MGN815: Business Models

AJAY CHANDEL
Lecture Outcomes
Towards the end of this lecture, You should be able to:
1. Understand ‘Jobs to be done’ perspective
2. Apply ‘Jobs to be done’ perspective in designing new CVP as an attempt to Business model
innovation
3. Understand the application of ‘Jobs to be done’ perspective in designing new CVP by
studying some real life case studies
 A) Creating new profit formula
Creating
The first
challenge B)
Identifyin Identifying unfulfilled customer jobs
in business g
model C)
innovation Creating
Creating new key processes

is:
D) Creating new key resources
Creating
DentCo Dilemma
 A dental device company "DentCo" had carved out a profitable niche with a disruptive
technology that broke the skills barrier to consumption. 
 The product allowed general-practice dentists to perform a tooth-straightening procedure
that once only orthodontic specialists could do. 
 When competitors started offering similar products at much lower prices, DentCo faced a
choice: 
A. It could engage in a price war that would devalue the entire market, or
B. It could find another way to counter the opposition
If You were DentCo., What would you
do?
Possible Solutions
1. Most companies in DentCo’s situation would begin their market analysis by asking the
dental practitioner (either directly or through a market study): “What attributes do you
seek in a dental product?”. This is called the needs-based or voice-of-the-customer
approach.   (The problem with this approach is redundant responses)
2. Defining and redefining customer segments based on 'Product features' or 'Target market
demographics. (Nothing innovative)
3. Competition analysis 
 Which of the following depicts “Jobs to
be done” perspective:
A. I need an iPod
B. When I go running, I need an iPod
C. When I go running, I need to motivate myself and hence I need an iPod
D. When I go running, to motivate myself I usually listen to my favourite music and hence need
an iPod.
 1. When DentCo asked dentists and orthodontists what they
were trying to get done during their workday, the question
yielded a very different set of market segments and some
real answers.

Jobs to be done 2. To start, DentCo realized that all its customers wanted to
build a successful practice.
Perspective 3. Building a successful practice truly meant: 
I. Offering patients the most current care, 
II. Managing a successful business, and 
III. Establishing a reputation.
 Dentists Successful Practice

Through the course of asking what gets in the way of accomplishing these jobs, DentCo identified the
major barriers to consumption of existing solutions for these jobs:
1. Time: New products and procedures that would fulfill the job of building a successful practice
require new skills and time to train staff members. And to dentists and orthodontists, time is money,
since they are typically paid by procedure, no matter how long it takes.
"Milkshake Marketing"
Marketers spent a long day watching people in one of the restaurants to see what they were
trying to get done when they “hired” a milkshake. 
They noted what time it was when each milkshake was bought
1. Which other products were bought with it?
2. Who was with the customers when they made their purchases?
3. Whether people drank the shakes on the premises or sped off in their cars before downing
them?
Emotional Jobs; Aspirations