What Business Are You Really In?
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- Merryl Allison
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1 What Business Are You Really In? INNOSIGHT WEBINAR - FEBRUARY 15 th, 2017 David Duncan Senior Partner, Innosight
2 (obscure startup/ surprising new entrant) is disrupting (your company s name) and the entire (your industry) industry!
3 is disrupting and the entire hotel industry!
4 is disrupting and the entire automotive industry!
5 is disrupting and the entire insurance industry!
6 Poll Question: Which of these three incumbents faces the biggest disruptive threat? a. Marriott, by AirBnB b. GM, by Google c. State Farm, by Nest
7 HOW TO 1 Understand what business you are really in 2 Get your company to act like it does too 3 Apply a new lens to strategy and innovation
8
9 As The soon dining as I room figured table out what represents to do family so with my dining it s hard room to table, give up. I was free to move Actual condo buyer
10 I realized we were not in the business of building homes we were in the business of moving lives.
11 Competing in the business of moving lives Long-term storage Sorting rooms Simpler choices Bigger dining room!
12 People don t buy products and services; they hire them to get jobs done in their lives Jobs explain why people embrace some innovations and reject others Jobs are the most powerful way to frame the business you are in
13 job to be done noun: the progress a customer is trying to make in a particular circumstance.
14 Job to be done: The progress a customer is trying to make in a particular circumstance Example: Help me move my life FUNCTIONAL EMOTIONAL SOCIAL Simplify my life Feel connected to my past Maintain ties with family Save money Reduce stress of moving Maintain sense of community
15 Job to be done: The progress a customer is trying to make in a particular circumstance Example: Help me get to my destination FUNCTIONAL EMOTIONAL SOCIAL Pay without cash Know a cab is available despite weather or location Be seen as environmentally conscious (carpooling) Quick and clean ride Know exactly when the cab is arriving Be part of the sharing economy Save time waiting Not worry about tipping correctly Be perceived as successful (Uber Black)
16 Summary: Jobs to be Done A job is the progress a customer is trying to make in a particular circumstance Jobs have functional, emotional, and social dimensions Solving for a job requires an experience - not just a product
17
18 Defining the business you are in through the lens of jobs What changes? Who you compete against How you compete How you innovate How big opportunities are What trends you should worry about
19 Why hire a cup of coffee? Give me an excuse for an informal chat Help me avoid feeling awkward during a break Help me feel alert and energized Get free wifi Have a morning ritual
20 COMPETITION Get a cup of coffee Starbucks McDonald s Nespresso Have an informal chat Dinner Bar Party HOW YOU COMPETE Make a better cup of coffee Product features Solve for the job Complete experiences HOW YOU INNOVATE Constrained Broad MARKET SIZE Constrained by total coffee (or beverage) sales Much larger! Non-consumers TRENDS YOU WORRY ABOUT High-quality home coffee systems People drinking less coffee Changes in how people connect New social media platforms
21 So how worried should State Farm be? is disrupting and the entire insurance industry!
22 Why don t large, successful companies define the business they are in through a jobs lens? Org structure Processes The tyranny of data! Stakeholders Metrics
23
24 Coming of age Advance my career
25 Pretty much everything had to change Paul LeBlanc, President of SNHU
26 Understand the job(s) and the experiences needed to solve for it Creating a Jobs-focused organization at SNHU Develop processes to deliver that experience Organize around the job: Metrics Structure Commander s Intent Culture
27 What changed for SNHU? The competition How they competed How they innovated How they viewed their markets The trends they worried about and the RESULTS!
28 Poll Question: Which is the biggest barrier to your organization staying focused on your customers jobs to be done? a. Organizational Structure b. Performance metrics c. Culture focused on solutions vs. jobs d. Over-reliance on data for decision-making e. Expectations of external stakeholders
29 So what business are you really in? What is the drill vs. the hole for your business? Who is the real competition? How will you win today and in the future?
30
31 David Duncan (617)
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