Scott Sehlhorst presented on using Kano analysis for product management. Kano analysis classifies product features and customer needs into categories like must-have, performance, and excitement based on customer preferences. It can help product managers understand what problems their target personas care about and how competitors are addressing them. Managers can map their current solution and roadmap against Kano categories to ensure they are focusing on the right problems and opportunities for customer delight.
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Kano analysis review and discussion with agile austin product sig 2014
1. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
KANO ANALYSIS
Agile Austin Product SIG
2014.05.20
Scott Sehlhorst, Tyner Blain
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2. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
About Scott
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Product management & strategy consultant
8 Years electromechanical design engineering
IBM, Texas Instruments, Eaton
7 Years software development & requirements
> 20 clients in Telecom, Computer HW, Heavy Eq., Consumer Durables
9 Years product management consulting
>20 clients in B2B, B2C, B2B2C, ecommerce, global, mobile
Agile since 2001
Started Tyner Blain in 2005
Helping companies
Build the right thing, right
3. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Agenda
• Kano’s Roots
– Where Kano Started
– How Kano Works
• Kano for Product
Managers
– How We Can Use Kano
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4. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Why Does Kano Exist?
• Professor Noriaki Kano Developed the Model
• Created As Framework to Analyze Features
– Insights Into Customer Satisfaction
– Make Informed Design Decisions (Tradeoffs)
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5. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Intro to Kano
• A Model for Classification
– Must Be / Must Not Be
– Indifference
– More Is Better
– Customer Delight
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6. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Must Be
• Threshold Capability
• Table Stakes
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10. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Kano Model
• Must Be
• Indifference
• More Is Better
• Customer
Delight
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11. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Kano for Product Management
• A Feature Focus is Backwards
• …But Kano Can Be Used to Understand
your Market Problems
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12. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
How Product Managers Can Use Kano
• Apply it To Understanding Market Needs
– How do Personas Perceive Problems?
– How is Your Competition Engaging?
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13. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Must Be
• External Forces
• Boolean Criteria for Go-To-Market
– Compliance W/ Regulations, Laws, Policies
– Acceptance Criteria
– Security
– Integration W/ Other Applications
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14. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Must Be
• Internal Choices
• Market Strategy
– Must Provide Solution to Problem X
– Must Match Capability of Competitor Y
– Must Satisfy Buyer Perception Z
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15. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Indifference
• Solutions to Non-Valuable Problems
– Might Be Valuable to Someone,
Just Not Your Target Personas
• May Be Innovative, But Also Irrelevant
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16. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
More Is Better
• Cell Phone Talk Time
• More Relevant Search Results
• Fuel Efficiency
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17. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Realistic More Is Better
• Diminishing Returns
– More More Is Less Better
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18. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Extreme More Is Better
• Incremental Improvement Until Tipping Point
– Enough More Redefines Market
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19. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Extreme More Is Better
• Extremely Favorable (Low)
Pricing
– Market Disrupting
• Normal Pricing
– More favorable pricing is Better
• Extremely Unfavorable (High)
Pricing
– Must (Not) Be For A Given Market
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20. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Customer Delight
• Blue Ocean Hook – Find An Unsolved Problem
and Delight Customers With Solution
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21. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
But Which Customer Is Delighted?
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Single Parent Housekeeper Office Cleaner Kid (Doing
Chores)
Homeowner Retiree
Physically Easy to Use
26. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Market Strategy
• Understand Your Personas (User and Buyer)
– Who Cares About This Problem?
– How Do They View This Problem?
• Understand Your Competitors
– How Do Their Solutions Compare?
– How Should We Approach This Problem?
• Market Disruption
– Where are Customer Delight Opportunities?
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27. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Recipe for Using Kano
• Create ‘Blue Ocean’ Map of What Target
Personas Care About
• Classify Those Problems
• Plot Competitive Offering
• Plot Your Current Solution
• Identify Desired Plot (Strategy, Priority)
• Gaps Inform Product Roadmap
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28. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Thanks Very Much!
• Any Questions?
• Scott Sehlhorst, Tyner Blain
• http://tynerblain.com/blog/
• @sehlhorst
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29. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
References
Where Kano Came From
http://en.wikipedia.org/wiki/Kano_model
http://www.isixsigma.com/dictionary/Kano_Analysis-263.htm
Kano and Prioritization
http://tynerblain.com/blog/2006/02/27/prioritizing-software-requirements-kano-take-two/
http://www.pragmaticmarketing.com/publications/magazine/4/3/0605ss
http://tynerblain.com/blog/2006/04/06/epicenter-software-design-37signals-applies-kano/
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30. 2014.05.20. Agile Austin Product SIG: Kano Analysis
Scott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)
Customer Delight Disrupts the Market
• Amazon Kindle
– ‘On Demand’ Ordering
– Read on Many Devices
• Customer Delight
Opportunities for
Amazon
• Became Must Be
Problems for their
Competition
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Editor's Notes
In QFD, focus on interdependence of features – more specifically interdependence of designs or implementation ideas
When designing a cell phone, there are tradeoffs between battery life and device size
For understanding markets, tradeoffs are important, but guide problem emphasis, not implementation approaches
For software, do you make a UI more comprehensive in capability, or easier to learn how to use?
Wikipedia says – characterize the features (inside out) instead of the needs (outside in).
Include ‘in the context of a target market segment’
yawn
Include example. Talk about diminishing returns (real world curve has decreasing slope)
This is an overview of what Kano is, and how designers / design engineers use it to frame their decisions.
Go To Market – For a particular market segment, reality is that there are table stakes, without which, your product simply won’t be considered viable
Compliance – Must meet HIPAA Privacy Requirements for a health care information product
Acceptance – The user must be able to view all of his previous entries
Security – Must pass XSS attack test XYZ
Integration – Must integrate with SFDC (automatic call-logger for sales reps)
Market Strategy – Your pricing and positioning will drive a strategy where, as a business, you (artificially) establish constraints that define how you choose to enter the market.
Problem X – You may be targeting a particular persona in the market, for whom lacking a solution to problem X is a deal breaker.
Competitor Y – You may be attacking an entrenched competitor (to win a recurring revenue stream, or market share bragging rights), and require an equivalent solution to an otherwise marginal problem, as it would prevent you from displacing an existing solution (at any price)
Buyer Z – Buyers can be barriers to users (and value). You can either choose to placate them or work around them.
Not valuable to target personas – this is where the tyranny of analysts can trip you up. Just because a problem/solution/capability has made it into the analyst’s checklist does not mean it has value to your customers.
Enough Trunk Space for a Stroller -> Teenage Boy
Ability To Push FriendFeed Updates -> Mortuary
When this happens, you have 3 choices
Invest in building these ‘irrelevant’ features – but at what opportunity cost?
Convince your buyers to ignore the analyst – but can you even get the meeting if you’re horribly unaligned?
Educate the analyst that there is a nuance to the market, making his pet feature irrelevant.
Water Resistance
100m Depth-Tolerant will be boolean for a diver, irrelevant for a snorkler
Can survive rain, swimming, diving (can be step-function, not always linear)
Corrosion Resistance
Water
Salt Water
Acid
75% 10 up 5 left
Find better example than Dyson Vacuum cleaner. Dyson – increasing capability (more is better) decreasing attractiveness of price. Makes sense for the market segment that finds more utility in “cleans better” than “costs less”
Goal is different personas perceive the same problem differently