Visual Tools for Comprehensively Assessing, Predicting, Designing, and Managing Blue Ocean Success (… and Red Ocean Failure?)
Dr. Rod King
Thought Leader on Blue Ocean Success
BLUE OCEAN SUCCESS MANAGEMENT
A Seamless Integration of the Best Tools for Strategy, Innovation, and Performance Management
BLUE OCEAN STRATEGY
TRIZ
BLUE OCEAN SUCCESS MANAGEMENT
BALANCED SCORECARD
MULTI-CRITERIA DECISION MAKING
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PERSONAL SUCCESS TOLLGATES
What is (Multi-level) Personal Success? What is the Potential of Each Personal Tollgate for Blue Ocean Success?
UNIVERSAL Success World (International) Success
Society (National) Success Community (Local) Success
Family Success
Individual Success
Note: Blue Ocean = ‘Above Best-in-class’ = ‘Best Ever’ = ‘Virtually Ideal’
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BLUE OCEAN SUCCESS IN BUSINESS
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
TOOLS OF BLUE OCEAN SUCCESS MANAGEMENT
BUSINESS SUCCESS GOALS/TOLLGATES • What are (multi-level) business goals/success? • What is the potential of each business goal/tollgate for Blue Ocean Success?
BUS. SUCCESS VOICE/SCOREBOARD • What is the current business success? • What is the goal or desired/potential business success? • How to track or monitor performance?
BUSINESS SUCCESS RADAR • How to generally get to the desired business success?
BUSINESS STRATEGY MATRIX
SCALABLE MARKETS & SCENARIOS
• How to more specifically get to desired business success?
TOOLS OF BLUE OCEAN SUCCESS MANAGEMENT
• What is the main customer job, activity, and/or value proposition? • What tools/ecosystem do customers currently use to complete customer job? • What is ideal tool for completing job?
BLUE OCEAN MAP • Where is current business success? • Where is desired business success? • How to generally get to desired business success?
BLUE OCEAN RADAR • Where is current business success? • Where is desired business success? • How to generally get to desired business success? • What is customer value proposition?
BLUE OCEAN COMPASS • Where exactly is business success now? • Where exactly is desired success? • How to more specifically get to desired business success? • What is customer value proposition?
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
SIMPLE PROCESS FOR BLUE OCEAN SUCCESS MANAGEMENT
1. For each business success tollgate, • describe the existing and desired degree of success (positives and negatives). • quantify the existing and desired degree of success (positives and negatives). Identify the most critical or “weakest” business tollgate, that is, the tollgate with the least degree of success.
2.
3.
11 For the weakest business tollgate, use resources within and across the business network to increase the degree of success to the level required for Blue Ocean Success.
GO TO STEP 2. OTHERWISE, prepare, execute, and monitor plan of each business tollgate so that desired Blue Ocean Success is comprehensively achieved.
4. 5.
Note: There is a hierarchy of 6 business tollgates (goals, portals, or constraints) in business: Employees (Team); Product/Service Design; Customer; Business Investor; Value Chain (Business Model); Ecosystem. Interfaces include Distribution/Channels; Processes; Information Exchange.
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
HIERARCHY OF BUSINESS SUCCESS GOALS
What are the Goals for Blue Ocean Success?
ECOSYSTEM (Industry) Success Value Chain (Bus. Model) Success
Business Investor Success Customer Success
Product or Service Design Success
Employees (Team) Success
Note: Blue Ocean = ‘Above Best-in-class’ = ‘Best Ever’ = ‘Virtually Ideal’
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS TOLLGATES
What is (Multi-level) Business Success? What is the Potential of Each Business Tollgate for Blue Ocean Success?
