During tough competitive situations and rough economic times, businesses desperately need tools for maintaining and exponentially increasing business growth. However, the best tools in business appear complex and can hardly be applied by lone entrepreneurs and small businesses.
The purpose of this publication is to present the methodology of Blue Ocean-Business Model (BOBM) as a powerful but simple toolset for growing a business. The methodology of BOBM simplifies and seamlessly integrates best practice tools in business management. With BOBM and especially using its templates, you'll be able to simply design, execute, and monitor a Blue Ocean Strategy as well Blue Ocean-Business Model.
Business Model Canvas (BMC)- A new venture concept
BLUE OCEAN STRATEGY vs. BLUE OCEAN-BUSINESS MODELS: Instantly Learn and Apply Best Practice Tools for Exponential Business Growth
1.
BLUE OCEAN STRATEGY vs. BLUE OCEAN‐BUSINESS MODEL
Instantly Learn and Apply Best Practice Tools for Exponential Business Growth
Dr. Rod King
Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
2. Blue Ocean Map (“One‐Page Blue Ocean Strategy” for Simply Mapping, Designing, Executing, and Monitoring a Blue Ocean Strategy)
IDEAL BLUE OCEAN (FINAL RESULT) Fractal Market Segmentation of ……………………………………………………………………….
∞
BLUE OCEAN
Revenue
Experience
Highly differentiated and
premium-priced/free business model
Blue Ocean Plan
(+): DELIGHT
RED OCEAN
Experience
Commoditized and
Strategic
Red Ocean Plan low-cost business model
Choice
(‐): PAIN
(Uncontested Experience, Market Space, or New Category) No. of Competitors
BOBM1.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
3. 3 QUESTIONS FOR YOUR BLUE OCEAN‐BUSINESS MODEL
1. WHERE ARE YOU AT THE MOMENT (IN THE INDUSTRY)?
‐ Current Revenue: ……………………….………………….
‐ Current No. of Direct Competitors: ……………………….………………….
2. WHERE WOULD YOU LIKE TO BE (IN 1/2/3 YEARS)?
‐ Future (Desired) Revenue: ……………………….………………….
‐ Future No. of Direct Competitors: ……………………….………………….
‐ Uncontested Customer Experience: ……………………….………………………………….
3. HOW WILL YOU GET TO THE BLUE OCEAN?
‐ Design, Test, and Validate Blue Ocean Strategy
‐ Design, Test, and Validate Blue Ocean‐Business Model
‐ Implement and Monitor Blue Ocean Strategy as well as Blue Ocean‐Business
Model
‐ Adapt Blue Ocean Strategy and Blue Ocean‐Business Model, as Necessary
BOBM1.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
4. BLUE OCEAN VOICE FOR “BLUE OCEAN STRATEGY BOOK” vs. “BLUE OCEAN‐BUSINESS MODEL”
A) QUESTIONS FOR DETERMINING CUSTOMER DELIGHT AND NEEDS No. 1 Date: March 16, 2009
Name of Product/Service/Facility: “Blue Ocean Strategy” book Functionality: To present tools for creating a Blue Ocean Strategy
Customer’s Intent: To develop a Blue Ocean‐Business Model Business/Industry: Publishing/Business Education (Consulting)
Focus of Customer Experience: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
A1) What do you like regarding the object (product/service/facility)?
• Compelling storytelling and presentation of cases illustrating use of the Blue Ocean Strategy.
• Metaphor that distinguishes Red and Blue Ocean companies as well as their market spaces.
• Blue Ocean Strategy move as more critical than static historical factors in explaining extraordinary success in business.
• Methodology for Blue Ocean Strategy that integrates tools for strategic marketing, branding, Value Innovation, and strategy execution.
• Focus of Blue Ocean Strategy on non‐customers and reconstruction of existing market boundaries.
A2) What would you need regarding the object (product/service/facility)?
• A Software Application/Manual for systematically using methodology or process for Blue Ocean Strategy.
• A Software Application/Manual for systematically developing Blue Ocean‐Business Models.
• Instructions for systematically developing tactics, action plans, and projects with a view to implementing Blue Ocean Strategy.
• Workflow for translating, executing, and monitoring a Blue Ocean Strategy as in the case of using the Balanced Scorecard.
• Applications/Examples of using the Blue Ocean Strategy in public sector and NGO projects such as in urban planning and social business.
