Methodology

Outcome-Driven Innovation (ODI)

Anthony Ulwick transformed JTBD into a quantitative innovation system. The key insight: customers may not know what they want, but they always know how they measure success. ODI converts those metrics into innovation opportunities.

Outcome medido Oportunidad Job to be done
The concept

What is Outcome-Driven Innovation?

Anthony Ulwick starts from a simple but powerful premise: when customers execute a job, they try to minimise or maximise a set of metrics. He calls these outcomes (desired results), and they are the fundamental unit of innovation.

An outcome is not a feature or a need — it is a success metric from the customer's perspective. For instance, when checking into a hotel, a customer measures "minimise wait time at reception" or "maximise clarity of information about available services". Those are the units ODI works with.

The ODI process identifies, structures and quantifies all these outcomes, then calculates which are underserved (high importance, low satisfaction) — that is the real space for innovation.

Anthony Ulwick
"Innovation fails not from lack of creativity, but from lack of the right data."
Key books
What Customers Want (2005)
Jobs to be Done: Theory to Practice (2016)
The core of ODI

The opportunity formula

At the quantitative heart of ODI is a formula that transforms importance and satisfaction data into innovation opportunity scores.

Opportunity = Importance + max(Importance − Satisfaction, 0)
Where Importance and Satisfaction are measured on 1–10 scales via surveys with real customers
10
Max. Importance (highly critical)
20
Maximum possible opportunity score
≥15
Threshold considered "high opportunity"

Why this formula?

The formula weights relative dissatisfaction: if something is very important but already well covered, the opportunity is low. If something is very important and poorly resolved, the opportunity is maximum. The max(I-S, 0) ensures over-served outcomes don't penalise the score.

Strategic segmentation

The opportunity matrix

ODI classifies all outcomes into four quadrants that define innovation strategy.

Innovation opportunity

High importance + low satisfaction. This is where to invest. Customers need it and nobody solves it well.

ODI score ≥ 15

Overserved market

High importance + high satisfaction. The market is already well served. Investing more here yields diminishing returns.

Risk: over-investment with no ROI

Table stakes

Low importance + low satisfaction. Customers don't care. Ignore or cover the bare minimum.

Low priority

Irrelevant excess

Low importance + high satisfaction. You're investing in something customers don't care about. Candidate for elimination.

Reduce investment

"Simplifying is not impoverishing the product; it's eliminating everything that doesn't contribute to real customer progress. The next winner in an overserved market is almost never the most complete. It's the most convenient."

— Toni Guitart, Innovation Newsletter, Chapter 39
Process structure

The Job Map

Ulwick describes every job as having a lifecycle with 8 universal phases. The Job Map decomposes the core job into these phases, enabling outcome identification at each stage.

1

Define

The customer sets objectives and plans the work.

2

Locate

Gathers the inputs needed to begin.

3

Prepare

Sets up the environment to execute the job.

4

Confirm

Verifies readiness to begin.

5

Execute

The core of the job. The most critical phase.

6

Monitor

Evaluates progress while executing.

7

Modify

Adjusts the process if something isn't working.

8

Conclude

Completes the job and handles the final outcome.

How to formulate an outcome

Minimise/Maximise [metric] of [object] when [context]
The outcome describes what the customer measures, not what they want to do.
Example 1 — Hotel
"Minimise the time needed to complete check-in."
Example 2 — B2B SaaS
"Minimise the time needed to generate a consolidated sales report."
Example 3 — Consulting
"Maximise the clarity of recommendations received to enable decision-making."
Practical case

Innovating in a hotel with ODI

A real analysis of how to apply ODI to identify the most valuable improvement opportunities in a hotel stay.

Guest job Key outcome Importance Satisfaction ODI Score Priority
Sleep Minimise ambient noise in the room 9.2 5.1 13.3 High
Sleep Maximise darkness in the room 8.7 5.8 11.6 High
Check-in Minimise wait time at reception 8.9 5.3 12.5 High
Shower Maximise water pressure in the shower 8.5 6.2 10.8 Medium
Work Maximise desk space and ergonomics 7.8 5.5 10.1 Medium
Wi-Fi Minimise connection time to the network 9.0 7.5 10.5 Medium
Breakfast Maximise variety of healthy options 7.2 6.8 7.6 Low

Illustrative data based on the analysis described in Chapter 23 of Toni Guitart's Innovation Newsletter.

ODI in SaaS startups

From hotels to digital products

The same process applies directly to the design and evolution of software products. User outcomes are the compass for the roadmap.

The hotel analysis above is developed step by step in Chapter 23 of my newsletter: how to apply ODI to the hotel guest experience, from outcome collection to final prioritisation.

Read Chapter 23 →

Define the roadmap

Instead of roadmaps based on gut feel or the loudest customer's requests, ODI generates a roadmap based on the objective opportunity score. Features with the highest ODI scores go first.

Avoid feature bloat

Overserved markets accumulate features nobody uses. ODI identifies what is overserved and enables the difficult but necessary decision to not add or even remove unnecessary functionality.

Find PMF

Product-Market Fit is not a feeling. It's when your product consistently resolves the outcomes with the highest ODI scores in your segment. ODI makes PMF measurable and repeatable.

See how JTBD and ODI work together

The combination of both methodologies is more powerful than either alone. Discover how I use them at Venturae.