BLUE OCEAN‐PERFORMANCE DASHBOARD FOR GOOGLE’S SEARCH ENGINE
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‐Performance 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’ Simpler; Faster; Free; Holistic Integrated approach to managing value (supply) chain, strategy, performance, and business model
BLUE OCEAN DASHBOARD:
A Simpler 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 GOOGLE INC. – Search Engine Author(s): Dr. Rod King (rodkuhnking@sbcglobal.net)
COMPANY BACKGROUND • • • • Location: Mountain View, California Founder(s): Sergey Brin; Larry Page Revenue: US$21.79 billion (2008) No. of Direct Competitors: BUSINESS/INDUSTRY • • •
Date: April 4, 2009 Ref.: …………………………………..…………………….
PRODUCTS/SERVICES • • • • Internet Search Engine: Google Search Online Bidding Platform: Adwords Online Syndicated Ads: Adsense Complementary Apps: Maps, etc.
Industry: Computer (Software); Advertising Niche: Internet Search; Online Ads Model: Business to Consumer (B2C); Business to Business (B2B); Platform
CUSTOMER VALUE PROPOSITION • • • Uncluttered, fast, free, accurate search engine results and experience Monetization of web page/site Targeted, measurable, cost‐effective, and relevant online advertising
COMPANY OVERVIEW OF:
GOOGLE – Search Engine
CUSTOMER BENEFITS/EXPERIENCE • • • • • Simple interface/Easy to use Fast, accurate, and relevant results Free search service Unobtrusive ads; Site monetization Targeted ads based on page’s content
MAIN GOAL/OBJECTIVE/STRATEGY Blue Ocean Strategy: to provide a highly desirable and uncontested customer experience while making the competition irrelevant
VISION • • • Search engine platform; Software‐as‐ a‐Service (platform) Advertising platform Gateway to world’s knowledge‐base
MISSION • “To organize the world's information and make it universally accessible and useful”
BOBM8A. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
Blue Ocean Map for GOOGLE’s Search Engine (vs. Classic Search Engines/Portals): Strategic Journey to the Blue Ocean
∞ IDEAL BLUE OCEAN (FINAL RESULT) BLUE OCEAN for Google’s Search Engine/Ad Platform Classic Internet Search Engines/Portals
Highly differentiated and premium-priced/free business model
Fractal Market Segmentation of Knowledge/Ad Management Tools
Revenue
Blue Ocean Strategy
(+): DELIGHT
RED OCEAN for Traditional Knowledge/Ad Management
Lowly differentiated and low-cost business model
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 GOOGLE INC. Name of Product/Service/Facility: Google Search Engine/Ad Platform
Date: April 4, 2009
Functionality: Search Engine/Advertising Platform Business/Industry: Computer (Software)/Advertising
Customer Value Proposition: Accurate results; Targeted ads; Monetization
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 E: Employees/Know‐ ledge Assets/Culture M: Machinery, etc. P: Processes/Activities O: Outputs ‐ Product ‐ Service Description of Best Current/ Future Resources Performance Objectives: 2008 Cost ($) Revenue ($) Other Criteria
Defects Productivity Innovation Defects Quality; ROI Customer Experience Quotient (EQ) Service EQ
Blue Ocean Actions (Relative to Industry Standard) Raise (+)
No. of filed patents/IP Revenue Ease of use Speed Relevance
Create (+)
Fun/play R & D Customers Unobtru‐ sive ads Other apps
Reduce (‐)
Absenteeism Waste Cost Clutter Complexity IT costs
Eliminate (‐)
Defects Turnover Delays Defects Defects Purchased ranking for websites
Other
Initiatives/ Projects
Highly productive/ creative workers Efficient data centers PageRank; etc. Google Search Engine/ Bidding & advertising platform/Other Apps Search platform; Adwords; Adsense Website owners Web users; Website owners; Advertisers; Enterprises (Search) Yahoo/AOL/AltaVista/ Lycos/MSN Users of classic search engines/portals Website owners/Affili‐ ates/Content providers
R: Retailers/Channels C: Customers/ Consumers E: Environment ‐ Competitors ‐ ‐ Non‐customers Partners
‐ Investors ‐ Community/Gov. BUSINESS MODEL: Google Inc. – Search Engine US$21.79b (How does the organization work to deliver its ROI (%): value proposition to customers?)
Free search Sale of ads (appliance) Free search Sale of ads Sale of ads Channel EQ Sale of ads: Customer EQ Cost Per Click & Retention Sale of product Env. quality (Cost Per Market share Impression) No. of prospects Sale of ads: Partner EQ Joint ventures Cost Per Click Share price No. of Projects
(Six Sigma) (Blue Ocean Strategy/ Innovation)
Retention
Loyalty
Psychological Inertia/ Friction Bargaining power; Risks
Exit/Entry barriers
Exit/Entry barriers
Entry/Exit barriers
Threat of substitutes Entry barriers
(Competitive Strategy)
Alliances Affiliates (Local)
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 organiation’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 Google’s Search Engine/Opportunities for Blue Ocean Products Customer’s Intent/Job: Accurate search results; Targeted ads; Monetization (Non‐)Customers/Industry: Search Engine/Advertising
Focus of (Non‐)Customer: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal Breakthrough Question: HOW TO MAKE (THE PRODUCT/ENTERPRISE/INDUSTRY OF) CLASSIC SEARCH ENGINES/PORTALS 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) Google 4 Defects/ Complaints/ Waste 5 Weight/ Size/ Tool 6 Effort/ Friction/ Energy 7 Staff Depend‐ ency 8 Complexity/ Information Overload Google 9 Rigidity/ Inaccess‐ ibility Google 10 Pain/ Barriers/ Pollution
Google Google Google Google Google Google Google (MySpace) Google Google Google (Facebook) (MySpace)
Google
Google (Facebook)
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. 2. 3. Battelle, J. (2005) The Search. New York: Portfolio Trade. Jarvis, J. (2009) What Would Google Do? New York: Collins Business. 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.
Dr. Rod King Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
4.