BOBM2.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
B) QUESTIONS FOR DETERMINING CUSTOMER PAIN AND DISSATISFACTION
5. B1) What DON’T you like regarding the object (product/service/facility)?
• The Blue Ocean Strategy book is not easy to fully understand. A Blue Ocean Strategy cannot immediately be developed. No procedure is
described for recognizing, selecting, and ‘weighing’ the importance of factors or dimensions on the Strategy Canvas. There is no
distinction between factors of customer delight and factors of customer pain. Also, there is no systematic procedure or tactics for
eliminating emerging trade‐offs on the Strategy Canvas. Further, the Four Actions Framework (Eliminate‐Reduce‐Raise‐Create) is not
linked to a process such as brainstorming for generating and evaluating more specific ideas, initiatives, and targets/success criteria.
• Reading the whole book of 216 pages takes an inordinate amount of time.
• The Blue Ocean Strategy is targeted at the private sector. The framework in the book does not facilitate application of Blue Ocean
Strategy to public sector projects. In particular, Blue Ocean Strategy is not presented as a methodology for creative problem solving
and innovation.
• The book largely consists of text; very little graphics.
• The Blue Ocean Strategy book is not ubiquitously available.
• The book costs US$27.95 (rather expensive!).
B2) What DON’T you need regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
BOBM2.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
6. BENCHMARKING OF VOICE No……… Date: March 16, 2009
Name of Product/Service/Facility: BOS book/Blue Ocean‐Bus. Model Functionality: To quickly develop business models
Customer’s Intent: To develop a Blue Ocean‐Business Model Business/Industry: Publishing/Business Education (Consulting)
Focus of Customer Experience: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
A) CUSTOMER DELIGHT AND NEEDS
Item List below what you like or would need Level of Importance Score for DELIGHT or NEED for Product/Service/Facility
regarding the Object: Product/Service/Facility or Weight (1‐10) 1: Low; 10: High
(1‐10) Blue Ocean Low‐end Average “Blue Ocean
1: Low; 10: High Bus. Model Alternative Alternative Strategy” book
1 Simplicity (How simple to read and immediately 9 8 2
use?)
2 Speed (How fast to read and digest?) 9 8 2
3 Versatility (Application to many other situations?) 7 9 5
4 Visuals (What percentage of illustrations?) 8 7 4
5 Accessibility (Is it available everywhere on 24x7?) 10 8 3
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
BOBM2.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
7. B) CUSTOMER PAIN AND DISSATISFACTION
Item List below what you DON’T like or would NOT Level of Importance Score for PAIN or DISSATISFACTION for Product/
need regarding the Object: Product/Service/ or Weight Service/Facility (1‐10) 1: Low; 10: High
Facility (1‐10) Blue Ocean Low‐end Average “Blue Ocean
1: Low; 10: High Bus. Model Alternative Alternative Strategy” book
1 Price (How expensive?) 10 1 8
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
BOBM2.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
9. Template for Blue Ocean Actions
A1) SATISFIERS (+) A2) DELIGHTERS (+)
Core strengths/features/requirements Breakthrough opportunities/features
Action: Raise Action: Create
* Differentiation/Novelty/Uniqueness * Value/Functionality: Visual (iPhone) App for
* Visuals * Accessibility (24x7) Blue Ocean Map and Business Models
* Integration/Connections/Collaboration * Versatility: Private and Public Projects; NGO
BLUE OCEAN ACTIONS:
Template for Organizing Responses to
Questions for Creating
Uncontested Customer Experiences
PRODUCT/SERVICE/FACILITY:
BLUE OCEAN‐BUSINESS MODEL
B1) DISSATISFIERS (‐) B2) WASTERS (‐)
Basic weaknesses/features/needs ‘Threats’ or overshot or wasteful features
Action: Reduce Action: Eliminate
* Complexity/Information Overload * Price
* Time for Reading
BOBM4. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
