association of professional bankers - sri lankaapbsrilanka.org/general/cpd_lectures/raf bos scs...
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Blue Ocean mind sets
&
Sustainability Mind sets
Association of Professional Bankers
Dr Ravi Fernando
RAF BOS SCS BANKING JUNE
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Creating NEW market spaces RAF BOS SCS BANKING JUNE 2016 3
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Sold over 3.5 Million Copies !
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BOS in 1,800 universities in over 110 countries
584
North
America 584
South
America 164
Africa
45
Europe
581
Asia
334
Oceania
32
Middle
East
60
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Sri Lanka?
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72020 Advanced nation
US$ 10,796- 15,000
The Eleventh Malaysia Plan used
Blue Ocean strategy tools & frameworks ..
• 60 NBOS initiatives
• 80 ministries & agencies
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March 2015
RED OCEAN TRAPS
May 2015
BLUE OCEAN LEADERSHIP
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© Kim & Mauborgne
Sri Lanka is in a RED OCEAN ‘Commodity’ TRAP?
Mental Assumption – Export Brand market spaces, NO WAY !!
• 95% + of exportsin commodity form to
existing ‘Market’s
•TEA
•APPAREL
•CINNAMON
•RUBBER
•COCONUT
•NATURAL RESOUCES
- ILMENITE Titanium
- GRAPHITE
Loadstar
Dilmah
Virtusa
9
Global Competitiveness WEF SRI LANKA RANKED 102 IN 2015
PROJECTED TO SLIP TO 108 BY 2025RAF BOS SCS BANKING JUNE 2016
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• Data: 150 blue ocean Moves , in more than 30 industries, over 100 years (1880-2000)
– Hotel, cinema, retailing, airline, energy, computer, broadcasting, construction, home, automobile, steel manufacturing, chemicals, cosmetics, software, etc.
• Variables considered: industrial, organizational, strategic
39% 61%Profit Impact
62%38%Revenue Impact
14%86%Business Launch
Launches within red oceans Launches into blue oceans
The basis of Blue Ocean Strategy
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Red Ocean Approach Blue Ocean Approach
Creates New Market SpacesCompeting in the
Existing Value Space
Competitiveness Creativity
© Kim & Mauborgne
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Red Ocean Approach Blue Ocean Approach
Differentiation
OR
Low Cost
BOS
Low Cost
Differentiation
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High Value
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•
ERRC Grid
ELIMINATE
REDUCE
RAISE
CREATE
blueoceanstrategy.com |
@blueoceanstrtgy© Kim & Mauborgne
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Low cost High value
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Value Innovation in Hospitality
Hyatt +Hilton - Mkt.cap > 15b
-Mkt.cap 28b
Low cost, High Value
levering existing rooms!
5y more room nights than
Hilton
Truly global. Present in
200+ countries and
40,000 cities
Longer average stay than in hotel (5.5 days
vs. 3.5). Higher total spend per trip.
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Soon to be non customer &…
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• Ownership • Options
• Cost • New Market space
ERRC Grid
ELIMINATE
REDUCE
RAISE
CREATE
blueoceanstrategy.com |
@blueoceanstrtgy© Kim & Mauborgne
RAF BOS SCS BANKING JUNE
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Low cost Creating high value
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2012
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Apple vs MicrosoftHuge payoffs of market creation
20151998
Market Value
(US$)
Year
$244.8 bn
$4.3 bn
iPod
iMac
iPhone
iPad
A series of successful market-creating
moves
$742 bn
iTunes
AppStore
Apple Watch
$347 bn
Lack of compelling market-creating moves
© Kim & MauborgneRAF BOS SCS BANKING JUNE
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BOS Six Paths Framework
1 32
4 65
Alternative industries Strategic groups
within industries
Different chain
of buyers
Complementary
products
Look across functional
and emotional appeal
to buyers
Productattributes
Functional benefits
Emotionalbenefits
Influencers
Look across time
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Sustainability mind sets
Dr Ravi Fernando
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R.A. Fernando © RAF SCS 2015
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50% OF THE WORLDS FORESTS
DESTROYED IN THE LAST 30 YEARS!
52% of the Worlds animal species have been
destroyed in the past 40years RAF BOS SCS BANKING JUNE 2016 21
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Planet is caught in a RED OCEAN TRAP
of ‘FOSSIL FUELS’
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R.A. Fernando © RAF SCS 2015
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The NEW Blue Oceans of opportunity are GREEN!
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SpaceX
Tesla Motor Tesla Gigafactory
SolarCity
R.A. Fernando © RAF SCS 2015
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2016 -The world’s top 10 sustainable companies Toronto-based media company Corporate Knights -determines 100 companies are
getting the most out of their capital, maximizing employee performance, and making
careful use of resources .
1) BMW -Automotive
2) Dassault Systems provides business and people with 3D experiences to imagine
sustainable innovations capable of harmonizing product, nature and life
3) Quototec (Mineral and Mining /Processing)
4) Commonwealth Bank of Australia 5) Adidas –Sports wear
6) Danske Bank7) Enagás Spain’s leading natural gas transmission company and technical manager
of the country’s gas system)
8) Star HubStarHub Communications company services for TV, mobile, internet in
Singapore
9) Reckitt Benckiser-Household
10) City Developments (CDL) – Singappore Real estate company City Developments
Limited (CDL)
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Responsible Marketplace Lending — Indispensable for Commercial Solar’s Growth , June 3, 2016 , By Graham Smith CEO, Open Energy
SOLAR + ENERGY STORAGE + RAIN WATER HARVESTING – THE NEED OF THE HOUR
SL 71% of Rain water is run Off!
SL can RUN on SUNLIGHT!
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Blue Ocean mind sets-Create New Market spaces
Sustainability Mind sets
-Triple Bottom line decisions
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R.A. Fernando © RAF SCS 2015
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Costa Rica – World leader in ‘ecotourism’ Created a new Blue Ocean Market space!
Leveraged existing rich biodiversity !
• Government /Private sector jointly created an ‘ECO TOURISM NATION’ to
drive the economy
• New legislation to protect nature and the environment
– 1987 arrivals 329,000 to 2.34 million in 2012, Now 2.5!
– Avg. stay 10-12 days vs. 4-6 days / US $ 250 vs. US $ 80 per night
• Ranks 3rd on Environmental Performance Index out of 163 economies
– Goal to be carbon neutral ,100% Renewable energy by 2021
– Tourism 14 percent of GDP
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