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JPK Group Product Intelligence & Experience Summit September 20-21, 2017 • Chicago, IL Collaborative Analytics and Insights to Unite Strategy & Innovation September 20, 4:30 pm View presentation online at: https://jpkgroupsummits.com/attendee2/ Presenter: Arik Johnson – Aurora WDC Applying market segmentation and intelligence to innovate, grow and gain a competitive advantage Arik Johnson is Chairman of Aurora WDC, the intelligence advisory firm he founded in 1995. After stepping aside as CEO in late 2009, today Arik serves as Managing Director and lead architect at Aurora’s R&D lab, think tank network and intelligence policy institute, the Center for Organizational Reconnaissance (COR). Arik is a Fellow of the Strategic and Competitive Intelligence Professionals society and has chaired SCIP’s annual international conference (2006), served on SCIP’s board of directors (2004 – 2006), won SCIP’s Catalyst award (2005), and served as a chapter coordinator, as well as, trustee and development committee chair of the CI Foundation.

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Page 1: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

JPK

Gro

up

Product Intelligence & Experience SummitSeptember 20-21, 2017  •  Chicago, IL

Collaborative Analytics and Insights to Unite Strategy & Innovation

September 20, 4:30 pm

View presentation online at: https://jpkgroupsummits.com/attendee2/

Presenter: Arik Johnson – Aurora WDC

Applying market segmentation and intelligence to innovate, grow and gain a competitive advantage

Arik Johnson is Chairman of Aurora WDC, the intelligence advisory firm he founded in 1995. After stepping aside as CEO in late 2009, today Arik serves as Managing

Director and lead architect at Aurora’s R&D lab, think tank network and intelligence policy institute, the Center for Organizational Reconnaissance (COR). Arik is a Fellow

of the Strategic and Competitive Intelligence Professionals society and has chaired SCIP’s annual international conference (2006), served on SCIP’s board of directors

(2004 – 2006), won SCIP’s Catalyst award (2005), and served as a chapter coordinator, as well as, trustee and development committee chair of the CI Foundation.

Page 2: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Angles of Attack:Collaborative Analytics and Insights to Unite Strategy & Innovation

Arik Johnson

Founder & ChairmanAurora WDC [AuroraWDC.com]

Managing DirectorCenters for OrganizationalReconnaissance [COR.vc]

Page 3: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Aurora WDC

HistoricalContext

ProspectiveFuture

Understand

Uncertainties

Blind Spots and GAPsAurora WDC

Subject-Matter Expertise & Experience

Enables Planning to

Outthink/Outcompete Competitors

Acquire

A Clear Contemporary View of the Current

Market

Plan

Prediction of a Future StateHistorical Context + Contemporary View = Forecast of Trends for the Future

Clear Historical Context of the Past

Understanding Today (and 1-3 Years

Forward)

Current Macro and Micro View of the

Competitive Environment

Page 4: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Strategic, Market & Competitive Intelligence has 3 Primary Operational Roles

Signals

of

Change

Strategic Choices

Influencing

Success

Likely Outcome of

Competitive

Battles

Page 5: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Strategy should be a

Response to Intelligence

Not the other way around…

What, exactly, IS “strategy”?

Page 6: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

The Intelligence Collaborativehttp://IntelCollab.com #IntelCollab

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Page 7: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Page 8: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

The Intelligence Collaborativehttp://IntelCollab.com #IntelCollab

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Page 9: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Knowing Why They Buy“Companies may know a good deal about their customers. They know nothing, as a rule, about their non-customers -- the people who should be their customers but buy from someone else. Why do they do that? And yet it is the non-customer where important changes always start first.”

Look Beyond the Current Business

Page 10: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

The Intelligence Collaborativehttp://IntelCollab.com #IntelCollab

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Page 11: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

The Intelligence Collaborativehttp://IntelCollab.com #IntelCollab

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Page 12: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

The Intelligence Collaborativehttp://IntelCollab.com #IntelCollab

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Page 13: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Managers caught in this kind of competition almost universally say they dislike it and wish they could find a better alternative. They often know instinctively that innovation is the only way they can break free from the pack. But they simply don’t know where to begin.

Chan Kim and Renee Mauborgne

Competing head-to-head can be cutthroat especially when markets are flat or growing slowly.

