to entry with services. At times, there is no technology to navigate. The defining factor that sets you apart is the user experience, emphasizing the importance of getting it right from start to finish, ensuring that you achieve it first and best.

The human interface IS the system from the user’s standpoint. They genuinely don’t care about what occurs internally. What concerns them is how straightforward it is to fulfill their task. This cannot be overstated. What the customer experiences is the product or service itself. User-friendly products will have a significant advantage over those that are complicated to use. Cell phones exemplify how the user interface IS the product. Nobody cares how intricate or simple the internal electronics, software, or mechanisms are; they focus instead on what the product can accomplish and how easy it is to operate. (This does not diminish the importance of simplifying internal mechanisms for cost reduction, etc.).

There are three components of the human interface: 1) Functions that the system performs directly for the user. 2) Functions that people perform to support the system. 3) Aesthetic functions that the system provides to the user. Let’s explore these components individually.

Functions that the system performs directly for the user
If these functions represent the core activities of the system, they may be the most critical and should be refined to meet market demands. If these functions are supplementary and secondary to the primary functions of the system, they may be subject to removal. For instance, a system executes a useful function, and that function is monitored. The feedback provided to the user about the system indicates how it is operating. This information may satisfy the user’s inquiries about the system’s operation, but if it does not need to be monitored, that is even more ideal.

Functions that humans perform to support the system
Ideally, the master should not serve the slave, but in many scenarios, this is the reality. Systems requiring maintenance and monitoring can be streamlined by eliminating the human from the process. As we simplify the system, the removal of the human element should remain a high priority on our agenda.

Aesthetic functions that the system performs for the user
Designs are not regarded as elegant until the user expresses an “Aha!” moment. The design should be ergonomic and evoke an emotional response. The emotional appeal must be directed toward the target market.

Some might argue that aesthetic interfaces are details to be handled later in the design process. In reality, we should consider aesthetics in the earliest stages of defining what a product should achieve. The aesthetic function is inherently emotional. What impact does the product have on the user or observers? Designing the user interface from the outset is most effective.

Perceived or Psychological Value[20] is Paramount
Value is a matter of perspective, and perspective is always relative to other factors. One challenge with psychological value is that psychologists often lack a universal model, while physical sciences do. Mechanistic ideas often receive priority over psychological concepts. Consequently, we frequently do not communicate technical or economic ideas to psychologists. Indeed, perceived value often outweighs actual value. Things are not simply as they are; they are defined by our interpretations. “Reality” is not an effective guide for happiness.

Countdown: an example of a psychological strategy is using countdown clocks on subways to alleviate the stress of waiting. Countdown timers on red traffic lights can help reduce accidents. Conversely, green countdown lights can inadvertently increase them.

Single-function focus: another example of psychological value is that items designed for a single function tend to be perceived as having higher quality compared to those with multiple functions. Google serves as a prime example; if it remains a dedicated search engine, it is seen as superior. Conversely, a combination DVD player and television may be viewed as inferior. (On the other hand, a smartphone may carry a significantly higher perceived value than a standard cell phone.)

Chunking: an additional example is the challenge of encouraging patients to complete a full course of antibiotics. It becomes simpler when patients are given 18 white pills and 6 blue pills and instructed to take the white ones first, followed by the blue. Even if the pills are identical, this method dramatically increases the likelihood of adherence to the regimen. This exemplifies how “chunking” a daunting task into manageable milestones can facilitate completion.

Control: Our circumstances hold less significance when we believe we have a certain level of control, even in difficult situations. Taxes become more burdensome when we lack control over their allocation. Paying $20,000 in taxes for healthcare might lead to frustration, while the same amount for a hospital ward may feel like philanthropy. Whether bailing out Greece or bailing out the reckless banks that lent to Greece, perceptions differ greatly. Control can transform something unpleasant into a more positive experience.

Meaning: Perceived economic value is also a product of meaning or purpose. In a toll station, allowing people to pass through twice as quickly by paying may lead to suspicion that the delays are a ploy for profit. However, if the payment benefits a charity, people tend to be more agreeable. Money is not just a currency; this insight could transform tax policies. Psychology takes precedence over economics.

Comparison: things are evaluated in relation to others. The value of food at a restaurant might be comparable to that of sweeping the floor. The context of the food is as crucial as the food itself; even the finest cuisine cannot compensate for a dirty environment.

The post office maintained a 98% success rate for next-day mail delivery. Though the perception of delivery speed was poor, one could wonder, “Why modify the actual speed when the perception is so detrimental?” The solution may simply involve informing them that delivery speed exceeds that of the Germans.

People generally lack motivation to reduce their energy consumption unless they are confronted with a comparison of their usage to that of neighbors or a similar demographic living in identical accommodations.

Idealize the Useful Functions of the User Interfaces

Method

Refer to the book TRIZ Power Tools—Idealizing Useful Functions and idealize the user interfaces that remain.

Explanation

Before we design the user interfaces, we should know that they are required. The less user interface, the better. During simplification, we may have already idealized these functions. If not, we will pay particular attention to it here. In this case, we idealize the object of the function, whether it is a part of the system or the user. We idealize the modification itself, how well it needs to be carried out, and everything humanly related to the function. Finally, we idealize the entity that performs the function, whether it is the user or a component of the system.

Design, Prototype and Simulate User Interfaces

Method

Step 1: If the product already exists, simulate the range of experiences outlined in the life cycle map (IN THE ENVIRONMENTS WHERE THE TARGET MARKET IS PERFORMING THEIR JOB).

Step 2: If a product does not exist, create basic prototypes and simulate their use, aiming to understand what the user will experience in various settings that are common to them. Consider utilizing the life cycle map to identify these experiences.

Step 3: Refine the user experience at each stage of interaction.

Explanation

Understanding user feelings without utilizing the system can be challenging. Efforts to imagine its usage are often insufficient. Recall the product’s life cycle? Use this map to comprehend the range of human experiences from purchasing the product to its disposal and recycling. Ensuring the human interface functions well in the environments where the target market operates is crucial. For example, you would want to work on a snowmobile engine while wearing gloves in sub-zero conditions to prevent corrosion and breakage of electrical paths.

2010: Utilizes ultrasound to measure the thickness of the sample to assess the level of corrosion.

Each of these methods improved in precision and capability to function across a broad spectrum of operating conditions, as shown by the patents. Most of these methods can be used to generate an instantaneous corrosion rate. In certain instances, the level must be numerically differentiated to yield an instantaneous corrosion rate.

Idealize the Human Interface for Human Factors

Method

Step 1: Experience or simulate the necessary actions to complete the job.

Step 2: Consider the mental demand required for thinking, deciding, calculating, remembering, looking, and searching. If data gathering is needed, consider these three levels of gathering data: Ambient: Takes no special effort to gather data. Natural: Takes no special effort to interpret data. Continuous: Takes no special effort to update data.

Step 3: Consider the physical demand required for pushing, pulling, turning, controlling, and acting. Is it easy versus demanding, slow versus brisk, slack versus strenuous, restful versus laborious?

Step 4: Consider the temporal demand. This is the time pressure, pace, or rate required to use the offering. Is it slow versus leisurely or rapid versus frantic?

Step 5: Consider the effort required. How hard are individuals required to work (mentally and physically)? This is assessed over the length of the job rather than the mental and physical demand per operation.

Step 6: Consider the level of performance. How successful was the task or goal? How satisfied were the participants with their performance?

Step 7: Consider the level of frustration: How insecure, discouraged, irritated, stressed, or annoyed were the participants? Were they secure, gratified, content, relaxed, or complacent?

Step 8: Consider the emotional burden: Examine the current design. Does it inspire awe? Does it make you skeptical of the product? Is it aesthetically pleasing?

