STRATEGY & Moving To Blue Ocean Strategy: A Five-Step Process To Make The Shift

by Steve Denning, Forbes Magazine, 7/25/17.

In 2005, Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant, a book by Professors W. Chan Kim and Rénee Mauborgne, launched a revolution in business strategy. After all, which firm would not to be operating in “uncontested market space,” where “competition was irrelevant”? Instead of struggling to survive in the bloody shark-infested “Red Oceans” of vicious competition, why not move to the “Blue Oceans” where there was little or no competition?

What inspired the authors was not “dividing up markets or the globe,” but rather organizations and individuals that created “new frontiers of opportunity, growth, and jobs,” where success was not about fighting for a bigger slice of an existing, often shrinking pie, but about “creating a larger economic pie for all.” The book was a publishing sensation. It sold more than 4 million copies and has been translated into 44 different languages.

Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of Blue Ocean strategy. The book, Blue Ocean Shift: Beyond Competing – Proven Steps to Inspire Confidence and Seize New Growth, is published this week by Hachette. It includes the experience of organizations large and small, for profit, nonprofit and governments.

In their work since the launch of their 2005 book, the authors have found three key components in successful Blue Ocean shifts:

• Mindset: The authors found that, as in the world of Agile management, Blue Ocean strategy is fundamentally a shift in mindset. It involves “expanding mental horizons and shifting understanding of where opportunity lies.”

• Tools: Successful implementers of Blue Ocean strategy have used practical tools to systematically “translate blue ocean thinking into commercially compelling new offerings.” Sporadic, one-off “Blue Ocean strategy” is one thing: systematically adopting Blue Ocean thinking is another.

• Human-ness: Successful implementers exemplify “a humanistic process, which inspires people’s confidence to own and drive the process to own and drive the process for effective execution.”

… The Five Step Process

The book offers a five-step process for systematically reproducing such strategic triumphs, and shows how a Blue Ocean initiative can be successfully launched in even the most bureaucratic organization that is trapped in a bloody Red Ocean. The five steps are:

1. Choosing the right place to start and constructing the right Blue Ocean team for the initiative.

2. Getting clear about the current state of play

3. Uncovering the hidden pain points that limit the current size of the industry and discovering an ocean of non-customers.

4. Systematically reconstructing market boundaries and developing alternative Blue Ocean opportunities.

5. Selecting the right Blue Ocean move, conducting rapid market tests, finalizing, and launching the shift.

Though this process, the organization is able to move from the limitations of competing within the existing industry (“settlers”) to migrate towards greater value improvement (“migrators”) and eventually towards creating new value for people who are not already customers (the “pioneers” of marketing-creating innovation.)

Professors Kim & Mauborgne (Hachette)

From settlers and migrators to pioneers: Image from from Blue Ocean Shift by Professors Kim & Mauborgne

The Trap Of Mere Product Improvement

In the process, the book shows how to move beyond the trap of merely focusing on making things better for existing customers. Thus, usually product improvement doesn’t lead to large new markets of those who were formerly non-customers. If it does, that is a happy accident, rather than the main goal. To get more consistent success in generating market-creating innovations, an explicit focus onattracting non-customers is needed. This includes (a) soon-to-be non-customers; (b) refusing non-customers and (c) unexplored non-customers.

Professors Kim & Mauborgne (Hachette)

Categories of non-customers: Image from Blue Ocean Shift by Professors Kim & Mauborgne

Read more at … https://www.forbes.com/sites/stevedenning/2017/09/24/moving-to-blue-ocean-strategy-a-five-step-process-to-make-the-shift/#5d7740327f11

non-churchgoers innovation adapters

NEED-MEETING & Why You Want a Blue Ocean, Rather Than a Red Ocean Strategy

by Bob Whitesel D.Min., Ph.D., 10/25/17.

W. Chan Kim and Renee Mauborgne analyzed 150 years of strategic decision-making and concluded that every strategy can be described as either a “red ocean strategy” or a “blue ocean strategy.” A red ocean strategy is where you go after the same people as your competitors and try to meet the same needs that your competitors are meeting. Therefore you fight over the same fish and, as sharks feeding on the same fish, the water becomes red with blood.

A blue ocean strategy however finds new segments of the market that are not having their needs met and begin to meet those needs. Therefore you are not competing with your competitors, but rather you are meeting needs in a segment of the market that the other competitors have overlooked.

This is very important for the church. Most churches typically try to have a better children’s ministry, a more professional worship team or a more visible/attractive facility in hopes of attracting people to the church. Typically this attracts other Christians looking for a better experience.

And, over the past three decades more and more churches have tried to grow by focusing on attracting other Christians rather than meeting the needs of non-churchgoers.

Many years ago when the airline industry was suffering from too much competition, many carriers tried to increase their service to their flying customers. They wound up competing with each other and creating a red ocean of blood over the existing flying public. Stalwart and storied carriers such as Northwest Airlines disappeared.

At the same time a young start up company called Southwest Airlines focused on making flights cheaper along with the customer experience better. Their early motto was “everyone flies first class.” The result was meeting the need that a flying public desired of cheaper flights. This meant that they weren’t competing just for an existing market, but they were reaching out to people who typically didn’t fly to a nearby location. Now low cost meant the non-flying would considering a shorter flight.

A red ocean vs. blue ocean strategy for the church means reaching non-churchgoers [need-meeting] rather than church goers [attraction]. Take a look at this comparison between the two strategies published by Sage Growth Partners.

#PowellChurch #DMin #LEAD558 LEAD558

INNOVATION & A Comparison Between Red Ocean Strategy & Blue Ocean Strategy

by Sage Growth Partners, 3/17/09.

Read more at … https://www.slideshare.net/mobile/SageGrowthPartners/blue-ocean-innovation-bli

creativity need-meeting needs safety needs