Technique 8.1 Shift Perspective (organisation-centric to customer-centric

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Business Model Design Organisation-centric Customer-centric
Culture Focus You Them
Questions 1. What do we sell customers? 1. What job(s) do(es) our customers need to get done and how can we help?
  2. How can we reach customers most efficiently? 2. What are our customers aspirations and how can we help them achieve them?
  3. What relationship do we need to establish with customers? 3. How do our customers prefer to be addressed?
  4. How can we make money from our customers? 4. How do we as an enterprise best fit into their routines?
    5. What relationships do our customers expect us to establish with them?
    6. What are our customers truly willing to pay?
    NB Need to see things thru customer's eyes

Using the customers' perspective approach can lead to discovery of completely new opportunities and a refreshed evaluation of your business model
"... Successful innovation requires a deep understanding of customers, including environment, daily routines, concerns and aspirations..."

Alexander Osterwalder et al, 2010
To better understand their customers, some organisations are using social scientists like anthropologists and sociologists.
Need to be careful of market research, ie asking the customer what he/she wants. For example, the pioneer automaker Henry Ford once stated that if he asked his customers what they wanted, they would have told him a faster horse!!!!!
When studying customers, you need to look at both your current customers and potential/future ones, ie study the periphery areas under your current models to help locate new customer segments. Also, you need to look to satisfy the unmet needs of customers. For example, the low budget airlines have made travel available to the lower income customers who rarely flew.

For example, Apple's iPod, ie customers wanted a seamless way to search, find, download and listen to digital content (including music) and were willing to pay for a successful solution. Their view was unique because at that time illegal downloading was rampant and most people thought that nobody would be willing to pay for digital music online. Apple ignored these concerns and created a seamless music experience for customers, integrating the iTunes music and media software, the iTunes online store and the iPod media player. Consequently, until recently Apple dominated the online digital music market; streaming has threatened Apple's dominance in this industry.

It is difficult for established companies to innovate as they have too much emotional baggage attached to the status quo. In these firms preference is given to predictability, job descriptions and financial projections. Yet real innovations emerge from something better described as "systematic chaos".

(source: Alexander Osterwalder et al, 2010)


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