When utilizing a product or service, a customer is trying to accomplish a job. What really matters to the customer is the ability to accomplish that job effectively. However, the specific job to be done is not always clear in all aspects to the customers or users you want to target. The Job-to-be done approach helps you to identify opportunities for new or improved products and services that solve problems customer’s have.
Market sizing with traditional methods, defines the dimension of an opportunity based on current industry definitions. E.g. the programmatic advertising market or the VOIP market size. This method misses opportunities that lies in the near and medium future. The truth is that markets are defined by customers needs. In rapid changing industries needs changes as well over a relatively short period of time. Market size is indeed defined by the number of people or organizations that have a specific need. Market size variability critically depends on trends and innovations happening in your and adjacent industries.
Segmentation, targeting and competitive analysis are crucial to spot an opportunity worth to pursue. When looking at segmentation through the lens of the job-to-be-done methodology you want to identify jobs/problems and the magnitude of pain felt by the players in the specific segments you have identified. Competitive analysis is based on evaluating how well these needs are answered today by solutions present in your industry as well as in adjacent industries. You select your competitive terrain with a entrepreneurial approach to focus on the most relevant opportunity. Where is the unmet need is the strongest and the competitors answers inadequate to fully satisfy that need? In rapidly changing industries additional complications arise from the speed with which trends can be identified and predicted. Thus the process of segmentation and targeting in this industries is highly interactive and recurs over short time periods.
Value capture through M&A activities should be focused at identify targets, possibly start ups, that have been able to solve a job-to-done un-meet need or have shown substantial achievements in this direction. Nevertheless, we also suggest to look at portion of technologies and business models that may become a building block for a new product or service your company is working on. This second approach requires a deeper analysis on a variety of factors that span from the core un-meet need and job to be done to the various technology stacks involved in this. Finally in cases where organizational constraints hamper the opportunity to pursue a new growth initiative; spinning offs the initiative to a motivated team ready to execute is key to successful growth strategy.