ECOSYSTEM (Industry) Success = Delight/Pain = Advantages/Disadvantages = 1/Degree of Trade-Off (Ideal Success involves Zero Trade-Off) Value Chain (Bus. Model) Success = Strengths/Weaknesses = Opportunities/Threats (Ideal Success involves Zero Trade-Off) Business Investor Success = Revenue/Cost = Reward/Risk (Ideal Success involves Zero Trade-Off) Customer Success = Delightful Immersive Experience/Painful Experience (Ideal Success involves Zero Trade-Off) Product or Service Design Success = Useful Features/Harmful Features (Ideal Success involves Zero Trade-Off) Employees (Team) Success = Strengths/Weaknesses (Ideal Success involves Zero Trade-Off)
Note: Blue Ocean = ‘Above Best-in-class’ = ‘Best Ever’ = ‘Virtually Ideal’
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ELEMENTS OF BLUE OCEAN SUCCESS IN A SCALABLE BUSINESS NETWORK
SUPPLIER SUCCESS
EMPLOYEES (TEAM) SUCCESS
MACHINERY/FACILITY SUCCESS
ECOSYSTEM (Industry) SUCCESS
BUSINESS MODEL/INVESTOR SUCCESS
BLUE OCEAN SUCCESS IN A BUSINESS NETWORK:
CUSTOMER SUCCESS
DISTRIBUTION/CHANNELS SUCCESS
PRODUCT/SERVICE DESIGN SUCCESS
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Template for BUSINESS SUCCESS TOOLS
(Strategic Questions)
(Logo)
Business/Sector/Ecosystem/Industry: …………………………………………….……………………………………….………………… SPACE/TIME/PROCESS BUSINESS GOALS ECOSYSTEM (Industry) Success (+/-) VALUE CHAIN (BUS. MODEL) Success (+/-) BUSINESS INVESTOR Success (+/-) CUSTOMER Success (+/-) PRODUCT/SERVICE DESIGN Success (+/-) EMPLOYEES (TEAM) Success (+/-) Note: Success = Delight (+)/Pain (-)
For a quick evaluation, Success for each tollgate can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BLUE OCEAN (GOALS) SUCCESS
IDEAL (PERFECT) SUCCESS 10 10 10 10 10 10
BUSINESS SUCCESS VOICE
What is the Current Business Success? What is the Goal or Desired/Potential Business Success?
(Logo)
Business: …………………………………………………………………………….…………………………………………………….………………… TRADE-OFFS BUSINESS GOALS ECOSYSTEM (Industry) Success (+/-) VALUE CHAIN (BUS. MODEL) Success (+/-) BUSINESS INVESTOR Success (+/-) CUSTOMER Success (+/-) PRODUCT/SERVICE DESIGN Success (+/-) EMPLOYEES (TEAM) Success (+/-) Note: Success = Delight (+)/Pain (-)
For a quick evaluation, Success for each tollgate can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PAIN (-)
Present: WEAKNESSES Future: THREATS
DELIGHT (+)
Present: STRENGTHS Future: OPPORTUNITIES
BLUE OCEAN (GOALS) SUCCESS
IDEAL (PERFECT) SUCCESS 10 10 10 10 10 10
BUSINESS SUCCESS COMPASS
What is the Current/Desired/Potential Business Success?
(Logo)
Business: …………………………………………………………………………….…………………………………………………….………………… TRADE-OFFS BUSINESS GOALS ECOSYSTEM (Industry) Success (+/-) VALUE CHAIN (BUS. MODEL) Success (+/-) BUSINESS INVESTOR Success (+/-) CUSTOMER Success (+/-) PRODUCT/SERVICE DESIGN Success (+/-) EMPLOYEES (TEAM) Success (+/-) Note: Success = Delight (+)/Pain (-)
For a quick evaluation, Success for each tollgate can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PAIN (-)
COST QUALITY
DELIGHT (+)
DIFFERENTIATION PERSONALIZATION
BLUE OCEAN (GOALS) SUCCESS
IDEAL (PERFECT) SUCCESS 10 10 10 10 10 10
BUSINESS SUCCESS SCOREBOARD
What is the Current Business Success? What is the Desired/Potential Business Success?
