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BLUE OCEAN STRATEGY vs. BLUE OCEAN‐BUSINESS MODEL
Instantly Learn and Apply Best Practice Tools for Exponential Business Growth
Dr. Rod King
Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Blue Ocean Map (“One‐Page Blue Ocean Strategy” for Simply Mapping, Designing, Executing, and Monitoring a Blue Ocean Strategy)
Fractal Market Segmentation of ………………………………………………………………………. IDEAL BLUE OCEAN (FINAL RESULT)
∞
Highly differentiated and premium-priced/free business model
Commoditized and low-cost business model
(+): DELIGHT
Revenu
e
Blue
Ocean
Plan
(‐): PAIN
BLUE OCEAN Experience
RED OCEAN Experience
No. of Competitors (Uncontested Experience, Market Space, or New Category)
Strategic Choice Red Ocean Plan
BOBM1.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
3 QUESTIONS FOR YOUR BLUE OCEAN‐BUSINESS MODEL
1. WHERE ARE YOU AT THE MOMENT (IN THE INDUSTRY)? ‐ Current Revenue: ……………………….…………………. ‐ Current No. of Direct Competitors: ……………………….………………….
2. WHERE WOULD YOU LIKE TO BE (IN 1/2/3 YEARS)?
‐ Future (Desired) Revenue: ……………………….…………………. ‐ Future No. of Direct Competitors: ……………………….…………………. ‐ Uncontested Customer Experience: ……………………….………………………………….
3. HOW WILL YOU GET TO THE BLUE OCEAN? ‐ Design, Test, and Validate Blue Ocean Strategy ‐ Design, Test, and Validate Blue Ocean‐Business Model ‐ Implement and Monitor Blue Ocean Strategy as well as Blue Ocean‐Business Model
‐ Adapt Blue Ocean Strategy and Blue Ocean‐Business Model, as Necessary
BOBM1.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BLUE OCEAN VOICE FOR “BLUE OCEAN STRATEGY BOOK” vs. “BLUE OCEAN‐BUSINESS MODEL”
A) QUESTIONS FOR DETERMINING CUSTOMER DELIGHT AND NEEDS No. 1 Date: March 16, 2009
Name of Product/Service/Facility: “Blue Ocean Strategy” book Functionality: To present tools for creating a Blue Ocean Strategy
Customer’s Intent: To develop a Blue Ocean‐Business Model Business/Industry: Publishing/Business Education (Consulting)
Focus of Customer Experience: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
A1) What do you like regarding the object (product/service/facility)?
• Compelling storytelling and presentation of cases illustrating use of the Blue Ocean Strategy.
• Metaphor that distinguishes Red and Blue Ocean companies as well as their market spaces.
• Blue Ocean Strategy move as more critical than static historical factors in explaining extraordinary success in business.
• Methodology for Blue Ocean Strategy that integrates tools for strategic marketing, branding, Value Innovation, and strategy execution.
• Focus of Blue Ocean Strategy on non‐customers and reconstruction of existing market boundaries.
A2) What would you need regarding the object (product/service/facility)?
• A Software Application/Manual for systematically using methodology or process for Blue Ocean Strategy.
• A Software Application/Manual for systematically developing Blue Ocean‐Business Models.
• Instructions for systematically developing tactics, action plans, and projects with a view to implementing Blue Ocean Strategy.
• Workflow for translating, executing, and monitoring a Blue Ocean Strategy as in the case of using the Balanced Scorecard.
• Applications/Examples of using the Blue Ocean Strategy in public sector and NGO projects such as in urban planning and social business.
B) QUESTIONS FOR DETERMINING CUSTOMER PAIN AND DISSATISFACTION BOBM2.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
B1) What DON’T you like regarding the object (product/service/facility)?
• The Blue Ocean Strategy book is not easy to fully understand. A Blue Ocean Strategy cannot immediately be developed. No procedure is described for recognizing, selecting, and ‘weighing’ the importance of factors or dimensions on the Strategy Canvas. There is no distinction between factors of customer delight and factors of customer pain. Also, there is no systematic procedure or tactics for eliminating emerging trade‐offs on the Strategy Canvas. Further, the Four Actions Framework (Eliminate‐Reduce‐Raise‐Create) is not linked to a process such as brainstorming for generating and evaluating more specific ideas, initiatives, and targets/success criteria.
