By: Jake AlonzoCharly Cone

Natalie BohmanMeredithe Marshall

Michael ScottMikey Via

Virginie Charlotte Milhaud

By: Jake AlonzoCharly Cone

Natalie BohmanMeredithe Marshall

Michael ScottMikey Via

Virginie Charlotte Milhaud

BLUE OCEAN STRATEGYChapter 4: Focus on Big

Picture, Not the Numbers

BLUE OCEAN STRATEGYChapter 4: Focus on Big

Picture, Not the Numbers

•Strategy canvas visualizes a company's current strategic position in its marketplace

•Strategy helps the company charts its future strategy.

•shows the strategic profile of an industry

•shows the strategic profile of competitors

•shows the company's strategic profile

Focus on the Big Picture

Before visualizing your future strategy…

You need to analyze to what extent your company and its competitors have competing factors (drawing a strategy canvas)Difficulty: Finding manager comfortable

along all dimensions to analyze well BOS describes a four step, structured

process that addresses the Strategy Canvas and plans future strategy. The Four Steps of Visualizing Strategy.

Step 1: Visual AwakeningStep 1: Visual AwakeningStep 2Visual Exploration

Step 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

Before you plan a new strategy, you must agree on the company’s current state in its industry. Company’s managers may not have clear, universal

understanding of what’s wrong with the company’s current state against competitors.

In this first step: Upper level managers from different locations must agree what their company’s value chain does compared to their competitors.

You cannot start discussing changes in company strategy until you resolve the differences of opinion from your leaders.

Step 1: Visual AwakeningStep 1: Visual AwakeningStep 2Visual Exploration

Step 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

The Book uses a 150 year old finance company that they make up a name for called European Financial Services (EFS) Example of Team opinions, formulating

company value chains Once managers decided on value chain,

realized company was investing in unfavorably diverse value factors compared to their main competitors such as banks.

Step 1: Visual AwakeningStep 1: Visual AwakeningStep 2Visual Exploration

Step 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

The Book uses a 150 year old finance company that they make up a name for called European Financial Services (EFS) Example of Team opinions, formulating

company value chains Once managers decided on value chain,

realized company was investing in unfavorably diverse value factors compared to their main competitors such as banks.

Step 2: Visual ExplorationStep 2: Visual ExplorationStep 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

“A company should never outsource its eyes”

• No substitute for seeing for yourself• Need to get into the field • Challenge the boundaries of

competition• Focus on the big picture

• Look at your CUSTOMERS• But also go after the NONCUSTOMERS• And actual USERS (if different from customers)

“A company should never outsource its eyes”

• No substitute for seeing for yourself• Need to get into the field • Challenge the boundaries of

competition• Focus on the big picture

• Look at your CUSTOMERS• But also go after the NONCUSTOMERS• And actual USERS (if different from customers)

Step 2: Visual ExplorationStep 2: Visual Exploration

Google Apps for Arizona State University

Google offered a full solution based on the final user needs and expectancies

The Google package includesApplication for e-mailApplication for agendaApplication for Instant messaging

Google Apps for Arizona State University

Google offered a full solution based on the final user needs and expectancies

The Google package includesApplication for e-mailApplication for agendaApplication for Instant messaging

Companies need to focus on complementary products and services that are consumed alongside their products or services

Companies need to offer a solution which respond to your consumers total needs

Finding the Blue Oceans alongside your industry

Companies need to focus on complementary products and services that are consumed alongside their products or services

Companies need to offer a solution which respond to your consumers total needs

Finding the Blue Oceans alongside your industry

Step 2: Visual ExplorationStep 2: Visual Exploration

Ex: Google

Search Engine

Sort Information

Up-to-date information

Translate information

Product and share

documents

Communicate and share

information

Collect official docs and articles

Step 3: Visual Strategy Fair

Step 3: Visual Strategy Fair

Step 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

Step 2Visual Exploration

•Draw your “to be” strategy canvas based on insights from field observations. •Get feedback on alternative strategy canvases, from customers, competitors’ customers, and noncustomers. •Use feedback to build the best “to be” future strategy

Step 3: Visual Strategy Fair

Step 3: Visual Strategy Fair

Step 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

Step 2Visual Exploration

After two weeks of drawing, the team presented a strategy canvas, also called Visual Strategy Fair. Senior Corporate executives including representatives of EPS’s external constituencies were among the Attendees for the fair The attendees where mangers that you met with during field trips, which included noncustomers, customers of competitors, and demanding EPS’s customers.

Step 3: Visual Strategy Fair

Step 3: Visual Strategy Fair

Step 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

Step 2Visual Exploration

•In two hours, the 12 teams were divided into 6 online groups and 6 offline groups where they presented the curves.  

•The groups had only 10 minutes to present because any longer would be confusing and under 10 minutes keeps your attention. http://www.youtube.com/watch?v=M66ZU2PCIcM

Step 3: Visual Strategy Fair

Step 3: Visual Strategy Fair

Step 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

Step 2Visual Exploration

•After the 12 groups presented, the judge picked its five favorite groups and explained their decision on their picks. •Also, the judge had to explain why they did not pick their other value curves.

Step 3: Visual Strategy Fair

Step 3: Visual Strategy Fair

Step 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

Step 2Visual Exploration

•Afterwards, the teams looked over what the judges disliked and liked. 

•1/3 of the what they thought was key competitive factors, another 1/3 was either were not well articulated or had overlooked the visual awakening phase.

Step 4: Visual CommunicationStep 4: Visual

CommunicationStep 1Visual Awakening

Step 3Visual Strategy Fair

Step 4Visual Communication

•Communicate in ways people can understand through visuals

•Pictures

•Charts

•Make easy references for employees to look at often and remember the what direction their company is headed.

•Google managements consideration of google maps and google earth.

Visualizing Strategy: Corporate level strategy

Goal: the transfer of strategic practices across the business units

Has to be efficient with a strong level of strategic management Like discussed in previous presentation

Create a blue ocean status rather then maintaining a red ocean

Using Strategy Canvas

captures the current state of play in the known market space. understand where the competition is currently investing and the factors that the industry competes on.Ex. Google with their music sharing program,

email, search engine, telecommunications it propels you to action by reorienting your

focus from competitors to alternatives and from customers and noncustomers of the industry.

Strategy Canvas Book Example

SamsungTelecommunications branch

Utilize team members from various business units to discuss strategic projectsHuge success, many high level positions

developed through increased business demand and successfulness

TRANSFER OF RED TO BLUE OCEANS Through this process of Samsung utilizing

innovation through the strategy canvas Google and the mail and now recently

the music program

Pioneer-Migrator-Settler PMS map

Way of highlighting the growth potential of current/future business conditionsPioneer – blue ocean strategists Migrator – in between settler and pioneerSettler – conform to the basic industry

standards, void of innovativeness in pioneers (Red Ocean)

Then plot the company's portfoliosWant to be a pioneer meaning want to be

innovative. Google is predominately a pioneer

Overcoming the Limitations of Strategic Planning

•In today business environment managers are dissatisfied with strategic planning.

•Strategic planning needs to be:•Should be more collective rather than using the centralization approach•More interaction and less documentation•Build on big picture•More commitment

Conclusion•Drawing a strategy canvas is not the only portion of strategic planning.

•The following three take aways will improve your chances of creating a blue ocean.

•Documents must be compiled and discussed•Start with the big picture of how to break away from your competition•Four methods of Visualizing Strategy