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I’m joining HYPE to help companies get more value from innovation

HYPE Innovation logoIt is my pleasure and honor to announce that today I’ve joined HYPE Innovation as a full-time Senior Consultant. HYPE provides an enterprise innovation management software platform – HYPE Enterprise – used by large companies around the globe. In my consulting role, I’ll be working hands-on with customers across the phases of innovation maturity:

  • Beginning the journey toward a more collaborative innovation approach
  • Expanding usage as they gain experience and see results
  • Developing advanced ecosystems to drive next generation business models and products

This role is a change for me, moving from product to consulting.  But it’s one I embrace and I’m looking forward to. I’ve talked a lot here about the need to understand customers’ jobs-to-be-done. By working side-by-side with organizations, I’m going to have a deep understanding of their jobs-to-be-done for innovation and problem-solving. And even better, an opportunity to help make them successful.

HYPE is headquartered in Bonn, Germany, and I’ll be working from San Francisco. In this post, I want to cover two areas:

  1. State of the innovation management market
  2. What makes HYPE special

State of innovation management market

Enterprise traction

Over the past five years, I’ve worked with a number of customers and thought leaders in the innovation management space. People that are committed to and passionate about this. The first thing to know is that enterprises are actively exploring ways to be better at innovating. Many, IDC Predictions 2014many of the companies you know and buy products and services from. From its roots as online suggestions boxes, innovation management has become a full-fledged corporate discipline. In fact, research firm IDC forecasts that by the end of 2016, 60% of the Fortune 500 will be using social-enabled innovation management solutions. Which, if you follow the innovation diffusion lifecycle, means we’ll start to see the late majority taking it up.

Focused ideation

When I began working in the innovation field, the primary use case for innovation management software was to be an open suggestion box, equipped with social features (visibility, commenting, voting). Anytime someone had an idea, they had a place to post it. Unfortunately, that approach proved limited in engagement and value. Thus, that model has changed significantly the past few years. Organizations are now running campaigns that target narrow, specific topics. They are time-boxed events, which in a broad  sense is a form of game mechanic that spurs greater participation. Campaigns offer these advantages:

  • Ready recipients – campaign sponsors – to engage, elaborate and select ideas
  • Continuously refreshing the program and reason for people to participate
  • Address specific organization needs

Beyond innovation

Innovation – however you define it – continues to be a prominent use case. And with good reason, as CEOs rate it a top priority. There are multiple disciplines that address innovation: crowdsourcing, design thinking, TRIZ, incubators, lean startup, etc. Generally, innovation is considered creating something new which adds value.

But I’m seeing signs that crowdsourcing  is being applied in other ways outside the traditional view of innovation. Here are three examples:

  • Problem-solving: An example of this is cost-saving initiatives. People out on the front lines are seeing opportunities for improvement that are hidden from decision-makers in the headquarters.
  • Positive deviance: In every large organization, there are people who have figured out a different, better way to do something. Crowdsourcing helps find these people, and their novel approaches can be identified and shared.
  • Trend-spotting: With an army of employees out in the field, organizations have a ready way to canvas an area. People can post what they’re seeing, a valuable source of raw insight.

Idea development, evaluation and selection take center stage

When I talk with people not familiar with the innovation management field, I find their understanding often to be, “Oh, so it’s an idea collection app.” That is a necessary feature of course – no ideas, no innovation. But it’s a comical under-representation of what innovation management is. As Professor Tim Kastelle notes:

“Generating ideas is the easiest part. Most organisations already have enough ideas. The challenge for them is not generating more but implementing their existing ideas more effectively.”

As the market matures, companies are seeking ways to better advance the most promising ideas. This is where the puck’s heading.

Innovation becomes part of the purposeful collaboration canon

In the broader enterprise 2.0 social business market, the integration of ‘social’ into core business functions has emerged as the basis of value. This is a change from the movement’s early roots. Constellation Research VP Alan Lepofsky nicely illustrates this evolution to Generation 3 as follows:

Alan Lepofsky socbiz generations

Innovation is a prominent use case that benefits from the application of social and collaboration. You can see more in Alan’s Slideshare presentation on innovation and purposeful collaboration.