Step 9: What groups of people might not perform the job or could have difficulty performing the job because of the above “human factors”?

Step 10: Recognize whether any of these “human burdens” are constraints on the target market segment.

Explanation

If humans must be involved in the job, there should be a persistent effort to minimize their burdens. There is a discipline called “Human Factors” which seeks to reduce human burdens. While we may not become experts in this area, we should do all we can to understand human burdens from the perspective of user experience. This is especially important if there is a requirement to operate the product or service for extended periods. This useful tool for considering human factors comes from the NASA workload rating sheet.

Add Aesthetic Functions

Method

Step 1: If the system is primarily functional, then add emotional appeal. This may include:

–Associate it with something that has emotional appeal.

–Incorporate a well-known brand name.

Step 2: Identify the aesthetic function for the user. What is the current aesthetic appeal?

Step 3: Determine their significance in the eyes of the user.

Step 4: Consider aesthetic designs that would please average users. If you are not particularly artistic, this may involve enlisting the help of design consultants.

Explanation

Part of human interfaces involves aesthetic functions that the system performs on people who use, maintain, or observe the system. When given the choice between two objects that provide the same function, aesthetic appeal can make the difference. This means incorporating aesthetic functions (artful design). Aesthetic functions are usually related to the “form” of the system—how it looks, smells, tastes, feels, etc. If the system operates in public, users generally prefer that it has an aesthetic form that matches the environment. Most systems perform aesthetic functions for the user, even when they are located in mundane places such as an industrial plant. Those who install and maintain such products may attribute “higher quality” to those with that extra touch.

Voluntary Constraints on the Offering

Method

Select from the following constraints that you would like to impose on the product:

No additional purchases required
No extra expertise or assistance needed.
No extra time needed for installation, use, or disposal
No additional space requirements
Fewer new behaviors expected

Explanation

We may wish to impose some voluntary constraints, depending on the industry and what consumers may be accustomed to.

For instance, in the tech industry, consumers often prefer devices that are user-friendly and require minimal technical knowledge. We voluntarily limit our offerings to reduce burdens. By simplifying our product features, we enhance customer satisfaction and encourage broader adoption.
While it may not always be feasible to fully achieve this, we see it as an ideal until it becomes clear that we need to adapt.

Ergonomics--Designing for Comfort and Health

Method

Design the human interface to be comfortable and healthy, particularly if motions are frequently repeated.

Explanation

All interactions should promote health. Repetitive motion injuries should be avoided whenever possible. At a minimum, interactions should remain comfortable if performed repeatedly. Ideally, repeated motions should not lead to joint or other health issues.

Increase Loyalty, User Identification and Idenity

Method

Step 1: Recall the user experience that you want to promote, such as identification with the product, loyalty, or connection with the brand and stakeholder identity.

Step 2: Identify the features of the product that will enhance this experience.

Explanation

In the book Discovering Markets, you may have identified user experiences you wanted the consumer to have, such as customer loyalty, identification[21], and the Identity Function[22]. Now it is time to ensure that these features are present in the product. The added function is that the product must inform the user that they can identify with it or consistently recognize its origin. The impact of the product on people’s identities should also be considered.

For example, the author encountered a product developed by Black and Decker—a radio meant for use at construction sites. The radio featured the Black and Decker look of black and orange. Furthermore, it was intentionally designed to appear rugged, with corners that seemed to provide extra cushioning. This feature may not be essential for protection, but it certainly gives the impression of being able to withstand rough handling. These features guide the consumer towards loyalty and foster a sense of identification with the product as one that a serious worker would relate to.

Give Psychological Value

Method

Step 1: Assign meaning to harmful interactions by providing some degree of control.

Step 2: Alleviate tension by counting down.

Step 3: Enhance perceived value by reducing the number of functions.

Step 4: Improving a human interaction significantly beyond other psychological factors that comprise a job may not add substantial value.

Step 5: Assign meaning to unpleasant activities.

Step 6: Mitigate unpleasant functions by breaking them into stages or milestones.

Step 7: Compare the improvement to something tangible.

Explanation

As described by Rory Sutherland, we aim to enhance the perceived value of every human interaction, even when it is challenging. Psychological value typically arises from altering perspective. In other words, akin to separation by perspective, we strive to compare favorably to another entity with high perceived value.

Error Proofing

Method

Step 1: Identify opportunities for human errors within human functions.

Step 2: Look for ways to make it impossible to perform the operation incorrectly.

Step 3: If it is not feasible to eliminate the error, then make it clear how to execute the operation successfully.

Explanation

Error proofing aids individuals in avoiding mistakes during assembly, operation, etc. If human interaction is necessary, it should ideally be impossible for errors to occur. The next best option is to make the correct course of action obvious.

Rework the Requirements for Easy Discrimination

Explanation of Rework the Requirements for Easy Discrimination

When someone purchases a product or service to accomplish a task, it can be extremely frustrating to receive something that is not quite right. It can also be costly and irritating to obtain the wrong item. For this reason, it is vital to “get it right” the first time. It is equally essential that the choice of your product or service is the clear and obvious option. Consumers are not looking for minor differences; they want a definitive leader.

The input for this step consists of the potential functions that our system might perform, the high-level attributes of the product or service, and the pricing information gathered from interviews. The outputs of this step are the specified functions that our system will perform and the levels of the critical competitive attributes that the target market can identify. The value of the offering should be readily apparent.

Unique Competitive Functions and Attributes
Competitive attributes are the product features and functions that consumers use to differentiate between competing alternatives. They represent the unspoken and often unrecognized language of customer value. These same factors are frequently considered when trading up or down.

Industries often assume that specific competitive attributes are those that the market utilizes to make decisions. Typically, the industry determines competitive attributes by offering certain product or service features that a segment of the market values and deciding that it is worth competing on. Unfortunately, some market segments may not prioritize particular product or service features at all.

In this step, we want to specify the primary attributes, at least temporarily, because we will use these attributes to test our market hypothesis, build prototypes, and gather further customer feedback. If this represents one of the initial rounds of iterations, then these competitive attributes and functions remain fluid. With more iterations, these functions and attributes will stabilize. This is a learning process rather than an execution process. Gaining knowledge early on can save a lot of money and frustration.

True Offering Discrimination
It is crucial to understand that merely being better than other offerings is not sufficient. The target market needs to perceive a significant enough difference to clearly recognize that your offering is superior. This is not a 5% difference; you are looking for a noticeable step change. As you continue through your next round of interviews, ensure that the individuals you are interviewing can genuinely discern the difference.

People Vote with their Wallets
Once the product or service enters the marketplace and consumption begins, we will learn what consumers value most by observing what they are willing to pay for competitive offerings. If we wait until the product is on the market to determine the price, we have waited too long. This creates considerable risk and does not provide us with direction concerning which features should be included in the offering.

Value Curves on a Value Canvas
A useful way to capture competitive attributes is through a Value Curve, as described by Chan and Mauborgne. A Value Curve presents a high-medium-low perspective on how our offering compares to competitive alternatives. Cost is usually the first competitive parameter on the curve, followed by the main competitive attributes on which the industry competes and invests. We incorporate functions and other competitive attributes gathered from our own interviews. If our products already exist, we should include them in the mix. Once the competitive attributes are identified, we must assess how we rank compared to all competing alternatives. It is likely that products which directly compete will appear quite similar, while alternative products will reveal considerable differences.

By testing the market, we learn what they desire. Understanding what is important to potential consumers allows us to create more ideal value curves. (Several potential value curves should be examined). If the new value curve resembles the competitive alternatives, then we are operating in red waters. We can only navigate in blue waters if our value curve:

–Is significantly different from the competitive alternatives.

–Provides what potential consumers genuinely want.

–Has a clear and focused tagline. (For example, Southwest Airlines may use the tagline “Fast and flexible travel for the cost of a car trip”).

