Slide 1:Blue Ocean Strategy 1 Blue Ocean Strategy PE Cafe Nyenrode Are you RED or Are you BLUE?


Slide 2:Blue Ocean Strategy PE Cafe Nyenrode 2 Get inspired… Blommaert Enterprise “To fight and conquer in all your battles is not supreme excellence. Supreme excellence is in breaking the enemy’s resistance without fighting.” Master Sun Tzu in “Art of War’


PROGRAMMA :PROGRAMMA Generieke modellen voor bedrijfsstrategieën (Porter, Treacy-Wiersema, Blue Ocean) 2. Blue Ocean versus Red Ocean 3. Blue Ocean ontwerp 4. Het ‘Strategy canvas’ 5. Blue Ocean design maatregelen 6. Blue Ocean uitgangspunten 7. Blue Ocean strategie executie 15.30 Ontvangst 16.00 Blue Ocean 17.30 Pauze 18.00 Blue Ocean (2) 19.00 Closing; wining Blue Ocean Strategy PE Cafe Nyenrode 3 Get inspired… Blommaert Enterprise Tjeu Blommaert ism Stephan vd Broek


Slide 4:Blue Ocean Strategy PE Cafe Nyenrode 4 3 mainstream Strategic Models Michael Porter Michael Treacy en Fred Wiersema 1 2 3 LOW COST (zero frills) DIFFERENTIATION FOCUS (on a typical customer segment) CUSTOMER INTIMACY PRODUCT INNOVATION OPERATIONAL EXCELLENCE BLUE OCEAN W. Chan Kim en Renee Mauborgne ‘Survival zone’


Slide 5:Blue Ocean Strategy PE Cafe Nyenrode 5 Low Cost versus Differentiation


Slide 6:Blue Ocean Strategy PE Cafe Nyenrode 6 Generieke Strategie LOW COST DIFFERENTIATIE Product innovation Operational excellence Customer intimacy F N-F Treacy/Wiersema Porter FOCUS 3 DIMENSIONS OF CUSTOMER VALUE


Slide 7:Blue Ocean Strategy PE Cafe Nyenrode 7 Customer Intimacy Operational Excellence Product Leadership SURVIVAL ZONE MAX MIN MIN MAX MIN MAX Value Discipline: Excell in 1 specific Dimension OF value while Maintaining threshold standards On the other dimensions!


Slide 8:Blue Ocean Strategy PE Cafe Nyenrode 8 Customer Intimacy Operational Excellence Product Leadership MAX MIN MIN MAX MIN MAX Value Discipline EX. Dominate the market by Improving your focal Point year after year


Slide 9:Blue Ocean Strategy PE Cafe Nyenrode 9 9 Blue Ocean Strategy PE Cafe Nyenrode


Slide 10:Blue Ocean Strategy PE Cafe Nyenrode 10 “THE INDUSTRIAL HIERARCHICAL COMPANY WAS BUILT FOR OPTIMIZATION HENCE OPERATIONALE EXCELLENCE, NOT INNOVATION”. Gary Hamel It’s rather a challenge to move the company from one customer value focal point onto another. More of the same


Slide 11:11 > Market boundaries can be shaped (not given perse) > Boundaries are (re)constructed by the beliefs & actions of the industry players 11 Blue Ocean Strategy PE Cafe Nyenrode


Slide 12:Starting point are the CRITICAL SUCCESS FACTORS for any market from a buyers’ perspective (CSFs appr. 6 items) Indicate the company’s and the peers relative current position on these CSFs (e.g. low/high/medium or 1-3-5; eventually weighing) Develop a unique ‘cocktail’ of these CSFs by well-considered actions to simultaneously: Improve one or few of these CSFs and/or Lower one or few of these CSFs and/or Minimize one or few of these CSFs and/or Add one or few of newly considered CSFs. in a nutshell Blue Ocean Strategy PE Cafe Nyenrode 12


Slide 13:Blue Ocean Strategy PE Cafe Nyenrode 13 CSF1 CSF2 CSF3 CSF4 CSF5 CSF6 LOW MEDIUM HIGH Company … Step 1 the CSF’s And your scores Through the eyes of the Customer (‘visual awakening’) Value Curve


Slide 14:Blue Ocean Strategy PE Cafe Nyenrode 14 A critical success factor (CSF) in Blue Ocean strategy perspective is determined through the lenses of the customer. It’s a factor whose (relative) presence makes the customer decide to buy from the company. It’s (relative) absence makes the customer to decide not to buy from the company. One CSF may be decisive for the customer to buy but mostly it’s a mix of CSFs that makes his decision (‘the evoked set’).