What makes HYPE special

From my experience in the industry and in my meetings with the team, three things about HYPE stand out in the innovation management field

  1. Singular focus on customers’ innovation jobs-to-be-done
  2. Market leadership
  3. Demonstrated customer excellence

Singular focus on customers’ innovation jobs-to-be-done

HYPE has over a decade of experience in the innovation market. It’s roots were in the R&D world, with a deep emphasis on how to maximize the value of ideas. In industry parlance, this is sometimes called the “back-end” of innovation. It’s a sophisticated activity with variance in process for each organization. Through the years of working with customers, HYPE has become adept at handling this phase of innovation. I know it’s not easy – I did some initial product work myself in this realm previously. Success here hinges on understanding what customers seek to achieve, and acting on it.

With the rise of social business and increased interest in better utilizing the collective smarts of employees, HYPE moved forward to the “front-end” of innovation. Powerful features include campaign development, participation management, idea surfacing, collaboration and evaluation. With this investment of time and effort, HYPE offers the most functional full-cycle innovation process in the industry:

HYPE - full lifecycle innovation process

With deep expertise built throughout the platform, HYPE is well-positioned to address organizations’ innovation jobs-to-be-done.

Market leadership

Forrester Wave - Innovation Management 3Q13 - rotatedIn the past few years, HYPE has increased its presence in the market, following an investment from ViewPoint Capital Partners. From its roots in Germany, the company has become the leader in Europe. It is now seeing good growth in broader EMEA, the United States and South America.

Recently, Forrester published its Wave for Innovation Management Tools. Analyst Chip Gliedman reviewed 14 of the most significant vendors in the space.  The analysis included:

  • Innovation lifecycle: the components of a complete cycle
  • CIO concerns: governance, security, architecture, integration
  • Product roadmap
  • Management team
  • Vision

HYPE achieved the top overall ranking, the coveted “top right” position of the Wave.

Demonstrated customer excellence

HYPE Customers

HYPE has over 170 customers from around the world. Consistent with my experience, the industries are varied. Some representative names are shown to the left. This is something one sees when it comes to innovation: everyone does it. There’s really not a specific sector that pursues innovation and problem-solving more than others.

HYPE has a number of long-term relationships. And it’s fair to say that once you’re a client of HYPE, you’ll be happy, satisfied and get results. Annual churn is less than 4%. On a monthly basis, that’s roughly 0.3%, at the magic level for enterprise software companies.

That level of customer satisfaction doesn’t “just happen”. Rather, it comes from being dedicated to customers’ success and working to make them successful at their jobs-to-be-done.

That HYPE logo?

Finally, about the HYPE logo. I actually do not yet know the background on it. But take a look at it. See some similarities to different hand gestures?

HYPE logo meaning

I’m looking forward to joining the team.

I’m @bhc3 on Twitter.

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When customers want a product roadmap, do this instead

Product roadmaps suck.Roadmap

There, I said it. <exhales>

OK, let’s explain that. Roadmaps that are real, living documents representing what you will deliver…are awesome. But that may not be the case for you; it wasn’t for me. Instead, a product roadmap was at its core a sales document for a prospect call. A lot of effort, with various people weighing in on what should show up there. Ginning up dates over the next 24-36 months for when features will be delivered. A visually lickable timeline.

And it’s defunct as soon as it’s published. Poor roadmap, it never had a chance. If anyone actually remembers what was in the roadmap months later, you’re left explaining that, “um…yeah…things changed”.

To be fair, this happens more in industries where the level of uncertainty is high. You’re assembling the future, learning as you go along and making adjustments. Industries with stability can put a roadmap out there and stick to it. But if your industry has a lot of fluctuation in its future, roadmaps are an  exercise in futility.

