Xiv) Management's Demand For Quantification Of Opportunities

- usually market research is done in the resource allocation process to quantify the size of the opportunities, not to understand customers nor how markets work. This quantifying focus incorrectly assumes that the customer's world is structured in the same way that the data is aggregated, under headings of products, customers and organisational units, ie how it is sold, how profitable each is, which customers are buying which products/service, and what costs and revenues are associated with servicing each customer or business units. This incorrect market segmentation causes managers to aim innovations at phantom targets. For example, framing markets in terms of customer demographics, ie averaging across several different jobs-to-be-done, or outcomes that customers are seeking, that arise in customers' lives inevitably produces a one-size-fits-all product that rarely leaves the customers satisfied. Furthermore, defining markets in terms of an organisation's boundaries further restricts innovation from developing products/services that will truly help the customers execute the jobs-to-be-done or provide outcomes that they are seeking.

"...the solution is not to use data that is collected for historical performance measurement purposes in the processes of new-product development. Keep such data quarantined: they are the wrong data for the job. The size and nature of job-based or circumstance-based market categories actually can be quantified, but this entails a different research process and statistical methodology..."

Clayton Christensen et al, 2003

 

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