(Logo)
Sector/Ecosystem/Industry: …………………………………………….…………………………………………………….………………… SPACE/ TIME TOLLGATE ECOSYSTEM Success (+/-) VALUE CHAIN (BUS. MODEL) Success (+/-) BUSINESS INVESTOR Success (+/-) CUSTOMER Success (+/-) PRODUCT/SERVICE DESIGN Success (+/-) EMPLOYEES (TEAM) Success (+/-) Note: Success = Delight (+)/Pain (-)
For a quick evaluation, Success for each tollgate can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Business 1
Business 2
RED OCEAN BUSINESS
Slow/saturated/ declining sector Highly competitive Low cost Undifferentiated Conventional Average/declining/ low profit & ROI Imitable IP Average or small share of existing market (demand) Commoditized/ same experience Large trade-off Average competence/experience In-the-box thinking
BEST-INCLASS BUSINESS
BLUE OCEAN SUCCESS
Fast growing/emerging/‘uncontested’ sector or industry Low cost/Free/ Freemium/Premium Novel/Differentiated Extraordinary profit & ROI Defensible IP Extraordinary share of larger, emerging market (demand) Unique/immersive/ social experience Little or no trade-off Highly competent/ experienced Innovative/Creative
IDEAL (PERFECT) SUCCESS 10 10 10 10 10 10
BUSINESS SUCCESS RADAR
How to Generally Get to the Desired Business Success?
(Logo)
Name of Business: ……………………………………………………………………………………………………………………………………… Sector/Ecosystem/Industry: ……………………………………………………………………………………………………………………… Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
(Logo)
Business Success Radar for ………………………………………..
ECOSYSTEM Success 10
ELEMENTS OF BUSINESS SUCCESS RADAR: Competitive Advantage Strategies • Employees (Team) Strategy • Product/Service Design Strategy
Employees (Team) Success
8
Value Chain (Business Model) Success 6 4 2 0
• Customer Strategy • Business Investor Strategy • Value Chain (Business Model) Strategy • ECOSYSTEM (Industry) Strategy
Business Investor Success
Product/Service Design Success
Value Proposition
Customer Success Ideal (Blue Ocean) Business Worst (Red Ocean) Business
Targeted Customer Segments (Niches)
Customer Job/Value Proposition: ……………………………………………………………………………………….…………………
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS STRATEGY MATRIX
How to More Specifically Get to the Desired Business Success?
(Logo)
Name of Business: ……………………………………………………………………………………………………………………………………… Sector/Ecosystem/Industry: ……………………………………………………………………………………………………………………… Mission/Vision: ……………………………..……………………………………………………………………………………….………………… OBJECTIVES/ ACTIVITIES BUSINESS STRATEGIES ECOSYSTEM (Industry) STRATEGIES VALUE CHAIN (BUS. MODEL) STRATEGIES ELIMINATE REDUCE INCREASE CREATE BLUE OCEAN (TARGET) SUCCESS IDEAL SUCCESS (IMPACT) 10 10
BUSINESS INVESTOR STRATEGIES
CUSTOMER STRATEGIES PRODUCT/SERVICE DESIGN STRATEGIES
10
10 10
EMPLOYEES (TEAM) STRATEGIES
10
Customer Job/Value Proposition: ……………………………………………………………………………………….…………………
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS STRATEGY MATRIX
How to Get to the Desired Business Success? (Checklist of Generic Strategies)
(Logo)
Name of Business: ……………………………………………………………………………………………………………………………………… Sector/Ecosystem/Industry: ……………………………………………………………………………………………………………………… Mission/Vision: ……………………………..……………………………………………………………………………………….………………… OBJECTIVES/ ACTIVITIES BUSINESS STRATEGIES ECOSYSTEM (Industry) STRATEGIES VALUE CHAIN (BUS. MODEL) STRATEGIES BUSINESS INVESTOR STRATEGIES CUSTOMER STRATEGIES PRODUCT/SERVICE DESIGN STRATEGIES ELIMINATE
- Discard - Transfer - Outsource Competition Subsidies Disadvantages Waste; Pollution Inefficiencies Defects Inventory Barriers Constraints Trade-offs Complaints Defects Harmful features Complexity Trade-offs
REDUCE
- Trim/Subtract - Segment - Nest/Merge Substitutes Pain Entry barriers Intermediaries Weaknesses Threats Cost (Fixed) Debt Risk Price Delivery time Response time Trade-offs Size; Rigidity Inaccessibility
INCREASE
- Add/Combine - Multiply/Separate - Expand Collaboration Bus. Intelligence Barriers to exit Integration/Merger Strengths Opportunities Revenue; ROI Market share Digitalization; IP Quality; Co-creation Convenience Differentiation Useful features Efficiency; Simplicity Convenience
CREATE
- Integrate - Reverse - (A)symmetric Platform Network effects Barriers to entry Partnerships Distribution Scalability/Niches Branding Alignment Processes Personalization Discounts Loyalty Novel design Social/fun ‘tool’ Feedback
BLUE OCEAN TARGET
IDEAL SUCCESS (IMPACT) 10 10 10 10 10
EMPLOYEES (TEAM) STRATEGIES
Absenteeism Lateness Apathy
Turnover Hazards Project delay
Productivity Innovation/Sharing Training/Learning
Core values Culture; Trust Leadership
10
Customer Job/Value Proposition: ……………………………………………………………………………………….…………………
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
SCALABLE MARKETS & SCENARIOS
What are Alternative Markets, Opportunities, and Tools for Blue Ocean Success?