Given this, what’s the point of creating them? For me, a better way to handle the inevitable roadmap requests was needed. Internally for client-facing peers; and with sales prospects and current clients. I took the view that the customer’s roadmap request was essentially about these three questions:

  1. Where will your development resources be focused over the 12-36 months?
  2. Does your view of what’s needed for successful outcomes matches mine?
  3. What are the core values of your platform philosophy?

In other words, knowing that X feature would be rolled out in 12 months wasn’t really what influenced the customer. It wasn’t as if they said, “Oh, that feature will be there in a year? I’ll pay $X for your platform today and begin to use it once that feature is ready.”

I wanted to find a better way. Answer the questions the customer has while avoiding unrealistic commitments and schedules.  So I developed a different approach to requests for a roadmap. It focuses on two core elements:

  • Product themes
  • How we’ll work with the client

Themes are the future the customer is buying. Work with the client describes the ongoing interactions around product design. Both are part of the decision calculus of the customer. Should I go forward with this company or not?

Product themes

Product themes are the core areas that are the means to the outcomes customers seek. When I worked at Spigit, I developed five core themes (conceptualized in below graphic):

Themes

Themes are the broad areas in which the platform needs to excel. They are selected because they are key to satisfying high-level jobs-to-be-done. They will vary by product. An accounting app might have themes around ‘accuracy’, ‘sync with GAAP’ and ‘integration with other apps’. A supplier of chemicals might need to concern itself with ‘potency of compounds’ and ‘safety’.

Themes are where an analytical approach meets a flair for artistry. Internally, they are great for organizing future release efforts. I would actually grade the platform on the themes, using the A to F scale, to help prioritize future effort.

For customers, themes provide a peek into what makes your platform special. You’re communicating a promise for what future releases will address. Customers develop a sense of the platform today, and the platform of the future.

Past + possible features = proof

For the themes, plan on doing more than stating them. Bring them to life by talking features. Yes, this sounds like the roadmap rat-hole. But it’s a different way to do that:

Theme + features

Past features are proof that you are focused on the themes, and they illustrate how you have approached enhancing the themes for clients thus far. They connect the experience of your product today to the themes.

Possible features are a source of excitement, and proof that you’re focused on the themes in future development. They’re not supposed to be a committed list of features over the next 3 years. Rather, they provide a sense for how you’re approaching fulfillment of customers’ jobs-to-be-done. This gives you the chance to talk about some of the ideas floating around in your organization while avoiding the farce of putting dates on when (and if) they’ll be delivered. When asked, I put it to them straight: “These are several ideas we currently have for this theme. What are your thoughts on them?”

Which leads nicely into the other major point to cover…

How we’ll work with the client

In the B2B market, customers want to have direct input into the product design process. Not so much in the consumer market, where we simply stop buying something if it doesn’t satisfy us. But the dollars and reputation that can be on the line in the corporate market translate into greater interest in where the product is going.

To address this desire, communicate how you will work with your customer in the product design process. I would talk about three areas:

Customer insight in product design

Jobs-to-be-done: Ongoing learning about the different things customers seek to accomplish, what they rank as most important and their level of satisfaction with achieving those goals. This is a deeper dive into motivations, how outcomes will be measured and current pain points.

Ideas: As the most active users of your product (often more than you), customers will see opportunities for improvement.  Maintain a site for ongoing suggestions as they occur, and run targeted ideation campaigns for specific areas of development.

Design feedback: Prior to committing to production of a product, run several designs by them. The designs will emphasize different functions and looks, and customers give an early read on how they will be received.

The combination of themes and the ways you’ll work with customers answers the key questions they have. It actually goes way beyond the normal roadmap, providing philosophical underpinnings for your product.  And for the product manager, it’s something you can discuss with integrity and enjoyment.

I’m @bhc3 on Twitter.

Decision flow for customer feature requests

If you  manage a product or service in the business-to-business (B2B) market, customer requests for features will be a regular part of your work. Requests come in through the sales team, service reps, and senior management, as well as directly from customers themselves. It’s a disruptive insertion of new items for your agenda. That disruption isn’t necessarily bad, but it does distract you from other planning and execution you’re working on.