• Reading the whole book of 216 pages takes an inordinate amount of time.
• The Blue Ocean Strategy is targeted at the private sector. The framework in the book does not facilitate application of Blue Ocean Strategy to public sector projects. In particular, Blue Ocean Strategy is not presented as a methodology for creative problem solving and innovation.
• The book largely consists of text; very little graphics.
• The Blue Ocean Strategy book is not ubiquitously available.
• The book costs US$27.95 (rather expensive!).
B2) What DON’T you need regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
BOBM2.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BENCHMARKING OF VOICE No……… Date: March 16, 2009
Name of Product/Service/Facility: BOS book/Blue Ocean‐Bus. Model Functionality: To quickly develop business models
Customer’s Intent: To develop a Blue Ocean‐Business Model Business/Industry: Publishing/Business Education (Consulting)
Focus of Customer Experience: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
A) CUSTOMER DELIGHT AND NEEDS
Item List below what you like or would need regarding the Object: Product/Service/Facility
Level of Importance or Weight (1‐10) 1: Low; 10: High
Score for DELIGHT or NEED for Product/Service/Facility (1‐10) 1: Low; 10: High Blue Ocean Bus. Model
Low‐end Alternative
Average Alternative
“Blue Ocean Strategy” book
1 Simplicity (How simple to read and immediately use?)
9 8 2
2 Speed (How fast to read and digest?) 9 8 2 3 Versatility (Application to many other situations?) 7 9 5 4 Visuals (What percentage of illustrations?) 8 7 4 5 Accessibility (Is it available everywhere on 24x7?) 10 8 3 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
BOBM2.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
B) CUSTOMER PAIN AND DISSATISFACTION
Item List below what you DON’T like or would NOT need regarding the Object: Product/Service/ Facility
Level of Importance or Weight (1‐10) 1: Low; 10: High
Score for PAIN or DISSATISFACTION for Product/ Service/Facility (1‐10) 1: Low; 10: High Blue Ocean Bus. Model
Low‐end Alternative
Average Alternative
“Blue Ocean Strategy” book
1 Price (How expensive?) 10 1 8 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
BOBM2.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
RADIAL STRATEGY CANVAS (CUSTOMER EXPERIENCE CURVE) FOR “BLUE OCEAN STRATEGY” BOOK vs. BLUE OCEAN‐BUSINESS MODEL
0
2
4
6
8
10Price
Simplicity
Speed
Versatility
Visuals
Accessibility
"Blue Ocean Strategy" book Blue Ocean‐Business Model
BOBM3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Template for Blue Ocean Actions
A1) SATISFIERS (+)
Core strengths/features/requirements
A2) DELIGHTERS (+)
Breakthrough opportunities/features
Action: Raise * Differentiation/Novelty/Uniqueness * Visuals * Accessibility (24x7) * Integration/Connections/Collaboration
Action: Create * Value/Functionality: Visual (iPhone) App for Blue Ocean Map and Business Models * Versatility: Private and Public Projects; NGO
BLUE OCEAN ACTIONS: Template for Organizing Responses to
Questions for Creating Uncontested Customer Experiences
PRODUCT/SERVICE/FACILITY:
BLUE OCEAN‐BUSINESS MODEL
B1) DISSATISFIERS (‐)
Basic weaknesses/features/needs
Action: Reduce * Complexity/Information Overload * Time for Reading
B2) WASTERS (‐)
‘Threats’ or overshot or wasteful features
Action: Eliminate * Price
BOBM4. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Blue Ocean Dashboard for Blue Ocean‐Business Model Project Date: March 16, 2009
Name of Product/Service/Facility: Blue Ocean‐Business Model Functionality: To visually develop Blue Ocean‐Business Models
Customer Value Proposition: “Blue Ocean‐Business Models in No Time” Business/Industry: Publishing/Business Education (Consulting)
Goal/Objective: To create an uncontested customer experience, acquire massive amount of customers, and make the competition irrelevant
BUSINESS SYSTEM (“SEMPORCE”) ELEMENTS
Description of Best Current/ Future Resources
Performance Objectives: 2010 Blue Ocean Actions (Customer Experience Quotient) Initiatives/ Projects Cost (‐)
($) Revenue (+) ($)
Other Criteria
Raise (+)
Create (+)
Reduce (‐)
Eliminate (‐)
Other
S: Suppliers/Materials Online community
E: Employees/Know‐ledge Assets/Culture
Facilitators/IP on Business Models
Producti‐vity
M: Machinery/ Equipment/Facility
Computers/Online Library of Bus. Models
P: Processes/ Activities
Open collaboration/ innovation/marketing
Defects: Six Sigma
O: Outputs ‐ Product
Blue Ocean Map/ Model/iPhone App
FreemiumPricing
Delight/ Defects
Novelty Visuals
FunctionalityVersatility
ComplexityReading time
Price
‐ Service Talks/Training/ Consulting/Licensing
Hourly feesRoyalties
Delight/ Defects
R: Retailers/ Distributors/Channels
SN‐Internet/Word‐of‐mouth/Volunteers
C: Customers/ Consumers
Visual planners/entre‐preneurs/startups
Delight/ Pain
E: Environment Virtual/Physical
‐ Competitors Blue Ocean Strategy (BOS) Book/Trainers
‐ Non‐customers Users of BOS book
‐ Partners Bus. Planners/NGOs
‐ Investors Dr. Rod King ROI
‐ Community/Gov. Online/Global
BUSINESS MODEL: (How does the organization work to deliver its value proposition to customers & investors?)
