How to navigate Blue Ocean? · Innovation/Blue Ocean Strategy ’family of concepts, frameworks,...
Transcript of How to navigate Blue Ocean? · Innovation/Blue Ocean Strategy ’family of concepts, frameworks,...
How to navigate How to navigate How to navigate How to navigate How to navigate How to navigate How to navigate How to navigate Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?
VIAC Co.VIAC Co.
Value Innovation Action Camp KOREAValue Innovation Action Camp KOREA
ⓒ Kim & Mauborgne
What is Blue Ocean Strategy?What is Blue Ocean Strategy?What is Blue Ocean Strategy?What is Blue Ocean Strategy?
-- Create a hugely new market by creativity not Create a hugely new market by creativity not
competitioncompetition
-- Provides practical frameworks for the systematic Provides practical frameworks for the systematic
pursuit and capture of Blue Oceanpursuit and capture of Blue Ocean
Founded by Professors W. Chan Kim and Renee Founded by Professors W. Chan Kim and Renee Founded by Professors W. Chan Kim and Renee Founded by Professors W. Chan Kim and Renee MauborgneMauborgneMauborgneMauborgne at INSEAD at INSEAD at INSEAD at INSEAD
ⓒ Kim & Mauborgne
International bestsellerInternational bestsellerInternational bestsellerInternational bestseller----Blue Ocean strategyBlue Ocean strategyBlue Ocean strategyBlue Ocean strategy
Published in 32 language.Published in 32 language.Published in 32 language.Published in 32 language.
ⓒ Kim & Mauborgne
-- they they developed value innovation theory developed value innovation theory in in
early1990early1990’’ss
- Blue Ocean Strategy provides a systematic provides a systematic
approach to making the competition approach to making the competition
irrelevantirrelevant
-- adopted by companies of North America adopted by companies of North America
and Europe in last 10 years, such as Philips, and Europe in last 10 years, such as Philips,
Cirque Cirque dudu SoleilSoleil..
; it was successful!; it was successful!
INSEAD
W.Chan Kim professor and Renée
Mauborgne professor
Why do the word devote their attention on Blue Ocean Strategy?Why do the word devote their attention on Blue Ocean Strategy?Why do the word devote their attention on Blue Ocean Strategy?Why do the word devote their attention on Blue Ocean Strategy?
ⓒ Kim & Mauborgne
Red Ocean with Red Ocean with Red Ocean with Red Ocean with Bloody CompetitionBloody CompetitionBloody CompetitionBloody Competition
-- supply exceed demandsupply exceed demandsupply exceed demandsupply exceed demandsupply exceed demandsupply exceed demandsupply exceed demandsupply exceed demand
-- almost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence today
ⓒ Kim & Mauborgne
가치혁신가치혁신가치혁신가치혁신 << << << << 블루오션블루오션블루오션블루오션 전략전략전략전략
How to survive in Red OceanHow to survive in Red OceanHow to survive in Red OceanHow to survive in Red Ocean
= choice of low cost = choice of low cost = choice of low cost = choice of low cost orororor differentiation differentiation differentiation differentiation
Red Ocean Strategy = Competition Red Ocean Strategy = Competition Red Ocean Strategy = Competition Red Ocean Strategy = Competition StrategyStrategyStrategyStrategy
ⓒ Kim & Mauborgne
Blue Ocean Strategy = Creation StrategyBlue Ocean Strategy = Creation StrategyBlue Ocean Strategy = Creation StrategyBlue Ocean Strategy = Creation Strategy
Make the competition irrelevant!
ⓒ Kim & Mauborgne
Aisleconcessions
Fun And
Humor
Uniquevenue
Blue Ocean Strategy Basic Tool: strategy canvasBlue Ocean Strategy Basic Tool: strategy canvasBlue Ocean Strategy Basic Tool: strategy canvasBlue Ocean Strategy Basic Tool: strategy canvas
LowLowLowLow
HighHighHighHigh
PriceStar
performers
Animal Shows
MultipleShow arenas
Thrill and danger
Ringling Fros. And Barmum & Balley Value Curve
Smaller Regional Circuses
Achieving of both low cost and
high value : Cirque Cirque dudu SoleilSoleil
ⓒ Kim & Mauborgne
The venueThe venueThe venueThe venue of of of of Cirque Cirque Cirque Cirque Cirque Cirque Cirque Cirque dudududududududu SoleilSoleilSoleilSoleilSoleilSoleilSoleilSoleil
ⓒ Kim & Mauborgne
The strategy Canvas of The strategy Canvas of The strategy Canvas of The strategy Canvas of Cirque Cirque Cirque Cirque Cirque Cirque Cirque Cirque dudududududududu SoleilSoleilSoleilSoleilSoleilSoleilSoleilSoleil
Ringling Bros. and Barnum & Bailey Value Curve
Cirque du SoleilValue Curve
SmallerRegional Circuses
LowLowLowLow
HighHighHighHigh
PriceStar
performers
Animal Shows Aisle
concessions
MultipleShow arenas
Fun And
Humor
Thrill and danger Unique
venue
Theme
RefinedWatching
environment
MultipleProductionsArtistic
MusicAn dance
ⓒ Kim & Mauborgne
Is it circus or Is it circus or Is it circus or Is it circus or balletballetballetballet????