10. Blue Ocean Dashboard for Blue Ocean‐Business Model Project Date: March 16, 2009
Name of Product/Service/Facility: Blue Ocean‐Business Model Functionality: To visually develop Blue Ocean‐Business Models
Customer Value Proposition: “Blue Ocean‐Business Models in No Time” Business/Industry: Publishing/Business Education (Consulting)
Goal/Objective: To create an uncontested customer experience, acquire massive amount of customers, and make the competition irrelevant
BUSINESS SYSTEM Description Performance Objectives: 2010 Blue Ocean Actions (Customer Experience Quotient) Initiatives/
(“SEMPORCE”) of Best Current/ Projects
Cost (‐) Revenue (+) Other Raise Create Reduce Eliminate Other
ELEMENTS Future Resources
($) ($) Criteria (+) (+) (‐) (‐)
Online community
S: Suppliers/Materials
Facilitators/IP on Producti‐vity
E: Employees/Know‐
Business Models
ledge Assets/Culture
Computers/Online
M: Machinery/
Library of Bus. Models
Equipment/Facility
Open collaboration/ Defects: Six
P: Processes/
innovation/marketing Sigma
Activities
Blue Ocean Map/ Freemium Delight/ Novelty Functionality Complexity Price
O: Outputs
Model/iPhone App Pricing Defects Visuals Versatility Reading time
‐ Product
Talks/Training/ Hourly fees Delight/
‐ Service
Consulting/Licensing Royalties Defects
SN‐Internet/Word‐of‐
R: Retailers/
mouth/Volunteers
Distributors/Channels
Visual planners/entre‐ Delight/
C: Customers/
preneurs/startups Pain
Consumers
Virtual/Physical
E: Environment
Blue Ocean Strategy
‐ Competitors
(BOS) Book/Trainers
Users of BOS book
‐ Non‐customers
Bus. Planners/NGOs
‐ Partners
Dr. Rod King ROI
‐ Investors
Online/Global
‐ Community/Gov.
•
BUSINESS MODEL: Business Blue Ocean
“Fremium” Business Model
•
(How does the organization work to deliver its Experience Program
Open Business Model Innovation/Collaboration
ROI (%):
value proposition to customers & investors?) Quotient
BOBM5.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
11. S O
W T
Impact (SOWT) Analysis Dashboard for Blue Ocean‐Business Model Project Date: March 16, 2009
Name of Product/Service/Facility: Blue Ocean‐Business Model Functionality: To visually develop Blue Ocean‐Business Models
Customer Value Proposition: “Blue Ocean‐Business Models in No Time” Business/Industry: Publishing/Business Education (Consulting)
Goal/Objective: To create an uncontested customer experience, acquire massive amount of customers, and make the competition irrelevant
BUSINESS SYSTEM Description Performance Objectives: 2010 IMPACTS: Strengths, Opportunities, Weaknesses, and Threats
(“SEMPORCE”) of Best Current/
Cost: ‐ Revenue: + Other S: Strengths O: Opportunities W: Weaknesses T: Threats
ELEMENTS Future Resources
($) ($) Criteria (+) (+) (‐) (‐)
Online community
S: Suppliers/Materials
Facilitators/IP on Productivity
E: Employees/Know‐
Business Models Innovation
ledge Assets/Culture
Computers/Online
M: Machinery/
Library of Bus. Models
Equipment/Facility
Open collaboration/ Defects: Six
P: Processes/
innovation/marketing Sigma
Activities
Blue Ocean Map/ Freemium Delight/ Simple to use;Free Use by SMEs and Sparse notes; Unauthorized use
O: Outputs
Model/iPhone App Pricing Defects Comprehensive entrepreneurs focus is on visuals in training
‐ Product
Talks/Training/ Hourly fees Delight/
‐ Service
Consulting/Licensing Royalties Defects
SN‐Internet/Word‐of‐
R: Retailers/
mouth/Volunteers
Distributors/Channels
Visual planners/entre‐ Delight/Pain
C: Customers/
preneurs/startups
Consumers
Virtual/Physical
E: Environment
Blue Ocean Strategy
‐ Competitors
(BOS) Book/Trainers
Users of BOS book
‐ Non‐customers
Bus. Planners/NGOs
‐ Partners
Dr. Rod King ROI
‐ Investors
Online/Global
‐ Community/Gov.
BUSINESS MODEL: Business
(How does the organization work to deliver its Experience
ROI (%):
value proposition to customers & investors?) Quotient
BOBM5.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
12. 4 PERSPECTIVES AND QUESTIONS FOR BALANCING A
BLUE OCEAN DASHBOARD
1. INVESTOR PERSPECTIVE
‐ HOW WILL THE BUSINESS MAKE MORE MONEY (EXTRAORDINARY PROFIT)?
