Choose a product you regularly use. In a single sentence describe one Scenario you use the product.
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Outcomes
7. Basics of Predictive Innovation
7. Basics of Predictive Innovation
Predictive Innovation makes it possible to accurately understand what customers desire now and in the future and how to overcome technical challenges to satisfying those desires. In this way it merges marketing, engineering and business strategy. The key is how it breaks down systems into easy to manage dimensions. All innovation and problem solving uses three specific dimensions:
- Outcomes
- 7-Elements
- 15-Alternatives
By using these three specific dimensions, all the innovations for any product or service can be accurately described even if current technology can't build it.
Physical objects can be described using height, width, and depth. Similarly, systems can be described using the three dimensions: Outcomes, 7-Elements, and 15-Alternatives.
Outcomes
Outcome is the result of something happening. For Predictive Innovation we use a broader and more formal meaning.
Outcome is an observable state resulting from a cause.
Speed, color, or temperature are observable States. A State can also be an event that did or did not happen. The State of any Outcome is classified into one of three categories:
- desired
- undesired
- neutral
Most systems can be described using between 5 and 9 Outcomes. If a system is complex it might require dividing the system into smaller sub-systems to be manageable.
When each of the Outcomes of a system are in the desired State the overall goal is achieved.
Predictive Innovation uses Outcome Diagrams to graphically represent the systems for satisfying people's desires. Outcome diagrams are a type of flow chart. Instead of showing steps in a process it displays all the conditions or “if” statements to achieve the overall goal. In words an Outcome diagram says:
If A and B and C Then my desires are satisfied for this Scenario.
7-Elements
| Chapter 6 | Chapter 8 |
6. Dimensions of Predictive Innovation
6. Dimensions of Predictive Innovation
There are 6 dimensions used in Predictive Innovation. Finding What, How, When, and Where primarily deal with 3 of these dimensions. Why and Who requires more depth of all 6 dimensions. The 6 dimensions are:
- Actors – are people involved in making and using innovations
- Desires – are the focus of innovation
- Scenarios – are the boundaries of a set of desires
- Alternatives – the ways of satisfying desires
- Outcomes – are the objective criteria that defines satisfaction
- Elements – are the detailed parts of an Outcome
Actors
There are 8 types of Actors. Each Actor can be a single person or multiple people. There is always at least one person who is the User. Users are the central focus of innovation. If the users' desires are not satisfied innovation fails. The 8 types of Actors are:
-
Customer
User Beneficiary Decider Payer Provider
Designer Builder Seller Communicator
Customers are divided into four distinct roles: Beneficiary, User, Buyer, and Payer. Roles can be performed by one or more people but someone performs each of the roles. The desires of the person acting in that role are different from the desires related to the other roles.
Users are people who use the product or service. There must be at least one User. Satisfying the desires of the User is essential to innovation. Examples of Users' desires are:
- How well the product performs the task
- Feelings related to using the product.
Beneficiaries experience the benefits of the product or service. In most cases the User and the Beneficiary are the same person but not always. Products used in performing a service have a different User than the Beneficiary.
Deciders make the decision to purchase the product or service. Examples of Deciders' desires are:
- price
- warranty
- where to purchase the product
Payers supply the money or materials for the innovation. For consumer products the User, Buyer and Payer are often the same person. In business these are usually three different people. Examples of Payers' desires are:
- Return on Investment
- Total cost
- Achieving a larger strategy
Provider is divided into four roles:
- designer
- builder
- seller
- communicator
Provider can be divided differently but these four provide a sufficiently accurate description to understand the process. Just like customers these could be a single person or multiple people. The provider could also be the same person as the customer and each of the roles could be shared by people acting in other roles. So the User could be Builder and the other 6 roles be someone else.
Designers convert desires into actionable designs. This frequently is more than one person. Examples of Designers' desires are:
- Know criteria to satisfy desires of Actors
- Access to technology
- Interesting challenge
Builders convert design into real products. For services the builder does the work. Builders are often many different people. Examples of Builders' desires are:
- Ease of production
- Tools needed
- Start up costs
Sellers deliver the product or service to the User. The Seller is involved in the purchase transaction. Examples of Sellers' desires are:
- Size of market
- Quantity discounts
- Turn over
- Profit margins
- Hassles of delivering products or services
Communicator gathers information and translates between Actors. Examples of Communicators' desires are:
- Know the desires of Actors
- Able to reach other Actors
- Accuracy of communication
Customers act as more than just Users. There are markets and innovations for each Actor in a Scenario. Innovation starts by satisfying Users.
| Chapter 5 | Chapter 7 |
Components, Functions & Outcomes
Components & Functions are primarily used for How to Make products and deliver services.