(Logo)
Name of Business: ………………….…………….…………..…………..…………………………………………………………………………… Sector/Ecosystem/Industry: ………………………….…………………………………………………………………………………………… Main Customer Job/Activity/Value Proposition: …………………………….……………………………………….………………… SCENARIO MARKET/TOOL UNIVERSAL (Industry) TOOL (PRODUCT & PARTS) WORLD/INTERNATIONAL TOOL (PRODUCT & PARTS) SOCIETY/NATIONAL TOOL (PRODUCT & PARTS) COMMUNITY/LOCAL TOOL (PRODUCT & PARTS) FAMILY/GROUP/BUSINESS TOOL (PRODUCT & PARTS) PERSONAL/PORTABLE TOOL (PRODUCT & PARTS) Business/ Ecosystem: 1 Business/ Ecosystem: 2 RED OCEAN BUSINESS BEST-INCLASS BUSINESS BLUE OCEAN TARGET IDEAL TOOL (IMPACT) 10 10 10 10 10 10
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PROGRAM CHART FOR BLUE OCEAN SUCCESS MANAGEMENT
How to Execute Strategies and Monitor Progress Towards the Desired Business Success?
(Logo)
Name of Business: ……………………………………………………………………………………………………………………………………… Sector/Ecosystem/Industry: ……………………………………………………………………………………………………………………… Mission/Vision: ……………………………..……………………………………………………………………………………….………………… TIMELINE BUSINESS STRATEGIES ECOSYSTEM (Industry) STRATEGIES VALUE CHAIN (BUS. MODEL) STRATEGIES Month 1 Month 2 Month … CHAMPION (OWNER/ TEAM) BLUE 0CEAN (TARGET) SUCCESS IDEAL SUCCESS (IMPACT) 10 10
BUSINESS INVESTOR STRATEGIES
CUSTOMER STRATEGIES PRODUCT/SERVICE DESIGN STRATEGIES
10
10 10
EMPLOYEES (TEAM) STRATEGIES
10
Customer Job/Value Proposition: ……………………………………………………………………………………….…………………
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CASE STUDY ON BLUE OCEAN SUCCESS PLAN
CIRQUE DU SOLEIL (Entertainment Sector)
• Business Success Scoreboard • Business Success Radar • Business Strategy Matrix • Program Chart for Blue Ocean Success
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS SCOREBOARD FOR CIRQUE DU SOLEIL
What is the Current Business Success? What is the Desired/Potential Business Success?
Sector/Ecosystem/Industry: Live Acts/Entertainment SPACE/ TIME BUSINESS GOALS ECOSYSTEM (Industry) Success (+/-) VALUE CHAIN (BUS. MODEL) Success (+/-) BUSINESS INVESTOR Success (+/-) CUSTOMER Success (+/-) PRODUCT/SERVICE DESIGN Success (+/-) EMPLOYEES (TEAM) Success (+/-) Ringling Bros & Barnum Circus
Circus entertainment Declining demand Low cost Commoditized/ undifferentiated Average/ declining profit Circus goer Fun & Humor Thrill & Danger Low ticket price Animal cruelty Circus show Multiple arenas Aisle sales Star circus performers Animal (shows)
Smaller Regional Circuses
Live Theater (Non-circus)
Live theater entertainment Growing demand High price/brand
BEST-INCLASS BUSINESS
CIRQUE DU SOLEIL TARGET
Circus-Theater entertainment High demand (6.5) Premium price Novel/unique/ differentiated (7) Extraordinary profit & ROI/ircusTheater goer (8) Circus/Theater sophistication Premium price Rich experience (8) Circus-theater themes/stage Music/Dance (8) Actors Ordinary circus performers (7)
IDEAL (PERFECT) SUCCESS 10 10 10 10
High/ growing profit Theater goer Theater/Artistic sophistication High ticket price Rich experience Theatrical acts Single stage Music/Dance Actors Dancers Singers
10 10
Note: Success = Delight (+)/Pain (-)
For a quick evaluation, Success at each level can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS RADAR
How to Generally Get to the Desired Business Success?
