Competing Against Luck The Story Of Innovation And Customer Choice
Clayton M. Christensen, Karen Dillon, Taddy Hall, and David S. Duncan have written a book that provides a fresh perspective on innovation and customer choice. In "Competing Against Luck: The Story of Innovation and Customer Choice," they explore how successful companies create products and services that truly meet the needs of their customers. The authors argue that the key to successful innovation is understanding what customers are trying to accomplish, rather than simply focusing on their demographic or psychographic characteristics.
The Jobs Theory
The heart of the book is the Jobs Theory, which the authors have been developing for several years. The Jobs Theory is based on the idea that customers "hire" products or services to help them accomplish a specific job in their lives. Understanding the job that customers are trying to accomplish is the key to creating innovative products and services that truly meet their needs.
The Jobs Theory goes beyond traditional market research, which often focuses on demographic or psychographic data. Instead, it seeks to understand the context in which the customer is trying to accomplish the job. For example, a customer might "hire" a fast food restaurant to provide a quick and inexpensive meal when they are on the go. Understanding this context can help the restaurant create a menu and service experience that meets the customer's needs.
The Four Elements of a Job
The Jobs Theory is broken down into four elements that are necessary for a job to be successfully accomplished:
- Goal: What is the customer trying to accomplish?
- Process: What steps does the customer take to accomplish the goal?
- Outcome: What outcome does the customer expect from accomplishing the goal?
- Constraints: What constraints does the customer face in accomplishing the goal?
By understanding each of these elements, companies can create products and services that truly meet the needs of their customers. They can also identify unmet needs and create innovative solutions that fill those gaps in the market.
Examples of Companies Using Jobs Theory
The book provides several examples of companies that have successfully used the Jobs Theory to create innovative products and services:
- Intuit: Intuit used the Jobs Theory to create QuickBooks, a software program that helps small business owners manage their finances. By understanding the job that small business owners were trying to accomplish (keeping track of their finances), Intuit was able to create a product that met their needs.
- Uber: Uber used the Jobs Theory to create a ride-sharing service that provides a convenient and affordable transportation option. By understanding the job that customers were trying to accomplish (getting from point A to point B), Uber was able to create a service that met their needs.
- McDonald's: McDonald's used the Jobs Theory to create a menu that meets the needs of customers who are on the go and looking for a quick and inexpensive meal. By understanding the job that customers were trying to accomplish (getting a meal quickly and inexpensively), McDonald's was able to create a menu that met their needs.
The Importance of Customer Feedback
One of the key takeaways from the book is the importance of customer feedback in the innovation process. By understanding what customers are trying to accomplish and how they are currently trying to accomplish it, companies can identify areas for improvement and create innovative solutions that meet their needs.
Customer feedback can come in many forms, including surveys, focus groups, and social media. Companies that are able to collect and analyze customer feedback are more likely to create products and services that truly meet the needs of their customers.
Conclusion
"Competing Against Luck: The Story of Innovation and Customer Choice" provides a fresh perspective on innovation and customer choice. By focusing on the Jobs Theory and the four elements of a job, the authors provide a framework for creating innovative products and services that truly meet the needs of customers.
The book also emphasizes the importance of customer feedback in the innovation process. Companies that are able to collect and analyze customer feedback are more likely to create products and services that meet the needs of their customers.
If you are interested in innovation and customer choice, "Competing Against Luck" is a must-read. The Jobs Theory provides a new way of thinking about innovation that can help companies create products and services that truly meet the needs of their customers.