Six Steps for Innovating with the Customer: “Plan–Learn–Focus–Develop– Launch–Analyze”.
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- Six Steps for Innovating with the Customer: “Plan–Learn–Focus–Develop– Launch–Analyze”.
Six Steps for Innovating with the Customer: “Plan–Learn–Focus–Develop– Launch–Analyze”.
With technology-market-competition speeding ahead, it is imperative for companies (small-medium-large) to differentiate and get a competitive advantage to solidify their position among the top leaders. Start with the customer, have an internal multi-functional approach for innovation and take advantage of strategic collaborations, are key to accelerate growth and returns. The Innovating with the Customer© model is a practical approach that has proven effectiveness to transform “silo, inside-out, commodity” thinking, to a “high margin, specialty” thinking. The model is based on how customer centered companies identify unmet needs and the best solution available before “developing with the customer” the best imaginable, proprietary solution. The model consists in a “Plan – Learn – Focus – Develop – Launch – Analyze” cycle to become customer driven and to develop breakthrough solutions and value:
- Planning Strategic choices.
The most important strategic decision is how you identify attractive Market / Applications / Customers. Segmentation and evaluation of market segments determines the business strategy or model, the choice of customers, the platforms needed to succeed, the compelling value propositions and a sound business case.
Enabling tools: Segmentation, Technology Roadmapping, Innovation Assessments, Business Models, Business Plans.
- Learning your Customer Needs and Compare with the best solution.
Identifying the word of the customer and its requirements, needs, trends, potential, dreams and wishes, will allow you to focus the development that will lead to the best imaginable solution (product/service). Having the customer on-board is key, as well as having competitive comparisons with the best solution available to empower a price per value approach.
Enabling tools: Understanding customer’s process and benefits, Developing superior value propositions, Discovery interviews and follow-up, Pricing by the benefit.
- Focus and Alignment of Capabilities.
How to focus and prioritize attractive market segments is the foundation to align your internal competencies or platforms and to allocate resources via multi-functional teams. The identification and establishment of strategic collaborations and partnerships to develop proprietary product/process/services require a robust definition and agreement in the management of intellectual property and contracts.
Enabling tools: Align and allocate capabilities with strategic fit, Collaborations win-win for proprietary solutions design.
- Multi-functional Design.
The heart of the innovation process is the development of the best imaginable new product / process / service, with the customer in multi-functional teams. The best practices recommend to establish a Stage-gate process, Project Management with a clear Patenting and IP strategy.
Enabling tools: Translating needs into Specifications, Staging Development, Patent Strategies and Mapping.
- Launch and Value Capture.
Effective launch a new product or service to the world, demands to have a superior value propositions for the different market/applications segments, to be able to resolve problems in a systematic way, and to manage your costs to serve customers.
Enabling tools: Technology/Market Product Launch Guidelines, Confirmation of economic benefit to price per value. Troubleshooting.
- Situation Analysis.
Sharp definition before development, and learning from project success and failure are vital to create an innovation culture. You need to start analyzing your strategic position, to manage an effective product portfolios and project selection, in order to maximize the R&D investments.
Enabling tools: Market & Technology Intelligence, Portfolio Management, Estimating Probabilities of Success, Innovation Metrics, Ex-Ante and Ex-Post Analysis.
Following these simple steps for Innovating with the Customer©, having an emphasis in thinking and deciding before acting, will enable to build a common new business development culture and language, to have more focus in the customer, with speed and discipline in projects, targeting to develop proprietary solutions that accelerate profitable growth.
Dr. Walter Ramirez is Chief Innovation Officer and Founder of Innventik, a firm that assists companies to achieve real impact innovation, to use ideas, knowledge and technology as a competitive advantage, and to create the future. Walter is passionate about solving problems of high technical complexity, unleashing the individual and collective potential of innovation for profitable growth. He coaches and trains teams and companies around the world.