Name of Business: Cirque du Soleil Sector/Ecosystem/Industry: Live Acts/Entertainment Mission: “To invoke the imagination, provoke the senses and evoke the emotions of people around the world” Business Success Radar for CIRQUE DU SOLEIL
ECOSYSTEM Success 10
ELEMENTS OF BUSINESS SUCCESS RADAR: Competitive Advantage Strategies • Employees (Team) Strategy Increase Employees Success to Level 7 • Product/Service Design Strategy Increase Product/Service Success to Level 8 • CUSTOMER Strategy Increase Customer Success to Level 8 • Business Investor Strategy Increase Business Investor Success to Level 8 • Value Chain (Business Model) Strategy Increase Value Chain Success to Level 7 • ECOSYSTEM (Industry) Strategy Increase ECOSYSTEM Success to Level 6.5 Value Proposition High quality artistic entertainment Targeted Customer Segments (Niches) • Circus-goers • Theater/Live Act-goers
8
Value Chain (Business Model) Success 6 4 2 0 Employees (Team) Success
Business Investor Success
Product/Service Design Success
CUSTOMER Success Ideal (Blue Ocean) Business Ringling Bros & Barnum Circus Cirque du Soleil
Customer Job/Value Proposition: “High quality artistic entertainment”
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS STRATEGY MATRIX
How to More Specifically Get to the Desired Business Success?
Name of Business: Cirque du Soleil Sector/Ecosystem/Industry: Live Acts/Entertainment Mission: “To invoke the imagination, provoke the senses and evoke the emotions of people around the world” OBJECTIVES/ ACTIVITIES BUSINESS STRATEGIES ECOSYSTEM (Industry) STRATEGIES VALUE CHAIN (BUS. MODEL) STRATEGIES BUSINESS INVESTOR STRATEGIES CUSTOMER STRATEGIES PRODUCT/SERVICE DESIGN STRATEGIES ELIMINATE REDUCE INCREASE CREATE CIRQUE DU SOLEIL TARGET 6.5 7 8 8 8 IDEAL SUCCESS (IMPACT) 10 10 10 10 10
Direct (headto-head) competition Inefficiencies Environmental pollution Waste Complexity Defects Aisle (ticket) concessions Arenas
Waste
Market size
Hybrid of Circus-Theater Entertainment Uncontested market space New prospects and customers Themed act Music/Dance Premium price Theatrical themes and plots
Cost
Differentiation Market share Value added Revenue Profit; ROI Value Quality of artistic entertainment; Unique venue Ticket price to premium
Cost Excesses Redundancies Fun & Humor Thrill & Danger Circus props/ equipment
EMPLOYEES (TEAM) STRATEGIES
Star performers Animal (shows)
Actors
7
10
Customer Job/Value Proposition: “High quality artistic entertainment”
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PROGRAM CHART FOR BLUE OCEAN SUCCESS MANAGEMENT
How to Execute Strategies and Monitor Progress Towards the Desired Business Success?