Business Experience Quotient
• “Fremium” Business Model • Open Business Model Innovation/Collaboration
Blue Ocean Program
ROI (%):
BOBM5.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Impact (SOWT) Analysis Dashboard for Blue Ocean‐Business Model Project Date: March 16, 2009
S O
W T
Name of Product/Service/Facility: Blue Ocean‐Business Model Functionality: To visually develop Blue Ocean‐Business Models
Customer Value Proposition: “Blue Ocean‐Business Models in No Time” Business/Industry: Publishing/Business Education (Consulting)
Goal/Objective: To create an uncontested customer experience, acquire massive amount of customers, and make the competition irrelevant
BUSINESS SYSTEM (“SEMPORCE”) ELEMENTS
Description of Best Current/ Future Resources
Performance Objectives: 2010 IMPACTS: Strengths, Opportunities, Weaknesses, and Threats
Cost: ‐ ($)
Revenue: + ($)
Other Criteria
S: Strengths (+)
O: Opportunities (+)
W: Weaknesses (‐)
T: Threats (‐)
S: Suppliers/Materials Online community
E: Employees/Know‐ledge Assets/Culture
Facilitators/IP on Business Models
ProductivityInnovation
M: Machinery/ Equipment/Facility
Computers/Online Library of Bus. Models
P: Processes/ Activities
Open collaboration/ innovation/marketing
Defects: Six Sigma
O: Outputs ‐ Product
Blue Ocean Map/ Model/iPhone App
FreemiumPricing
Delight/ Defects
Simple to use;FreeComprehensive
Use by SMEs and entrepreneurs
Sparse notes; focus is on visuals
Unauthorized use in training
‐ Service Talks/Training/ Consulting/Licensing
Hourly feesRoyalties
Delight/ Defects
R: Retailers/ Distributors/Channels
SN‐Internet/Word‐of‐mouth/Volunteers
C: Customers/ Consumers
Visual planners/entre‐preneurs/startups
Delight/Pain
E: Environment Virtual/Physical
‐ Competitors Blue Ocean Strategy (BOS) Book/Trainers
‐ Non‐customers Users of BOS book
‐ Partners Bus. Planners/NGOs
‐ Investors Dr. Rod King ROI
‐ Community/Gov. Online/Global
BUSINESS MODEL: (How does the organization work to deliver its value proposition to customers & investors?)
Business Experience Quotient ROI (%):
BOBM5.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
4 PERSPECTIVES AND QUESTIONS FOR BALANCING A BLUE OCEAN DASHBOARD
1. INVESTOR PERSPECTIVE ‐ HOW WILL THE BUSINESS MAKE MORE MONEY (EXTRAORDINARY PROFIT)?
2. CUSTOMER PERSPECTIVE
‐ HOW WILL CUSTOMERS EXPERIENCE THE GREATEST DELIGHT AND LEAST PAIN?
3. PROCESS PERSPECTIVE ‐ WHAT PROCESSES AND STRATEGIES WILL GENERATE EXTRAORDINARY PROFIT AS WELL AS DELIVER ITS VALUE PROPOSITION TO CUSTOMERS/CONSUMERS?
