2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 1

KANO ANALYSIS

Agile Austin Product SIG2014.05.20Scott Sehlhorst, Tyner Blain

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 2

About Scott

Product management & strategy consultant

8 Years electromechanical design engineeringIBM, 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 2001Started Tyner Blain in 2005

Helping companiesBuild the right thing, right

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 3

Agenda

• Kano’s Roots– Where Kano Started– How Kano Works

• Kano for Product Managers– How We Can Use Kano

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 4

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)

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 5

Intro to Kano

• A Model for Classification– Must Be / Must Not Be– Indifference– More Is Better– Customer Delight

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 6

Must Be

• Threshold Capability• Table Stakes

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 7

Indifference

• Nonplussed

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 8

More Is Better

• Marginal Utility

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 9

Customer Delight

• Exciters

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 10

Kano Model

• Must Be• Indifference• More Is Better• Customer

Delight

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 11

Kano for Product Management

• A Feature Focus is Backwards• …But Kano Can Be Used to Understand

your Market Problems

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 12

How Product Managers Can Use Kano

• Apply it To Understanding Market Needs– How do Personas Perceive Problems?– How is Your Competition Engaging?

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 13

Must Be

• External Forces• Boolean Criteria for Go-To-Market– Compliance W/ Regulations, Laws, Policies– Acceptance Criteria – Security– Integration W/ Other Applications

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 14

Must Be

• Internal Choices• Market Strategy– Must Provide Solution to Problem X– Must Match Capability of Competitor Y– Must Satisfy Buyer Perception Z

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 15

Indifference

• Solutions to Non-Valuable Problems– Might Be Valuable to Someone,

Just Not Your Target Personas

• May Be Innovative, But Also Irrelevant

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 16

More Is Better

• Cell Phone Talk Time• More Relevant Search Results• Fuel Efficiency

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 17

Realistic More Is Better

• Diminishing Returns– More More Is Less Better

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 18

Extreme More Is Better

• Incremental Improvement Until Tipping Point– Enough More Redefines Market

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 19

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

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 20

Customer Delight

• Blue Ocean Hook – Find An Unsolved Problem and Delight Customers With Solution

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 21

But Which Customer Is Delighted?

Single Parent Housekeeper Office Cleaner Kid (Doing Chores)

Homeowner Retiree0

1

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9

10

Physically Easy to Use

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/)

Markets Evolve

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Markets Evolve

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 24

Markets Evolve

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 25

Markets Evolve

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 26

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?

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 27

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

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 28

Thanks Very Much!

• Any Questions?

• Scott Sehlhorst, Tyner Blain• http://tynerblain.com/blog/• @sehlhorst

2014.05.20. Agile Austin Product SIG: Kano AnalysisScott Sehlhorst, Tyner Blain (http://tynerblain.com/blog/) 29

ReferencesWhere Kano Came Fromhttp://en.wikipedia.org/wiki/Kano_modelhttp://www.isixsigma.com/dictionary/Kano_Analysis-263.htmKano and Prioritizationhttp://tynerblain.com/blog/2006/02/27/prioritizing-software-requirements-kano-take-two/http://www.pragmaticmarketing.com/publications/magazine/4/3/0605sshttp://tynerblain.com/blog/2006/04/06/epicenter-software-design-37signals-applies-kano/

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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