Source: Transforming Strategy One Customer at a Time
By Richard J. Harrington and Anthony K. Tjan
Harward business Review
In this article, Tijan , Thomson’s Ceo and Harrington, a consultant who advised him, describe how the company adopted a user-centric mind set initially in the Thomson Financial division and then throughout the organization. First came a redefinition of the division’s market, which was mapped not by type of purchaser but by eight end-user segments. That gave Thomson a clear view of the division’s real, addressable market and of corresponding opportunities. After conducting surveys and “day in the life” observations of users, Thomson charted their entire work flow, beginning with what they were doing three minutes before and after using a product, and saw where the organization could add value. Then, through cluster and conjoint analysis, the company determined how pain points and product preferences varied among the users. With that information, Thomson was able to identify three clusters of customers in one segment and develop three categories of offerings.Since beginning to implement this approach, Thomson has changed radically. Its revenue now comes mostly from digital, not print, products, and it generates twice the operating profit and four times the free cash flow it did 10 years ago. In a market that changes by the day, Thomson’s revenue is unusually predictable and profitable.

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