Eliminating or Reducing Competitive Attributes
We must carefully select what we aim to excel in and what we will eliminate. This will ultimately lead us to a specification for our offering that delivers exceptional value to potential consumers. To maintain sufficient focus, we will need to reduce or eliminate certain competitive parameters that potential consumers do not value while significantly enhancing others that they highly prioritize. If new functions and associated competitive parameters emerge as highly appealing to potential consumers, this will make our value curve stand out. Remember, the target market must be able to differentiate our offering from all others.

How is it Possible to Eliminate Competitive Attributes?
If competitive products already exist, it is likely that the industry takes all competitive attributes for granted. They believe that the market desires all of the competitive attributes and seeks to provide as many as possible for consumers while remaining competitive on cost. However, potential consumers are not interested in all these factors and are generally willing to forgo certain aspects if others can be significantly enhanced. When we can eliminate elements, the system is greatly simplified. In fact, most potential consumers are eager to drastically reduce specific factors if other factors, particularly price, can be significantly improved.

The business advantages of eliminating certain competitive attributes cannot be overstated. Companies often underestimate the direct and indirect costs associated with providing these additional competitive attributes. When non-essential factors are eliminated, it becomes easier to enhance crucial factors and meet the target cost.

One step in the process is to set a target price. The price of the offering is a vital competitive factor. The price of a product or service should not be determined by cost. Instead, the price is set in relation to competitive alternatives. This means we establish the target price before we determine the target cost. Subsequently, the target cost must be dictated by business needs. After a preliminary assessment of the target price and target cost, one may conclude that achieving the cost target seems improbable at this stage. Remember, we are very early in the overall innovation process. Acknowledge this as a risk and proceed. Future steps will be utilized to innovate and reduce actual costs to meet the target.

The final step is to create a specification that reflects the ideal value curve. Meeting this curve will enable us to attract the largest market of potential consumers.

Summarize Industry Competitive Attributes

Method

Step 1: Identify the product or service attributes that the industry typically competes on and invests in.

Step 2: Include competitive attributes that the industry competes in according to the lifecycle chart.

Explanation

Right or wrong, the industry believes that certain attributes are what consumers desire. Consequently, they try to create the highest value in each of these areas. This value creation is often evident in how they invest in and enhance their products. Note that these attributes may be incorrect. Consumers may not care about these factors. Competing on attributes that consumers do not value can lead to unfocused products and diminish their competitiveness. This is true because companies can spend significant amounts of money that distract from the features and attributes that the consumer truly wants. Understanding and capitalizing on competitive attributes that the industry takes for granted can have a significant impact on imitation if the business is successful. It can take a considerable amount of time for an industry to realize that certain segments simply do not care about specific competitive attributes.

Eliminate-Reduce-Raise-Create-Make Adjustable

Method

Step 1: Based on inputs from consumers and non-consumers, which factors that the industry takes for granted can be eliminated?

Step 2: What can be reduced with little effect? These are factors that are over-delivered. Potential consumers care little about these elements.

Step 3: What should be increased well above the industry standard? What will make our offering stand out among all the others?

Step 4: What new factors can be added?

Step 5: Due to a wide variation in needs, what factors should be easily adjustable?

Explanation

Now that we have started to engage with potential customers, we understand what we can potentially change. Some features are taken for granted by the industry. Often, consumers in a target market segment do not value these features. A noteworthy observation of the new women’s fitness center “Curves” is that there is a market segment of women who prefer not to go to a traditional fitness center because of features that the industry overlooks. Large mirrors around the walls, showers, men in attendance, and large windows were greatly reduced for this target population.

If there is a significant variance in customer needs, a competitive attribute might be best satisfied by being adjustable. (Making a factor adjustable follows the evolutionary stages of technologies).

Example—Pet Feeder

Step 1: Based on consumer and non-consumer input, which factors that the industry takes for granted can be eliminated?

Certain stylistic features of the containers can be removed.

Step 2: What can be reduced with minimal impact? These are factors that are over-delivered. Potential consumers care little about these aspects.

The containers do not need to be highly durable. Many pet owners use disposable containers.

Step 3: What should be increased well above the industry standard? What will make our offering stand out from all the others?

The capacity of the water containers should be high. This is evidenced by the large buckets that people use as a non-commercial product. The large size also aids the stability of the container when the pet tries to play with it.

Step 4: What new factors can be added?

A new factor of protection against pests can be introduced.

Step 5: Due to a wide variation in needs, which factors should be easily adjustable?

The capacity of the feeding container needs to be variable to accommodate different-sized animals.

Create Value Curves for Target Markets

Method

Step 1: Identify competitors or the industry average. The industry average should generally be close to the Median.

Step 2: Determine where non-commercial alternative products or technologies sit on the curve.

Step 3: If we currently have a product or service, then pinpoint this on the value curve.

Step 4: Identify potential products on the value curve. The final curve should have:

–A clear focus with a compelling tagline

–Divergence from the other value curves

–A significant leap in value for the target market

Explanation

The Value Curve[23] is a graphical method for assessing how our features compare to the competitive alternatives. At this stage, we may or may not have a current product. If we do, we can evaluate how we presently measure up against the competition. More importantly, when we consider what we want our product to evolve into, we can clearly see the advantages. As we analyze the value curve, it is crucial to note how our product or process ranks in relation to the next best alternative. (Keep in mind that the next best alternative may not be a product or service that resembles yours.)

Example—Pet Feeder

Step 1: Identify competitors or the industry average. The industry average should generally be close to the Median.

The industry average is indicated in red.

Step 2: Identify where non-commercial alternative products or technologies are on the curve.

Buckets have a distinct advantage when it comes to tipping and water height. Disposable containers have only the advantage of cost.

Step 3: If we currently have a product or service, then identify it on the value curve.

Since we have no current product, nothing is represented on the curve for this.

Step 4: Identify potential products on the value curve. The final curve should have:

–Focus with a compelling tagline (We protect)

–Divergence from the other value curves (Well diverged)

–A leap in value for the target market (This remains to be seen)

Because attributes not yet recognized by the industry are included, the pet feeder appears high in terms of food height, cleanliness, patio protection, protection from insects, protection from birds, and finally, clean water.

Determine the Target Price

Method

Step 1: Based on what you learned from the interviews regarding people’s willingness to pay various prices for each feature, create a pricing model that includes competitor features and prices.

Step 2: Optimize the price for the anticipated volume.

Step 3: You may discover that higher-than-expected production costs could mean that you cannot support this price, necessitating a higher one. This leads to a contradiction: the price must be high and it must be low. The contradiction can be addressed by employing the principle of Gradual Separation in time: Renting — Time share — Slice share (selling a portion rather than the whole) — Equity interest — partnering. This acts as a safety valve; however, it is crucial to aim for the target price in the initial stages.

Explanation

Now that we have a clearer vision of the potential final features, we are better positioned to consider the price that consumers will pay for each feature. Remember that we have already gauged the price in our interviews concerning competitive attributes. We have aimed to understand the incremental price that customers would be willing to pay for each additional feature or function. This is where we apply this data.

Price and cost are two distinct discussions. The price is a competitive attribute, and people really do not concern themselves with how much it costs you to provide a product or service. They only care about how it compares to the competition in terms of features and price.

People Vote with Their Pocketbooks
Once the product or service enters the marketplace and consumption commences, theory ceases, and reality takes over. We will learn what people value most by observing what they are willing to pay for competitive offerings. Merely estimating what the product should cost or adding a profit margin to the manufacturing cost is very risky. Determining the price and cost of each product feature at this stage in the process mitigates risk and provides us with direction concerning which features should be included in the offering. In this step, we present a strategy for determining the features to be included and the pricing of the offering.