2. CUSTOMER PERSPECTIVE
‐ HOW WILL CUSTOMERS EXPERIENCE THE GREATEST DELIGHT AND LEAST PAIN?
3. PROCESS PERSPECTIVE
‐ WHAT PROCESSES AND STRATEGIES WILL GENERATE EXTRAORDINARY PROFIT AS
WELL AS DELIVER ITS VALUE PROPOSITION TO CUSTOMERS/CONSUMERS?
4. EMPLOYEE PERSPECTIVE
‐ WHAT ATTRIBUTES, SKILLS, COMPETENCES, RESOURCES, AND OUTPUTS
SHOULD EMPLOYEES HAVE IN ORDER TO SUSTAIN A WORKFLOW AND
CULTURE THAT DELIVER EXTRAORDINARY VALUE TO CUSTOMERS AND
INVESTORS?
BOBM5.31. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
13. Evolution of Business Management Concepts and Tools That Explain Extraordinary Growth and Profitability of Businesses
BUSINESS MANAGEMENT “BLUE OCEAN‐BUSINESS
?
MODELS”
CONCEPTS, THEORIES, AND
Environment TOOLS
(Supersystem)
“BLUE OCEAN STRATEGY”
“BLUE OCEAN‐BUSINESS
MODELS”
“BUILT TO LAST”
SPACE System “IN SEARCH OF EXCELLENCE”
(Product)
Concepts, tools, and strategic Visual concepts and tools for
Highly successful habits or factors
moves for explaining extra‐ mapping, designing, executing,
of companies that display extra‐
ordinary business success as well and monitoring the performance
ordinary growth, profitability, and
Elements
as executing a Blue Ocean of Blue Ocean Strategy as well as
longevity
Strategy Blue Ocean‐Business Models
Past Present Future
INITIAL IDEA
(“SEED”)
TIME
BOBM8.2. 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
BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
14.
15. Portfolio of Tools for Developing Blue Ocean‐Business Models
1) Blue Ocean Map & 2) Blue Ocean Voice & 3) Radial Strategy Canvas (Customer
Experience Curve)
3 Questions for Your Blue Ocean‐ Benchmarking of Voice
Business Model
4) Blue Ocean Actions 5) Blue Ocean Dashboard, Impact
(SOWT) Analysis Dashboard, & 4
BLUE OCEAN‐BUSINESS MODEL Perspectives and Questions for
TOOLS FOR EXPONENTIAL Balancing a Blue Ocean Dashboard
BUSINESS GROWTH
6) Zoomable Blue Ocean 7) TOMCAT (Trade‐Off Matrix) 8) Template of Classic Zoomable
Dashboard, Business Model Cost‐ Page & Template of System Evolution
streams and Workflow, & Business
Model Revenue‐streams
16. Blue Ocean Map (“One‐Page Blue Ocean Strategy” for Simply Mapping, Designing, Executing, and Monitoring a Blue Ocean Strategy)
IDEAL BLUE OCEAN (FINAL RESULT)
Fractal Market Segmentation of ……………………………………………………………………….
∞
Revenue
BLUE OCEAN
Experience
Highly differentiated and
premium-priced/free business model
Blue Ocean Plan
(+): DELIGHT
RED OCEAN
Experience
Commoditized and
Strategic
Red Ocean Plan low-cost business model
Choice
(‐): PAIN
(Uncontested Experience, Market Space, or New Category) No. of Competitors
BOBM1.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
17. 3 QUESTIONS FOR YOUR BLUE OCEAN‐BUSINESS MODEL
1. WHERE ARE YOU AT THE MOMENT (IN THE INDUSTRY)?
‐ Current Revenue: ……………………….………………….
‐ Current No. of Direct Competitors: ………………………………………….
2. WHERE WOULD YOU LIKE TO BE (IN 1/2/3 YEARS)?
‐ Future (Desired) Revenue: …………………….…………………….
‐ Future No. of Direct Competitors: ………………………………………….
‐ Uncontested Customer Experience: ……………………….………………………………….
