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Visual Tools for Comprehensively Assessing, Predicting, Designing, and Managing Blue Ocean Success(… and Red Ocean Failure?)
Dr. Rod KingThought Leader on Blue Ocean Success
BLUE OCEAN SUCCESS MANAGEMENT
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PERSONAL SUCCESS TOLLGATESWhat is (Multi-level) Personal Success? What is the Potential of Each Personal Tollgate for Blue Ocean Success?
UNIVERSAL Success
World (International) Success
Society (National) Success
Community (Local) Success
Family Success
Individual Success
Note: Blue Ocean = ‘Above Best-in-class’ = ‘Virtually Ideal’
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BLUE OCEAN SUCCESS IN BUSINESS
BUSINESS STRATEGY MATRIX
• How to more specifically get to desired business success?
TOOLS OF BLUE OCEAN SUCCESS
MANAGEMENT
SCALABLE MARKETS & SCENARIOS
• What is the main customer job, activity, and/or value proposition?• What tools/ecosystem do customers currently use to complete customer job?• What is ideal tool for completing job?
BLUE OCEAN RADAR
• Where is current business success?• Where is desired business success?• How to generally get to desired business success?• What is customer value proposition?
BUS. SUCCESS VOICE/SCOREBOARD
• What is the current business success?• What is the goal or desired/potential business success?• How to track or monitor performance?
BLUE OCEAN MAP
• Where is current business success?• Where is desired business success?• How to generally get to desired business success?
BLUE OCEAN COMPASS
• Where exactly is business success now?• Where exactly is desired success?• How to more specifically get to desired business success?• What is customer value proposition?
BUSINESS SUCCESS GOALS/TOLLGATES
• What are (multi-level) business goals/success?• What is the potential of each business goal/tollgate for Blue Ocean Success?
BUSINESS SUCCESS RADAR
• How to generally get to the desired business success?
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
TOOLS OF BLUE OCEAN SUCCESS MANAGEMENT
11
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
SIMPLE PROCESS FOR BLUE OCEAN SUCCESS MANAGEMENT
1. For each business success tollgate, • describe the existing and desired degree of success (positives and negatives).• quantify the existing and desired degree of success (positives and negatives).
2. Identify the most critical or “weakest” business tollgate, that is, the tollgate with the least degree of success.
3. For the weakest business tollgate, use resources within and across the business network to increase the degree of success to the level required for Blue Ocean Success.
4. GO TO STEP 2.
5. OTHERWISE, prepare, execute, and monitor plan of each business tollgate so that desired Blue Ocean Success is comprehensively achieved.
Note: There is a hierarchy of 6 business tollgates (goals, portals, or constraints) in business:Employees (Team); Product/Service Design; Customer; Business Investor; Value Chain (Business Model); Ecosystem. Interfaces include Distribution/Channels; Processes; Information Exchange.
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
HIERARCHY OF BUSINESS SUCCESS GOALSWhat are the Goals for Blue Ocean Success?
ECOSYSTEM (Industry) Success
Value Chain (Bus. Model) Success
Business Investor Success
Customer Success
Product or Service Design Success
Employees (Team) Success
Note: Blue Ocean = ‘Above Best-in-class’ = ‘Virtually Ideal’
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS TOLLGATESWhat is (Multi-level) Business Success? What is the Potential of Each Business Tollgate for Blue Ocean Success?