Principles of Pricing for Pricing Models
Pricing principles are established to guide the development of pricing models. Let’s take an overall view of what individuals would be willing to pay for our offering as a function of price. We first examine the scenario where there are no competitive offerings whatsoever. Later, we will introduce competition to see how it affects the situation.

Looking at the curve above, when the price is zero, we see the highest number of customers willing to “purchase” the offering. As the price increases, the number willing to pay decreases until nobody is willing to pay. Note that this curve will change at different times of the year and under varying macro conditions such as holidays or during local emergencies. It is also interesting to note that many people may not want the offering even if it costs nothing!

Next, we investigate who is willing to pay at different price points. Each customer has unique requirements for a “job well done” and a varying willingness to pay. Those willing to pay the highest price may demand higher performance. Conversely, those willing to pay the highest price may not be highly demanding but may have more discretionary income. Customers with less money may require higher performance but simply cannot afford the elevated prices. Thus, the curve drops with increasing price.

At the lower price points, there are two types of customers. Those who are satisfied with a lower performance offering and are unwilling to pay more for higher performance, and those who demand higher performance but are unable to pay the increased prices.

We should recognize that any offering will be purchased by a variety of market segments. The features of the offering, however, will appeal most to just a few segments. For instance, multiple market segments would be willing to buy a computer with super high processor speed and memory. However, many people don’t need the excess capacity to perform simple email, web surfing, and word processing, and would consequently not be willing to pay a higher price. Those with a penchant for video gaming would be more willing to purchase the higher capacities at elevated prices. Note that the lower the price, the more segments an offering can appeal to. Conversely, the higher the price, the fewer segments it will attract.

Another aspect of pricing is the cost to provide the offering. It is important to note that what people are willing to pay has nothing to do with the cost of providing the offering. Some pricing models are based on starting with the costs to provide an offering and then adding a required profit. This is not a sound strategy. People are not interested in the costs. They base what they are willing to pay on their personal needs. It is possible that this strategy will leave money on the table because the customer may actually be willing to pay more than anticipated if the value is sufficiently high. Providing high value to a customer is what allows us to increase the price, thereby boosting the margin and profit.

On the other hand, we cannot afford to ignore the costs of providing the offering. Neither we nor our competitors would be willing to drop the price below what it costs us to deliver the offering, as we would incur losses with each sale. We can illustrate this by adding a line to represent the manufacturing cost of the offering. Below this price, we lose money, while above it, we generate a profit. Ultimately, we are focused on the net profit we can achieve. A simple model for profit is:

Profit = Volume (Price – Cost of Provision)

In the curves to the right, we present the profit as a function of price. We see that the profit curve takes on a parabolic or domed shape that has a peak. As the price approaches the cost to provide, the profit tends to zero because (Price-Cost) approaches zero. Similarly, as we near the price at which people are no longer willing to pay, the profit also goes to zero because the volume in the equation diminishes. To maximize profit, the price should be set at the peak of the curve. Considering uncertainties in the data involved, the midway point between the maximum price that customers are willing to pay and the cost to provide the offering serves as a good starting point.

Please note that, at this stage, we may or may not know the cost to provide the offering. If this is the first iteration of interviews and prototyping, we may have very little information about the cost. With each iteration of the process, we learn more about what the offering should be and what it will cost to deliver it.

Now, let us consider the effects of adding and subtracting features from the product. First, we need to acknowledge that, just like the main functions, the market segment has a similar willingness to pay for each added feature, and we will ultimately incur a cost to serve for each additional feature. The curves resemble what we have already demonstrated, except that, generally, the price and cost will add incrementally to our original curve.

The left curve to the right illustrates the effect of adding a feature to the product or service. This incrementally enhances the curve of willingness to pay and the cost to serve. Like the main function, the willingness to pay is highest at zero cost and decreases as costs rise. Certain high-end customers may be inclined to pay incrementally more. The figure at the far right represents the net effect on willingness to pay and the incremental increase in product cost.

Although not explicitly shown, we can also infer that the resulting profit curve is slightly elevated and shifted to the right, indicating that we can charge more for the product or service, and a greater number of people will be willing to pay the higher price.

So far, we have only considered scenarios without competition. When competition is introduced, many factors change. First, different consumers will value the product features differently. If we have enhanced our product to deliver the main function at a very high performance level, there will be consumers who prefer not to pay the higher price for this enhanced performance, as it may already be more than adequate. According to Clayton Christensen, this represents the eventual fate of mature products, where performance ultimately exceeds the desires of many customers. This paves the way for “low-end disruptors” that charge a considerably lower price for lesser performance while providing the main function through a different low-cost technology. As this technology advances, it increasingly satisfies a wider range of demanding customers until only a few high-end customers remain. While margins may stay high, sales volume diminishes, and the higher-performing technology is replaced by the low-end disruptor.

Let’s introduce a second competitor to our willingness to pay curve and assume that both our offering and the competitor’s are priced the same. Notice that for each curve, the number willing to pay decreases as price increases, until eventually no one is willing to pay if the price becomes too steep. Next, assume we have enriched our offering with numerous features that the competition lacks. When consumers examine both offerings side by side at the same price, they are likely to choose ours due to the compelling differences, making it seem as though the competition does not exist.

So far, we have presented each curve as though the competition did not exist. The actual willingness to pay changes dramatically when both offerings are compared side by side. If the price were the same, almost everyone would choose our offering due to the greater number of features available at that price. The competitor’s curve would effectively be zero across the chart in the presence of our product and at the same price point.

This scenario is likely unrealistic because competitors will respond if they see we are providing more features at the same price and their market share is declining. It is probable that they might be able to offer a lower price since they do not incur the manufacturing costs of the additional features we provide.

Let’s see what is likely to happen. Given that the competitor’s costs are probably lower due to the reduced number of features, the competitor’s price is also lower. Let’s examine how this would affect our curve.

It’s important to note that all this is contingent on the customer being able to recognize the difference between our offering and the competition’s. This is often referred to as “differentiation.” If the product features or performance are perceived to be too similar, it becomes difficult for consumers to make a choice, which alters their willingness to pay. Sure, your offering may indeed be superior, but if it is hard to identify this—either because the product description on the package or advertising fails to highlight significant differences—the added cost of providing enhanced performance or features is wasted.

So far, we have only discussed the principles of pricing. It is up to the reader to understand and model the incremental price that consumers are willing to pay and to analyze the competition.

Create Value Curves for other Stakeholders

Method

Step 1: Create multiple value curves from the perspective of various players in the value chain.

Step 2: Create a value curve for other market segments that you believe might be attracted to your product, which was developed for a specific segment. Aim for the largest possible catchment area. L2-Determine Unique Levels of Competitive Attributes for the Product or Service.

Explanation

Ultimately, we must create a leap in value for the target market and encompass the largest audience possible to mitigate the risk of scaling.

We have already identified the Competitive Attributes of the product. These attributes are what the consumer considers when differentiating between competing alternatives. The consumer typically makes this judgment in an instant, so the distinction must be clear.

However, having Competitive Attributes alone is not enough to define the specific characteristics of the product. These competitive attributes must be further delineated into more specific requirements that outline what the system will accomplish within the context of its environment.

Consider the task of telling time underwater. If the target market is a construction diver who must remain submerged at great depths for extended periods where sunlight cannot penetrate, and the water pressure is significant, the competitive attributes that differentiate this watch might include durability and visibility. If we aim to significantly exceed industry standards in both areas, what implications does this have for the product’s specific characteristics?

Firstly, we must account for the environment in which the timepiece will function. In this scenario, the depth of the sea necessitates that it withstand pressures of 500 pounds per square inch. The darkness is comparable to telling time in an underground cavern. The water temperature ranges from 35 to 50 degrees Fahrenheit. As the construction worker navigates the environment, the timepiece must be resilient to impacts and abrasion from various unpredictable sources. (Not everything can be anticipated).