Name of Business: Cirque du Soleil Sector/Ecosystem/Industry: Live Acts/Entertainment Mission: “To invoke the imagination, provoke the senses and evoke the emotions of people around the world” TIMELINE BUSINESS STRATEGIES ECOSYSTEM (Industry) STRATEGIES VALUE CHAIN (BUS. MODEL) STRATEGIES Month/ Year 1 Month/ Year 2 Month/ Year … CHAMPION (OWNER/ TEAM) BLUE 0CEAN (TARGET) SUCCESS 6.5 7 IDEAL SUCCESS (IMPACT) 10 10
BUSINESS INVESTOR STRATEGIES
CUSTOMER STRATEGIES PRODUCT/SERVICE DESIGN STRATEGIES
8
8 8
10
10 10
EMPLOYEES (TEAM) STRATEGIES
Customer Job/Value Proposition: “High quality artistic entertainment”
7
10
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CASE STUDY ON BLUE OCEAN SUCCESS PLAN
YOUTUBE (Technology Sector)
• Business Success Scoreboard • Business Success Radar • Business Strategy Matrix • Program Chart for Blue Ocean Success
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS SCOREBOARD FOR YOUTUBE
What is the Current Business Success? What is the Desired/Potential Business Success?
Sector/Ecosystem/Industry: Video Experience-sharing/Online Social Network/Computing SPACE/ TOOL BUSINESS GOALS ECOSYSTEM (Industry) Success (+/-) VALUE CHAIN (BUS. MODEL) Success (+/-) BUSINESS INVESTOR Success (+/-) CUSTOMER Success (+/-) PRODUCT/SERVICE DESIGN Success (+/-) EMPLOYEES (TEAM) Success (+/-) Webstorage/ hosting
Video Experiencesharing Growing demand Freemium Undifferentiated Low profit & ROI Internet user/ owner of content Global accessibility of videos Fast access High storage cost Viewed online Limited free space Slow loading time Professionals
E-mail (Hard disk)
Manual/ DVD-R/ Cassettes
Video Experiencesharing Declining demand Low cost Commoditized/ undifferentiated Non-commercial Hobbyists/Owners of video content Long hours of play High quality of video Slow delivery time Cost of DVD-R Viewed on TV/VCR/ Camcorder DVD-R/Cassettes Hobbyists
BEST-INCLASS BUSINESS
YOUTUBE (TARGET) SUCCESS
Video Experiencesharing Growing demand Free Novel/unique/ differentiated (7) High number of registered users Internet user Global accessibility of videos/Free & instant access Social networking Easy to use/Online Large free space Fast loading time Experienced/ innovative professionals
IDEAL (PERFECT) SUCCESS 10 10 10 10
10 10
Note: Success = Delight (+)/Pain (-)
For a quick evaluation, Success at each level can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS RADAR
How to Generally Get to the Desired Business Success?
Name of Business: YouTube Sector/Ecosystem/Industry: Video Experience-sharing/Online Social Network/Computing Mission: To easily and quickly share videos on the Internet and online communities Business Success Radar for YOUTUBE
ECOSYSTEM Success 10
ELEMENTS OF BUSINESS SUCCESS RADAR: Competitive Advantage Strategies • Employees (Team) Strategy Increase Employees Success to Level 8 • Product/Service Design Strategy Increase Product/Service Success to Level 8 • CUSTOMER Strategy Increase Customer Success to Level 8 • Business Investor Strategy Increase Business Investor Success to Level 8 • Value Chain (Business Model) Strategy Increase Value Chain Success to Level 8 • ECOSYSTEM (Industry) Strategy Maintain ECOSYSTEM Success to Level 8 Value Proposition “Broadcast Yourself” Targeted Customer Segments (Niches) • Hobbyists/Amateur owners of video content • Internet users
8
Value Chain (Business Model) Success 6 4 2 0 Employees (Team) Success
Business Investor Success
Product/Service Design Success
CUSTOMER Success Ideal (Blue Ocean) Business Web-storage/Hosting YouTube
Customer Job/Value Proposition: “Broadcast Yourself”
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS STRATEGY MATRIX
How to More Specifically Get to the Desired Business Success?
