Blue Ocean Strategy
The Blue Ocean Strategy training aims to institutionalize innovation in an organization starting with product and service innovations. The purpose is to learn to look at the market in a radically different manner. Innovation is the key. Innovation is required in multiple areas but the ones that will benefit the organizations significantly are the innovations that directly affect the customers. Blue ocean strategy training provides the essential inputs to leaders to define new market opportunities.
High Value & Low Cost Vs. High Quality & Low Cost
The two are very different and yet both are essential for any organization. The differences are so high that they require different mindsets. In many organizations, such a demand of different mindsets could be on the same executives. While in some large organizations, they could be on different people.
High Value & Low Cost is ‘outside-in’ approach. Customer Value is placed at the core and then options to deliver the value at low cost are searched. In the process of creating high value, companies usually come up with radically new offerings.
High Quality & Low cost is predominantly “inside-out” approach. The focus is on how an organization can substantially modify its operations and delivery processes so that the offering is provided at a high quality while keeping cost as low as possible. New offering is not the prime consideration.
Blue Ocean Strategy addresses this High Value at a Low Cost.
All organizations have the opportunity to create new customers with new products. According to Clayton Christensen 95% of the products fail to make the required cut. The most important reason is that the offering is not able to provide High Value at Low Cost.
With a disciplined approach and right methodology, organizations can create new markets. Learn the tools and techniques and mindset required to create a new market. The first step towards this is to get a common understanding in the organization about issues such as high value, customers to be targeted, price at which products/services should be offered, which channel will give maximum leverage etc.
You can go a step further by practicing the new tools and techniques in a safe environment without the risk of negative consequences. Trying to do this in real life without a sound understanding can be a very expensive and sometimes disastrous.
New offerings need to be introduced correctly.
Customer Value Mismatch – The most cited reason for the failure of new offerings is that the offerings do not match customer value expectations. The key is to map the value expectations of potential customers.
Blue Ocean Strategy guides in building capabilities to identify the value sought by customers. The value sought by customers is usually more than just product features. Value can be created at various points in the entire customer journey. For example, Dell gave customers the freedom to decide the features for their laptops and not buy laptops with predefined features. They shifted radically from competing with existing brands like IBM and HP. They changed their internal processes to provide this huge value to customers.
The Blue Ocean Simulation is part of the 2 days learning program. The simulation covers all the stages in the process of developing and executing a Blue Ocean Strategy. The simulation creates a real-life environment for the executives involved in developing and implementing strategy in the organization.
Executives learn and apply the various tools and techniques of Blue Ocean in a simulated serious game that mimics the real world. In the process, they are exposed to various external business and internal organizational challenges that are commonly encountered while running a real business. Analysis and decision making under time constraint and outcome pressure is part of the simulation.
Executives learn progressively the right tools, techniques and frameworks.
Participants will be able to:
Apply systematically the various tools and techniques of the Blue Ocean Strategy to create a new market
Convert the needs of the customers into new products/services or modify existing products/services.
Identify the stages in the buyer cycle that can create maximum value.
Visualize the impact of their innovation decisions on the organization
Meet the challenges of leading a team through the entire process of creating a blue ocean strategy.
Understand how collaboration, specialization and competition become effective levers of organization and individual’s progress.
Develop an innovative business or functional strategy.
Communicate with colleagues in the company more effectively.
When many executives from the same organization learn this, then it becomes even more effective in communicating with each other and working as a team. Friction, misunderstanding, misinterpretation and the eventual loss of time and energy with regard to strategy and strategy execution are significantly reduced.