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)
∞ IDEAL BLUE OCEAN (FINAL RESULT) Revenue BLUE OCEAN
Highly differentiated and premium-priced/free business model
Fractal Market Segmentation of ……………………………………………………………………….
Blue Ocean Strategy
(+): DELIGHT
RED OCEAN Red Ocean Strategy
Lowly differentiated and low-cost business model
(Uncontested Market Space or New Category)
(‐): PAIN
No. of Competitors
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: ……………………….…………………. WHERE WOULD YOU LIKE TO BE (IN 1/2/3 YEARS)? ‐ Future (Desired) Revenue: ……………………….…………………. ‐ Future No. of Direct Competitors: ……………………….…………………. ‐ Uncontested Customer Experience: ……………………….…………………………………. 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
2.
3.
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 Name of Product/Service/Facility: “Blue Ocean Strategy” book Customer’s Intent: To develop a Blue Ocean‐Business Model No. 1 Date: March 16, 2009
Functionality: To present tools for creating a Blue Ocean Strategy Business/Industry: Publishing/Business Education (Consulting)
Focus of Customer Experience: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal A1) • • • • • A2) • • • • • 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
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.
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.
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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Simplicity (How simple to read and immediately use?) Speed (How fast to read and digest?) Versatility (Application to many other situations?) Visuals (What percentage of illustrations?) Accessibility (Is it available everywhere on 24x7?) Level of Importance or Weight (1‐10) 1: Low; 10: High 9 9 7 8 10 Score for DELIGHT or NEED for Product/Service/Facility (1‐10) 1: Low; 10: High Average Blue Ocean Low‐end “Blue Ocean Bus. Model Alternative Alternative Strategy” book 8 2 8 9 7 8 2 5 4 3
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 1 Price (How expensive?) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Level of Importance or Weight (1‐10) 1: Low; 10: High 10
Score for PAIN or DISSATISFACTION for Product/ Service/Facility (1‐10) 1: Low; 10: High Blue Ocean Low‐end “Blue Ocean Average Bus. Model Alternative Alternative Strategy” book 1 8
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
Price 10 8 Accessibility 6 4 2 0 Simplicity
Visuals
Speed
Versatility "Blue Ocean Strategy" book
BOBM3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Blue Ocean‐Business Model
Template for Blue Ocean Actions
A1) SATISFIERS (+) Core strengths/features/requirements Action: Raise
* Differentiation/Novelty/Uniqueness * Visuals * Accessibility (24x7) * Integration/Connections/Collaboration
A2) DELIGHTERS (+) Breakthrough opportunities/features 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 Name of Product/Service/Facility: Blue Ocean‐Business Model
Date: March 16, 2009
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 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 Description of Best Current/ Future Resources
Online community Facilitators/IP on Business Models Computers/Online Library of Bus. Models Open collaboration/ innovation/marketing Blue Ocean Map/ Model/iPhone App Talks/Training/ Consulting/Licensing SN‐Internet/Word‐of‐ mouth/Volunteers Visual planners/entre‐ preneurs/startups Virtual/Physical Blue Ocean Strategy (BOS) Book/Trainers Users of BOS book Bus. Planners/NGOs Dr. Rod King Online/Global Freemium Pricing Hourly fees Royalties Defects: Six Sigma Delight/ Defects Delight/ Defects Novelty Visuals
Performance Objectives: 2010 Cost (‐) ($) Revenue (+) ($) Other Criteria
Producti‐vity
Blue Ocean Actions (Customer Experience Quotient) Raise (+) Create (+)
Functionality Versatility Complexity Reading time Price
Reduce (‐)
Eliminate Other (‐)
Initiatives/ Projects
Delight/ Pain
‐ Non‐customers ‐ Partners ‐ Investors ‐ Community/Gov. BUSINESS MODEL: (How does the organization work to deliver its ROI (%): value proposition to customers & investors?)
