Virtual ocean strategy the way to reset strategies with a purpose driven “industry structure is irrelevant” mindset
1. Virtual Ocean Strategy – the way to reset
strategies with a purpose driven
“traditional industry structures & resource
constraints are irrelevant” mindset?
(Draft For Discussion Purposes Only )
Charles Prabakar
Executive Global Partner/Managing Director
Willis Consulting LLC
2. “Virtual Ocean Strategy ” at a glance…
Situation Complication Resolution
While the phrase Lack of an Integrated systemic We suggest a contrarian
“strategy reset” means mindset within the three purpose Deconstructionanist/
different things to dimensions of leadership, hybrid approach
different companies, strategy & innovation. (between Red ocean and
most strategy Blue Ocean) with a
Lack of an agreed upon
practitioners agree, that “Virtual Ocean” mindset
purpose statement.
there are not many “–by resetting company’s
comprehensive purpose statement (vision,
Lack of the purpose seed not
approaches available being germinated properly (in mission, values, codes and
within the market place spirit and essence) into an BHAG ), using nature’s
designed to reset both organization with a unique Seedal chain principle
the strategic plan, and culture with a unique DNA”. (Seed-Season-Sequel),
“design of the business with a “traditional industry
purpose seed”, Lack of an approach with a structures and resource
simultaneously , with an “tearing down the walls of constraints are irrelevant”
industry structures”
integrated/systemic mindset along with a
mindset”, to meet the multi dimensional
Lack of a multi dimensional
ever changing business balancing model, as opposed balancing model in the
needs of the 21st century to the traditional 2D “value- five dimensions of value,
social media driven cost” balancing model ( i.e. cost, velocity, growth and
connected world! tradeoff in ROS and “doing purpose.
both” in BOS).
Lack of an Integrated systemic mindset within the three purpose dimensions of
leadership, strategy & innovation, is the #1 reason, why most strategy resets, do
not yield its intended outcome!
3. How does VOS stack up against BOS and ROS within this MBA framework?
MBA Step Red Ocean Blue Ocean Virtual Ocean
Compete Dive deeper, in Fly faster into the virtual
aggressively in order to tap the space, in order to tap the
order to grab untapped value untapped value, by doubling
Motivation value from within an existing the size of the value pie, using
competitors, value ocean pie. our firm’s VOS, VRE, Capitalism
within an existing Plus, Purpose Innovation and
value ocean pie. VizPlanet platforms.
Beat the Make competition Make traditional Industry
Belief competition at irrelevant. structures and resource
any cost. constraints irrelevant.
Trade-off value Balance value Balance the five dimensional
Action and cost. and cost. value cycle i.e. “value-cost-
velocity-growth-purpose”
using five value stations (4
BSC+ purpose).
Stacking strategy frameworks with an MBA lens, not only helps us to diagnose &
prescribe effective and efficient strategies, but also, helps us to prioritize, where we
need to spend our time & energy (i.e. which step within MBA) to maximize value!
6. 2 Plan usingwith the TriuneTrack Seasonality driven Cyclical VOS Frameworks
Execute Integrated 3 Shared Value (TSV) mindset for the best Sequel
Profit
5. Commercialization/
5.Financi Commodity Value-
al Iterate it –(Fertile Land)
Shareholder Value= Profit x
Cust. Value= (1-g/ROIC)/ (WACC-g)
Jobs-to-be ROIC=
done/Price
1. Purpose Margin x
Velocity
2.Customer
4.Value
2. “Jobs-To- Chain
Be-Done”
Value – 1. Theme It 4. Incubator
Ideate it Value – Test it
(Hard Land ) – (Weedy
Land)
3.Growth
3. Vision Value – /Learning/
Slot it Collaboratio Legend :
Green – Leadership Track
(Shallow Land) n Purple – Innovation Track
g Black – Strategy Track
8. In spite of using these great frameworks, some strategy resets still do not
produce its intended outcome? Why?
In Porter’s words, the essence of strategy is choosing what not to do, and so,
here are five “what not to do’s” …..
•What Not To Do #4->: Do not mix SCA vs.