An understanding of environmental conditions should stem from observations made during customer interviews regarding constraints, features, and environment. With a thorough understanding of the environment, we can then establish the requirements for the product or process.

Let’s examine the necessity of translating Competitive Attributes into specific Product or Process Requirements. For example, most individuals desire a clean hotel room. What does that entail? Can cleanliness be quantified in hairs per square inch or visible stains? Is there something more? What must the attributes of the hotel be to be deemed “clean”?

One method to begin converting the Competitive Attributes into Product/Process Requirements is to seek insights from the customer concerning what those requirements should entail. Typically, customers are unaware of the specific requirements, but we can attempt to understand their perspective by asking targeted questions: What signals to you that a hotel is not clean? We can assess various sensory inputs. Is it the odors upon entering the room? Is it visible stains? Is it the uneven textures felt when wiping a surface?

What indirect indicators does the customer rely on? Do the materials in the room provide clues about its cleanliness? Consider the difference between a carpeted and a tiled room. Does the customer unconsciously assume that tile is easier to clean? If the hotel room’s baseboards or woodwork appear poorly maintained, does that reflect negatively on the perception of cleanliness?

If feasible, it is generally advantageous to visit the environment and ascertain the specifics. It may also be necessary to conduct experiments or present the customer with particular attributes to identify the real requirements. Immersing oneself in the market environment is invaluable for achieving this correctly.

The value curve provides a low, medium, high overview of product features. This is helpful for comparing competing products. We now require more detailed information to create prototypes and engage with the business.

Requirements for High Discrimination

Method

Create a specification for the product, process, or service that provides more of what the market needs and less of what they can do without. The requirements should make the product unique and distinguish it from all other offerings. Include the target price and required manufacturing costs. The specified levels should be concrete and measurable. (Remember the questions you asked regarding HOW the target market perceives the level of the attributes?)

Example—Pet Feeder

Create a specification for the product, process, or service that delivers more of what the market needs and less of what they can do without. The requirements should make the product unique and set it apart from all other offerings. Include the target price and necessary manufacturing costs. The specified levels should be concrete and measurable. (Keep in mind the questions you considered regarding HOW the target market assesses the level of the attributes?)

The containers will remain clean for up to two weeks.
The container will exclude birds and insects.
The container will prevent the growth of bacteria in the water.
The container will also supply water.
The water container will hold sufficient water for four days without spoiling.
The food height will be suitable for a medium-sized dog.

Business Model Requirements

Explanation of Business Model Requirements

Business Models
Understanding what a business model is and how it relates to the offering and the value network is beneficial. Please refer to the diagram below. Clayton Christensen defines a business model as the value proposition, resources, processes, and values we utilize to deliver what the target market desires. The value proposition encompasses the jobs to be done that we help the target market achieve, including the context of the job and the challenges we assist consumers in overcoming. The resources encompass all physical, financial, and intellectual assets used to develop and produce the offering. Our offering (product or service) embodies the value proposition and is thus a component of the business model. The processes of the business model consist of all work-related procedures utilized to develop and produce the offering. The values represent both written and unwritten priorities that influence how access to resources and processes will be allocated to deliver the offering.

Importance of the Business Model
Up to this point, we have focused on the offering and the value proposition. While the offering is significant, we must remember that the innovation is the business model, the complete package. It encompasses all components of the offering and how it will be delivered to the target market. It may involve new resources, processes, and values. New offerings often necessitate new business models to effectively satisfy the market.

Value Networks
The value network is the ecosystem in which our business model operates (note the figure below). It determines our ability to meet the needs of the target market. It includes all factors that shape and influence the business model (note that the diagram below does not encompass all possible factors). Ultimately, it dictates how the business model is realized. It impacts whether the offering will succeed and whether the target market will accept it. For new target markets, it may be necessary to adopt a new value network. For example, you may not be able to implement the new business model within an existing business, particularly if the new offering represents a market-creating innovation. It may be too disruptive to the legacy business.

Barriers to Establishing or Changing a New Business Model
The resources are the easiest to modify; processes are more challenging, while values or priorities are the hardest to change due to the expectations of the value network. For a market-creating innovation to thrive, you need a business model that addresses the needs of the target market, a technology that can evolve over time, and a value network that acknowledges and supports the survival of the new business model.

Reevaluating Periodically Where You Stand
Many of the business constraints should have already been minimized if you have determined where the business is willing to compete from Job #1: Discovering Markets. If you did, you would have only considered a market segment that the business is comfortable with. Unfortunately, challenges may arise as you discover what this market segment truly desires. The business may face difficulties in serving the target market segment. For instance, we may have initially concluded that a potential market segment would not require a new business model. Now, we suspect that it will. The business may be quite hesitant to pursue this since it is quite disruptive.

Rapid or Slow Scaling May Require Distinct Strategies
Almost all market-creating strategies will begin with low sales volumes. Adoption is challenging and requires patience, and they scale slowly.

What Christensen refers to as a low-end disruptor serves an overserved market. If the market is overserved, it will often accept lower capabilities if it comes at a reduced cost and with less complexity. The good news is that much of the necessary technology may already exist. Typically, it takes an innovative business model and/or minor technology adjustments to make it effective. Often, these low-end disruptors are capable of very rapid scaling.

Summary
In this chapter, we will examine the business constraints in serving the market segments and also explore ways to eliminate these constraints. The market segment, the business model, and the value network need to be aligned to offer a product or service that meets the needs of both the business and the consumer.

Determine whether a Deliberate or Emergent Strategy is Required

Method

Step 1: If the market requirements are known, a deliberate strategy can be implemented.

Step 2: If the market requirements are unknown, an emergent strategy is preferable. Work backward from the desired outcome and conduct experiments to determine what the actual requirements should be.

Explanation

In the context of Sustaining Markets, a more deliberate strategy for offering development can be applied. In scenarios of uncertain Growth Markets, it is often more effective to allow the requirements to unfold gradually through experimentation and iterative customer feedback.

Explore How the Customer Will Pay

Method

Step 1: Know the Target Price: how much will you charge?

Step 2: How will the customer pay? (Note that many of these represent the resolution of a contradiction).

— Sale

— Renting or leasing

— Paying for units processed through the product or service

— Charging by the transaction

— Advertising and subscription models

— Licensing

— Giving away the product and selling after-sale support and services

— Bundling offerings with other products or services that decrease the overall cost. Potentially giving it away with other services.

— A mixture of payment mechanisms (Subscription price + advertisement)

Explanation

The customer prefers to pay in a way that allows the value of the offering the greatest visibility. For example, at one point, copiers were sold based on unit price, leaving the interpretation up to the customer. Later, it became apparent that most customers wanted to see the printer from a cost-per-print perspective. This enabled them to make quick decisions on whether or not to copy. Ultimately, many business models adapted a type of leasing based on cost per print. This allowed customers to control the number of prints made, which are often discretionary.

Create and Exercise Financial Models

Method

Step 1: Create financial models that include recurring and non-recurring costs.

Step 2: Utilize the models to explore various possibilities.

Step 3: Determine the product or service cost required to make the offering viable. Remember that necessary improvements in manufacturing may be the main constraint that must be addressed for the consumer to achieve their goals. Therefore, one should not be too quick to conclude at this stage that the offering will not succeed. We will consider how the cost can be reduced.

Step 4: Meeting specific non-recurring cost targets, such as capital expenses for new manufacturing equipment, may also be a critical output of the model. This could be a significant factor if the constraint lies in the manufacturing process.

Explanation

This is an extremely crucial step. We need to validate the business assumptions that are essential for making the offering successful. This is a learning exercise and is unlikely to be flawless on the first iteration of the design cycle.