4. EMPLOYEE PERSPECTIVE ‐ WHAT ATTRIBUTES, SKILLS, COMPETENCES, RESOURCES, AND OUTPUTS SHOULD EMPLOYEES HAVE IN ORDER TO SUSTAIN A WORKFLOW AND CULTURE THAT DELIVER EXTRAORDINARY VALUE TO CUSTOMERS AND INVESTORS?
BOBM5.31. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Evolution of Business Management Concepts and Tools That Explain Extraordinary Growth and Profitability of Businesses
INITIAL IDEA (“SEED”)
BUSINESS MANAGEMENT CONCEPTS, THEORIES, AND TOOLS
TIME
Past Present Future
Elements
System (Product)
Environment (Supersystem)
SPACE
“BLUE OCEAN STRATEGY”
BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
“BLUE OCEAN‐BUSINESS MODELS” ?
Concepts, tools, and strategic moves for explaining extra‐ordinary business success as well as executing a Blue Ocean Strategy
“BUILT TO LAST”
“IN SEARCH OF EXCELLENCE”
“BLUE OCEAN‐BUSINESS MODELS”
Highly successful habits or factorsof companies that display extra‐ordinary growth, profitability, and longevity
Visual concepts and tools for mapping, designing, executing, and monitoring the performance of Blue Ocean Strategy as well as Blue Ocean‐Business Models
BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Portfolio of Tools for Developing Blue Ocean‐Business Models
7) TOMCAT (Trade‐Off Matrix) 6) Zoomable Blue Ocean Dashboard, Business Model Cost‐streams and Workflow, & Business Model Revenue‐streams
5) Blue Ocean Dashboard, Impact (SOWT) Analysis Dashboard, & 4 Perspectives and Questions for Balancing a Blue Ocean Dashboard
BLUE OCEAN‐BUSINESS MODEL TOOLS FOR EXPONENTIAL
BUSINESS GROWTH
4) Blue Ocean Actions
3) Radial Strategy Canvas (Customer Experience Curve)
2) Blue Ocean Voice &
Benchmarking of Voice
1) Blue Ocean Map &
3 Questions for Your Blue Ocean‐Business Model
8) Template of Classic Zoomable Page & Template of System Evolution
Blue Ocean Map (“One‐Page Blue Ocean Strategy” for Simply Mapping, Designing, Executing, and Monitoring a Blue Ocean Strategy)
Fractal Market Segmentation of ………………………………………………………………………. IDEAL BLUE OCEAN (FINAL RESULT)
∞
Highly differentiated and premium-priced/free business model
Commoditized and low-cost business model
(+): DELIGHT
Revenu
e
Blue
Ocean
Plan
(‐): PAIN No. of Competitors (Uncontested Experience, Market Space, or New Category)
Red Ocean Plan
BLUE OCEAN Experience
RED OCEAN Experience
Strategic Choice
BOBM1.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
3 QUESTIONS FOR YOUR BLUE OCEAN‐BUSINESS MODEL
1. WHERE ARE YOU AT THE MOMENT (IN THE INDUSTRY)? ‐ Current Revenue: ……………………….…………………. ‐ Current No. of Direct Competitors: ………………………………………….
2. WHERE WOULD YOU LIKE TO BE (IN 1/2/3 YEARS)?
‐ Future (Desired) Revenue: …………………….……………………. ‐ Future No. of Direct Competitors: …………………………………………. ‐ Uncontested Customer Experience: ……………………….………………………………….
3. HOW WILL YOU GET TO THE BLUE OCEAN? ‐ Design, Test, and Validate Blue Ocean Strategy ‐ Design, Test, and Validate Blue Ocean‐Business Model ‐ Implement and Monitor Blue Ocean Strategy as well as Blue Ocean‐Business Model
‐ Adapt Blue Ocean Strategy and Blue Ocean‐Business Model, as Necessary
BOBM1.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BLUE OCEAN VOICE
A) QUESTIONS FOR DETERMINING CUSTOMER DELIGHT AND NEEDS No……… Date: …….…………….…….…..
Name of Product/Service/Facility: ……………………………………………………………… Functionality: ……………….………………….…………….…..……………………
Customer’s Intent: ……………..……………………………………….…………………..……...… Business/Industry: ………………..........…………………..…….……………..
