Blue Ocean Strategy Book vs Blue Ocean Business Model_Dr Rod King

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

[email protected] & http://businessmodels.ning.com

mailto:[email protected]

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)

∞

Revenu

e

Highly differentiated and premium-priced/free business model

Lowly differentiated and low-cost business model

(+): DELIGHT

Blue

Ocean

Strategy

(‐): PAIN

BLUE OCEAN

RED OCEAN

No. of Competitors (Uncontested Market Space or New Category)

Red Ocean Strategy

BOBM1.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & 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




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. [email protected] & 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)?

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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)


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




B) CUSTOMER PAIN AND DISSATISFACTION

Item List below what you DON’T like or would NOT need regarding the Object: Product/Service/ Facility


Score for PAIN or DISSATISFACTION for Product/ Service/Facility (1‐10) 1: Low; 10: High Blue Ocean Bus. Model


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




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. [email protected] & 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




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 (%):




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



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


Facilitators/IP on Business Models

ProductivityInnovation


Computers/Online Library of Bus. Models


Open collaboration/ innovation/marketing

Defects: Six Sigma


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


SN‐Internet/Word‐of‐mouth/Volunteers


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 Experience Quotient ROI (%):




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?




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”


“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. [email protected] & http://businessmodels.ning.com BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & 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)

∞

Revenu

e

Highly differentiated and premium-priced/free business model

Lowly differentiated and low-cost business model

(+): DELIGHT

Blue

Ocean

Strategy

(‐): PAIN

BLUE OCEAN

RED OCEAN

No. of Competitors (Uncontested Market Space or New Category)

Red Ocean Strategy




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




BLUE OCEAN VOICE

A) QUESTIONS FOR DETERMINING CUSTOMER DELIGHT AND NEEDS No……… Date: …….…………….…….…..

Name of Product/Service/Facility: ……………………………………………………………… Functionality: ……………….………………….…………….…..……………………

Customer’s Intent: ……………..……………………………………….…………………..……...… Business/Industry: ………………..........…………………..…….……………..


A1) What do you like regarding the object (product/service/facility)?

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

A2) What would you need regarding the object (product/service/facility)?

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

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………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

B) QUESTIONS FOR DETERMINING CUSTOMER PAIN AND DISSATISFACTION BOBM2.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com



B1) What DON’T you like regarding the object (product/service/facility)?

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

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………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

B2) What DON’T you need regarding the object (product/service/facility)?

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..

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BENCHMARKING OF VOICE (VOICE OF INDEPENDENT CUSTOMER EXPERIENCE) No……… Date: …….…………….…………..

Name of Product/Service/Facility: ……………………………………………………………… Functionality: ……………….………………….…………….…..……………………

Customer’s Intent: ……………..……………………………………….…………………..……...… Business/Industry: …………………………………..…….……………….……..


A) CUSTOMER DELIGHT AND NEEDS

Item List below what you like or would need regarding the Object: Product/Service/Facility


Score for DELIGHT or NEED for Product/Service/Facility (1‐10) 1: Low; 10: High Given Object


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




B) CUSTOMER PAIN AND DISSATISFACTION

Item List below what you DON’T like or would NOT need regarding the Object: Product/Service/ Facility


Score for PAIN or DISSATISFACTION for Product/ Service/Facility (1‐10) 1: Low; 10: High Given Object


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




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




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




Blue Ocean Dashboard for …………………………………………………………………………………………. Date: ……………………………….

Name of Product/Service/Facility: ……………………………..…………………….. Functionality: …………………………………………………………………….…

Customer Value Proposition: ……………………………………………………………………. Business/Industry: ………………..........…………………..….……………..

Goal/Objective: …………………………………………………………………………………………………………………………………………………………………………………………….



Performance Objectives: 20…… Blue Ocean Actions (Customer Experience Quotient) Initiatives/ Projects Cost: ‐

($) Revenue: + ($)

Other Criteria

Raise (+)

Create (+)

Reduce (‐)

Eliminate (‐)

Other

S: Suppliers/Materials





‐ Service



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 (%):




Impact (SOWT) Analysis Dashboard for ………………………………………………………………………………. Date: ……………………………….

S O

W T

Name of Product/Service/Facility: ……………………………..…………………….. Functionality: …………………………………………………………………….…

Customer Value Proposition: ……………………………………………………………………. Business/Industry: ………………..........…………………..….……………..

Goal/Objective: ……………………………………………………………………………………………………………………………………………………….…………………..……………….



Performance Objectives: 20…… IMPACTS: Strengths, Opportunities, Weaknesses, and Threats

Cost: ‐ ($)

Revenue: + ($)

Other Criteria

S: Strengths (+)

O: Opportunities (+)

W: Weaknesses (‐)

T: Threats (‐)

S: Suppliers/Materials





‐ Service



E: Environment

‐ Competitors

‐ Non‐customers

‐ Partners

‐ Investors

‐ Community/Gov.


Business Experience Quotient ROI (%):

BOBM5.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM5.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & 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?




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. [email protected] & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM5.32. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & 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. [email protected] & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM6.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com BOBM6.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. [email protected] & 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


• Partners

• Investors



• Procurement; HR Mngt; Operations

• Technology/R & D/Innovn/Production

• Marketing/Branding/PR/Sales

• Distribution/Logistics/Partnering

• Customer Service (Relationship Mngt)

COST‐STREAMS/WORKFLOW:







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


• Partners

• Investors



• Sale of Product/Service/Information

• Subscription/Membership/Sale of Biz

• Transaction/Commission Fees

• Advertising/Affiliate/Partner Fees

• Licensing/Syndication/Sponsorship

POSSIBLE SOURCES OF REVENUE:







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




Template for a Classic Zoomable Page




Template for Illustrating Evolution of a System

INITIAL IDEA (“SEED”)

TIME

Past Present Future

Elements

System

Environment (Supersystem)

SPACE

PRESENT SYSTEM:




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.

[email protected] & http://businessmodels.ning.com

Dr. Rod King



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Blue Ocean Strategy Book vs Blue Ocean Business Model_Dr Rod King