The VOC - voice of the customer -
the "CAGE MODEL"
Do you really need Innovation? (The CAGE Model and the Innovation Sweet Spot)
Most teams understand that Innovation has two main beneficiaries; the internal and external customers for the product, service, or software being developed. When you dig deep, you find these customers have many needs you must satisfy to earn their business. Some of the needs are obvious and some hidden (blatant and latent). To compound the issue, in every case we have seen, there are multiple customers with these needs.
Without external customers, internal customers are irrelevant because external customers put money into the value chain. On the other hand, if we only focus only on external customers and violate internal requirements we will also fail. It is important to have a comprehensive understanding of both the external and internal customer requirements to win in our increasingly competitive market.
To accomplish this deep understanding, it is first important to understand why many new products and services fail. Three specific reasons (root causes) most new products and services fail are listed below:
1. Missing value added features or qualities that differentiate your offering from the competition, i.e., Innovation)
2. Lack of understanding of your customer needs (i.e. Their top priorities)
3. Being “too” customer driven, i.e., believing and incorporating everything your customers tell you)
The CAGE Model shown in Figure 1 below illustrates critical elements that must be included and excluded for success in the marketplace. The graphic may look a little confusing at first glance, but is actually quite illuminating of the reality found with most development teams. In the below explanation, we will take you through a clear description of what the three main regions represent as well as a specific description on each of the “A-G” sub-regions that need to be understood for success.