3. HOW WILL YOU GET TO THE BLUE OCEAN?
‐ Design, Test, and Validate Blue Ocean Strategy
‐ Design, Test, and Validate Blue Ocean‐Business Model
‐ Implement and Monitor Blue Ocean Strategy as well as Blue Ocean‐Business
Model
‐ Adapt Blue Ocean Strategy and Blue Ocean‐Business Model, as Necessary
BOBM1.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
18. BLUE OCEAN VOICE
A) QUESTIONS FOR DETERMINING CUSTOMER DELIGHT AND NEEDS No……… Date: …….…………….…….…..
Name of Product/Service/Facility: ……………………………………………………………… Functionality: ……………….………………….…………….…..……………………
Customer’s Intent: ……………..……………………………………….…………………..……...… Business/Industry: ………………..........…………………..…….……………..
Focus of Customer Experience: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
A1) What do you like regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
A2) What would you need regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
B) QUESTIONS FOR DETERMINING CUSTOMER PAIN AND DISSATISFACTION
BOBM2.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
19.
B1) What DON’T you like regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
B2) What DON’T you need regarding the object (product/service/facility)?
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
………………………………………………………….……………………………………………………………………………………………..……………………………………………………………..
BOBM2.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
20. BENCHMARKING OF VOICE (VOICE OF INDEPENDENT CUSTOMER EXPERIENCE) No……… Date: …….…………….…………..
Name of Product/Service/Facility: ……………………………………………………………… Functionality: ……………….………………….…………….…..……………………
Customer’s Intent: ……………..……………………………………….…………………..……...… Business/Industry: …………………………………..…….……………….……..
Focus of Customer Experience: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
A) CUSTOMER DELIGHT AND NEEDS
Item List below what you like or would need regarding Level of Importance Score for DELIGHT or NEED for Product/Service/Facility
the Object: Product/Service/Facility or Weight (1‐10) 1: Low; 10: High
(1‐10) Given Low‐end Average High‐end
1: Low; 10: High Object Alternative Alternative Alternative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
BOBM2.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
21. B) CUSTOMER PAIN AND DISSATISFACTION
Item List below what you DON’T like or would Level of Importance Score for PAIN or DISSATISFACTION for Product/
NOT need regarding the Object: Product/Service/ or Weight Service/Facility (1‐10) 1: Low; 10: High
Facility (1‐10) Given Low‐end Average High‐end
1: Low; 10: High Object Alternative Alternative Alternative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
BOBM2.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
23. Template for Blue Ocean Actions
A1) SATISFIERS (+) A2) DELIGHTERS (+)
Core strengths/features/requirements Breakthrough opportunities/features
Action: Raise Action: Create
BLUE OCEAN ACTIONS:
Template for Organizing Responses to
Questions for Creating
Uncontested Customer Experiences
PRODUCT/SERVICE/FACILITY:
B1) DISSATISFIERS (‐) B2) WASTERS (‐)
Basic weaknesses/features/needs ‘Threats’ or overshot or wasteful features
Action: Reduce Action: Eliminate
BOBM4. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
24. Blue Ocean Dashboard for …………………………………………………………………………………………. Date: ……………………………….
Name of Product/Service/Facility: ……………………………..…………………….. Functionality: …………………………………………………………………….…
Customer Value Proposition: ……………………………………………………………………. Business/Industry: ………………..........…………………..….……………..
Goal/Objective: …………………………………………………………………………………………………………………………………………………………………………………………….
BUSINESS SYSTEM Description Performance Objectives: 20…… Blue Ocean Actions (Customer Experience Quotient) Initiatives/
(“SEMPORCE”) of Best Current/ Projects
Cost: ‐ Revenue: + Other Raise Create Reduce Eliminate Other
ELEMENTS Future Resources
($) ($) Criteria (+) (+) (‐) (‐)
S: Suppliers/Materials
E: Employees/Know‐
ledge Assets/Culture
M: Machinery/
Equipment/Facility
P: Processes/
Activities
O: Outputs
‐ Product
‐ Service
R: Retailers/
Distributors/Channels
C: Customers/
Consumers
E: Environment
‐ Competitors
‐ Non‐customers
‐ Partners
‐ Investors
‐ Community/Gov.
BUSINESS MODEL: Business IDEAL BLUE OCEAN STRATEGY (How to create an uncon‐ Blue Ocean
(How does the organization work to deliver its Experience tested customer experience and uncontested business Program
ROI (%):
value proposition to customers & investos?) Quotient model as well as make the competition irrelevant?)
