The long-anticipated follow-up to Blue Ocean Strategy, Blue Ocean Shift provides a decade of new research, as well as detailed systems and processes to get the transformation started as quickly as possible in your organization. Slightly repetitive to the first book, however, I can’t get enough of these blue ocean case studies. This one also took things a step further by offering up exercises to dive in quicker.
One of my fave exercises is to ask your team to look around the room for 30 secs and ask how many red items they see. Then ask them how many BLUE items they saw. Much less, because they weren’t looking for it. Once you’ve practiced blue ocean concepts and stretch your creative muscle, you will be surprised at how many unique perspectives and ideas pop out at you.
Unite with uniqueness.
In 2008, teenager Zuhal Sultan started a National Youth Orchestra in Iraq by tweeting to the Deputy Prime Minister of Iraq,--he secured her $50K to get started. The internet also put Zuhal in touch with Paul MacAlindin, a Scottish conductor who was intrigued by the idea of starting an orchestra in Iraq and decided to help. Now fondly called, “The Bravest Orchestra in the World,” the Israeli National Youth Orchestra of Iraq could not compete on the same terms as the other countries, such as France, Italy and UK. Technical excellence dominated. They decided to eliminate guest soloists, reduce training, raise partnerships and create something unique--a way to unite across various Iraq religions and ethnicities. They were an icon of hope; they were an example of building something great out of war. While they were not the most technically advanced, they were definitely full of heart and the most inspired--this youth orchestra attracted new audiences and broadened the scope of who was appreciating this type of music.
Challenge industry assumptions. Everyone always assumed french fries had to be fried, and that they had to be fried in massive quantities of oil. WRONG!
The Acti-Fry made healthier French fries by using only one tablespoon of oil for two lbs. of fries. Oprah came out saying how they were a healthy lower-cal (but yummy) option. They shifted from competing in a red ocean to heating up a brand-new market, and welcoming customers who had long-avoided french fries in general.
“Settlers are defined as me-too businesses, migrators are business offerings better than most in the marketplace, and a company’s pioneers are the businesses that offer unprecedented value. These are a company’s blue ocean strategic moves, and are the most powerful sources of profitable growth. They are the only ones with a mass following of customers.”
Citizen M hotels is an excellent example of a company who researched what patrons do not really need or care for (e.g. front desks, concierge, large rooms), and eliminated them to drop cost and enhance the stuff people DID care about--luxury in their rooms, etc. By challenging industry assumptions and focusing on the customer, Citizen M came out of the gate incredibly successful--their occupancy rates are unheard of, even in traditionally off-season times.
Adopting Blue Ocean perspective allows you to see opportunities and raise a fundamentally different set of questions. Blue Ocean shift provides market-creating tools and guidance.
Practical tools with proper guidance. Build creative competence to see what others can’t. Ask the right questions--at the right point in process--and then learn how to see the significance in the answers. Visualization is key. The devil is in the operational details
Sit in with customers on the whole through the process of when they would start to use you, til after they are done using your product. Are there issues that pop up that you could fix? For example, an electric tea kettle company visited customers to see what was involved in the process and their eyes opened up to the prevalence of lime scale issues. They quickly addressed lime scale problems for their audience.
Something else to note is that there is disruptive creation, and then there is creation that is not disruptive. But instead raises the tides of all boats.
Consider Sesame Street. Big Bird & Co. opened up a new value opportunity, and created a new market of edu-tainment programming for little ones.
Viagra is another one that created a new market that was ‘hard’ to break into and compete.
Micro loans and micro financing- before this was created, banks ignored the poor.
How to get cranking in blue ocean territory? Three different ways:
Offer a breakthrough solution to industry existing problem;
Identify or solve a brand new problem; or
Seize a NEW opportunity by redefining and existing problem (and then solving it) e.g. when ringtones came out. Or the Maestro for the masses. Strike at the margins of other industries. Offer a Quantum leap of value without necessarily new technology.
My fave case study was how Red Nose Day started. There was an abundance of charities with donor fatigue. Instead of guilt-tripping donors with fundraising efforts, they used comic relief. They eliminated events and made it fun, targeting everyone instead of the high-end corporate donor. Instilling humanness for buy-in is something that could work for any industry. We do a great job of this already with the entire “For the People” brand, and trying to change the stigma of the car business. This also struck a chord of other approaches we could for Same is Lame--think of creative, uplifting “sticky” ways to get people to spread the message and open up the conversation vs. traditional fundraising events.
Plot out your company’s utilities vs. your major competitors. Which offerings are “me Too’s”?, which are only marginally better than competition vs. true leap-pioneers (who have fans, not just customers!).
What’s our portfolio plot offerings for each service we have? This exercise readies the company to scope out initiative.
Sales force was a great example of this. Up until that point, CRMs only focused on enterprise customers instead of the everyday entrepreneur.
Think of the buyers point of view, not what is important internally.
Put industry name up top of your list. Next, put all the range of factors we compete on. Allows the team to appreciate different things; avoids tunnel vision, and keeps thing in buyer’s perspective e.g. customer responsiveness is the factor, not “People.” Brand doesn’t count because it’s the RESULT of what you do, not an isolated factor. Plot your largest competitor to flesh out the blocks to utilities.
Use the 6 paths framework to shift the lens of focus.
Look across alternative industries. Look across strategic groups in industry. What’s most profitable (electric cars, self driving cars, Uber... Lyft...) Then redefine the buyer.