Reflecting on my own experiences here, I realized that each request needs to go through a series of decisions. These decisions make sure you know why you would agree to or decline the request, and are aware of the bigger picture effects of your decision. They make up the customer request decision flow:

B2B customer request decision flow

The flow is a series of decisions, in priority order. My perspective is product management, but they apply to other areas as well (service, contracting processes, etc.).

Firm request from a priority customer?

This decision point is made up of two criteria: priority customer and firm request.

Priority customer

The first decision point may be somewhat offputting, especially if you operate in the small business or consumer markets. It matters who makes the request. In the enterprise market, just a few customers will be a significant share of your revenue. These customers’ revenue help you meet the payroll. They help keep the lights on. If you’re public, they help keep the stock price up.

In addition to high revenue, some customers are also valuable for non-monetary reasons. Lighthouse customers are important for establishing credibility with other companies.

Whether based on revenue or marketing value, some companies will be priority customers. They are a reality in every B2B company. Keeping them happy is part of the job.

Firm request

Sometimes a request is urgent, and vitally important to the customer. Other times, it’s merely a suggestion, a minor nit or a fleeting idea. It’s important to understand the difference.

Firm requests often come freighted with emotional terms, or subtle threats. “We really need this to make sure our sponsors continue to support you.” When they’re firm, pay attention, immediately.

Not all requests are firm. The customer may couch the request with wiggle room. Or directly say “it’s not a big deal”. Often, they have bigger things they want to tackle (on the product, on processes, on strategy) and look at their request as a suggestion-in-passing.  They will move on to the bigger items and not focus on the request.

The ability to recognize the difference gets better with experience.

Multiple similar requests?

If the request is not a firm one from a priority customer, the next decision point is: are multiple customers are asking for the same feature? What the request lacks in priority, it may make up in commonality.  If customers are making multiple requests for a similar feature, you’ve got a pain point on your hands that needs to be addressed.

A key issue is this: how do you know multiple customers have the same request? A common way is to utilize software which allows customers to post ideas, suggestions and requests. There are idea management providers that are good for this. Or you can user customer feedback  sites. These asynchronous, always-on, open-to-all sites are well-suited for capturing suggestions.

In addition, you may need to check other areas. Bad as it is,  your email often contains customer suggestions. Or you have a service ticket database you can check. Relevant knowledge will be in people’s heads, those who directly work with customers.

Once you know where to look, the process of determining commonality has two steps:

  1. Identify all similar requests that have been made by different customers
  2. Find all signals of support from customers

If you’re using an ideas or feedback site, finding similar requests is easier. Search on terms that relate to the request. Also, look at the ‘Likes’ and comments the suggestions have. I look at the number of companies represented in these signals of interest.

After gathering this information, you will have a sense of how wide the support is for the suggestion. If it’s sufficient, consider adding the request to your roadmap.

Meaningfully enhances outcomes?

Assume that the request is not a firm one from a priority customer, or one that has yet to be shared by multiple customers. There’s one final decision point: will the suggested feature meaningfully enhance customers’ outcomes?

Outcomes has a specific meaning here. It is the definition of when a job task has been satisfied. It should reflect the customer’s expectations. Remember, they only agree to use (and pay for) your product because you’re making them successful.

To apply this criteria effectively, you need working knowledge of what customers want to get done, and where they’re falling short. If you can see that the request will improve outcomes for a significant number of customers, it should be addressed.

Committed to maintaining feature?

For each of the previous three decision points, if the answer is ‘yes’, there is one more decision to make. Are you committed to maintaining the feature? While this may seem like a simple enough question, there are a number of considerations to it. Below are six factors to consider before answering ‘yes’.

Economics: What are the costs to build and maintain the feature? The expected upside of the feature should cover these. Upside is a holistic concept, including money for the new feature, new sales contracts and renewals because of the feature and increased customer satisfaction that translates into informal marketing for your company.

