Focus on The Big Picture, Not The Numbers Blue Ocean Strategy – Ch. 4
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Transcript of Focus on The Big Picture, Not The Numbers Blue Ocean Strategy – Ch. 4
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Focus on The Big Picture, Not The Numbers
Blue Ocean Strategy – Ch. 4
Kelsey CombestKatie FickenRyan Lacy
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Chapter Focus
• How to align strategic planning process to focus on the big picture in order to arrive at a blue ocean strategy.
blueoceanstrategy.com
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The Typical Strategic Planning Process
• Followed by numerous goals and initiatives
• Full budget with graphs and spreadsheets (large amounts of data)
• Starts with lengthy description of industry and competitive situation
• Increase market share, capture new segments, cut costs
www.cyclelicio.us
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Strategy Canvas
• Shows a strategic profile of an industry by depicting the factors that affect competition
• Shows the strategic profile of current and potential competitors by identifying which factors they invest in strategically
• Shows the company’s strategic profile (value curve), depicting how it invests in the factors of competition now and in the future
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Formulating Blue Ocean Strategy
The Four Steps of Visualizing Strategy
1. Visual Awakening2. Visual Exploration3. Visual Strategy Fair
4. Visual Communication
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The Four Steps of Visualizing Strategy
Visual Awakening
• The first step is to draw your company’s value curve.
• Compare your business with your competitors’ by drawing your “as is” strategy canvas.
• See where your strategy needs to change.
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Apple - iPad Value Curve
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The Four Steps of Visualizing Strategy
Visual Exploration
• Field Study• Must put managers face-to-face with what
they must make sense of. • Learn how people use or don’t use their
products.
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The Four Steps of Visualizing Strategy
Visual Exploration
• Customers• Learn what the customer values• Identify complementary products and
services-bundling• Identify alternatives- examine advantages
and characteristics
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The Four Steps of Visualizing Strategy
Visual Exploration
• Non-customers• Why are they not customers?• In cases when customer is not end users—
observe the users.
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The Four Steps of Visualizing Strategy
Visual Strategy Fair
• Presentation of strategy canvases to:• Executives, noncustomers, customers of
competitors, and most demanding customers• Attendees chose most compelling strategy and give
feedback• Allows company to compose a new, more
successful value curve based on feedback
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The Four Steps of Visualizing Strategy
Visual Communication
• Communicate new strategy to employees• Employees will understand where the company is
now and what actions need to be taken to move toward blue oceans.
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European Financial Services (EFS)
• Visual Awakening– 2 Teams: Value curve production and emerging online
foreign exchange business– Pictures revealed defects in the company strategy– Curves were similar to competitors
• Visual Exploration– Sent mgrs into field for four weeks to interview– Propose a new strategy, new value curve, and a
compelling tagline.
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European Financial Services (EFS)
• Visual Strategy Fair– Presented strategy canvases
to senior executives and other representatives.
• Visual Communication– Distributed a one-page picture showing new and old
profiles.– All investment decisions had to fit this picture
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Visualizing Strategy at a Corporate Level
• When business units present their strategy canvases to one another, they deepen their understanding of the other businesses and the corporate portfolio.
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Pioneer-Migrator-Settler (PMS) Map
• Helps visualize, plan, and predict a company’s future growth and profit. – Pioneers– Migrators– Settlers
my-ticketstation.com
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Takeaways
• Create a strategy canvas to focus on the big picture and formulate your own blue ocean strategy.
• Strategic planning should be more about collective wisdom building than top-down or bottom-up planning.
mccallum.com.au
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References• Kim, W. Chan., and Renee Mauborgne. Blue Ocean Strategy: How
to Create Uncontested Market Space and Make the Competition Irrelevant. Boston, MA: Harvard Business School, 2005. Print. p. 82-99.
• http://uxplanner.com/strategy-and-value-curve-for-the-ipad