Focus of Customer Experience: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
A1) What do you like regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
A2) What would you need regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
B) QUESTIONS FOR DETERMINING CUSTOMER PAIN AND DISSATISFACTION BOBM2.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
B1) What DON’T you like regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
B2) What DON’T you need regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
BOBM2.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BENCHMARKING OF VOICE (VOICE OF INDEPENDENT CUSTOMER EXPERIENCE) No……… Date: …….…………….…………..
Name of Product/Service/Facility: ……………………………………………………………… Functionality: ……………….………………….…………….…..……………………
Customer’s Intent: ……………..……………………………………….…………………..……...… Business/Industry: …………………………………..…….……………….……..
Focus of Customer Experience: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
A) CUSTOMER DELIGHT AND NEEDS
Item List below what you like or would need regarding the Object: Product/Service/Facility
Level of Importance or Weight (1‐10) 1: Low; 10: High
Score for DELIGHT or NEED for Product/Service/Facility (1‐10) 1: Low; 10: High Given Object
Low‐end Alternative
Average Alternative
High‐end Alternative
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
BOBM2.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
B) CUSTOMER PAIN AND DISSATISFACTION
Item List below what you DON’T like or would NOT need regarding the Object: Product/Service/ Facility
Level of Importance or Weight (1‐10) 1: Low; 10: High
Score for PAIN or DISSATISFACTION for Product/ Service/Facility (1‐10) 1: Low; 10: High Given Object
Low‐end Alternative
Average Alternative
High‐end Alternative
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
BOBM2.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
RADIAL STRATEGY CANVAS (CUSTOMER EXPERIENCE CURVE) FOR …………………………………………….………………………………………………………
0
2
4
6
8
10Pain 1
Delight 1
Delight 2
Delight 3
Delight 4
Delight 5
Worst Product Ideal Product
BOBM3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Template for Blue Ocean Actions
A1) SATISFIERS (+)
Core strengths/features/requirements
Action: Raise
A2) DELIGHTERS (+)
Breakthrough opportunities/features
Action: Create
BLUE OCEAN ACTIONS: Template for Organizing Responses to
Questions for Creating Uncontested Customer Experiences
PRODUCT/SERVICE/FACILITY:
B1) DISSATISFIERS (‐)
Basic weaknesses/features/needs
Action: Reduce
B2) WASTERS (‐)
‘Threats’ or overshot or wasteful features
Action: Eliminate
BOBM4. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Blue Ocean Dashboard for …………………………………………………………………………………………. Date: ……………………………….
Name of Product/Service/Facility: ……………………………..…………………….. Functionality: …………………………………………………………………….…
Customer Value Proposition: ……………………………………………………………………. Business/Industry: ………………..........…………………..….……………..
Goal/Objective: …………………………………………………………………………………………………………………………………………………………………………………………….
BUSINESS SYSTEM (“SEMPORCE”) ELEMENTS
Description of Best Current/ Future Resources
Performance Objectives: 20…… Blue Ocean Actions (Customer Experience Quotient) Initiatives/ Projects Cost: ‐
($) Revenue: + ($)
Other Criteria
Raise (+)
Create (+)
Reduce (‐)
Eliminate (‐)
Other
S: Suppliers/Materials
E: Employees/Know‐ledge Assets/Culture
M: Machinery/ Equipment/Facility
P: Processes/ Activities
O: Outputs ‐ Product
‐ Service
R: Retailers/ Distributors/Channels
C: Customers/ Consumers
E: Environment
‐ Competitors
‐ Non‐customers
‐ Partners
‐ Investors
‐ Community/Gov.
BUSINESS MODEL: (How does the organization work to deliver its value proposition to customers & investos?)
Business Experience Quotient
IDEAL BLUE OCEAN STRATEGY (How to create an uncon‐tested customer experience and uncontested business model as well as make the competition irrelevant?)
Blue Ocean Program
ROI (%):
BOBM5.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Impact (SOWT) Analysis Dashboard for ………………………………………………………………………………. Date: ……………………………….
S O
W T
Name of Product/Service/Facility: ……………………………..…………………….. Functionality: …………………………………………………………………….…
Customer Value Proposition: ……………………………………………………………………. Business/Industry: ………………..........…………………..….……………..
