What Customers Want by Ulwick Summary

What Customers Want introduces Outcome-Driven Innovation (ODI), a systematic approach to understanding customer needs by focusing on the "jobs" they aim to accomplish and the metrics they use to measure success. The book outlines an eight-step process to identify unmet customer outcomes, prioritize innovation opportunities, and create breakthrough products. It challenges traditional customer feedback methods, advocating for data-driven strategies to reduce innovation failures.

Product managers, marketers, and business leaders seeking to improve innovation success rates will benefit most. The book is ideal for professionals in competitive industries like tech, manufacturing, or consumer goods, as it provides frameworks for aligning R&D with measurable customer outcomes. Academics studying innovation methodologies may also find its case studies valuable.

ODI is a process that shifts innovation focus from customer opinions to the functional "jobs" they need to complete. It identifies 50–150 specific customer outcomes per job, uses quantitative surveys to pinpoint underserved needs, and prioritizes solutions addressing those gaps. This method reduces guesswork, with companies like Microsoft and Bosch applying it to develop successful products.

Unlike voice-of-customer methods that gather subjective feedback, ODI focuses on the metrics customers unconsciously use to evaluate products. For example, instead of asking "What features do you want?" ODI asks "How do you measure speed when completing this task?" This approach reveals actionable, statistically significant opportunities for improvement.

• Jobs-to-be-Done Theory: Customers "hire" products to complete specific tasks.
• Outcome-Driven Segmentation: Markets are divided based on unmet outcomes rather than demographics.
• Opportunity Algorithm: Ranks innovation ideas by quantifying how important and underserved each outcome is.

By identifying which customer segments have the most underserved outcomes, companies can tailor messaging to highlight performance improvements on metrics that matter. For example, Bosch created a premium circular saw by targeting users who valued precision-cutting outcomes over price.

Some experts argue ODI’s reliance on structured processes may stifle creativity, and its quantitative focus could overlook emotional customer needs. Others note Ulwick’s "market-driven" approach shares similarities with earlier strategies by Clayton Christensen and others.

While both address innovation challenges, Christensen’s work focuses on disruptive technologies, whereas Ulwick provides a tactical, step-by-step system for identifying opportunities. Clayton Christensen endorsed ODI, calling it a way to "bring discipline to innovation".

Case studies feature companies like Bosch (developing a high-end circular saw), Microsoft (improving software tools), and medical device firms. These examples demonstrate ODI’s application across industries, showing 50–90% reductions in failed innovations.

Yes. As businesses face pressure to innovate efficiently, ODI’s data-driven methodology remains relevant. The framework adapts well to AI-driven analytics and hyper-competitive markets, making it a practical guide for avoiding costly R&D missteps.

The book provides templates for:

1. Defining customer jobs and outcomes
2. Conducting outcome-based surveys
3. Calculating opportunity scores
4. Segmenting markets by unmet needs

Teams at companies like Intuit have used these tools to align roadmaps with customer priorities.

• "Innovation becomes predictable when you measure the right customer outcomes."
• "Customers don’t want products; they want better ways to get jobs done."
• "Segmentation should reveal where outcomes are underserved, not just who buys what."