• What Not #1 -> Do not reset with a single
capability vs. competency within organic
dimensional strategy mindset, as opposed to an
and inorganic growth strategies , but follow
integrated systemic approach, in the three
a portfolio approach in managing
dimensions of leadership, strategy and innovation,
capabilities – as addressed by our
as addressed by our TPF framework within VOS.
Capability Pool Portfolio (CPP) Framework
• What Not #2-> Do not reset strategy without SCA vs. Competency vs. capability is
resetting the purpose seed, as addressed by our equivalent to Grandma’s hand trick of
Purpose driven seedal chain/scientific energy sautéing for the right duration with
management principle driven Portfolio Thread right temperature vs. Recipe vs.
view based strategic planning framework . Ingredient.
• What Not #3-> Do not go after an existing market, •What Not To Do #5-> Do not Execute
as opposed to going after the virtual ocean without a real time performance visibility ->
market and/or experience pools, which do not partly addressed by our big data driven
exist today with a motivational momentum real time valuation based Corporate
themes creating experience moments or performance management framework.
movements-> as addressed by our Experience
Pool Portfolio (EPP) framework and our Purpose
Innovation.
9. Alright…. How does it then stack up against Red Ocean and Blue Ocean?
# Red Ocean Blue Ocean Virtual Ocean (aka TPF)
1 Compete in an Create a new market Create a new market by tearing down the artificial
existing market, within an existing walls among industry structures and make traditional
within an existing industry structure and industry structures and cost constraints irrelevant.
industry structure make competition
with a unique irrelevant.
winning path.
2 Beat the Make competition Plan with “competition irrelevant” mindset, but
competition. irrelevant. execute with a collaborative mindset as competition
will catch up sooner than later, in the 21st century
digitally connected virtual world.
3 Value-cost trade- Break value-cost Balancing five dimensional “value-cost-velocity-
off. trade-off. growth-purpose” using nature’s principle of
“balancing opposites using the five value stations (4
BSC+purpose)
4 Align the whole Align the whole Align the whole system of firm's activities in pursuit of
system of firm's system of firm's low cost, differentiation, talent management,
activities with low activities in pursuit of operational velocity and purpose, all simultaneously.
cost or low cost and
differentiation. differentiation.
5 Sourced from a Sourced from two Sourced from three “inside-out” sources of
Single dimensional dimensional, “outside- “purpose-energy-value” portfolios, manifesting itself
“outside-in” in” strategy and as an integrated/systemic approach (of leadership,
Completive value innovation strategy and innovation dimensions), resulting in
Strategy mindset. mindset. Triune shared value (shareholder + societal +
spiritual/emotional/cultural value), governed by
nature's seedal chain principle.
10. How does it stack up against Red Ocean and Blue Ocean? Contd…
# Red Ocean Blue Ocean Virtual Ocean (aka TPF)
6 Success is Success is Value Success is Three dimensional Value Advantage
Competitive Innovation driven. driven=
Advantage driven market or experience advantage + capability or
competency advantage + collaborative
cultural/emotional value advantage .
7 Structuralistic Reconstructionist Deconstructionist approach where we start with a
approach where approach where super design purpose structure of business followed
structure decides strategy decides by strategy and then, arriving at the fine grained
strategy structure. Triune shared value(TSV) structure.
8 Primarily balances Primarily balances Five dimensional balancing of value, profit, growth,
value proposition value proposition, velocity and purpose propositions, thus resulting in
and value chain profit proposition 18 macro dilemmas as identified in our radial
proposition only and people framework.
proposition.
9 Exploit existing Create and capture Create and capture new demand with a pull
demand new demand. mechanism, yet prevent/mitigate and balance it
with supply side (i.e. push side) with a balanced
CORE-EDGE-FRINGE mindset.
10 Primarily shareholder Primarily shareholder Triune Shared Value driven i.e. two “outside-in”
value driven with value driven with values of Shareholder and societal value
CSR mindset, slowly value innovation complemented by “Inside-out“ value called
transforming into mindset. Spirituality/Emotional energy/culture value, which
Porter’s emerging makes it sustainable.
CSV mindset.