Slide 15:Blue Ocean Strategy PE Cafe Nyenrode 15 In this context, is access to credit lines to fund the targeted growth a CSF? In this context, is capacity utilization a CSF? In this context, could you briefly describe a ‘customer’? 15 Blue Ocean Strategy PE Cafe Nyenrode


Slide 16:Blue Ocean Strategy PE Cafe Nyenrode 16 Blue Ocean 16 Blue Ocean Strategy PE Cafe Nyenrode


Slide 17:Blue Ocean Strategy PE Cafe Nyenrode 17 Critical Success Factors Identifying the things that really matter for success


Enkele voorbeelden van CSF sets :Enkele voorbeelden van CSF sets Blue Ocean Strategy PE Cafe Nyenrode 18 Luchtvaartindustrie Prijs Veiligheid Bereikbaarheid luchthavens Connectiviteit Comfort aan boord Incheckgemak Tijdigheid Afhandeling bagage After sales service Prijs Kwaliteit docenten Kwaliteit uitgereikt materiaal Bereikbaarheid locaties Timing Erkenning tbv PE punten Actualiteit/Relevantie van onderwerpen After sales service PE organisatie


Slide 19:Blue Ocean Strategy PE Cafe Nyenrode 19 Blue Ocean Strategy PE Cafe Nyenrode 19 CSF1 CSF2 CSF3 CSF4 CSF5 CSF6 LOW MEDIUM HIGH Company … Step 2 the CSF’s scores Of your company and those Of the customer alternatives (e.g. competitor or substitute) Competitor … NO DIFFERENTIATION


Slide 20:Blue Ocean Strategy PE Cafe Nyenrode 20 CSF1 CSF2 CSF3 CSF4 CSF5 CSF6 LOW MEDIUM HIGH Step 3 Develop a strategic Cocktail Of CSF’s (‘visual exploration’) Company … Competitor … LOW DIFFERENTIATION COST CUTTING INVESTMENT 20 Blue Ocean Strategy PE Cafe Nyenrode


Slide 21:Blue Ocean Strategy PE Cafe Nyenrode 21 CSF1 CSF2 CSF3 CSF4 CSF5 CSF6 LOW MEDIUM HIGH Company … Competitor … HIGH DIFFERENTIATION Step 3 (cont.) Develop a strategic Cocktail Of CSF’s 21 Blue Ocean Strategy PE Cafe Nyenrode


Slide 22:Blue Ocean Strategy PE Cafe Nyenrode 22 CSF1 CSF2 CSF3 CSF4 CSF5 CSF6 LOW MEDIUM HIGH Company … Competitor … UNIQUENESS Step 3 (cont.) Develop a strategic Cocktail Of CSF’s (‘visual strategy fair’) Potentially this is a new untested market! 22 Blue Ocean Strategy PE Cafe Nyenrode


Slide 23:Blue Ocean Strategy LENSES 23 Blue Ocean Strategy PE Cafe Nyenrode


Slide 24:Strategic Canvas - Datadriven 24 Blue Ocean Strategy PE Cafe Nyenrode


Slide 25:Blue Ocean Strategic Canvas - Datadriven 25 Blue Ocean Strategy PE Cafe Nyenrode


Slide 26:Blue Ocean Strategy PE Cafe Nyenrode 26 Making the differentiation/specialty visible! It’s more important to be unique than the best… (low cost and differentiation)


Slide 27:Blue Ocean Strategy PE Cafe Nyenrode 27 Cirque du Soleil: • Target Market : Adults • Not dependent to Star performance & animal shows • Reduce fun & humor • Reduce thrills & dangers • Unique Venue • Theme & Theater Traditional Circus: • Target Market : Children • Dependent to : Star performance, animal shows • High fun & humor • High thrills & dangers Circus Industry Low price, high cost High price, low cost Blue Ocean Strategy PE Cafe Nyenrode 27


Slide 28:Blue Ocean Strategy PE Cafe Nyenrode 28 Blue Ocean Strategy PE Cafe Nyenrode


Slide 29:Blue Ocean Strategy PE Cafe Nyenrode 29 29 Blue Ocean Strategy PE Cafe Nyenrode