To achieve specific business objectives, we must establish recurring and non-recurring product or service costs. Typically, a financial model is prepared wherein numerous assumptions are included, such as required margin, product volume, overhead costs, handling fees, etc. Testing this model under various conditions aids the business in understanding the options for pursuing an opportunity.

Technical personnel often find it tempting to skip this step, but you will gain valuable insights about where your creative efforts should be concentrated. It may not necessarily be in the offering itself, but rather in aspects like manufacturing, etc.

Manage The Supply Chain

Method

Step 1: Identify potential supply chain partners

Step 2: Describe how each element benefits from the chain

Step 3: Determine how the company will claim its portion of the revenue

Step 4: Identify the complementary assets within the company, such as equipment, existing distribution channels, and brand reputation.

Explanation

This step is particularly important if the value chain is not clearly understood or if the market segment is new. In this case, it is essential to grasp how each member of the chain adds value to the product or service and how each will claim its share of the revenue. Additionally, it is crucial to understand how the company’s resources will complement the existing supply chain or how they will need to be modified to work seamlessly with it.

It should be noted that mixing supply chains for new products competing for resources with incumbent products targeting key customers is typically not advisable. Key customers can end up holding the supply chain hostage, which reduces resource flow to new markets. Furthermore, the quality and cost level of existing suppliers may be inadequate for new market demands.

Manage Third Party Partners

Method

Step 1: Identify third parties that can enhance the product’s value in the marketplace.

Step 2: How can connections be established to strengthen relationships with these parties?

Explanation

Value network partners are business associates that contribute something desirable to the target market for the product or service. An example of this would be application developers that create specialized applications for smartphones. The business may be willing to provide the platform and prefers to share the costs and benefits with these providers. This approach helps resolve a contradiction: something typically costs money, yet this arrangement minimizes expenses. In this case, the costs are distributed among the providers.

Make it Easy to Sell

Method [43]

New Ecosystem or Content: How can our offering assist others in generating revenue?
Network Effect: How can the product increase in value over time (consider iTunes)?
Supplier Architecture: How can we sustain your current business model (if this represents either a sustaining or efficiency innovation)?
New Distribution: How can individuals be motivated to sell on your behalf?
Existing Infrastructure: How can we avoid altering the process (if this constitutes a sustaining or efficiency innovation)?

Explanation
We aim to make this process as seamless as possible for our value chain partners. Minimizing friction in sales will facilitate business growth.

However, we know from Clayton Christensen’s research that exceptions do exist. New products can be both internally and externally disruptive. All of the following are considered disruptive:

New business models
New products that necessitate new capabilities and production processes
With new business models, a new supply chain emerges

Determine a Competitive Strategy

Method

Step 1: Engage with a select number of suppliers as early as possible. This creates challenges for other players when attempting to access these resources.

Step 2: Safeguard intellectual property. Determine what should remain a trade secret versus what should be patented or copyrighted.

Step 3: Implement strategies to strengthen and enhance brand recognition.

Step 4: Develop internal processes, including business models, that are difficult to detect and hard to replicate due to their non-public nature.

Explanation

If the Value Curve is sufficiently differentiated from alternative products, then a significant barrier has been overcome. In this section, we discuss strategies that complicate imitation.

Barriers to Imitation

Why do industries not rush to imitate successful businesses when new profitable markets emerge? There are several non-obvious challenges to imitation:

Blue ocean opportunities contradict conventional wisdom. They often do not make sense until it is too late. Firstly, blue ocean opportunities are not easily recognizable. Most marketing tools are designed for competitive marketing strategies. Furthermore, there are many competitive attributes that the industry tends to take for granted. These factors are so ingrained that they are rarely questioned. Such paradigms detract from what the non-consumer truly desires, diverting valuable resources that could otherwise be used to explore blue ocean opportunities.
If another company adopts the new strategy, it must abandon its own. Internal conflicts and politics will complicate any changes.
Given limited resources, the market may not support more than one player.
Patents and other protections may hinder replication.
Imitation is unlikely until a significant volume of sales is apparent. Cost advantages typically arise from high volumes, making it challenging for competitors to catch up.
Buyer loyalty or habit can make it difficult to switch to the imitator, with strong branding playing a crucial role in this process.

It is possible to capitalize on some of these factors by employing the following method,

Messaging the WHY, the HOW and the WHAT

Method

Step 1: Be clear on the WHY you are providing this product. Of all the messages that consumers and potential consumers want to see, the most important is WHY you provide these products or services. Next in importance is the HOW you will provide it, and finally, WHAT you are providing.

Step 2: Of all the target market segments, identify the one that is most likely to resonate with the WHY, the HOW, and the WHAT. This will hopefully allow for the fastest return on your investments. (This is referred to as offering positioning.) Start here to begin with for the most likely success. Other segments can be built on this strength.

Step 3: Design messaging using the following formula. WHY + Problem + Solution = Outcome, where the outcome is an emotional response related to the WHY. The main message should relate to the outcome because most decisions are emotionally based. The problem is of secondary importance, and the solution may or may not be mentioned at all.

Explanation

The optimum messaging (Advertising) will need to be learned over time. It will likely need to be changed periodically to keep it fresh. Since advertising is one of the largest up-front costs, where do you start? In this case, there’s no need to make it harder on yourself than necessary. While you are not specifically seeking a niche market, it is okay to start with one. Normal messaging usually begins with the WHAT product or service you are providing, then HOW, and maybe WHY. This is completely backward from the messaging that people want to see. They prefer the WHY first, as it tells them whether they can identify with you and your products.

Example

Pain-free dental cleaning. The message: “Our passion is making dental care fear-free. Gentle cleanings here.”

Elevator Pitch and Advertising

Method

Step 1: Based on what you have learned from interviews, this is a good time to review your elevator pitch, product positioning, and potential advertising.

Explanation

In the initial stages of product development, a lot of insights are gained. Customer motivations and dilemmas may differ significantly from your initial assumptions. This can result in substantial changes.

Furthermore, the brand will likely emerge from a clear, brief, and concise statement such as “We take the hassle out of selling your house.” This brief pitch is termed an elevator pitch because it should be deliverable in the time it takes for a short elevator ride. This narrative has likely evolved since your interviews.

Lastly, potential advertising, based on what your prospective customers truly desire, has probably also changed. If you have been pondering potential advertising campaigns, now is a good time to consider whether they truly resonate.

Review Branding

Method

Step 1: Develop a tagline that describes the Job to be Done.

Step 2: Consider brands that address the problem being solved [40]

Step 3: Consider brands that relate to the reason the job is being done and the overall user experience.

Step 4: If this is a new job and people typically don’t associate it with the company, then incorporate the job into the company name. [41]

Step 5: If the product or service is entirely new, consider a brand name that is catchy and can easily be associated with the job. Examples include “Facebook” or “Snapchat”.

Step 6: Consider names that are not directly associated with the Job but are memorable, such as “Google”.

Step 7: Explore Brand Marketing with: Survata or Social Mention.

Explanation

As mentioned, the brand of a company represents the types of jobs that customers associate with your company, along with the reasons behind those jobs. When a potential customer wants to perform a job, an image comes to mind of where to obtain the necessary resources to accomplish this task. If I want to get something really large printed, I instinctively think of a large office supply center called Staples. Why do I do that? Because I and others have successfully completed large printing jobs there. This brand took time to build and embed itself into the public consciousness. When people think of the job you are helping them to do, what brand readily comes to mind? Hopefully, if this is a new job, the brand name you’ve selected will trigger the shopper’s awareness that your products are indeed linked to this job.