ECOSYSTEM (Industry) Success = Delight/Pain = Advantages/Disadvantages = 1/Degree of Trade-Off(Ideal Success involves Zero Trade-Off)
Value Chain (Bus. Model) Success = Strengths/Weaknesses = Opportunities/Threats(Ideal Success involves Zero Trade-Off)
Business Investor Success = Revenue/Cost = Reward/Risk(Ideal Success involves Zero Trade-Off)
Customer Success = Delightful Immersive Experience/Painful Experience
(Ideal Success involves Zero Trade-Off)
Product or Service Design Success = Useful Features/Harmful Features
(Ideal Success involves Zero Trade-Off)
Employees (Team) Success = Strengths/Weaknesses
(Ideal Success involves Zero Trade-Off)
Note: Blue Ocean = ‘Above Best-in-class’ = ‘Virtually Ideal’
ECOSYSTEM (Industry) SUCCESS
BLUE OCEAN SUCCESS IN A BUSINESS NETWORK:
BUSINESS MODEL/INVESTOR SUCCESS
DISTRIBUTION/CHANNELS SUCCESS
EMPLOYEES (TEAM) SUCCESS
CUSTOMER SUCCESS PRODUCT/SERVICE DESIGN SUCCESS
SUPPLIER SUCCESS MACHINERY/FACILITY SUCCESS
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ELEMENTS OF BLUE OCEAN SUCCESS IN A SCALABLE BUSINESS NETWORK
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Template for BUSINESS SUCCESS TOOLS(Strategic Questions)
SPACE/TIME/PROCESS BUSINESS GOALS
BLUE OCEAN(GOALS) SUCCESS
IDEAL (PERFECT) SUCCESS
ECOSYSTEM (Industry)Success (+/-)
10
VALUE CHAIN (BUS. MODEL) Success (+/-)
10
BUSINESS INVESTORSuccess (+/-)
10
CUSTOMERSuccess (+/-)
10
PRODUCT/SERVICE DESIGN Success (+/-)
10
EMPLOYEES (TEAM)Success (+/-)
10
Business/Sector/Ecosystem/Industry: …………………………………………….……………………………………….…………………
Note: Success = Delight (+)/Pain (-)For a quick evaluation, Success for each tollgate can be rated on an ordinal scale: from 1 (low) to 10 (high)
(Logo)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS VOICEWhat is the Current Business Success? What is the Goal or Desired/Potential Business Success?
TRADE-OFFS BUSINESS GOALS
PAIN (-) DELIGHT (+) BLUE OCEAN(GOALS) SUCCESS
IDEAL (PERFECT) SUCCESSPresent:
WEAKNESSESFuture:THREATS
Present:STRENGTHS
Future:OPPORTUNITIES
ECOSYSTEM (Industry)Success (+/-)
10
VALUE CHAIN (BUS. MODEL) Success (+/-)
10
BUSINESS INVESTORSuccess (+/-)
10
CUSTOMERSuccess (+/-)
10
PRODUCT/SERVICE DESIGN Success (+/-)
10
EMPLOYEES (TEAM)Success (+/-)
10
Business: …………………………………………………………………………….…………………………………………………….…………………
Note: Success = Delight (+)/Pain (-)For a quick evaluation, Success for each tollgate can be rated on an ordinal scale: from 1 (low) to 10 (high)
(Logo)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS SCOREBOARD What is the Current Business Success? What is the Desired/Potential Business Success?
SPACE/ TIME TOLLGATE
Business 1
Business 2
RED OCEANBUSINESS
BEST-IN- CLASS BUSINESS
BLUEOCEAN SUCCESS
IDEAL (PERFECT) SUCCESS
ECOSYSTEMSuccess (+/-)
Slow/saturated/declining sectorHighly competitive
Fast growing/emerg- ing/‘uncontested’ sector or industry
10
VALUE CHAIN (BUS. MODEL) Success (+/-)
Low costUndifferentiatedConventional
Low cost/Free/Freemium/PremiumNovel/Differentiated
10
BUSINESS INVESTORSuccess (+/-)
Average/declining/ low profit & ROIImitable IP
Extraordinary profit & ROIDefensible IP
10
CUSTOMERSuccess (+/-)
Average or small share of existing market (demand)
Extraordinary share of larger, emerging market (demand)
10
PRODUCT/SERVICE DESIGN Success (+/-)
Commoditized/ same experienceLarge trade-off
Unique/immersive/ social experienceLittle or no trade-off
10
EMPLOYEES (TEAM)Success (+/-)
Average compe-tence/experienceIn-the-box thinking
Highly competent/ experiencedInnovative/Creative
10
Sector/Ecosystem/Industry: …………………………………………….…………………………………………………….…………………
Note: Success = Delight (+)/Pain (-)For a quick evaluation, Success for each tollgate can be rated on an ordinal scale: from 1 (low) to 10 (high)
(Logo)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Customer Job/Value Proposition: ……………………………………………………………………………………….…………………
BUSINESS SUCCESS RADARHow to Generally Get to the Desired Business Success?