Page 14: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Success Breeds Complacency

“It is a classic conundrum for business titans: How much money and attention should be focused on a new, but growing, operation that is far less profitable than the core business?”

- Prof. Clayton Christensen, The Innovator's Dilemma

Page 15: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Customers “Hire” Products to Do

“Jobs” for Them

Concentrate Less on

What Customers “Want” and

More on What Customers “Need”

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Engineering progress will always outpace

elevating customer expectationsPe

rfo

rman

ce

Time

Low quality use

Medium quality use

High quality use

Most demanding use

Disruptive technology

Page 17: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Disruptive Innovation Strategy

Perf

orm

ance

Time

Angle of Attack 1: Incremental Innovation

Overshoot

Underperformance

Sweet Spot

Angle of Attack 2: Low-End Innovation

Capture Overshot Customers

Angle of Attack 3: Innovate on a New

Performance Dimension

New

Per

form

ance

Dim

ensi

on

Non-Consumption

Non-Consumption

Angle of Attack 4: Address Non-

Consuming Contexts

Page 18: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Customer Demand & Signals of Change

1. Non-Market Contexts: External Forces (Government, Economics, etc.) Increasing or Decreasing Barriers to Innovation

2. Undershot Consumers: Opportunities for Up-Market Sustaining Innovations

3. Overshot Consumers: Opportunities for Low-End Disruption, Shifting Profits by Specialist Displacements (Modularity) and the Emergence of Rules

4. Non-Consumers: Opportunities for New Market Disruptive Growth

Established Companies almost always

Lose to Disruptive Innovators

Page 19: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Competitive Intelligence Analysis Failure: Diagnosing Individual Level Causes and Implementing Organisational Level Remedies by Fleisher & Wright

Abstract:It is anticipated that any Competitive Intelligence (CI) professional would want to perform the analysis task and execute their responsibilities successfully over time. Such competencies would normally come with added experience on the job, as should the ability to reduce the risk of failure by diagnosing potential pitfalls. This paper presents: (a) a unique four-level hierarchical model of analysis failure; (b) identification of common causes of failure at the individual level; (c) 10 key continua of CI analysis skills which we believe an analyst has to master to become competent in their work; and (d) guiding principles for an enlightened firm to follow if they wish to discharge their organisational level responsibility of reducing the potential for analysis failure. We believe that the issues raised in this paper are of significance and should ultimately contribute towards creating a more successful analysis function. This can only be of benefit to educators, practitioners and others who rely on skillful CI output to inform their decision making.

Journal of Strategic MarketingVolume 18, Issue 7, 2010Special Issue: Competitive Intelligence, Analysis & Strategy

Page 20: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Dr. Craig S. Fleisher

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Collaborative

Insights Team

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STOCHASM

The difference betweenwhat you think you know andwhat you actually know.

Intelligence lives in this chasm, creating new knowledgeAND

disputing false assumptions.

Page 23: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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In selling the Xiaomi smartphone, Xiaomi employs a strategy that is very unlike other smartphone makers such as Samsung and Apple. Lei Jun, Xiaomi CEO, said that the company prices the phone almost at bill-of-material prices, without compromising the component quality and performance compared to other premium smartphones. To profit from the narrow margin, Xiaomi sells a model for up to 18 months instead of the short 6 months used by Samsung to profit from the fall in the costs of components that occurs over time. It also profits by selling phone-related peripheral devices, smart home gadgetry, in addition to apps, online videos and themes. In the long term, the company sees the hardware sales just as a means of delivering software and services, as explained by Hugo Barra, "We are an internet and a software company much more than … a hardware company.

Page 24: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Asymmetric Interpretation Engages the Entire Workforce in Collaborative Sensing to Anticipate and Act on Industry Change

Signals

of

Change

Strategic Choices

Influencing

Success

Likely Outcome of

Competitive

Battles

Why Reconnaissance?

Page 25: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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How to become your organization’s G2.

Here’s the first secret:

You won’t get there on your own.

My first challenge to you is to form your own local Insight Circle™ with like-minded

professionals.