Name of Business: YouTube Sector/Ecosystem/Industry: Video Experience-sharing/Online Social Network/Computing Mission: To easily and quickly share videos on the Internet and online communities OBJECTIVES/ ACTIVITIES BUSINESS STRATEGIES ECOSYSTEM (Industry) STRATEGIES VALUE CHAIN (BUS. MODEL) STRATEGIES BUSINESS INVESTOR STRATEGIES CUSTOMER STRATEGIES PRODUCT/SERVICE DESIGN STRATEGIES ELIMINATE REDUCE INCREASE CREATE YOU TUBE (TARGET) SUCCESS 8 8 8 8 8 IDEAL SUCCESS (IMPACT) 10 10 10 10 10
Direct (headto-head) competition Inefficiencies
Waste
Market size Potential for acquisition Differentiation Market share Value added Number of registered users Storage space Speed of video up/download Storage space Tags for video ‘Findability’
Platform and social network for video-sharing Uncontested market space New prospects and customers Social network Web pages for video sharing Feedback/rating system Embed code
Cost
Waste Complexity Defects Fees for storing videos Need for users to write scripts or html code
Cost Excesses Redundancies Inconvenience of uploading and sharing videos Time for uploading and downloading videos
EMPLOYEES (TEAM) STRATEGIES
Customer Job/Value Proposition: “Broadcast Yourself”
Word-of-mouth marketing Viral videos
8
10
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PROGRAM CHART FOR BLUE OCEAN SUCCESS MANAGEMENT
How to Execute Strategies and Monitor Progress Towards the Desired Business Success?
Name of Business: YouTube Sector/Ecosystem/Industry: Video Experience-sharing/Online Social Network/Computing Mission: To easily and quickly share videos on the Internet and online communities TIMELINE BUSINESS STRATEGIES ECOSYSTEM (Industry) STRATEGIES VALUE CHAIN (BUS. MODEL) STRATEGIES Month/ Year 1 Month/ Year 2 Month/ Year … CHAMPION (OWNER/ TEAM) BLUE 0CEAN (TARGET) SUCCESS 8 8 IDEAL SUCCESS (IMPACT) 10 10
BUSINESS INVESTOR STRATEGIES
CUSTOMER STRATEGIES PRODUCT/SERVICE DESIGN STRATEGIES
8
8 8
10
10 10
EMPLOYEES (TEAM) STRATEGIES
Customer Job/Value Proposition: “Broadcast Yourself”
8
10
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CASE STUDY ON BLUE OCEAN SUCCESS PLAN
SOUTHWEST AIRLINES (Transportation Sector)
• Business Success Scoreboard • Business Success Radar • Business Strategy Matrix • Program Chart for Blue Ocean Success
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS SCOREBOARD FOR SOUTHWEST AIRLINES
What is the Current Business Success? What is the Desired/Potential Business Success?
Sector/Ecosystem/Industry: Short-haul Airlines/Transportation SPACE/ TIME BUSINESS GOALS ECOSYSTEM (Industry) Success (+/-) VALUE CHAIN (BUS. MODEL) Success (+/-) BUSINESS INVESTOR Success (+/-) CUSTOMER Success (+/-) PRODUCT/SERVICE DESIGN Success (+/-) EMPLOYEES (TEAM) Success (+/-) Average Airline
Short-haul transportation Growing demand Low cost Commoditized/ undifferentiated Average profit Intercity traveler Fast travel Tiered seating Low ticket price Lounges/Meals Hub-and-spoke departures Pilots Crew Ground staff
Car Transport
Short-haul transportation Growing demand Low cost Commoditized/ undifferentiated Low profit Intracity traveler Slow travel Delays Low fare No lounge/meal Frequent point-topoint departures Driver
BEST-INCLASS BUSINESS
SOUTHWEST AIRLINES TARGET
Short-haul transportation Growing demand (7) Low cost/’No frills’ Novel/unique/ Differentiated (7) High profit Frequent low-cost traveler (8) Faster travel at lower cost/Friendly service/On time (8) Small lounge/meal Frequent point-topoint departures (8) Pilots Crew Ground staff (8)
IDEAL (PERFECT) SUCCESS 10 10 10 10 10 10
Note: Success = Delight (+)/Pain (-)
For a quick evaluation, Success at each level can be rated on an ordinal scale: from 1 (low) to 10 (high)
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS SUCCESS RADAR
How to Generally Get to the Desired Business Success?