Name of Business: ………………………………………………………………………………………………………………………………………
Sector/Ecosystem/Industry: ………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
ECOSYSTEM Success
Employees (Team) Success
Product/Service Design Success
Customer Success
Business Investor Success
Value Chain (Business Model) Success
0
5
10
Business Success Radar for ………………………………………..
Ideal (Blue Ocean) Business Worst (Red Ocean) Business
ELEMENTS OF BUSINESS SUCCESS RADAR:
Competitive Advantage Strategies• Employees (Team) Strategy
• Product/Service Design Strategy
• Customer Strategy
• Business Investor Strategy
• Value Chain (Business Model) Strategy
• ECOSYSTEM (Industry) Strategy
Value Proposition
Targeted Customer Segments (Niches)
(Logo)
(Logo)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
OBJECTIVES/ ACTIVITIES BUSINESS STRATEGIES
ELIMINATE REDUCE INCREASE CREATE BLUE OCEAN (TARGET)SUCCESS
IDEAL SUCCESS(IMPACT)
ECOSYSTEM (Industry)STRATEGIES
10
VALUE CHAIN (BUS. MODEL) STRATEGIES
10
BUSINESS INVESTOR STRATEGIES
10
CUSTOMER STRATEGIES
10
PRODUCT/SERVICE DESIGN STRATEGIES
10
EMPLOYEES (TEAM) STRATEGIES
10
Customer Job/Value Proposition: ……………………………………………………………………………………….…………………
BUSINESS STRATEGY MATRIXHow to More Specifically Get to the Desired Business Success?
Name of Business: ………………………………………………………………………………………………………………………………………
Sector/Ecosystem/Industry: ………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
(Logo)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
OBJECTIVES/ ACTIVITIES BUSINESS STRATEGIES
ELIMINATE- Discard- Transfer- Outsource
REDUCE- Trim/Subtract- Segment- Nest/Merge
INCREASE- Add/Combine- Multiply/Separate- Expand
CREATE- Integrate- Reverse- (A)symmetric
BLUE OCEAN TARGET
IDEAL SUCCESS(IMPACT)
ECOSYSTEM (Industry)STRATEGIES
CompetitionSubsidiesDisadvantages
SubstitutesPainEntry barriers
CollaborationBus. IntelligenceBarriers to exit
PlatformNetwork effectsBarriers to entry
10
VALUE CHAIN (BUS. MODEL) STRATEGIES
Waste; PollutionInefficienciesDefects
IntermediariesWeaknesses Threats
Integration/MergerStrengthsOpportunities
PartnershipsDistribution Scalability/Niches
10
BUSINESS INVESTOR STRATEGIES
InventoryBarriersConstraints
Cost (Fixed)DebtRisk
Revenue; ROIMarket shareDigitalization; IP
BrandingAlignmentProcesses
10
CUSTOMER STRATEGIES
Trade-offsComplaintsDefects
PriceDelivery timeResponse time
Quality; Co-creationConvenienceDifferentiation
PersonalizationDiscountsLoyalty
10
PRODUCT/SERVICE DESIGN STRATEGIES
Harmful features ComplexityTrade-offs
Trade-offsSize; RigidityInaccessibility
Useful features Efficiency; SimplicityConvenience
Novel designSocial/fun ‘tool’Feedback
10
EMPLOYEES (TEAM) STRATEGIES
AbsenteeismLatenessApathy
TurnoverHazardsProject delay
ProductivityInnovation/SharingTraining/Learning
Core values Culture; TrustLeadership
10
Customer Job/Value Proposition: ……………………………………………………………………………………….…………………
BUSINESS STRATEGY MATRIXHow to Get to the Desired Business Success? (Checklist of Generic Strategies)
Name of Business: ………………………………………………………………………………………………………………………………………
Sector/Ecosystem/Industry: ………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
(Logo)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
SCENARIO
MARKET/TOOL
Business/Ecosystem: 1
Business/Ecosystem: 2
RED OCEANBUSINESS
BEST-IN-CLASS BUSINESS
BLUE OCEAN TARGET
IDEAL TOOL(IMPACT)
UNIVERSAL (Industry)TOOL (PRODUCT & PARTS)
10
WORLD/INTERNATIONALTOOL (PRODUCT & PARTS)
10
SOCIETY/NATIONALTOOL (PRODUCT & PARTS)
10
COMMUNITY/LOCALTOOL (PRODUCT & PARTS)
10
FAMILY/GROUP/BUSINESSTOOL (PRODUCT & PARTS)
10
PERSONAL/PORTABLETOOL (PRODUCT & PARTS)
10
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
SCALABLE MARKETS & SCENARIOSWhat are Alternative Markets, Opportunities, and Tools for Blue Ocean Success?
