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Before looking for an answer to the question about the schemes of development and management of the product strategy of an enterprise or company, you should find out which goods or services will benefit in the future. Those that help customers do their job better. Knowing where customers spend the most time on their tasks indicates what the product must do to win in the market.

We buy goods and services to perform certain tasks. In fact, we “hire them” so that they carry out part of our work in everyday life. We all have a lot to do. Some small ones (we spend time waiting in line), some large ones (career growth or a business solution), some unforeseen ones (make a healthy snack between meetings), some regular ones (getting to the office and home), some emotional ones (share your impressions of the trip ) And to solve these problems, we buy goods that can best perform certain “works”. The more tasks an acquired item can complete, the more valuable it is to us. For example, a smartphone helps to perform thousands of tasks, so it quickly entered our lives, becoming, as if, “part of our body.”

If the product does its job well, we will “hire” it again and again. But if it’s bad, we “fire” him and look for a replacement. Goods and services come and go, but the need to solve the existing problem does not disappear. This concept lies at the heart of the technology for developing innovative solutions “Work needs to be done,” by Clayton Christensen, professor at Harvard Business School, innovation guru.

Here are some excerpts from this concept.

Define your market around the work to be done.

While most companies tend to define their market around a product category or type of service, when applying the “work must be done” approach, the market is work. A product is a contractor who must do the job. For example, “parents” (work performers) trying to “pass on life lessons to their children” (tasks that must be completed) are the market. And so, the market is “to convey life lessons to children.” Thus, a company should look for a solution. Which “product” can do this job? The definition of “market” thus opens the door to another type of analysis, since the goal is to investigate the actions that parents want to perform, rather than the decisions they use for this purpose.

Help customers do more

People do not want to combine different products to achieve their goals. They want to get one that will help them fulfill everything that is intended and, preferably, faster. The key to success is understanding, from the client’s point of view, of what all the work represents, and turning it into a center for creating customer value. For example, Nespresso perform all the steps in “making a cup of morning coffee”. I inserted a coffee capsule, pressed a button and the espresso is ready with the set temperature and volume of the drink. Previously, the process took more operations and time with lower quality results. The more tasks a client can help a product complete, the more valuable it is.

Aim where the money is.

Target those who pay more to get the job done better. When the market is greatly undervalued, the fastest way to make a profit is to first target the people who pay the most to get the highest quality. It is important to use market segmentation methods based on the results of identifying the existence of such a segment.
 
For example, Nest (Google’s trademark, smart home project) aimed at a small number of serviced customers willing to pay 5 times more for a solution that would significantly improve and facilitate the process of “achieving personal comfort”. This strategy contrasts sharply with the low-level strategy (price wars), when companies focus on overvalued customers who want to pay less.

In my consulting business, I aim for dissatisfied with the work of “systematic growth of business profitability” to provide a product that will significantly improve the situation at the top management level of companies.

Key idea

Regularly analyzing the company’s product strategy, create your business based on the work done, instead of organizing it around a product that is quickly becoming obsolete. Knowing where customers will spend the most time tomorrow performing their tasks indicates that the product or service you are selling must do to win in the future. Of course, the idea of ​​building activity around a problem is not at all new. The very approach of the technology, which has existed for more than 30 years, simply provides a convenient angle of thinking and tools for fulfilling the arisen task, that’s all. But the difference in organizing a team, in building a strategy and in developing processes is enormous.

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