Name of Business: Southwest Airlines Sector/Ecosystem/Industry: Short-haul Airlines/Transportation Mission: “Dedication to the Highest Quality of Customer Service …” Business Success Radar for SOUTHWEST AIRLINES
ECOSYSTEM Success 10
ELEMENTS OF BUSINESS SUCCESS RADAR: Competitive Advantage Strategies • Employees (Team) Strategy Increase Employees Success to Level 8 • Product/Service Design Strategy Increase Product/Service Success to Level 8 • CUSTOMER Strategy Increase Customer Success to Level 8 • Business Investor Strategy Increase Business Investor Success to Level 8 • Value Chain (Business Model) Strategy Increase Value Chain Success to Level 7 • ECOSYSTEM (Industry) Strategy Maintain ECOSYSTEM Success to Level 7 Value Proposition “The Speed of a Plane at the Price of a Car …” Targeted Customer Segments (Niches) • Frequent, low-cost traveler
8
Value Chain (Business Model) Success 6 4 2 0 Employees (Team) Success
Business Investor Success
Product/Service Design Success
CUSTOMER Success Ideal (Blue Ocean) Business Average Airline Southwest Airlines
Customer Job/Value Proposition: “The Speed of a Plane at the Price of a Car …”
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS STRATEGY MATRIX
How to More Specifically Get to the Desired Business Success?
Name of Business: Southwest Airlines Sector/Ecosystem/Industry: Short-haul Airlines/Transportation Mission: “Dedication to the Highest Quality of Customer Service …” OBJECTIVES/ ACTIVITIES BUSINESS NETWORK ECOSYSTEM (Industry) STRATEGIES VALUE CHAIN (BUS. MODEL) STRATEGIES BUSINESS INVESTOR STRATEGIES CUSTOMER STRATEGIES PRODUCT/SERVICE DESIGN STRATEGIES ELIMINATE REDUCE INCREASE CREATE CIRQUE DU SOLEIL TARGET 7 7 8 8 8 IDEAL SUCCESS (IMPACT) 10 10 10 10 10
Direct (headto-head) competition Inefficiencies Environmental pollution Waste Complexity Defects Tier of seating
Waste
Market size
Hybrid of intercity and intracity travelers Uncontested market space New prospects and customers Fuel hedging Friendly service Humor Frequent pointto-point departures
Cost Travel agents Cost Excesses Redundancies Size of meals/ lounges Landing fees by not using main airports
Differentiation Market share Value added Revenue Profit; ROI Value Speed/flexibility of travel/No. of free luggage Standardization of aircrafts Usage of aircraft
In-flight entertainment
EMPLOYEES (TEAM) STRATEGIES
Turnaround time Union membership
Friendly and fun service/Profitsharing plan
8
10
Customer Job/Value Proposition: “The Speed of a Plane at the Price of a Car …”
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PROGRAM CHART FOR BLUE OCEAN SUCCESS MANAGEMENT
How to Execute Strategies and Monitor Progress Towards the Desired Business Success?
Name of Business: Southwest Airlines Sector/Ecosystem/Industry: Short-haul Airlines/Transportation Mission: “Dedication to the Highest Quality of Customer Service …” TIMELINE BUSINESS STRATEGIES ECOSYSTEM (Industry) STRATEGIES VALUE CHAIN (BUS. MODEL) STRATEGIES Month/ Year 1 Month/ Year 2 Month/ Year … CHAMPION (OWNER/ TEAM) BLUE 0CEAN (TARGET) SUCCESS 7 7 IDEAL SUCCESS (IMPACT) 10 10
BUSINESS INVESTOR STRATEGIES
CUSTOMER STRATEGIES PRODUCT/SERVICE DESIGN STRATEGIES
8
8 8
10
10 10
EMPLOYEES (TEAM) STRATEGIES
8
10
Customer Job/Value Proposition: “The Speed of a Plane at the Price of a Car …”
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
REFERENCES
1. 2. 3. 4. 5. Christensen, C.M. (1997) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. 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 Zoomable Radial Grid: A Simple Visual Tool for Managing and Generating Ideas in Multi-disciplinary Teams. Fresno, California: Value Quotient Management.
Dr. Rod King Thought Leader, Consultant, and Trainer on Blue Ocean Success Management rodkuhnking@sbcglobal.net & http://businessmodels.ning.com http://twitter.com/RodKuhnKing