The brand may not directly describe the job, but it is associated in the customer’s mind. In this section, we explore strategies for developing a brand. Clayton Christensen reminds us that all jobs have functional, emotional, and social elements. It is crucial that the brand resonates with these elements and the reasons for performing the job. It should connect to the “whys,” fears, and hopes surrounding the job.

Review With People Having Special Knowledge

Identify and interview experts who can validate your assumptions up to this point. Take your time to build a relationship with these experts. Consider seeking input in business areas where your knowledge may be lacking, such as the following:

— Legal Counsel

— City, County, and State boards

— Standards Groups

— Zoning Authorities

— Business Mentors

Explanation

You can’t know everything. Many of your assumptions may be flawed, and you need to consult people with specialized knowledge in these areas. Many larger cities have innovation centers with free experts available to talk to and mentor you.

Explore the Progress with Key Decision Makers

Method

Step 1: Meet with key decision-makers and present:

—Key learnings from the interviews and prototypes with clear stories that emphasize the essential learning points.

—Challenges that have been overcome. Share stories that will be memorable.

—Challenges and decisions for which you need their assistance.

—The causes of these challenges. Share stories about the causes that help them understand the reasons.

—Potential solutions to address the causes.

—Describe the progress made to date. Again, stories can be helpful.

—Anticipated timing of key events such as studies, prototype developments, etc.

Explanation

The timing for this step is largely dependent upon the mentality of key decision-makers. Some will prefer you to gather as much information as possible and work out potential solutions before you meet. Others want to be involved in the exploration process. Unfortunately, some will need to be incentivized to participate. Remember, whatever you are doing, innovation can be disruptive to established business organizations. You need a compelling story, a clear description of the key challenges to be addressed, and a solid plan to tackle them.

If you are looking to license ideas with companies, it is feasible to do this well in advance of the licensing arrangement. Often, it is beneficial to obtain feedback to ensure you are on the right track. It is worth noting that the time invested in investigation is usually orders of magnitude less than misguided costs to develop a product that the market may not want. However, market timing can be a more significant concern. If the investigation takes too long, then market opportunities may become less advantageous. A lot depends on the specific market involved and how well it is already understood.

Explore if the Business is Fully Aligned with the Target Market

Method

Step 1: Identify any misalignments with the target market.

Step 2: Discuss potential actions to enhance alignment.

Explanation

If the business is not fully aligned with the needs of its target market, adjustments may be necessary.

Explore Ways to Resolve Remaining Business Issues

Method

Step 1: Identify challenging business issues

Step 2: Collaboratively explore ways to overcome these problems. If necessary, contradictions may need to be identified and resolved in the process.

Explanation

Depending on which iteration you are in regarding interviews and determining competitive attributes, you might want to hold off on discussing business issues to avoid alarming or biasing the decision maker before you have solid data. If you are adequately prepared, it is crucial to investigate and resolve the business issues. Some problems may be quite challenging and require creative solutions. Addressing business contradictions may be more critical than resolving technical product or service issues. If needed, you might consider employing some techniques used in Job #5 Resolving Problems.

It’s important to note that by this time, there may be concerns regarding providing the product or service at a target cost. The resolution of this issue may involve inventively addressing manufacturing challenges. The question of how to produce the product for a specific cost may be the primary constraint for both the business and the consumer.

Decompose Requirements to a Verifiable Level

Method

Step 1: Summarize all requirements at whatever level you currently possess them.

Step 2: Decompose or derive the requirements to the objective measurable level essential for designing the product or service. The requirements should be clearly stated and verifiable.

Step 3: List the specific requirements of the product or process.

–Environmental

–Performance

–Safety

–Convenience

–Maintainability

–Reliability

–Aesthetic appearance or taste

Explanation

Some features may not be sufficiently decomposed to the level required to create a product or service. It is one thing to recognize that most people want a clean hotel room. However, simply requiring that the hotel room be clean does not assist the person trying to determine what the product or service should look like. What does “clean” mean? The answer to this question begins with how the customer perceives cleanliness. We have already interviewed individuals and posed this question. What senses do they rely on to judge when a job is completed to their satisfaction? Do people depend more on sight than smell to assess cleanliness? If they rely on smell, what type of scent or odor indicates cleanliness or dirtiness? If sight is the factor, what visual cues do they look for? Do they examine the carpet for stains? Do they consider the room’s architecture for clean lines and proper functionality, inferring cleanliness from these other cues? This is our chance to present a set of requirements in a more objective form, allowing us to measure whether we have met these requirements.

In industrial contexts, this is often referred to as derived requirements. In some instances, the stated requirements suffice. In others, extensive derivation is necessary. For example, a requirement may state that a system should operate in a stable manner. What does this entail? This can be further detailed in terms of overshoot and the number of oscillations permitted before achieving a stable steady-state condition.

Having said this, we should recognize that meeting objective requirements does not guarantee that the subjective needs of the target market segment will be fulfilled. We must observe their reactions to obtain final validation that they are satisfied. Consequently, it is important for consumers to provide feedback on prototypes, if possible.

Correctly specifying the product requirements is crucial. Remember, everything beyond this point relies on getting this right. The product specification directs the rest of the innovation activities. If a group is involved, it is essential that everyone is aligned.

At this stage, the requirements should be sufficiently broken down to a level where a product or service can be developed from them.

Remove the Customer Burdens

Method

Go to the TRIZ Power Tools Book Reducing Offering Burdens. Follow the algorithm to remove the known customer problems, simplify the super-system, and reduce other burdens that the customer may not recognize.

Explanation

The inputs for this step are the system requirements. The outputs are the ideas and concepts that we want to prototype.

Surgery Should Be as Radical as Possible
With living patients, a doctor performing a surgical procedure will attempt to preserve as much of the patient as possible. With man-made systems, we want to preserve the least amount of the system possible to still get the job done. This is because technical systems impose human burdens. Radical surgery is better than preserving the system, so long as we don’t sacrifice performance. This is the hallmark of TRIZ solutions and of all good designs. The second axiom of Axiomatic^[18] design tells us that good designs impose the fewest requirements for information exchanges. In simpler terms, good designs require fewer functions and are therefore simpler. Regardless of what we do, either the system or super-system should become simpler. (This means that it is fine for the system to become more complex if the super-system (Job) becomes less complex).

The super-system will inevitably develop institutionalized burdens, or burdens that everyone forgets. Typically, processes are developed and rigorously followed to reduce the burden until we forget that the burdens exist. The processes simply become a part of life. The goal of this step is to define our system functions that will allow the super-system (job to be done) to become less complex. Even hidden or institutionalized burdens may disappear. When we overcome these forgotten burdens, it creates an unexpected delight for the target market.

Our System Functions and Attributes Should Remove Constraints
Recall that we have done a lot to identify the constraints on the target market that keep people from performing the job the way that they would like to. Once we remove the constraints, they are free to do their job. They are free to consume, and we are free to help them consume. However, removing the constraints will take some detective work. It is necessary to understand why the constraints exist. There may be deeper problems that we need to resolve. In TRIZ Power Tools —Reducing Offering Burdens, we will try to understand why these constraints exist so that we can solve the deeper problems that cause the constraints. This is done together with reducing system burdens because removing elements and removing constraints require the same type of detective work to understand the chain of causes that makes both the constraints and the objects necessary in the system.

Example—Pet Feeding System

In summary: The above diagram shows the burdensome functions.

The bacteria, birds, and insects appear to carry the highest burdens. With their removal, the harm to the pet is diminished, the target market is unconstrained, and the human burdens are lessened. We would also like to eliminate humans from the system entirely to reduce the human burden and simplify the life of the target market. The water bowl and feeding system are also candidates for removal but have a lower priority since they are likely to be instrumental in removing humans from the system. Additionally, if we view this from the perspective of the manufacturer of the pet nourishment system, we would prefer to retain food and water bowls.