ⓒ Kim & Mauborgne
Which of the factors Which of the factors Which of the factors Which of the factors Which of the factors Which of the factors Which of the factors Which of the factors that the industry that the industry that the industry that the industry that the industry that the industry that the industry that the industry takes for grantedtakes for grantedtakes for grantedtakes for grantedtakes for grantedtakes for grantedtakes for grantedtakes for granted
Should be eliminatedShould be eliminatedShould be eliminatedShould be eliminatedShould be eliminatedShould be eliminatedShould be eliminatedShould be eliminated
1. Eliminate1. Eliminate1. Eliminate1. Eliminate1. Eliminate1. Eliminate1. Eliminate1. EliminateWhich factors shouldWhich factors shouldWhich factors shouldWhich factors shouldWhich factors shouldWhich factors shouldWhich factors shouldWhich factors should
be created that be created that be created that be created that be created that be created that be created that be created that the industry hasthe industry hasthe industry hasthe industry hasthe industry hasthe industry hasthe industry hasthe industry hasnever offered?never offered?never offered?never offered?never offered?never offered?never offered?never offered?
4. Create4. Create4. Create4. Create4. Create4. Create4. Create4. Create
Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should be raised wellbe raised wellbe raised wellbe raised wellbe raised wellbe raised wellbe raised wellbe raised well
above the industryabove the industryabove the industryabove the industryabove the industryabove the industryabove the industryabove the industry’’s s s s s s s s Standard?Standard?Standard?Standard?Standard?Standard?Standard?Standard?
3.Raise3.Raise3.Raise3.Raise3.Raise3.Raise3.Raise3.Raise
2. Reduce2. Reduce2. Reduce2. Reduce2. Reduce2. Reduce2. Reduce2. Reduce
NewNewNewNewValue CurveValue CurveValue CurveValue Curve
The principle (ERRC) to break the valueThe principle (ERRC) to break the valueThe principle (ERRC) to break the valueThe principle (ERRC) to break the value----cost tradecost tradecost tradecost trade----offoffoffoff
Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should be reduced well be reduced well be reduced well be reduced well be reduced well be reduced well be reduced well be reduced well
below the industrybelow the industrybelow the industrybelow the industrybelow the industrybelow the industrybelow the industrybelow the industry’’’’’’’’s s s s s s s s standard? standard? standard? standard? standard? standard? standard? standard?
Company Company Company Company Company Company Company Company ValueValueValueValueValueValueValueValue
Buyer ValueBuyer ValueBuyer ValueBuyer ValueBuyer ValueBuyer ValueBuyer ValueBuyer Value
ⓒ Kim & Mauborgne
Blue Ocean of New York City Police Department?Blue Ocean of New York City Police Department?Blue Ocean of New York City Police Department?Blue Ocean of New York City Police Department?
•• In less two years and without In less two years and without
an increase in his budget, an increase in his budget,
Bratton turned New York City Bratton turned New York City
into the safest.into the safest.