Email me for details: [email protected]

Page 26: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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❖ Feel free to ask for help:

❖ Email: [email protected]

❖ Phone: +1-608-630-4242

❖ Twitter: @ArikJohnson

❖ LinkedIn: www.linkedin.com/in/ArikJohnson

❖ Skype: ArikJohnson

❖ Web: www.IntelCollab.com & www.AuroraWDC.com

Page 27: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Page 28: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Observer Collaborator Provocateur

TASKING COLLECTION DISSEMINATIONANALYSIS

People &

Culture

Methods &

Systems

Products &

Services

Mission &

Priorities

Intel Team Audit

Delphi Interviews with Key Executive Clients

Enterprise-wide Recognition of Intel Value by the Workforce

SME Profiling / OSINT Intel Fitness Assessments, Team Fundamentals & TrainingHUMINT / Willingness to

share/contribute

Ability to Protect Confidential IP, Elicitation Across the Workforce

Market Research Derivative / Ad-Hoc

Client-Driven / Defined

Systematic / Initiative / Metrics

Stick-fetching / Service Bureau / Responsive

More Intuitive, KIT & KIQ-driven

“Consigliere” / G2 Strategic Advisor

Competitor Activity & Plans (Reactive)

Market & Industry Trends (Defensive)

Scenarios, Futures, Disruptions (Offensive)

OSINT Self-Service (Email, Google)

SME Nets, Ad-Hoc Field HUMINT, Portals (Intranet/SharePoint)

Crowdsourcing, Mobile, SME Nets Formalized

Free Subscriptions, Google Alerts, SharePoint

Network Hub, Hand-Off to Execs

Invited to Decision Forums, Ability to Tap SME Nets “at will” with Success

Unstructured Known Needs Convenient, Limited Clients

Internal / External Mix of Some Key SBU’s

Systematic, Real-time Problem-Solving, Enterprise-wide

Asking Better Questions

Intel Community, Internal & External

SWOT, Industry, Five Forces, Competitor Financials -Reactive

Benchmarking, Win/Loss, STEEP, 4Cs - Proactive

Scenarios & Simulations, Value Chain & Business Model -Predictive

Reports / Alerts / Profiles

Summarized Situational, Market & Industry Analyses

Interactive, Business Performance Focused, Drives Problem-Solving

Situational Assessment

Early Warning, Strategic Issues, Key Players

Balanced Scorecard, and Other BPM-driven Applications

Client Definition, Push-Demand Generated

Client Fitness

Pull-Demand Action

Email, Asynchronous

Intranet / Portal

Real-Time, Two-Way Persistent Apps

Newsletters, Key Players

Events, Issues & Decision Support

Early Warning, Detection & Anticipation of Industry Change

Mostly Push, Basic Reporting

Push / Pull “Balancing Act”

Client-Pull, Customized to Individual Preferences and Needs

Who?

How?

What?

Why?

What? So What? Now What?

Roadmap 3-Phases of Readiness

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Page 30: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Training

Research

Systems

Three (3) Keys to Unlock

Intelligence Potential

Key Intelligence Topics &

Questions Development

Scenarios, Simulations, & Early Warning

Professional & Program

Development Roadmaps

Technology, Industry,

Competitor, & Customer Analysis

Profiling Engine of

Key Players

Storage & Retrieval of Historical

Intelligence

External Secondary

Awareness & Monitoring

Map & Manage

Internal Source Networks

Human Source

Universe for Elicitation

Analytical Methodology

& Tool Selection

Intelligence Project

& Program Design

Business Problem

Diagnostics

Page 31: A pplying mar ket segmentation and intelligence to ... · J P K G r o u p P r oduct Intelligence & E xper ience S ummit S eptember 20- 21, 2017 • C hicago, IL C o llab o r at ive

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Performance

Driven

Organizational

Reconnaissance

Based on Performance

Management

Perspectives such as

the Balanced

Scorecard

30

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What’s Next?

Leadership to Act isBased on Confidence

Intelligence Combats the Paralysis that Accompanies Uncertainty

Reconnaissance Transforms Your Workforce into a Force to be Reckoned With

Feel free to ask for help:

Email: [email protected]

Phone: +1 (608) 630-4242

Twitter: @ArikJohnson

LinkedIn: http://linkedin.com/in/ArikJohnson

Skype: ArikJohnson

Web: http://IntelCollab.com & http://AuroraWDC.com