ROI
Business Experience Quotient
• •
“Fremium” Business Model Open Business Model Innovation/Collaboration
Blue Ocean Program
BOBM5.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
S W
O T
Impact (SOWT) Analysis Dashboard for Blue Ocean‐Business Model Project Name of Product/Service/Facility: Blue Ocean‐Business Model
Date: March 16, 2009
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 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 Description of Best Current/ Future Resources
Online community Facilitators/IP on Business Models Computers/Online Library of Bus. Models Open collaboration/ innovation/marketing Blue Ocean Map/ Model/iPhone App Talks/Training/ Consulting/Licensing SN‐Internet/Word‐of‐ mouth/Volunteers Visual planners/entre‐ preneurs/startups Virtual/Physical Blue Ocean Strategy (BOS) Book/Trainers Users of BOS book Bus. Planners/NGOs Dr. Rod King Online/Global Freemium Pricing Hourly fees Royalties Defects: Six Sigma Delight/ Defects Delight/ Defects Simple to use;Free Comprehensive Use by SMEs and entrepreneurs Sparse notes; focus is on visuals Unauthorized use in training
Performance Objectives: 2010 Cost: ‐ Revenue: + Other ($) ($) Criteria
Productivity Innovation
IMPACTS: Strengths, Opportunities, Weaknesses, and Threats S: Strengths (+) O: Opportunities (+) W: Weaknesses (‐) T: Threats (‐)
Delight/Pain
‐ Non‐customers ‐ Partners ‐ Investors ‐ Community/Gov. BUSINESS MODEL: (How does the organization work to deliver its ROI (%): value proposition to customers & investors?)
ROI
Business Experience Quotient
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 (Supersystem)
SPACE “BUILT TO LAST” (Product) “IN SEARCH OF EXCELLENCE” “BLUE OCEAN STRATEGY” “BLUE OCEAN‐BUSINESS MODELS” Environment BUSINESS MANAGEMENT CONCEPTS, THEORIES, AND TOOLS “BLUE OCEAN‐BUSINESS MODELS”
?
System
Elements
Highly successful habits or factors of companies that display extra‐ ordinary growth, profitability, and longevity
Concepts, tools, and strategic moves for explaining extra‐ ordinary business success as well as executing a Blue Ocean Strategy
Visual concepts and tools for mapping, designing, executing, and monitoring the performance of Blue Ocean Strategy as well as Blue Ocean‐Business Models
INITIAL IDEA (“SEED”)
Past
Present TIME
Future
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 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 1) Blue Ocean Map &
2) Blue Ocean Voice & Benchmarking of Voice
3 Questions for Your Blue Ocean‐ Business Model
3) Radial Strategy Canvas (Customer Experience Curve)
4) Blue Ocean Actions
BLUE OCEAN‐BUSINESS MODEL TOOLS FOR EXPONENTIAL BUSINESS GROWTH
5) Blue Ocean Dashboard, Impact (SOWT) Analysis Dashboard, & 4 Perspectives and Questions for Balancing a Blue Ocean Dashboard
6) Zoomable Blue Ocean Dashboard, Business Model Cost‐ streams and Workflow, & Business Model Revenue‐streams
7) TOMCAT (Trade‐Off Matrix)
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)
∞ IDEAL BLUE OCEAN (FINAL RESULT) Revenue BLUE OCEAN
Highly differentiated and premium-priced/free business model
Fractal Market Segmentation of ……………………………………………………………………….
Blue Ocean Strategy
(+): DELIGHT
RED OCEAN Red Ocean Strategy
Lowly differentiated and low-cost business model
(Uncontested Market Space or New Category)
(‐): PAIN
No. of Competitors
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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 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 Low‐end Average High‐end Object Alternative Alternative Alternative
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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
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 Low‐end Average High‐end Object Alternative Alternative Alternative
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 …………………………………………….………………………………………………………
Pain 1 10 8 Delight 5 6 4 2 0 Delight 1
Delight 4
Delight 2
Delight 3 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 Breakthrough opportunities/features Action: Create A2) DELIGHTERS (+)
Action: Raise
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 …………………………………………………………………………………………. Name of Product/Service/Facility: ……………………………..……………………..
Date: ……………………………….
Functionality: …………………………………………………………………….…
Customer Value Proposition: ……………………………………………………………………. Business/Industry: ………………..........…………………..….…………….. Goal/Objective: …………………………………………………………………………………………………………………………………………………………………………………………….
BUSINESS SYSTEM (“SEMPORCE”) ELEMENTS Description of Best Current/ Future Resources Performance Objectives: 20…… Cost: ‐ ($) Revenue: + ($) Other Criteria Blue Ocean Actions (Customer Experience Quotient) Raise (+) Create (+)
Reduce (‐)
Eliminate (‐)
Other
Initiatives/ Projects
S: Suppliers/Materials E: Employees/Know‐ ledge Assets/Culture M: Machinery/ Equipment/Facility P: Processes/ Activities O: Outputs ‐ Product ‐ Service R: Retailers/ Distributors/Channels C: Customers/ Consumers E: Environment ‐ Competitors ‐ Non‐customers ‐ Partners ‐ Investors ‐ Community/Gov. BUSINESS MODEL: (How does the organization work to deliver its ROI (%): value proposition to customers & investos?)