Release velocity: Every new feature added to a product increases the complexity of future releases. In software, a given configuration can have ongoing downstream impacts. Yammer’s V:P Engineering Kris Gale sees the additional complexity as a tax on product velocity. Your ability to release quality products quickly is impacted with each new feature. It’s worth it to add features, but think carefully about velocity impact.

User experience: The ability to use the product or service effectively is a core requirement for customers. If they find that it too complex, they will not fulfill their jobs-to-be-done. Joshua Porter nice summarizes the issue of feature creep: “No single feature addition is a big deal, but taken together change everything.” The value of the request must be greater than any negative effects on user experience.

Tip of the iceberg: sometimes, a request is a “jump” from the current product or service. And it’s only part of a broader offering needed to really address the need. You can look at a request and see how additional features will be needed over time to make it deliver value. And that may take the product in a direction you don’t want to go. Understand the longer term plan related to the request.

Mass market: You’re building a product or service for the mass market. It needs to address a large swath of customers’ needs. In that light, look at the current request. Is it the umpteenth time that this customer, or one of a handful of customers have requested something? Too many ‘outside-the-market’ requests can undermine your broader strategy. You win the battle for the lighthouse customer, but lose the war with the broader market.

Outcome prioritization: Smart product management is organized according to customers’ jobs-to-be-done and expected outcomes. Some outcomes may be currently underserved. Customers’ expectations are being met, and that needs to be addressed. The new request will delay the implementation of features to address these outstanding pain points. Determine if the new request outweighs the currently underserved outcomes.

Decide on the request

Decline the request

If the request cannot cleanly get through the six criteria of the “Committed to maintaining feature?” decision point, it is reasonable to decline the request. Indeed, you now have specific reasons for doing so. That alone is a big improvement versus what often happens: the request sits in the equivalent of a “dead letter” file. Or if there is a response, there’s only a vague, “we can’t do that right now.”

Address the request

If the request makes sense, then it’s full steam ahead. However, notice I’ve used the term “address the request”. This is different than “implement the request”. Maintain a philosophy that:

 Customers know their jobs-to-be-done better than you, but you will know potential solutions better than them.

Not to say the customer hasn’t provided a specific feature solution that is right. But avoid just passing through exactly what what was requested without giving thought to different ways the job-to-be-done can be addressed.

Customer requests will be a constant in the B2B product manager’s life. Knowing how you’re going to handle them is key to the success of the product and the business.

I’m @bhc3 on Twitter.

My Ten Favorite Tweets – Week Ending 122509

From the home office in the North Pole, where I’m packing up a for a couple months relaxing in Hawaii…

#1: RT @nenshad No spoilers but I agree! rt @twailgum “The Business Application of the Decade: And the Winner Is…” http://bit.ly/53BdZ2 my blog on CIO.com

#2: The Benefits of Pissing People Off http://ow.ly/OHEA #innovation

#3: Radian6 Sentiment Analysis Review – Does Natural Language Processing Work? http://bit.ly/5ckKPa > Sentiment analysis still work in progress

#4: Accept Defeat: The Neuroscience of Screwing Up | Magazine #innovation (via @jorgebarba) http://post.ly/Ftqa

#5: The Consumerization of Enterprise VC http://ow.ly/Osck by VC Bill Burnham | what works in consumer web doesn’t inside orgs #vc #e20

#6: What motivates external innovators? (MIT Sloan) #innovation http://post.ly/FfKm

#7: RT @jhagel: Drafting an entire workforce into the company’s brain trust – lessons from Toyota http://tinyurl.com/yfnh87d

#8: RT @brucenussbaum Ingenius use of space.Train goes through Thai market! Unbelieveable! http://bit.ly/4TEva9 /via @brucemaudesign (via @Rishadt)

#9: RT @marylynn3 How NORAD keeps track of Santa- A behind the scenes peek from @CNET News http://bit.ly/6Py9BY

#10: Wrapping paper, Two Buck Chuck, It’s a Wonderful Life > Christmas Eve 2009