Blue Ocean mind sets

&

Sustainability Mind sets

Association of Professional Bankers

Dr Ravi Fernando

RAF BOS SCS BANKING JUNE

20161

RAF BOS SCS BANKING JUNE

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Creating NEW market spaces RAF BOS SCS BANKING JUNE 2016 3

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Sold over 3.5 Million Copies !

BOS in 1,800 universities in over 110 countries

584

North

America 584

South

America 164

Africa

45

Europe

581

Asia

334

Oceania

32

Middle

East

60

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Sri Lanka?

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72020 Advanced nation

US$ 10,796- 15,000

The Eleventh Malaysia Plan used

Blue Ocean strategy tools & frameworks ..

• 60 NBOS initiatives

• 80 ministries & agencies

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March 2015

RED OCEAN TRAPS

May 2015

BLUE OCEAN LEADERSHIP

© Kim & Mauborgne

Sri Lanka is in a RED OCEAN ‘Commodity’ TRAP?

Mental Assumption – Export Brand market spaces, NO WAY !!

• 95% + of exportsin commodity form to

existing ‘Market’s

•TEA

•APPAREL

•CINNAMON

•RUBBER

•COCONUT

•NATURAL RESOUCES

- ILMENITE Titanium

- GRAPHITE

Loadstar

Dilmah

Virtusa

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Global Competitiveness WEF SRI LANKA RANKED 102 IN 2015

PROJECTED TO SLIP TO 108 BY 2025RAF BOS SCS BANKING JUNE 2016

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• Data: 150 blue ocean Moves , in more than 30 industries, over 100 years (1880-2000)

– Hotel, cinema, retailing, airline, energy, computer, broadcasting, construction, home, automobile, steel manufacturing, chemicals, cosmetics, software, etc.

• Variables considered: industrial, organizational, strategic

39% 61%Profit Impact

62%38%Revenue Impact

14%86%Business Launch

Launches within red oceans Launches into blue oceans

The basis of Blue Ocean Strategy

Red Ocean Approach Blue Ocean Approach

Creates New Market SpacesCompeting in the

Existing Value Space

Competitiveness Creativity

© Kim & Mauborgne

RAF BOS SCS BANKING JUNE

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Red Ocean Approach Blue Ocean Approach

Differentiation

OR

Low Cost

BOS

Low Cost

Differentiation

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High Value

•

ERRC Grid

ELIMINATE

REDUCE

RAISE

CREATE

blueoceanstrategy.com |

@blueoceanstrtgy© Kim & Mauborgne

RAF BOS SCS BANKING JUNE

2016

Low cost High value

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Value Innovation in Hospitality

Hyatt +Hilton - Mkt.cap > 15b

-Mkt.cap 28b

Low cost, High Value

levering existing rooms!

5y more room nights than

Hilton

Truly global. Present in

200+ countries and

40,000 cities

Longer average stay than in hotel (5.5 days

vs. 3.5). Higher total spend per trip.

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Soon to be non customer &…

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• Ownership • Options

• Cost • New Market space

ERRC Grid

ELIMINATE

REDUCE

RAISE

CREATE

blueoceanstrategy.com |

@blueoceanstrtgy© Kim & Mauborgne

RAF BOS SCS BANKING JUNE

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Low cost Creating high value

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2012

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Apple vs MicrosoftHuge payoffs of market creation

20151998

Market Value

(US$)

Year

$244.8 bn

$4.3 bn

iPod

iMac

iPhone

iPad

A series of successful market-creating

moves

$742 bn

iTunes

AppStore

Apple Watch

$347 bn

Lack of compelling market-creating moves

© Kim & MauborgneRAF BOS SCS BANKING JUNE

2016

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BOS Six Paths Framework

1 32

4 65

Alternative industries Strategic groups

within industries

Different chain

of buyers

Complementary

products

Look across functional

and emotional appeal

to buyers

Productattributes

Functional benefits

Emotionalbenefits

Influencers

Look across time

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Sustainability mind sets

Dr Ravi Fernando

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R.A. Fernando © RAF SCS 2015

50% OF THE WORLDS FORESTS

DESTROYED IN THE LAST 30 YEARS!

52% of the Worlds animal species have been

destroyed in the past 40years RAF BOS SCS BANKING JUNE 2016 21

Planet is caught in a RED OCEAN TRAP

of ‘FOSSIL FUELS’

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R.A. Fernando © RAF SCS 2015

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The NEW Blue Oceans of opportunity are GREEN!

SpaceX

Tesla Motor Tesla Gigafactory

SolarCity

R.A. Fernando © RAF SCS 2015

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2016 -The world’s top 10 sustainable companies Toronto-based media company Corporate Knights -determines 100 companies are

getting the most out of their capital, maximizing employee performance, and making

careful use of resources .

1) BMW -Automotive

2) Dassault Systems provides business and people with 3D experiences to imagine

sustainable innovations capable of harmonizing product, nature and life

3) Quototec (Mineral and Mining /Processing)

4) Commonwealth Bank of Australia 5) Adidas –Sports wear

6) Danske Bank7) Enagás Spain’s leading natural gas transmission company and technical manager

of the country’s gas system)

8) Star HubStarHub Communications company services for TV, mobile, internet in

Singapore

9) Reckitt Benckiser-Household

10) City Developments (CDL) – Singappore Real estate company City Developments

Limited (CDL)

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Responsible Marketplace Lending — Indispensable for Commercial Solar’s Growth , June 3, 2016 , By Graham Smith CEO, Open Energy

SOLAR + ENERGY STORAGE + RAIN WATER HARVESTING – THE NEED OF THE HOUR

SL 71% of Rain water is run Off!

SL can RUN on SUNLIGHT!

Blue Ocean mind sets-Create New Market spaces

Sustainability Mind sets

-Triple Bottom line decisions

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R.A. Fernando © RAF SCS 2015

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Costa Rica – World leader in ‘ecotourism’ Created a new Blue Ocean Market space!

Leveraged existing rich biodiversity !

• Government /Private sector jointly created an ‘ECO TOURISM NATION’ to

drive the economy

• New legislation to protect nature and the environment

– 1987 arrivals 329,000 to 2.34 million in 2012, Now 2.5!

– Avg. stay 10-12 days vs. 4-6 days / US $ 250 vs. US $ 80 per night

• Ranks 3rd on Environmental Performance Index out of 163 economies

– Goal to be carbon neutral ,100% Renewable energy by 2021

– Tourism 14 percent of GDP

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