Outcome Driven Innovation Case Study

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Problem
Till mid-1980’s companies were fascinated with technology driven innovation, companies usually develop new technology and then attempt to find market. With failure rate of 90 percent and R&D under scrutiny many American companies realized how costly it was to continue using this hit and trial method. This approach was costing corporation ton of money. For example Motorola sold Iridium project for $ 25 million which costed them $ 5 billion. It was clear there is need for innovation in innovation process itself.
To make innovation process more efficient corporation started adopting customer driven approach. Now managers were trying to understand what their customers want by interviewing different groups, segmenting different needs and
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Anthony Ulwick created a more effective approach to innovate known as outcome-driven innovation (ODI) method.

Outcome Driven Innovation (ODI) Overview
ODI is an effective approach to innovate and has three basic principles:-
• Customers buy products and services to help them get jobs done.
Customers usually have jobs that need to get done whether its existing market or new market. When customer knows about the job they look for product or service that can help them to get jobs done in effective and efficient manner. For example farmer needed labor to harvest corn or wheat but laborer was eventually replaced by combine harvester because using combine harvester was more efficient and convenient. What job farmers are getting done? Harvesting crops. From ODI point of view are there any products that are harvested manually or is there any way to harvest corn and wheat more efficiently.
• Customers uses set of metrics to judge how well a job is getting
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Job is perfectly executed when these metrics are fully satisfied. There is room of innovation until or unless these metrics are fully satisfied. For example smart phones, mobile phones were developed to make communication process easier. But now these are more likely electronic devices which can do multiple tasks. There is still room for innovation which gives boost to application market.
• These metrics helps in creation of breakthrough product and services
When companies understand these metrics very well and have proper inputs in hand then they can figure out which jobs are under satisfied and then they can develop few products which can solve the problem. For example car manufactures know oil prices are going to be sky rocketed in next 10 years and people need cheaper mode of transportation. This will make car manufacturers think to build economy car or car that can be operated using abundant resources like solar energy.

Companies will able to predictably identify opportunities and create product and services when they know what jobs customers are trying to get done and what outcomes are they trying to

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