Anthony W. Ulwick

PHASE II: DISCOVER HIDDEN OPPORTUNITIES IN YOUR MARKET

In Phase II, the ODI practitioner creates a questionnaire (an
online survey) that is used to collect the quantitative data. The survey is administered to a set of external customers (usually between 180 and 3000 people) that are representative of the population. The ODI practitioner uses a stringent set of quality standards that Strategyn has developed over the years to ensure only valid customer data is collected.

Once the data is collected, the ODI practitioner validates the responses and then conducts Outcome-Based Segmentation, competitive, market sizing, positioning, and other analyses.

With the data analyses completed, the ODI practitioner works with the team to apply this data to (i) better position existing products and services, (ii) improve existing products and services, and (iii) create new products and services that will deliver significant new value.

The research that occurs during Phase II is also designed to shift the product team’s thinking along a number of fronts (see table below).


Expected Impact of Phase II: Quantitative Insights

Team Thinking Before Phase II	Team Thinking After Phase II
Nobody knows with certainty what customer needs are unmet and to what degree.	Everybody on the product team knows what needs are unmet and to what degree.
The segmentation model that managers use obscures differences in unmet customer needs (they focus on phantom targets).	Marketing and development managers use a segmentation model based on differences in unmet customer needs.
The company’s competitive strengths and weaknesses relate to speeds and feeds.	The company’s competitive strengths and weaknesses relate to addressing unmet needs.
The market strategy is based on personas and qualitative insights.	The market strategy is based on quantitative ODI-based market research. It is data- driven.
The product team does not agree on what market strategy to pursue.	The product team agrees on what market strategy to pursue and how to create customer value.
There is no agreement on what product and service concepts to pursue and invest in.	There is cross-functional agreement on what product concepts to pursue and invest in.

For years to come, the model built from this data set will help the team conceptualize and evaluate ideas for possible pursuit.