Name of Business: ………………….…………….…………..…………..……………………………………………………………………………
Sector/Ecosystem/Industry: ………………………….……………………………………………………………………………………………
Main Customer Job/Activity/Value Proposition: …………………………….……………………………………….…………………
(Logo)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
TIMELINE BUSINESS STRATEGIES
Month 1 Month 2 Month … CHAMPION(OWNER/ TEAM)
BLUE 0CEAN (TARGET)SUCCESS
IDEAL SUCCESS(IMPACT)
ECOSYSTEM (Industry)STRATEGIES
10
VALUE CHAIN (BUS. MODEL) STRATEGIES
10
BUSINESS INVESTOR STRATEGIES
10
CUSTOMER STRATEGIES
10
PRODUCT/SERVICE DESIGN STRATEGIES
10
EMPLOYEES (TEAM) STRATEGIES
10
Customer Job/Value Proposition: ……………………………………………………………………………………….…………………
PROGRAM CHART FOR BLUE OCEAN SUCCESS MANAGEMENTHow to Execute Strategies and Monitor Progress Towards the Desired Business Success?
Name of Business: ………………………………………………………………………………………………………………………………………
Sector/Ecosystem/Industry: ………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
(Logo)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CASE STUDY ON BLUE OCEAN SUCCESS MANAGEMENT
CIRQUE DU SOLEIL (Entertainment Sector)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS SCOREBOARD FOR CIRQUE DU SOLEILWhat is the Current Business Success? What is the Desired/Potential Business Success?
SPACE/ TIME BUSINESS GOALS
Ringling Bros & Barnum Circus
Smaller Regional Circuses
Live Theater(Non-circus)
BEST-IN- CLASS BUSINESS
CIRQUEDU SOLEIL TARGET
IDEAL (PERFECT) SUCCESS
ECOSYSTEM (Industry)Success (+/-)
Circus entertainmentDeclining demand
Live theater entertainmentGrowing demand
Circus-Theater entertainment High demand (6.5)
10
VALUE CHAIN (BUS. MODEL) Success (+/-)
Low costCommoditized/undifferentiated
High price/brand Premium priceNovel/unique/ differentiated (7)
10
BUSINESS INVESTORSuccess (+/-)
Average/declining profitCircus goer
High/growing profitTheater goer
Extraordinary profit & ROI/ircus-Theater goer (8)
10
CUSTOMERSuccess (+/-)
Fun & HumorThrill & DangerLow ticket price Animal cruelty
Theater/Artistic sophisticationHigh ticket priceRich experience
Circus/Theater sophisticationPremium priceRich experience (8)
10
PRODUCT/SERVICE DESIGN Success (+/-)
Circus showMultiple arenasAisle sales
Theatrical acts Single stageMusic/Dance
Circus-theater themes/stageMusic/Dance (8)
10
EMPLOYEES (TEAM)Success (+/-)
Star circus performersAnimal (shows)
ActorsDancersSingers
ActorsOrdinary circus performers (7)
10
Sector/Ecosystem/Industry: Live Acts/Entertainment
Note: Success = Delight (+)/Pain (-)For a quick evaluation, Success at each level can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Customer Job/Value Proposition: “High quality artistic entertainment”
BUSINESS SUCCESS RADARHow to Generally Get to the Desired Business Success?