Goal/Objective: ……………………………………………………………………………………………………………………………………………………….…………………..……………….
BUSINESS SYSTEM (“SEMPORCE”) ELEMENTS
Description of Best Current/ Future Resources
Performance Objectives: 20…… IMPACTS: Strengths, Opportunities, Weaknesses, and Threats
Cost: ‐ ($)
Revenue: + ($)
Other Criteria
S: Strengths (+)
O: Opportunities (+)
W: Weaknesses (‐)
T: Threats (‐)
S: Suppliers/Materials
E: Employees/Know‐ledge Assets/Culture
M: Machinery/ Equipment/Facility
P: Processes/ Activities
O: Outputs ‐ Product
‐ Service
R: Retailers/ Distributors/Channels
C: Customers/ Consumers
E: Environment
‐ Competitors
‐ Non‐customers
‐ Partners
‐ Investors
‐ Community/Gov.
BUSINESS MODEL: (How does the organization work to deliver its value proposition to customers & investors?)
Business Experience Quotient ROI (%):
BOBM5.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM5.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
4 PERSPECTIVES AND QUESTIONS FOR BALANCING A BLUE OCEAN DASHBOARD
1. INVESTOR PERSPECTIVE ‐ HOW WILL THE BUSINESS MAKE MORE MONEY (EXTRAORDINARY PROFIT)?
2. CUSTOMER PERSPECTIVE
‐ HOW WILL CUSTOMERS EXPERIENCE THE GREATEST DELIGHT AND LEAST PAIN?
3. PROCESS PERSPECTIVE ‐ WHAT PROCESSES AND STRATEGIES WILL GENERATE EXTRAORDINARY PROFIT AS WELL AS DELIVER ITS VALUE PROPOSITION TO CUSTOMERS/CONSUMERS?
4. EMPLOYEE PERSPECTIVE ‐ WHAT ATTRIBUTES, SKILLS, COMPETENCES, RESOURCES, AND OUTPUTS SHOULD EMPLOYEES HAVE IN ORDER TO SUSTAIN A WORKFLOW AND CULTURE THAT DELIVER EXTRAORDINARY VALUE TO CUSTOMERS AND INVESTORS?
BOBM5.31. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Template for 4 Perspectives and Questions for Balancing a Blue Ocean Dashboard
INVESTOR PERSPECTIVE
• How will the business make more money (extraordinary profit)?
EMPLOYEE PERSPECTIVE
• What attributes, skills, resources, and outputs should employees have in order to sustain a workflow and culture that deliver extraordinary value to customers and investors?
4 PERSPECTIVES AND
QUESTIONS FOR BALANCING A BLUE OCEAN DASHBOARD
CUSTOMER PERSPECTIVE PROCESS PERSPECTIVE
• What processes and strategies will generate extraordinary profit as well as deliver its value proposition to customers/consumers?
• How will customers experience the greatest delight and least pain?
BOBM6.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM5.32. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Template for Zoomable Blue Ocean Dashboard Template for Zoomable Blue Ocean Dashboard
S: SUPPLIERS/MATERIALS E: EMPLOYEES/KNOWLEDGE ASSETS/
CULTURE M: MACHINERY/EQUIPMENT/ FACILITY
E: ENVIRONMENT
• Competitors
• Non‐customers/Non‐consumers
• Partners
• Investors
• Gov./Community/Society/Env.
BUSINESS MODEL (20…….) P: PROCESSES/STRATEGIES
• Brand/PR/Marketing Strategy
• Revenue‐generating Strategy
• Cost‐reduction Strategy
• Value Innovation (Trade‐off) Strategy
• Competitive Advantage Strategy
[Uncontested Customer Experience/ Customer Value Proposition/Business Goal (“BHAG”)/Strategic Intent/Vision/Ideal Solution/Revenue, Cost, Profit, and ROI]:
C: CUSTOMERS/CONSUMERS
R: RETAILERS/DISTRIBUTORS/ CHANNELS/INTERFACE
O: OUTPUTS/PRODUCT/SERVICE
BOBM6.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM6.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com BOBM6.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Template for Business Model Cost‐streams and WorkflowTemplate for Business Model Cost‐streams and Workflow
S: SUPPLIERS/MATERIALS E: EMPLOYEES/KNOWLEDGE ASSETS/ CULTURE
M: MACHINERY/EQUIPMENT/ FACILITY
E: ENVIRONMENT
• Competitors
• Non‐customers/Non‐consumers
• Partners
• Investors
• Gov./Community/Society/Env.