BOBM5.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
25. S O
W T
Impact (SOWT) Analysis Dashboard for ………………………………………………………………………………. Date: ……………………………….
Name of Product/Service/Facility: ……………………………..…………………….. Functionality: …………………………………………………………………….…
Customer Value Proposition: ……………………………………………………………………. Business/Industry: ………………..........…………………..….……………..
Goal/Objective: ……………………………………………………………………………………………………………………………………………………….…………………..……………….
BUSINESS SYSTEM Description Performance Objectives: 20…… IMPACTS: Strengths, Opportunities, Weaknesses, and Threats
(“SEMPORCE”) of Best Current/
Cost: ‐ Revenue: + Other S: Strengths O: Opportunities W: Weaknesses T: Threats
ELEMENTS Future Resources
($) ($) Criteria (+) (+) (‐) (‐)
S: Suppliers/Materials
E: Employees/Know‐
ledge Assets/Culture
M: Machinery/
Equipment/Facility
P: Processes/
Activities
O: Outputs
‐ Product
‐ Service
R: Retailers/
Distributors/Channels
C: Customers/
Consumers
E: Environment
‐ Competitors
‐ Non‐customers
‐ Partners
‐ Investors
‐ Community/Gov.
BUSINESS MODEL: Business
(How does the organization work to deliver its Experience
ROI (%):
value proposition to customers & investors?) Quotient
BOBM5.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BOBM5.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
26. 4 PERSPECTIVES AND QUESTIONS FOR BALANCING A
BLUE OCEAN DASHBOARD
1. INVESTOR PERSPECTIVE
‐ HOW WILL THE BUSINESS MAKE MORE MONEY (EXTRAORDINARY PROFIT)?
2. CUSTOMER PERSPECTIVE
‐ HOW WILL CUSTOMERS EXPERIENCE THE GREATEST DELIGHT AND LEAST PAIN?
3. PROCESS PERSPECTIVE
‐ WHAT PROCESSES AND STRATEGIES WILL GENERATE EXTRAORDINARY PROFIT AS
WELL AS DELIVER ITS VALUE PROPOSITION TO CUSTOMERS/CONSUMERS?
4. EMPLOYEE PERSPECTIVE
‐ WHAT ATTRIBUTES, SKILLS, COMPETENCES, RESOURCES, AND OUTPUTS
SHOULD EMPLOYEES HAVE IN ORDER TO SUSTAIN A WORKFLOW AND
CULTURE THAT DELIVER EXTRAORDINARY VALUE TO CUSTOMERS AND
INVESTORS?
BOBM5.31. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
27. Template for 4 Perspectives and Questions for Balancing a Blue Ocean Dashboard
INVESTOR PERSPECTIVE EMPLOYEE PERSPECTIVE
• •
How will the business make more What attributes, skills, resources, and
money (extraordinary profit)? 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 PROCESS PERSPECTIVE
• •
How will customers experience the What processes and strategies will
greatest delight and least pain? generate extraordinary profit as well
as deliver its 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
28. Template for Zoomable Blue Ocean Dashboard
S: SUPPLIERS/MATERIALS E: EMPLOYEES/KNOWLEDGE ASSETS/ M: MACHINERY/EQUIPMENT/
FACILITY
CULTURE
E: ENVIRONMENT P: PROCESSES/STRATEGIES
BUSINESS MODEL (20…….)
• •
Competitors Brand/PR/Marketing Strategy
[Uncontested Customer Experience/
• •
Non‐customers/Non‐consumers Revenue‐generating Strategy
Customer Value Proposition/Business Goal
• •
Partners Cost‐reduction Strategy
(“BHAG”)/Strategic Intent/Vision/Ideal
• •
Solution/Revenue, Cost, Profit, and ROI]:
Investors Value Innovation (Trade‐off) Strategy
• •
Gov./Community/Society/Env. Competitive Advantage Strategy
C: CUSTOMERS/CONSUMERS R: RETAILERS/DISTRIBUTORS/ O: OUTPUTS/PRODUCT/SERVICE
CHANNELS/INTERFACE
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
29. Template for Business Model Cost‐streams and Workflow
Template for Business Model Cost‐streams and Workflow
S: SUPPLIERS/MATERIALS E: EMPLOYEES/KNOWLEDGE ASSETS/ M: MACHINERY/EQUIPMENT/
FACILITY
CULTURE
E: ENVIRONMENT P: PROCESSES/STRATEGIES
BUSINESS MODEL (20…….)