Name of Business: Cirque du Soleil
Sector/Ecosystem/Industry: Live Acts/Entertainment
Mission: “To invoke the imagination, provoke the senses and evoke the emotions of people around the world”
ECOSYSTEM Success
Employees (Team) Success
Product/Service Design Success
CUSTOMER Success
Business Investor Success
Value Chain (Business Model) Success
0
5
10
Business Success Radar for CIRQUE DU SOLEIL
Ideal (Blue Ocean) Business Ringling Bros & Barnum Circus Cirque du Soleil
ELEMENTS OF BUSINESS SUCCESS RADAR:
Competitive Advantage Strategies• Employees (Team) Strategy Increase Employees Success to Level 7• Product/Service Design Strategy Increase Product/Service Success to Level 8• CUSTOMER Strategy Increase Customer Success to Level 8• Business Investor Strategy Increase Business Investor Success to Level 8• Value Chain (Business Model) Strategy Increase Value Chain Success to Level 7• ECOSYSTEM (Industry) Strategy Increase ECOSYSTEM Success to Level 6.5
Value PropositionHigh quality artistic entertainment
Targeted Customer Segments (Niches)• Circus-goers• Theater/Live Act-goers
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS STRATEGY MATRIXHow to More Specifically Get to the Desired Business Success?
OBJECTIVES/ ACTIVITIES BUSINESS STRATEGIES
ELIMINATE REDUCE INCREASE CREATE CIRQUEDU SOLEIL TARGET
IDEAL SUCCESS(IMPACT)
ECOSYSTEM (Industry)STRATEGIES
Direct (head-to-head) competition
Waste Market size Hybrid of Circus-Theater Entertainment
6.5 10
VALUE CHAIN (BUS. MODEL) STRATEGIES
InefficienciesEnvironmental pollution
Cost DifferentiationMarket shareValue added
Uncontested market space
7 10
BUSINESS INVESTOR STRATEGIES
WasteComplexityDefects
CostExcessesRedundancies
RevenueProfit; ROIValue
New prospects and customers
8 10
CUSTOMER STRATEGIES
Aisle (ticket) concessions
Fun & HumorThrill & Danger
Quality of artistic enter-tainment;
Themed act Music/DancePremium price
8 10
PRODUCT/SERVICE DESIGN STRATEGIES
Arenas Circus props/ equipment
Unique venueTicket price to premium
Theatrical themes and plots
8 10
EMPLOYEES (TEAM) STRATEGIES
Star performersAnimal (shows)
Actors 7 10
Customer Job/Value Proposition: “High quality artistic entertainment”
Name of Business: Cirque du Soleil
Sector/Ecosystem/Industry: Live Acts/Entertainment
Mission: “To invoke the imagination, provoke the senses and evoke the emotions of people around the world”
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CASE STUDY ONBLUE OCEAN SUCCESS MANAGEMENT
YOUTUBE (Technology Sector)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS SCOREBOARD FOR YOUTUBEWhat is the Current Business Success? What is the Desired/Potential Business Success?
SPACE/ TOOL BUSINESS GOALS
Web-storage/ hosting
E-mail(Hard disk)
Manual/DVD-R/Cassettes
BEST-IN- CLASS BUSINESS
YOUTUBE(TARGET)SUCCESS
IDEAL (PERFECT) SUCCESS
ECOSYSTEM (Industry)Success (+/-)
Video Experience-sharingGrowing demand
Video Experience-sharingDeclining demand
Video Experience-sharingGrowing demand
10
VALUE CHAIN (BUS. MODEL) Success (+/-)
FreemiumUndifferentiated
Low costCommoditized/undifferentiated
FreeNovel/unique/ differentiated (7)
10
BUSINESS INVESTORSuccess (+/-)
Low profit & ROIInternet user/ owner of content
Non-commercialHobbyists/Owners of video content
High number of registered usersInternet user
10
CUSTOMERSuccess (+/-)
Global accessibi-lity of videosFast accessHigh storage cost
Long hours of playHigh quality of videoSlow delivery timeCost of DVD-R
Global accessibility of videos/Free & instant accessSocial networking
10
PRODUCT/SERVICE DESIGN Success (+/-)
Viewed onlineLimited free spaceSlow loading time
Viewed on TV/VCR/ CamcorderDVD-R/Cassettes
Easy to use/OnlineLarge free spaceFast loading time
10
EMPLOYEES (TEAM)Success (+/-)
Professionals Hobbyists Experienced/ innovative professionals
10
Sector/Ecosystem/Industry: Video Experience-sharing/Online Social Network/Computing
Note: Success = Delight (+)/Pain (-)For a quick evaluation, Success at each level can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Customer Job/Value Proposition: “Broadcast Yourself”
BUSINESS SUCCESS RADARHow to Generally Get to the Desired Business Success?
