As I will explain, the “ideas-first” approach is inherently flawed and will never be the most effective approach to innovation. It will always be a guessing game that is based on hope and luck, and it will remain unpredictable. The “needs-first” approach to innovation, while not inherently flawed, is often flawed in its execution. Recognizing why

Job statement = verb + object of the verb (noun) + contextual clarifier

While defining the functional job correctly is important, uncovering the customer’s desired outcomes (the metrics they use to measure success when get the job done) is the real key to success at innovation.

Define the job statement in the correct format: A job statement always begins with a verb and is followed by the object of the verb (a noun). The statement should also include a contextual clarifier. In the job statement “listen to music while on the go”, the contextual clarification is made by adding “while on the go” to the job statement.

The only way to discover segments of customers with unique sets of unmet needs is to segment the market around unmet needs.

Outcome statement = direction of improvement + performance metric + object of control + contextual clarifier

After a product is purchased (which is a separate job), it must be received, installed and set-up. Then someone has to learn how to use it and interface with it. Someone may also have to transport, clean, store, maintain, upgrade, repair, and dispose of it. While people don’t buy a product so they can clean, repair and dispose of it, a product that

To avoid defining the job to narrowly, work directly with customers to understand not why they bought your product, but how your product fits into what they are trying to accomplish. Ask, “Why are you using that product, what job are you ultimately trying to get done”.

A better-performing, more expensive product will only appeal to underserved customers. These are customers who have unmet needs and are willing to pay more to get a job done better. A better-performing, less expensive product will appeal to all customers. A worse-performing, less expensive product will appeal to overserved customers (those with no