Slide 30:Blue Ocean Strategy (its cornerstone) 30 Blue Ocean Strategy PE Cafe Nyenrode • Value innovation is created in the region where a company’s actions favorably affect both its cost structure and its value proportion to buyers • Cost savings are made by eliminating and reducing the factors an industry competes on • Buyer values is lifted by raising & creating elements the industry has never offered • Over time, costs are reduced further as scale economies kick in due to the high sales volumes that superior value generates


Slide 31:Blue Ocean Strategy PE Cafe Nyenrode 31 The 4 actions Framework 31 Blue Ocean Strategy PE Cafe Nyenrode Aligning csf ‘s To strategic themes e.g. from related industries


Slide 32:Blue Ocean Strategy Create uncontested market space Make the competition irrelevant Create and capture new demand 32 Blue Ocean Strategy PE Cafe Nyenrode


VALUE INNOVATORS :VALUE INNOVATORS Monitor competitors but don’t use them as benchmarks Don’t focus on competing Don’t offer product and or service features just because the competition is doing so Think fresh: what – with all we know - would we do if we were starting anew today? Think holistically, in terms of total solutions for the customer (e.g. total cost of ownership) Blue Ocean Strategy PE Cafe Nyenrode 33 33 Blue Ocean Strategy PE Cafe Nyenrode


Slide 34:Blue Ocean Strategy 34 Blue Ocean Strategy PE Cafe Nyenrode


SURPETITION(‘het creëen van een monopolie van geïntegreerde waarden”) :SURPETITION(‘het creëen van een monopolie van geïntegreerde waarden”) Edward de Bono (creativity/innovation) “De concurrentie voorbij”, de weg naar succes met sur/petitie (1993) 35 Blue Ocean Strategy PE Cafe Nyenrode


Slide 36:Red Ocean Strategy ”Beat or get eaten”. 36 Blue Ocean Strategy PE Cafe Nyenrode


Slide 37:Blue Ocean Strategy 37 Blue Ocean Strategy PE Cafe Nyenrode


Slide 38:Blue Ocean Strategy PE Cafe Nyenrode 38 Nintendo Samsung Maritz Dupont Cemex Syngenta Cirque du Soleil Home Depot Federal Express Southwest Airlines CNN Netjets Apple 38 Blue Ocean Strategy PE Cafe Nyenrode Some BLUE adopters


Slide 39:Blue Ocean Strategy Execution Key Principles 39 Blue Ocean Strategy PE Cafe Nyenrode Highlight and manage organizational hurdles e.g. change of culture. Consider risks in everything you do. Visual communication.


Slide 40:Blue Ocean Strategy PE Cafe Nyenrode 40 De sleutelcriteria waarop een klant zijn koopbeslissing baseert moeten in de executie van de strategie terugkomen. Via aan de CFS’s opgehangen KPI’s kan dit worden geborgd. Een klant betaalt niet voor de Strategie, alleen voor de uitvoering Ervan. 40 Blue Ocean Strategy PE Cafe Nyenrode


Slide 41:Blue Ocean Strategy PE Cafe Nyenrode 41 Impact of Creating Blue Oceans W. Chan Kim en Renee Mauborgne, 2005 Blue Ocean Strategy PE Cafe Nyenrode 41 41 Blue Ocean Strategy PE Cafe Nyenrode


Slide 42:Blue Ocean Strategy PE Cafe Nyenrode 42 FLIRTEN MET DE AFGROND GEMODDER/GEKNOEI (energie-verspilling) GOEDE KANS OP SUCCES VANAF HET 1E MOMENT KANSLOOS VOETBAL IS ALS EEN BEDRIJF: HET GAAT 1) OM DE STRATEGIE/TACTIEK VAN DE COACH EN DE TRAINING VOORAF DAAROP AFGESTEMD EN 2) OM DE KWALITEIT VAN DE UITVOERING TIJDENS HET SPEL. KWALITEIT vd UITVOERING (EXECUTIE) KWALITEIT vd STRATEGIE STERK STERK ZWAK ZWAK


Slide 43:Blue Ocean Strategy PE Cafe Nyenrode 43 Blue Ocean Strategy PE Cafe Nyenrode 43 4 STEPS TO BECOME BLUE


Slide 44:Blue Ocean Strategy PE Cafe Nyenrode 44 This is not the end! It is not even the beginning of the end. But it is, perhaps, the end of the beginning of a true blue ocean! Get inspired… Blommaert Enterprise