NYPD Blue Ocean of Bill Bratton
ⓒ Kim & Mauborgne
ERRC of New York City Police DepartmentERRC of New York City Police DepartmentERRC of New York City Police DepartmentERRC of New York City Police Department
LowLowLowLow
HighHighHighHigh
Widespread Widespread Widespread Widespread patrols of patrols of patrols of patrols of
subway systemsubway systemsubway systemsubway system InvolvementInvolvementInvolvementInvolvementof officers inof officers inof officers inof officers inProcessing Processing Processing Processing
arrestsarrestsarrestsarrests
Arrests ofArrests ofArrests ofArrests ofWarrant violatorsWarrant violatorsWarrant violatorsWarrant violators
In daytimeIn daytimeIn daytimeIn daytimeIssuance of deskIssuance of deskIssuance of deskIssuance of desk
Appearance ticketsAppearance ticketsAppearance ticketsAppearance tickets
ArrestArrestArrestArrest
GroupGroupGroupGrouparrestarrestarrestarrest
Focus onFocus onFocus onFocus onQualityQualityQualityQuality----ofofofof----lifelifelifelife
crimescrimescrimescrimesArrests pf warrantArrests pf warrantArrests pf warrantArrests pf warrantViolators duringViolators duringViolators duringViolators duringSleeping hoursSleeping hoursSleeping hoursSleeping hours
Use of Use of Use of Use of “bust busesbust busesbust busesbust buses”For processing For processing For processing For processing
arrestsarrestsarrestsarrestsTrain sweepsTrain sweepsTrain sweepsTrain sweeps
For safeFor safeFor safeFor safeatmosphereatmosphereatmosphereatmosphere
Before
Bratton’s
Appointment
How Bratton Refocused Resources?
After
Bratton’s
Appointment
ⓒ Kim & Mauborgne
Blue Ocean Strategy consists ofBlue Ocean Strategy consists ofBlue Ocean Strategy consists ofBlue Ocean Strategy consists of…………
�� The Formulation of Blue Ocean Strategy The Formulation of Blue Ocean Strategy
Body Body �������� Value InnovationValue Innovation
�� The Execution of Blue Ocean Strategy The Execution of Blue Ocean Strategy
Head Head �������� Tipping Point Tipping Point Leadership Leadership
Arms & LegsArms & Legs�������� Fair ProcessFair Process
ⓒ Kim & Mauborgne
Why does technology innovation fail?Why does technology innovation fail?Why does technology innovation fail?Why does technology innovation fail?
ⓒ Kim & Mauborgne
To execute Blue Oceans strategy successfullyTo execute Blue Oceans strategy successfullyTo execute Blue Oceans strategy successfullyTo execute Blue Oceans strategy successfully
FPFP
FPFP
VI
TPL
Roles of Arms & Legs are importantRoles of Arms & Legs are important..
ⓒ Kim & Mauborgne
Buyer viewBuyer viewSupplier viewSupplier view
Existing
customersNon-customers
Strategy Focus Shifts Strategy Focus Shifts Strategy Focus Shifts Strategy Focus Shifts
Beating the
competition
Making the
competition irrelevant
ⓒ Kim & Mauborgne
LetLetLetLet’’’’s draw Strategy Canvas!s draw Strategy Canvas!s draw Strategy Canvas!s draw Strategy Canvas!
ⓒ Kim & Mauborgne
Where is Your Own Blue Ocean?
Seek and You will Find!
ⓒ Kim & Mauborgne
Find your blue ocean navigation in VIAC Korea!Find your blue ocean navigation in VIAC Korea!Find your blue ocean navigation in VIAC Korea!Find your blue ocean navigation in VIAC Korea!
�������� contact uscontact uscontact uscontact uscontact uscontact uscontact uscontact us
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• Professors Professors Professors Professors W.ChanW.ChanW.ChanW.Chan Kim and Kim and Kim and Kim and ReneReneReneRene�eeee MauborgneMauborgneMauborgneMauborgne are the are the are the are the sole originators, founders, and owners of the sole originators, founders, and owners of the sole originators, founders, and owners of the sole originators, founders, and owners of the “ Value Value Value Value
Innovation/Blue Ocean StrategyInnovation/Blue Ocean StrategyInnovation/Blue Ocean StrategyInnovation/Blue Ocean Strategy’ family of concepts, family of concepts, family of concepts, family of concepts,
frameworks, tools, processes, methodologies, etc. frameworks, tools, processes, methodologies, etc. frameworks, tools, processes, methodologies, etc. frameworks, tools, processes, methodologies, etc.
• Accordingly, all such materials shall contain the proper Accordingly, all such materials shall contain the proper Accordingly, all such materials shall contain the proper Accordingly, all such materials shall contain the proper copyright notice: copyright notice: copyright notice: copyright notice: “ⓒⓒⓒⓒKim & Kim & Kim & Kim & MauborgneMauborgneMauborgneMauborgne”. . . .
• The name The name The name The name “Blue Ocean strategyBlue Ocean strategyBlue Ocean strategyBlue Ocean strategy” has been registered for has been registered for has been registered for has been registered for
Trademark.Trademark.Trademark.Trademark.