Product Innova4on, Mgt & Business Strategy Mapping The Power of Knowing How it All Fits Together
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1 Product Innova4on, Mgt & Business Mapping The Power of Knowing How it All Fits Together by Kenneth Kring (e) (l) linkedin.com/in/kenkring based on the book: Business Mapping - The power of knowing how it all fits together
2 2
3 Just imagine, I snap my fingers today, right now, and immediately (insert drama@c pause here)... YOU ARE THE SMARTEST PERSON ON THE PLANET! Two weeks from now you will want to jump from a very high place. WHY?!? Because being the smartest person on the planet doesn t mean much if you can t get people to do anything about it!
4 We split atoms We transplant hearts But we are s4ll tripped up by SILOS?!?! REALLY? COME-ON!!!
5 We teach, write and work in silos And are then mys4fied, we have a problem SILOS?! REALLY? COME-ON!!!
6 Kring & Co. 6
7 Why does this happen? We need to STOP DOING THIS! How the customer explained it How the Project Leader understood it How the Analyst designed it How the Programmer wrote it How the Business Consultant described it How the project was What installed How the customer How it was supported What the customer documented was billed really needed 7
8 Some have focused on product for so long they don t know how to innovate in any other areas. For example, in 2010, MicrosoV one of the world s best product innovators for the last two decades launched a social phone called Kin. The product was a complete disaster. Within six weeks of the launch, the en@re product group was shut down, and, according to their earnings reports, MicrosoC took at least a $240 million write-off. How could such a great product innovator strike out so fast? In today s climate, it happens to the best. To achieve sustainable growth, companies must beyer integrate product innova4on with business model, process, and service innova4ons. Kring & Co. 8
9 Kring & Co. 9
10 1 2 3
11 4 5 Kring & Co. 11
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13 Ques4ons: How does all of this fit together? How do we really best all of this? Culturally is this going to have more staying power than a confeb canon? Kring & Co. 13
14 Profitability best ensured by knowing how to op4mize the whole, not just the parts
15 What are we really trying to solve for? 15
16 B T H E F L O W O F B U S I N E S S A 16
17 There is a beyer way! Take three groups of people -- have each group assemble the same jigsaw puzzle The first group with the puzzle pieces face down The second group with the pieces face up The third group with the pieces face up and with a copy of the puzzle box lid Which group is going to be the happiest, the fastest, the most produc4ve? WHY? 17
18 Profitability for who? Poten4al Profitability for the Company Profitability for the Customer 18
19 The Importance of Balance Poten4al Profitability for the Company Profitability for the Customer BALANCING POINT 19
20 Profitability for the Customer: An Exercise What is the most you are willing to pay for a gallon of milk? Before you won t buy it anymore? But wait... it is only sold in gallons, and everyone sells it for the same price. Now what is the most you are willing to pay? 20
21 How it all fits together informs HOW WE... Customer Potential Key The Playing Objec- Perception Offer Hook Field tives (profit Learn- Quantity Revenue Subject BeYer iden4fying of Value white pools) space ideal Result of ings customer & business $ needs Financial Objectives Collect Priori4zing needs of the customer with the business needs = Anchors Learn Earnings Customer s (Trial Purch. / Re-purchase) Start of Operational Establishing founda4onal strategy on which to build Coordinate and accelerate product idea4on / evalua4on Like Do Experience Value to the Customer Price Variable Costs Blue-prin4ng product development and design Fixed Costs Total Costs Perceive Future Trends Developing business cases to: evaluate, secure buy-in & support Op4mize the product management and pornolio management Value to the Company BEST INFLUENCE PROFITABLE BEHAVIORS!!! Result of BALANCED 21