Name of Business: YouTube
Sector/Ecosystem/Industry: Video Experience-sharing/Online Social Network/Computing
Mission: To easily and quickly share videos on the Internet and online communities
ECOSYSTEM Success
Employees (Team) Success
Product/Service Design Success
CUSTOMER Success
Business Investor Success
Value Chain (Business Model) Success
0
5
10
Business Success Radar for YOUTUBE
Ideal (Blue Ocean) Business Web-storage/Hosting YouTube
ELEMENTS OF BUSINESS SUCCESS RADAR:
Competitive Advantage Strategies• Employees (Team) Strategy Increase Employees Success to Level 8• Product/Service Design Strategy Increase Product/Service Success to Level 8• CUSTOMER Strategy Increase Customer Success to Level 8• Business Investor Strategy Increase Business Investor Success to Level 8• Value Chain (Business Model) Strategy Increase Value Chain Success to Level 8• ECOSYSTEM (Industry) Strategy Maintain ECOSYSTEM Success to Level 8
Value Proposition“Broadcast Yourself”
Targeted Customer Segments (Niches)• Hobbyists/Amateur owners of video content• Internet users
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS STRATEGY MATRIXHow to More Specifically Get to the Desired Business Success?
OBJECTIVES/ ACTIVITIES BUSINESS STRATEGIES
ELIMINATE REDUCE INCREASE CREATE YOU TUBE (TARGET)SUCCESS
IDEAL SUCCESS(IMPACT)
ECOSYSTEM (Industry)STRATEGIES
Direct (head-to-head) competition
Waste Market sizePotential for acquisition
Platform and social network for video-sharing
8 10
VALUE CHAIN (BUS. MODEL) STRATEGIES
Inefficiencies Cost DifferentiationMarket shareValue added
Uncontested market space
8 10
BUSINESS INVESTOR STRATEGIES
WasteComplexityDefects
CostExcessesRedundancies
Number of registered users
New prospects and customers
8 10
CUSTOMER STRATEGIES
Fees for storing videos
Inconvenience of uploading and sharing videos
Storage spaceSpeed of video up/download
Social networkWeb pages for video sharing
8 10
PRODUCT/SERVICE DESIGN STRATEGIES
Need for users to write scripts or html code
Time for upload-ing and down-loading videos
Storage spaceTags for video‘Findability’
Feedback/rating systemEmbed code
8 10
EMPLOYEES (TEAM) STRATEGIES
Word-of-mouth marketingViral videos
8 10
Customer Job/Value Proposition: “Broadcast Yourself”
Name of Business: YouTube
Sector/Ecosystem/Industry: Video Experience-sharing/Online Social Network/Computing
Mission: To easily and quickly share videos on the Internet and online communities
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CASE STUDY ON BLUE OCEAN SUCCESS MANAGEMENT
SOUTHWEST AIRLINES (Transportation Sector)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS SCOREBOARD FOR SOUTHWEST AIRLINESWhat is the Current Business Success? What is the Desired/Potential Business Success?