Business Experience Quotient
IDEAL BLUE OCEAN STRATEGY (How to create an uncon‐ tested customer experience and uncontested business model as well as make the competition irrelevant?)
Blue Ocean Program
BOBM5.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
S W
O T
Impact (SOWT) Analysis Dashboard for ………………………………………………………………………………. Name of Product/Service/Facility: ……………………………..……………………..
Date: ……………………………….
Functionality: …………………………………………………………………….…
Customer Value Proposition: ……………………………………………………………………. Business/Industry: ………………..........…………………..….…………….. Goal/Objective: ……………………………………………………………………………………………………………………………………………………….…………………..……………….
BUSINESS SYSTEM (“SEMPORCE”) ELEMENTS Description of Best Current/ Future Resources Performance Objectives: 20…… Cost: ‐ ($) Revenue: + ($) Other Criteria IMPACTS: Strengths, Opportunities, Weaknesses, and Threats 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 ROI (%): value proposition to customers & investors?)
Business Experience Quotient
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 • How will customers experience the greatest delight and least pain?
PROCESS PERSPECTIVE • What processes and strategies will generate extraordinary profit as well as deliver its value proposition to customers/consumers?
BOBM5.32. 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 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
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…….)
[Uncontested Customer Experience/ Customer Value Proposition/Business Goal (“BHAG”)/Strategic Intent/Vision/Ideal Solution/Revenue, Cost, Profit, and ROI]:
P: PROCESSES/STRATEGIES • • • • • Brand/PR/Marketing Strategy Revenue‐generating Strategy Cost‐reduction Strategy Value Innovation (Trade‐off) Strategy Competitive Advantage Strategy
C: CUSTOMERS/CONSUMERS
R: RETAILERS/DISTRIBUTORS/ CHANNELS/INTERFACE
O: OUTPUTS/PRODUCT/SERVICE
BOBM8.2. 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 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
Template for Business Model Cost‐streams and Workflow Template 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…….)
COST‐STREAMS/WORKFLOW:
P: PROCESSES/STRATEGIES • • • • • Procurement; HR Mngt; Operations Technology/R & D/Innovn/Production Marketing/Branding/PR/Sales Distribution/Logistics/Partnering Customer Service (Relationship Mngt)
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‐streams Template 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…….)
POSSIBLE SOURCES OF REVENUE:
P: PROCESSES/STRATEGIES • • • • • Sale of Product/Service/Information Subscription/Membership/Sale of Biz Transaction/Commission Fees Advertising/Affiliate/Partner Fees Licensing/Syndication/Sponsorship
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 (‐) Reduce/Eliminate (Relative to Industry Standard) (+) Raise/Create Value/Functionality 1 Quality/Automation 2 Performance/Productivity 3 Differentiation/Novelty/ 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Uniqueness/Form/Fractality Speed/Agility Aesthetics/Visual Appeal/Color Ease of Use/Simplicity Convenience of Use Customer Service/Support Fun/Entertainment/Adventure Star Performers/Celebrities Prestige/Legacy/Amenities Wide Choice/Versatility Hygiene/Cleanliness Integration/Connectivity Power/Strength/Wisdom Accuracy/Reliability Security/Safety/Health Collaboration/Communication Customization/Personalization
1
Cost
2
Mainten‐ ance/ Upgrade
3
Time (Delivery/ Aging)
4
5
6
7
Staff Depend‐ ency
8
9
10
Pain/ Barriers/ Pollution
Defects/ Weight/ Effort/ Complaints/ Size/ Friction/ Waste Tool Energy
Complexity/ Rigidity/ Information Inaccess‐ Overload ibility
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 (Supersystem)
SPACE PRESENT SYSTEM: Environment
System
INITIAL IDEA (“SEED”) Elements
Past
Present TIME
Future
BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
REFERENCES
1. 2. 3. 4. Kaplan, R.S.; Norton, D.P. (1996) The Balanced Scorecard. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston: Harvard Business School (HBS) Press. Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press. King, R. (2009) The Infinitely Zoomable Page: The Ideal Tool for Business Model Thinking, Design, and Innovation. Fresno: Ideal‐ Solution Management.
Dr. Rod King Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com