BUSINESS MODEL (20…….) P: PROCESSES/STRATEGIES
• Procurement; HR Mngt; Operations
• Technology/R & D/Innovn/Production
• Marketing/Branding/PR/Sales
• Distribution/Logistics/Partnering
• Customer Service (Relationship Mngt)
COST‐STREAMS/WORKFLOW:
C: CUSTOMERS/CONSUMERS
R: RETAILERS/DISTRIBUTORS/ CHANNELS/INTERFACE
O: OUTPUTS/PRODUCT/SERVICE
BOBM6.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Template for Business Model Revenue‐streamsTemplate for Business Model Revenue‐streams
S: SUPPLIERS/MATERIALS E: EMPLOYEES/KNOWLEDGE ASSETS/
CULTURE
M: MACHINERY/EQUIPMENT/ FACILITY
E: ENVIRONMENT
• Competitors
• Non‐customers/Non‐consumers
• Partners
• Investors
• Gov./Community/Society/Env.
BUSINESS MODEL (20…….) P: PROCESSES/STRATEGIES
• Sale of Product/Service/Information
• Subscription/Membership/Sale of Biz
• Transaction/Commission Fees
• Advertising/Affiliate/Partner Fees
• Licensing/Syndication/Sponsorship
POSSIBLE SOURCES OF REVENUE:
C: CUSTOMERS/CONSUMERS
R: RETAILERS/DISTRIBUTORS/ CHANNELS/INTERFACE
O: OUTPUTS/PRODUCT/SERVICE
BOBM6.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
TOMCAT (Trade‐Off Matrix of Customer Aspirations And Troubles): How to Quickly Organize and Document Blue Ocean‐Business Models as well as Determine (Non‐)Customer Trade‐offs, Value Propositions, Business Opportunities, Strategies, and Design/Brainstorming Objectives
Customer’s Intent/Job: ……………..……………………………………….…………………..……...… (Non‐)Customers/Industry: ……………….…………………….……..
Focus of (Non‐)Customer: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
Breakthrough Question: HOW TO MAKE (THE PRODUCT/ENTERPRISE/INDUSTRY OF) ……………..……………......……….…….....……… IRRELEVANT?
(Non‐)Customer Needs (‐) 1 2 3 4 5 6 7 8 9 10 (+)
Reduce/Eliminate (Relative to Industry Standard) Raise/Create
Cost Mainten‐ance/ Upgrade
Time (Delivery/ Aging)
Defects/ Complaints/ Waste
Weight/ Size/ Tool
Effort/ Friction/Energy
Staff Depend‐ency
Complexity/ Information Overload
Rigidity/ Inaccess‐ibility
Pain/ Barriers/ Pollution
1 Value/Functionality 2 Quality/Automation 3 Performance/Productivity 4 Differentiation/Novelty/
Uniqueness/Form/Fractality
5 Speed/Agility 6 Aesthetics/Visual Appeal/Color 7 Ease of Use/Simplicity 8 Convenience of Use 9 Customer Service/Support 10 Fun/Entertainment/Adventure 11 Star Performers/Celebrities 12 Prestige/Legacy/Amenities 13 Wide Choice/Versatility 14 Hygiene/Cleanliness 15 Integration/Connectivity 16 Power/Strength/Wisdom 17 Accuracy/Reliability 18 Security/Safety/Health 19 Collaboration/Communication 20 Customization/Personalization
BOBM7. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Template for a Classic Zoomable Page
BOBM8.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Template for Illustrating Evolution of a System
INITIAL IDEA (“SEED”)
TIME
Past Present Future
Elements
System
Environment (Supersystem)
SPACE
PRESENT SYSTEM:
BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
REFERENCES
1. Kaplan, R.S.; Norton, D.P. (1996) The Balanced Scorecard. Boston: Harvard Business School (HBS) Press.
2. Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston: Harvard Business School (HBS) Press.
Consultant & Trainer on Business Model Analysis, Design, and Innovation
3. Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press.
4. King, R. (2009) The Infinitely Zoomable Page: The Ideal Tool for Business Model Thinking, Design, and Innovation. Fresno: Ideal‐Solution Management.
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Dr. Rod King