• •
Competitors Procurement; HR Mngt; Operations
COST‐STREAMS/WORKFLOW:
• •
Non‐customers/Non‐consumers Technology/R & D/Innovn/Production
• •
Partners Marketing/Branding/PR/Sales
• •
Investors Distribution/Logistics/Partnering
• •
Gov./Community/Society/Env. Customer Service (Relationship Mngt)
C: CUSTOMERS/CONSUMERS R: RETAILERS/DISTRIBUTORS/ O: OUTPUTS/PRODUCT/SERVICE
CHANNELS/INTERFACE
BOBM6.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
30. Template for Business Model Revenue‐streams
Template for Business Model Revenue‐streams
S: SUPPLIERS/MATERIALS E: EMPLOYEES/KNOWLEDGE ASSETS/ M: MACHINERY/EQUIPMENT/
FACILITY
CULTURE
E: ENVIRONMENT P: PROCESSES/STRATEGIES
BUSINESS MODEL (20…….)
• •
Competitors Sale of Product/Service/Information
POSSIBLE SOURCES OF REVENUE:
• •
Non‐customers/Non‐consumers Subscription/Membership/Sale of Biz
• •
Partners Transaction/Commission Fees
• •
Investors Advertising/Affiliate/Partner Fees
• •
Gov./Community/Society/Env. Licensing/Syndication/Sponsorship
C: CUSTOMERS/CONSUMERS R: RETAILERS/DISTRIBUTORS/ O: OUTPUTS/PRODUCT/SERVICE
CHANNELS/INTERFACE
BOBM6.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
31. TOMCAT (Trade‐Off Matrix of Customer Aspirations And Troubles): How to Quickly Organize and Document Blue Ocean‐Business Models as
well as Determine (Non‐)Customer Trade‐offs, Value Propositions, Business Opportunities, Strategies, and Design/Brainstorming Objectives
Customer’s Intent/Job: ……………..……………………………………….…………………..……...… (Non‐)Customers/Industry: ……………….…………………….……..
Focus of (Non‐)Customer: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
Breakthrough Question: HOW TO MAKE (THE PRODUCT/ENTERPRISE/INDUSTRY OF) ……………..……………......……….…….....……… IRRELEVANT?
(Non‐)Customer Needs (‐) 1 2 3 4 5 6 7 8 9 10
Cost Mainten‐ Time Defects/ Weight/ Effort/ Staff Complexity/ Rigidity/ Pain/
Reduce/Eliminate
ance/ (Delivery/ Complaints/ Size/ Friction/ Depend‐ Information Inaccess‐ Barriers/
(Relative to Industry Standard)
Upgrade Aging) Waste Tool Energy ency Overload ibility Pollution
(+) Raise/Create
Value/Functionality
1
Quality/Automation
2
Performance/Productivity
3
Differentiation/Novelty/
4
Uniqueness/Form/Fractality
Speed/Agility
5
Aesthetics/Visual Appeal/Color
6
Ease of Use/Simplicity
7
Convenience of Use
8
Customer Service/Support
9
Fun/Entertainment/Adventure
10
Star Performers/Celebrities
11
Prestige/Legacy/Amenities
12
Wide Choice/Versatility
13
Hygiene/Cleanliness
14
Integration/Connectivity
15
Power/Strength/Wisdom
16
Accuracy/Reliability
17
Security/Safety/Health
18
Collaboration/Communication
19
Customization/Personalization
20
BOBM7. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
32. Template for a Classic Zoomable Page
BOBM8.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
33. Template for Illustrating Evolution of a System
Environment
(Supersystem)
PRESENT SYSTEM:
System
SPACE
Elements
Past Present Future
INITIAL IDEA
(“SEED”)
TIME
BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
34. REFERENCES
1. Kaplan, R.S.; Norton, D.P. (1996) The Balanced Scorecard. Boston:
Harvard Business School (HBS) Press.
2. Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston:
Harvard Business School (HBS) Press.
3. Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston:
Harvard Business School (HBS) Press.
4. King, R. (2009) The Infinitely Zoomable Page: The Ideal Tool for
Business Model Thinking, Design, and Innovation. Fresno: Ideal‐
Solution Management.
Dr. Rod King
Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com