blue ocean strategy - creating value innovations
DESCRIPTION
Why still bothering what the competition is doing? Can you really win the battle? Or wouldn’t it be much nicer to get out and create your own market, where YOU are the only supplier. Blue Ocean Strategy leads you to uncontested market space, making the competition irrelevant by creating and capturing new demand, breaking the value-cost-trade off and aligning the whole system of a firm's activities in pursuit of differentiation and low cost.TRANSCRIPT
Stil Guide Open House of InnovationGrafing bei München, 30.01.2009Reinhold RappGrafing bei München, 09.07.2009
How toget OUTof here?
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get OUT of Red Oceans
because they areall about …
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Beating the competition
Exploiting existing demand
Making the value-cost-trade off
Aligning the whole system of a firm’s activities with its strategic choice of differentiation or low cost
Competing in existing market space
4who found out that …
These are the professors
Chan Kim and Renée Mauborgne
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only 14 %of all Business launchesare real value innovations (rather than „me-too“ value improvements). But they have
38 %
61 %
a revenue impact of
and account for profit impact
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so plunge yourself
INTO Blue Oceans
because they areall about …
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Uncontested market spaceMaking the competition irrelevant
Creating and capturing new demand
Breaking the value-cost-trade off
Aligning the whole system of a firm's activities in pursuit of differentiation and low cost
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Blue Ocean methods help youto visualize by using the strategic canvas …
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Today's business
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customer value
customer value
customer value
customer value
customer value
customer value
price
To see where you are …
1010Red Ocean Blue Ocean
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customer value
customer value
customer value
customer value
customer value
customer value
price
customer value
customer value
… and to see where you can make a difference …
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Erase Reduce
What factors should be eliminated that the industry has taken for granted?
What factors should be raised well beyond the industry standard?
Raise Create
What factors should be reduced well below the industry standard?
What factors should be created that the industry has never offered?
… you work along the toolbox
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CREATE by applying the6 path framework
+NEWVALUES
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acrosstime & trends
acrossindustries
acrossfunctional or Emotionalappeal
acrosscomplementary offerings
acrossthe chainof buyers
acrossstrategic groups
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an example …
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[[[[yellow tail]]]]´s value curve
distinctions in wine
communi-cation
Above-the-line
marketing
Wine complexity
Aging quality Vineyard prestige and legacy
Wine range
Price
Premium winesPremium winesPremium winesPremium wines
Budget winesBudget winesBudget winesBudget wines
Easy drinking
Ease of selection
Fun and adventure
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about us …
Stil Guide Open House of InnovationGrafing bei München, 30.01.2009
The Open Houseof Innovation, consists of …by Dr. Reinhold Rapp
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The “Rule of 20”…
Co-Workers
Customers
Partners
ExpertsWe establish relationship systems for making open innovation a reality.
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… the Open HouseInnovation Prozess …We develop ideas to real innovations. In a systematic way - together.
Stil Guide Open House of InnovationGrafing bei München, 30.01.2009
… and Options for RealisationWe find the best options and modesfor implementing the results of our process.
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We put a strong emphasis on identifying the right talents and bringing them together.
and also:
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Reinhold RappOpen House of Innovation GmbH
Dr. Reinhold Rapp Am Schammacher Feld 21D–85567 Grafing b. MünchenPhone +49 (0) 8092 / 86 355 - 0Fax +49 (0) 8092 / 86 355 - 53