22 It is just a conversa4on / a story... WITH WHAT WE ARE GIVEN... Define subject to Drive What does Playing Field look like Business/Customer ObjecSves Customer Perceived Value What is the PotenSal given above WHAT DO WE DO ABOUT IT? What do we Offer given above Hook Customers to Value Delivered What are the Key Learnings WHAT ARE THE RESULTS? What are the Revenues What are the Costs What is the Profitability HOW SUCCESSFUL WERE WE? What are Perceived Future Trends What Value to Shareholders What is the Balancing Point between Value to Company and Value to the Customers 22
23 Kring Mapping - The power of knowing how it all fits together Start of Operational Price The Subject Playing Field Objectives Objectives = Anchors Customer Perception of Value Potential (profit pools) Offer Customer s (Trial Purch. / Re-purchase) Hook Learn Like Do Key Learnings Quantity Collect Variable Costs Fixed Costs Revenue Total Costs Earnings Perceive Future Trends $ Result of Financial Value to the Company Experience Result of Marketing Value to the Customer Result of BALANCED 23
24 This is all great but really, how do you implement this? 24
25 Product Design & Evalua4on (Values Indexed) = Features chosen for final design Product Parity 6 Cust Val / Rev Cost Feature 1 Feature 2 Feature 3 Feature 4 Feature 5 (mandatory) Feature 6 25
26 The Subject Subject: We need a new product to drive growth Case Study: New Credit Card Start of Operational Playing Field Objectives Business Objec4ve: How do we get people to pull out our credit card first? Like Customer s Right-Brain - Reeks (Trial of Purch. convenience - Fear / Re-purchase) losing control - Projected onto others Do Experience Price Offer: How about Customer a card Potential on a key-chain? Key Perception Offer Hook (profit Learn- Quantity of Value pools) ings Researching It: Execu4ng It: Learn Learn Objectives <we have experience> Fulfilled in box Collect = not envelope Anchors Learn Like (feeling of Qualita4ve security) - Lost / Stolen - Keys safer (wallet) Quan4ta4ve - Same Qualita4ve - Same Do Clubbing Toned down convenience Variable (security) Costs Like Removable from Fixed case (security) Costs Do Experience Value Revenue Measuring It: Learn Like Do Earnings Computer purch. No incremental spend Total Experience Costs Value $ Result of Evalua4ng It: Financial Learn Sov comm. Perceive Value Like Future to the Do Trends Company S4ll fulfilled Experience Value Appeared to s4ll be of value to customer Net nega4ve for company Experience Value Ques4onable Value to the Customer Result of BALANCED 26
27 Case Study: New Credit Card Start of Operational Price The Subject Playing Field Objectives Customer Perception of Value Potential (profit pools) Offer Hook Key Learnings Quantity Objectives Collect BEST = PRODUCTS Learn OF 2002 Anchors Earnings Variable Costs Customer s (Trial Purch. / Re-purchase) Like Do Fixed Costs Revenue Total Costs Perceive Future Trends $ Result of Financial Value to the Company Experience Value to the Customer Result of BALANCED 27
28 Lessons: When you ask a logical ques@on, you get a logical answer But there can be a huge difference between stated value and what is actually valued Henry Ford If I had asked people what they wanted, they would have said faster horses. 28
29 Lesson: Metrics alone is not enough, you need to know how they fit together! How do these numbers relate to each other? Is this number supposed to be 5X higher? How do we these? 29
30 THE GOAL! (c) 2016 Ken Kring - kkring@gmail.com 30
31 Gebng Support For Your Product Change Management - Driving Ac4on ( Turning "US" versus "THEM", into "WE" ) Here is where we are Here is where we want to be BeYer ideas as how to best bridge the gap, and get beyer buy in! 31
32 Product Pornolio Management ( Using mul4ple versions of Kring Mapping ) Given the business models of mul4ple products, how do we best invest in the company... let's look at the facts! Product #1 Yes, but I have a wholesale / retail / end customer business model... let's look at the facts! Company and end wholesaler map Product #2 Product #... Company and end customer map 32
