Blue Ocean Strategy - example of ICanPilot

Blue Ocean StrategySailor’s Lessons Log

© iCanPilot 2010

All markets head towards commodity status

How do you differentiate in a meaningful way?

The commoditization curve is getting dangerous

It is time for a new track

PRICE ▼

We know we have got to change something

We need to transform our businesses

What is bigger: the risk of not changingor the fear of change?

NEWBUSINESS

MODEL

We are all looking for proven recipies & toolsthat we could apply with confidence

BLUEOCEAN

STRATEGY

BUSINESSMODEL

INNOVATION

DISRUPTIVEINNOVATION

LEAD USERRESEARCH

DESIGNTHINKING

CROWDSOURCING

OUTCOMEDRIVEN

INNOVATION

BLUE OCEAN STRATEGYis the simultaneous pursuit of high value and low cost

to create new market space.

Source: Kim & Mauborgne

Source: Kim & Mauborgne

Field WorkVisual Exploration

Visual Awakening

Module 1

Visual Exploration

Module II

Milestone /Calibration

Module III

Visual Strategy Fair

Module IV

Field WorkVisual Awakening

Field WorkVisual strategy Creation

Mapping theBusiness Portfolio

Visualize CurrentStrategy

UnderstandCustomer

Experience

Visual Exploration -Reconstruct

MarketBoundaries

IdentifyNon-customerCommonalities

Four Actions

Framework

Create Series of “To Be”StrategyCanvases

Visual Strategy

Fair

Final “To Be”

Strategy Canvas

1 2 3 5 6

7

48

9

Visual Awakening Visual Exploration Visual Communication

PMS Map“As Is”

Strategy Canvas Buyer Experience

Cycle

Six Paths Analysis

3 Tiers of Non-customers 4 Actions

“To Be” Strategy Canvas

“To Be” Strategy Canvas

Lesson #1. Visualize your current strategy on an AS IS Strategy Canvas

HIGH

LOW

Price Meals Seatingclass

choices

Lounges Hubconnectivity

Friendlyservice

Speed Frequentpoint-to

pointdepartures

Average Airlines

Southwest

CarTransport

Tagline: The Speed of a plane at the price &

flexibility of a car

Tagline: The Speed of a plane at the price &

flexibility of a car

Lesson #2. Stop focusing only on beating your competition

Compete in existing market space

Benchmark to beat the competition

Exploit existing demand with the existing customer base

Red Ocean Strategy

Create uncontested “market space”

Ignore & make

the competition irrelevant

Create & capture new demand from a new customer base

Blue Ocean Strategy

Source: Kim & Mauborgne, Blue Ocean Strategy

Lesson #3. Look at the non-customers of your industry

How do wereconstruct the marketboundaries?

Source: Nintendo Wii

Lesson #4. Use six paths framework to reconstruct market boundaries

How do wereconstruct the marketboundaries?

Alternatives& substitutes

Segments Chain of buyers

TrendsEmotional vsfunctional orientation

Complementary products

Look at alternatives.

Callaway Golf

Look at the chain of buyers.

NovoNordisk

Source: Novo Nordisk

Lesson #5. Look at the buyer experience cycle.

Yellow Tail

iCanPilot Case Study

Genesis

What if we offered the value of consulting to those who can’t afford it?

CUSTOMERS

NON-CUSTOMERS

What makes people hire a consultantvs. buy a book and do it themselves?

ERRC Grid

Eliminate• Consultant in sales &

delivery process

Reduce• Price

Raise• Ease of purchase• Ease of use• Ability to reuse the process

Create• DIY virtual facilitation

projectware• Practitioner community• Affiliate marketing

partnerships

iCanPilot Strategy Canvas

0

2

4

6

8

10

Price Get in-depthknowledge

about the themethod

Get confidencein taking theteam throughthe process

Minimisecomplexity

(mental effort)to implement

Make purchaseeasy

Increase theeffectiveness ofimplementation

Access to learnfrom other

practitioners

Increasedcapability for

future projects

iCanPilot

Consultant

Book

Course/seminar

The result

„It really feels like having Kay in the room with you”

Barry FleckFormer client

Summary

Every method lets you see things differently

Often when all is said and done, more is said than done.

The value is in shared language and joint action

www.icanpilot.com