BLUE OCEAN‐PERFORMANCE DASHBOARD FOR RIM’S BLACKBERRY
Dr. Rod King Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
General Information on the Tool of BLUE OCEAN DASHBOARD
WHAT? The Blue Ocean Dashboard is a tool that seamlessly integrates the three most powerful tools for business management: Value (Supply) Chain; Blue Ocean Strategy; Balanced Scorecard WHO? • • • • • Business executives; managers Business planners; strategic planners Small, medium, and large enterprises Practitioners of Blue Ocean Strategy Practitioners of Balanced Scorecard WHERE? • • • • Online: http://businessmodels.ning.com Talks; Seminars Workshops; Training Consulting
WHY? • • • ‘One‐Page Business Management’ Faster; Simpler; Free; Holistic Integrated approach to managing value (supply) chain, strategy, performance, and business model
BLUE OCEAN DASHBOARD:
A Faster and More Profitable Way to Manage Strategies and Business Models
WHEN? • • • • • Starting a business (from idea stage) Generating more revenue Further reducing cost Facing competition in the ‘Red Ocean’ For uncontested customer experience
HOW? • • • “Where currently are you (in the industry?)” “Where do you want to go?” “How will you get to the Blue Ocean? What strategy and business model?”
HOW MUCH? • • Free online (open innovation): http://businessmodels.ning.com Otherwise, contact Dr. Rod King: rodkuhnking@sbcglobal.net
WHAT NEXT? • • • iPhone application for the Blue Ocean‐Performance Dashboard Software/social network for Blue Ocean‐Performance Dashboard Partners for Collaborative Projects
BOBM8B. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Company Overview of RESEARCH IN MOTION (RIM) – BlackBerry Author(s): Dr. Rod King (rodkuhnking@sbcglobal.net)
COMPANY BACKGROUND • • • • Location: Waterloo, Canada Founder(s): Mike Lazaridis; Doug Fregin Revenue: US$3.04 billion (2007) No. of Direct Competitors: BUSINESS/INDUSTRY • • • Industry: Telecommunication Niche: Personal/Wireless/Cell phone/ Smartphone Model: Business to Consumer (B2C); Business to Business (B2B)
Date: April 3, 2009 Ref.: …………………………………..…………………….
PRODUCTS/SERVICES • Cell phone: BlackBerry Smartphone
CUSTOMER VALUE PROPOSITION • • • Secure cell phone for corporations Secure company e‐mail that can be accessed anywhere and at any time Wearable, unobtrusive, real time, 24x7, and low cost “pager” (laptop)
COMPANY OVERVIEW OF:
RESEARCH IN MOTION (RIM) – BlackBerry
CUSTOMER BENEFITS/EXPERIENCE • • • • • Simpler user interface /Easy to use Secure e‐mail access everywhere High reliability/Long battery life Web browsing capability Savings in training and support costs
MAIN GOAL/OBJECTIVE/STRATEGY Blue Ocean Strategy: to provide a highly desirable and uncontested customer experience while making the competition irrelevant
VISION • “Connect to everything you love in life” “Ideal solution for productivity and profitability”
MISSION
•
BOBM8A. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Blue Ocean Map for RESEARCH IN MOTION’S BlackBerry (vs. Pagers): Strategic Journey to the Blue Ocean
∞ IDEAL BLUE OCEAN (FINAL RESULT) BLUE OCEAN for BlackBerry Smartphone Cell phones/PDAs/ Smartphones Fractal Market Segmentation of Personal Telecommunication Tools
Revenue
RED OCEAN for Pagers
Lowly differentiated and low-cost business model
Blue Ocean Strategy
(+): DELIGHT
Red Ocean Strategy
(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
Blue Ocean Dashboard for RESEARCH IN MOTION (RIM) Name of Product/Service/Facility: BlackBerry
Date: April 3, 2009
Functionality: Cell phone/PDA/“Pager”/Smartphone Business/Industry: Telecommunication: Personal
Customer Value Proposition: Secure e‐mail access everywhere 24x7