SPACE/ TIME BUSINESS GOALS
Average Airline
Car Transport
BEST-IN- CLASS BUSINESS
SOUTHWEST AIRLINES TARGET
IDEAL (PERFECT) SUCCESS
ECOSYSTEM (Industry)Success (+/-)
Short-haul transportationGrowing demand
Short-haul transportationGrowing demand
Short-haul transportationGrowing demand (7)
10
VALUE CHAIN (BUS. MODEL) Success (+/-)
Low costCommoditized/undifferentiated
Low costCommoditized/undifferentiated
Low cost/’No frills’Novel/unique/Differentiated (7)
10
BUSINESS INVESTORSuccess (+/-)
Average profitIntercity traveler
Low profitIntracity traveler
High profitFrequent low-cost traveler (8)
10
CUSTOMERSuccess (+/-)
Fast travelTiered seatingLow ticket price
Slow travelDelaysLow fare
Faster travel at lower cost/Friendly service/On time (8)
10
PRODUCT/SERVICE DESIGN Success (+/-)
Lounges/MealsHub-and-spoke departures
No lounge/mealFrequent point-to-point departures
Small lounge/mealFrequent point-to-point departures (8)
10
EMPLOYEES (TEAM)Success (+/-)
PilotsCrewGround staff
Driver PilotsCrewGround staff (8)
10
Sector/Ecosystem/Industry: Short-haul Airlines/Transportation
Note: Success = Delight (+)/Pain (-)For a quick evaluation, Success at each level can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Customer Job/Value Proposition: “The Speed of a Plane at the Price of a Car …”
BUSINESS SUCCESS RADARHow to Generally Get to the Desired Business Success?
Name of Business: Southwest Airlines
Sector/Ecosystem/Industry: Short-haul Airlines/Transportation
Mission: “Dedication to the Highest Quality of Customer Service …”
ECOSYSTEM Success
Employees (Team) Success
Product/Service Design Success
CUSTOMER Success
Business Investor Success
Value Chain (Business Model) Success
0
5
10
Business Success Radar for SOUTHWEST AIRLINES
Ideal (Blue Ocean) Business Average Airline Southwest Airlines
ELEMENTS OF BUSINESS SUCCESS RADAR:
Competitive Advantage Strategies• Employees (Team) Strategy Increase Employees Success to Level 8• Product/Service Design Strategy Increase Product/Service Success to Level 8• CUSTOMER Strategy Increase Customer Success to Level 8• Business Investor Strategy Increase Business Investor Success to Level 8• Value Chain (Business Model) Strategy Increase Value Chain Success to Level 7• ECOSYSTEM (Industry) Strategy Maintain ECOSYSTEM Success to Level 7
Value Proposition“The Speed of a Plane at the Price of a Car …”
Targeted Customer Segments (Niches)• Frequent, low-cost traveler
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS STRATEGY MATRIXHow to More Specifically Get to the Desired Business Success?
OBJECTIVES/ ACTIVITIES BUSINESS NETWORK
ELIMINATE REDUCE INCREASE CREATE CIRQUEDU SOLEIL TARGET
IDEAL SUCCESS(IMPACT)
ECOSYSTEM (Industry)STRATEGIES
Direct (head-to-head) competition
Waste Market size Hybrid of inter-city and intra-city travelers
7 10
VALUE CHAIN (BUS. MODEL) STRATEGIES
InefficienciesEnvironmental pollution
CostTravel agents
DifferentiationMarket shareValue added
Uncontested market space
7 10
BUSINESS INVESTOR STRATEGIES
WasteComplexityDefects
CostExcessesRedundancies
RevenueProfit; ROIValue
New prospects and customersFuel hedging
8 10
CUSTOMER STRATEGIES
Tier of seating Size of meals/lounges
Speed/flexibility of travel/No. of free luggage
Friendly serviceHumor
8 10
PRODUCT/SERVICE DESIGN STRATEGIES
In-flight entertainment
Landing fees by not using main airports
Standardization of aircraftsUsage of aircraft
Frequent point-to-point departures
8 10
EMPLOYEES (TEAM) STRATEGIES
Turnaround timeUnion member-ship
Friendly and fun service/Profit-sharing plan
8 10
Customer Job/Value Proposition: “The Speed of a Plane at the Price of a Car …”
Name of Business: Southwest Airlines
Sector/Ecosystem/Industry: Short-haul Airlines/Transportation
Mission: “Dedication to the Highest Quality of Customer Service …”
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.
3. Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press.
4. King, R. (2009) The Zoomable Radial Grid: A Simple Visual Tool for Managing and GeneratingIdeas in Multi-disciplinary Teams. Fresno, California: Value Quotient Management.
Dr. Rod King
Thought Leader, Consultant, and Trainer on Blue Ocean Success Management
[email protected] & http://businessmodels.ning.comhttp://twitter.com/RodKuhnKing
REFERENCES