In determining the reasons for the presence of bacteria: The volume of water controls the duration that bacteria can feed on the food and water, while the shape allows bacterial food to collect in corners. We can imagine that if the volume were to be buckets’ worth, the bacteria might never be removed. If the volume matched the water consumed each time, then the bacteria would be removed each time the pet took a drink. We also note that if the water volume is smaller than the amount of food washed from the muzzle, it becomes significantly less. At this stage, the bacteria in the water are part of the system. They add burdens to both the pet and its owner. Our goal is to remove the bacteria from the system if possible.

The pet’s removal of water represents a key weak function. This underlying issue, if resolved, allows the system to become simpler and alleviates one of the main constraints on the target market, which is the harm that bacteria inflict on the pet. If the water were removed more rapidly, the bacterial issue would largely disappear.

From our analysis, we find that this is primarily controlled by the volume of water and the shape of the pet bowl. As a side note, we also observe that the removal of food from the muzzle is influenced by the volume of water.

While idealizing useful functions, we note that: Containing food is necessary to keep it from becoming dirty or wet. By slightly altering the food, it may not require a container since it does not come in individual pieces. For example, the food may be linked together or served as a single piece. Perhaps it simply hangs from a roll.

Design and Protype the Offering

Design and Prototype the Offering

Method

Step 1: Jump to the book TRIZ Power Tools—Designing and Prototyping. The main issues may involve the business’s ability to create a product at the target cost. The prototypes may not necessarily be product prototypes but rather prototypes of manufacturing methods.

Make prototypes that you feel comfortable showing to the public. These do not always have to be perfect, especially if the reviewers are very forgiving. (Blocked markets can be quite forgiving).

Step 2: Write “Patent Pending” on everything visible to the public.

Explanation

This is where we transition from this book to the one on designing and prototyping products and services. Designing and prototyping go hand in hand because we may be adding layers of subsystems to create the final product. Each of these subsystems may need to be designed and prototyped.

Usually, there is a way to prototype some elements of the system. It may take a lot of ingenuity to find inexpensive ways to test your ideas. Sometimes solving “simple” manufacturing problems can be the biggest challenges of all. The constraint on the market segment may be the ability of any business to manufacture the product or provide the service at the target cost. In this case, the prototype may represent the manufacturing method.

With the prototype, we can resume our interviewing process with the target market. With the prototype in hand, we can present our idea to potential customers and gather their feedback. We want the most honest feedback possible because someone will invest significantly more time and money into this concept. We may also need this type of information if we intend to license or sell the idea. If you can afford public testing, you will gain a wealth of information.

While it is technically permissible to conduct public testing before filing for a patent, it is suggested that public testing occur only after at least filing a provisional patent. When those who test the idea know that the invention is patent pending, this will alleviate concerns for both them and you regarding intellectual property issues.

Even with a patent, there are pitfalls. Should you discover important features during this period, you may want to incorporate these features into your invention. Sometimes these ideas are suggestions brought forth by those testing your prototype. If the change is within the scope of the current patent, you may want to amend the patent for clarity. If it is not within the scope, this may necessitate re-filing the patent. While conducting public testing, you need to be cautious that improvements remain owned by you. This can be achieved in a couple of ways. First, insist that the user only highlight problems, not propose solutions. Second, have the participants sign a form that assigns their invention rights to you. Then they are free to suggest enhancements.

Remember that the inventor has one year from the time of public use or offering the invention for sale to file for a patent. The USPTO does not consider public testing to be “public use” if the testing adheres to strict guidelines. Keep accurate testing records during this time if you choose to test publicly before filing for a patent. These records should be well-dated and, if possible, witnessed. Avoid the temptation to merely showcase the invention in public. If you do, be sure to note the dates.

Continue Iterating

Method

Jump back to the Consumer Empathy (Interviews). Iterate until you are confident that you are hearing the same feedback repeatedly and that the product or service requirements are stable.

Explanation

This process is iterative to ensure that we truly understand the needs of the target market. In some cases, this iteration may be necessary multiple times. We may only have one opportunity to speak with each customer, so we must extract as much information from them as possible. We should present potential functions and prototypes to them and gather their reactions. This is not a one-time process.

References

[1] Doblin, The Ten Types of Innovation—Available from the Doblin Website

[2] The Innovator’s Dilemma …

[3] Eli Goldratt—The Goal

[4] For the purposes of this book, we will define business models as the integrated processes through which businesses create value, deliver it to customers, encourage customers to pay for it, and then convert these payments into profit.

[5] The Innovator’s Dilemma

[6] The Innovator’s Dilemma

[7] What is Outcome-Driven Innovation (ODI) by Anthony W. Ulwick, March 15, 2009

[8] Stephen Key—One Simple Idea—McGraw-Hill, page 40: “Ask the store manager or clerks which products are new, which are selling well, and which are duds. Observe products that customers are enthusiastic about and purchasing, and those they are passing over.”

[9] Kevin P. Coyne, Patricia Gorman Clifford, and Renée Dye, Breakthrough Thinking from Inside the Box

[10] Kevin P. Coyne, Patricia Gorman Clifford, and Renée Dye, Breakthrough Thinking from Inside the Box

[11] Kevin P. Coyne, Patricia Gorman Clifford, and Renée Dye, Breakthrough Thinking from Inside the Box

[12] Kevin P. Coyne, Patricia Gorman Clifford, and Renée Dye, Breakthrough Thinking from Inside the Box

[13] Democratizing Innovation by Eric Von Hippel

[14] Kevin P. Coyne, Patricia Gorman Clifford, and Renée Dye, Breakthrough Thinking from Inside the Box

[15] Kevin P. Coyne, Patricia Gorman Clifford, and Renée Dye, Breakthrough Thinking from Inside the Box

[16] Kevin P. Coyne, Patricia Gorman Clifford, and Renée Dye, Breakthrough Thinking from Inside the Box

[17] High Probability Selling by Jacques Werth and Nicholas E. Ruben (May 1997)

[18] Suh Nam Pyo of MIT, The Principles of Design, Oxford University Press, 1990.

[19] Elegant Solutions by Owen Edwards, Crown Publishers, Inc. New York, 1989

[20] The following is a paraphrased presentation given by Rory Sutherland in a TED talk where he presents the idea that value is always a matter of perspective. Perspective is always relative to something else.

[21] Clayton Christensen www.fastcompany.com/article/can-you-make-complex-things-simple

[22] Clayton Christensen—http://www.innovationexcellence.com/blog/2013/07/31/disruptive-innovation-theory-revisited-christensen-hatkoff-kula/?utm_campaign=innovation-excellence-weekly&utm_source=hs_email&utm_medium=email&utm_content=9867055&_hsenc=p2ANqtz-_11ktwhdweclI3b8RGPYg54qJ2Kio9XCZPz6Nsfjn1xKpmjDMykmsPleZ-vQuHL9WWMl5_DF70Vx1cwiqquVAFn9_wtQ&_hsmi=9867055

[23] Blue Ocean Strategy

[24] Pages 81-85 of The Prosperity Paradox by Clayton M. Christensen, Efosa Ojomo, and Karen Dillon. HarperCollins, 2019:

[41] Clayton Christensen—This may be in the Innovator’s Dilemma—sorry that I don’t know the original source, but I want to give him credit.

Scott D. Anthony, Mark W. Johnson, Joseph V. Sinfield, and Elizabeth J. Altman, The Innovator’s Guide to Growth: Putting Disruptive Innovation to Work (Boston: Harvard Business Press, 2008), 45–60.

[42] https://www.pewresearch.org/fact-tank/2014/11/05/making-more-than-minimum-wage-but-less-than-10-10-an-hour/

[43] Discussion with Efosa Ojomo from the Clayton Christensen Institute. Co-author of the book The Prosperity Paradox

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