Goal/Objective: To create an uncontested customer experience and uncontested business model as well as make the competition irrelevant
BUSINESS SYSTEM (“SEMPORCE”) RELATIONSHIPS S: Suppliers/Materials Description of Best Current/ Future Resources Performance Objectives: 2007 Cost: ‐ Revenue: + ($) ($) Other Criteria
Defects Productivity Innovation Defects Quality; ROI Customer Experience Quotient (EQ) Service EQ Channel EQ Customer EQ & Retention Env. quality Market share No. of prospects Partner EQ Joint ventures Share price No. of Projects No. of filed patents/IP Revenue Reliability Integration Battery life Training R & D Customers Ease of use Security Folders
Blue Ocean Actions (Relative to Industry Standard) Raise (+) Create (+) Reduce (‐)
Bargaining power Absenteeism Waste Cost Training time Support cost Defects
Eliminate (‐)
Defects Turnover Delays Defects Defects Complexity Installation time
Other
Initiatives/ Projects
E: Employees/Know‐ ledge Assets/Culture M: Machinery, etc. P: Processes/Activities BlackBerry Smartphone O: Outputs ‐ Product ‐ Service R: Retailers/Channels C: Customers/ Consumers E: Environment ‐ Competitors ‐ ‐ Non‐customers Partners
E‐mail client software BlackBerry Smartphone Corporate workers/ Enterprise/Gov. Nokia/Apple/Palm/ Treo/Motorola Users of pagers/ budget cell phones Nokia/Motorola/HTC Software developers
Sale of product Subscription Sale of product Sale of product
(Six Sigma) (Blue Ocean Strategy/ Innovation)
Bargaining power Exit/Entry barriers Entry/Exit barriers Bargaining power; Risks
Exit/Entry barriers Threat of substitutes Entry barriers (Competitive Strategy)
Software license
Alliances
‐ Investors ‐ Community/Gov. BUSINESS MODEL: RIM – BlackBerry (How does the organization work to deliver its value proposition to customers and investors?)
(Local)
ROI (%):
US$3.07b
Business Experience Quotient
IDEAL BLUE OCEAN STRATEGY (How to create an uncontested 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
Checklist on 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 the organization’s 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
TOMCAT (Trade‐Off) Matrix: Categories of trade‐offs that are resolved by RIM’s BlackBerry/Opportunities for Blue Ocean Products Customer’s Intent/Job: To securely access e‐mails at all times (Non‐)Customers/Industry: Telecommunication: Personal
Focus of (Non‐)Customer: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal Breakthrough Question: HOW TO MAKE (THE PRODUCT/ENTERPRISE/INDUSTRY OF) PAGERS IRRELEVANT?
(Non‐)Customer Needs (‐) Reduce/Eliminate (Relative to Industry Standard) (+) Raise/Create 1 Value/Functionality 2 Quality/Automation 3 Performance/Productivity 4 Differentiation/Novelty/… 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 1 Cost 2 Mainten‐ ance/ Upgrade 3 Time (Delivery/ Aging) 4 Defects/ Complaints/ Waste 5 Weight/ Size/ Tool 6 Effort/ Friction/ Energy 7 Staff Depend‐ ency BlackBerry 8 Complexity/ Information Overload 9 Rigidity/ Inaccess‐ ibility BlackBerry 10 Pain/ Barriers/ Pollution
BlackBerry BlackBerry BlackBerry BlackBerry BlackBerry BlackBerry BlackBerry
BlackBerry
BlackBerry
Eliminated trade‐off (other trade‐offs are partially resolved and therefore present opportunities for innovation)
BOBM7. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
REFERENCES
1. King, R. (2009) The Infinitely Zoomable Page: The Ideal Tool for Blue Ocean Thinking, Design, and Innovation. Fresno: Ideal‐Solution Management. Ross, E.; Holland, A. (2006) 100 Great Businesses and the Minds Behind Them. Illinois: Sourcebooks, Inc. Von Briesen, J. RIM’s Blackberry. http://frontierstrategy.com/BlueOceanStrategy_RIMExample.html
Dr. Rod King Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
2. 3.