33 Quickly Mapping Out Opportunity For Your Product: Business Case Kring Mapping Worksheet KSM Worksheet Kenneth Kring Subject With what we are given... [ Situational Analysis ] s Playing Field s Objectives Objectives = Anchors s Customer s Perceived Value s Potential s Offer What do we do about it? [ Action Plan ] Start of Operational s Hook s Keys s $ Financial Details What are the results? [ Results Measurement ] s $ Revenues & Costs s $ Profitability s Potential Future Trends s Total Value Delivered to the Company $ Result of Financial Name subject Objective / desired outcome for filling out this map Who are the Customers? Who are the Competitors? Describe the Subject Other environmental factors What is the Objective for the Subject? (Given the Playing Field) What is our Customer objective? (Given the Playing Field) What are the things Customers perceive as valuable (Given the Playing Field) What is the market demand? (Given the Playing Field and Objectives) What is the potential revenue from meeting the demand? (Given the Playing Field and Objectives) What does the product look like? What is the pricing? How do we distribute our product? How do we get our target to know about our product? How do we get them to like it? How do we get them to buy our product? What is working well? What needs to be changed? Customer s (Trial Purch. / Re-purchase) What pricing? What quantity? How much can be collected? What variable costs? What fixed costs? What total revenue? What total costs? What are earnings? What are shortterm prospects? What are longterm prospects? What value to Shareholders? What value to Employees? "Recommenda+ons:"" Print"sheet"out"on"11 x17 "paper" Fill"in"sheet"using"pencil,"pen,"crayon" "whatever"works"best"for"you" Answers"should"be"tailored"to"the"unique"situa+on"you"face" "as"outlined"in"the"first"box" (People(in(the(roles(of:(marke4ng,(finance,(opera4ons,(CEOs,(product(management,(etc.,(( will(fill(out(the(sheet(differently)( The"first"pass"should"be"filled"in"quickly" "include"addi+onal"detail"in"subsequent"passes" s Total Value Delivered to the Customer Result of Marketing How likely are our customers to recommend us to others? How successful were our Actions? [ Evaluation of Results ] Result of BALANCED _ How are we EXPLICITLY going to BALANCE - Marketing, Finance, Operations and the Customer s Strategies, against our Objectives 33
34 Product & Service Mapping Discovery Version Target Stores (TGT) Kring Map 34
35 What can you do with Kring Mapping? Discovery Tool - to uncover and describe the current state Diagnos4c Tool - to highlight areas of opportunity & risk Prescrip4ve Tool - to generate and ar@culate recommended courses of ac@on Treatment Tool - ac@ng as a guide when execu@ng courses of ac@on (communica@on) Measurement Tool - to monitor progress Evalua4on Tool - to gauge rela@ve level of success of the effort and give clues as to when to re-examine our efforts in the next quarter 35
36 Quickly Implemen4ng Kring Mapping 1.) Start with the issue you want to understand beyer 2.) Use exis4ng informa4on (Goals, IniSaSves, Measures, etc.) 3.) Concentrate on areas of greatest concern first 4.) Ini4ally be brief 5.) The process should go quickly 36
37 What you should do now... Let me know if you have any ques4ons o Ken Kring -- (e) kkring@gmail.com, (l) linkedin.com/in/kenkring Addi4onal Content & Connec4on o Addi@onal Content at: businessstrategymapping.wordpress.com o Send me a LinkedIn invite great to be connected to people who want to make a difference LinkedIn message if you would like a link to a copy of the: o KSM worksheet o Discovery Version of the KSM Check out Business Mapping The power of knowing how it all fits together o Read it, then lend it to a friend o When done, donate it to a high school library START TODAY! SHARE WITH FRIENDS! (TO HELP DRIVE CHANGE!) GET ON WITH IT ALREADY! EVERY DAY DELAYED IS A DAY LOST! 37
38 Answers: Can now see how all fits together How to best all of this How ini4a4ves can have greater staying power than confeb canons? Kring & Co. 38
39 Ken Kring
40 To improve anything... You have to change things! Change generates movement... Movement generates fric4on... Fric4on generates heat! The trick is to insure the heat is construc4ve and not deconstruc4ve! Know your lid! 40
41 Kring Mapping - The power of knowing how it all fits together Start of Operational Price The Subject Playing Field Objectives Objectives = Anchors Op4mizing Product Innova4on know your puzzle box lid! Customer Perception of Value Potential (profit pools) Offer Customer s (Trial Purch. / Re-purchase) Hook Learn Like Do Key Learnings Quantity Collect Variable Costs Fixed Costs Revenue Total Costs Earnings Perceive Future Trends $ Result of Financial Value to the Company Experience Result of Marketing Value to the Customer Result of BALANCED 41
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