Certified Strategy
Consultant | Motivational Speaker | Corporate Planning | Blue Ocean
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Certified Strategy
Consultant | Motivational Speaker | Corporate Planning | Blue Ocean
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Blue Ocean Strategy Tools 1. PMS Map – Pioneer-Migrator-Settler Map. A key tool in the Blue Ocean Strategy process that involves plotting each offering or product as to whether it is a pioneer, (diverting from the competition, high growth and profit potential, Blue Ocean), a settler (little growth or profit potential, lots of competition, Red Ocean) or a migrator (has potential to be Blue Ocean, but isn’t at this point). 2. Strategy Canvas – A diagnostic and action tool utilized in the Blue Ocean Strategy process. It allows an organization to visualize the competitive factors and the offering level (current state of play) of those factors generally within an industry and then compare the organization’s offering with those of the industry in general. 3. Value Curve – A key component of the strategy canvas created when the offering level of an industry’s or organization’s competitive factors are plotted on the strategy canvas and the dots are connected 4. Four Actions Framework – A key tool in the Blue Ocean Strategy process made up of the four strategic moves – eliminate-reduce-raise-create. This tool helps create new buyer value elements thus breaking the tradeoff between differentiation and low cost. Once the four actions have been decided, a future Blue Ocean Strategy value curve can be created. 5. Eliminate-Reduce-Raise-Create Grid – A key tool in the Blue Ocean Strategy process that pushes companies not only to ask the four questions in the Four Actions Framework, but also to act on all four questions 6. Buyer Experience Cycle – The experience a buyer has in the various stages of
buying-owning-disposing of a product or service. There are six stages:
purchase, delivery, use, supplemental products/services, maintenance, and
disposal 7. Buyer Utility Map – The chart that shows the six buy utility levers (productivity, simplicity, risk, fun/image, convenience, environmental friendliness) that can be pulled in the various stages of the buyer experience cycle. 8. Blue
Ocean Idea Index – a tool for assessing a business idea against the
strategic sequence of the original competitors, you can see if you have a viable
idea or not. 9. Value Innovation – The cornerstone of Blue Ocean Strategy created through a series of strategic moves that include differentiation and low cost. Several tools are utilized in the process of creating value innovation including the Four Actions Framework and ERRC grid 10. Three tiers of noncustomers - There are three tiers of noncustomers that can be transformed into customers. They differ in their relative distance from your market. The first tier of noncustomers is closest to your market. They sit on the edge of the market. They are buyers who minimally purchase an industry’s offering out of necessity but are mentally noncustomers of the industry. They are waiting to jump ship and leave the industry as soon as the opportunity presents itself. However, if offered a leap in value, not only would they stay, but also their frequency of purchases would multiply, unlocking enormous latent demand. The second tier of noncustomers is people who refuse to use your industry’s offerings. These are buyers who have seen your industry’s offerings as an option to fulfill their needs but have voted against them. The third tier of noncustomers is farthest from your market. They are noncustomers who have never thought of your market’s offerings as an option. By focusing on key commonalities across these noncustomers and existing customers, companies can understand how to pull them into their new market. 11. Strategic Sequence - In order to have a valid Blue Ocean Strategy idea, the strategic sequence must be right. First, the utility to the customer must be high; if so, then get the price right; if you can do that, then can you get the cost right so you can sell it at the strategic price and make the targeted level of profit? If so, can you overcome all of the adoption hurdles, such as resources, politics, motivation and communication? Only if you can show getting this sequence right, then you can say you have a valid Blue Ocean Strategy Idea. 12. Execution Hurdle – there are four: cognitive, motivation, resource & political. 13. Fair Process – engaging all the affected people in the process, explaining to them the basis of decisions and the reasons people will be promoted or sidestepped in the future and setting clear expectations of what that means to employees performance. Fair process signals that there is a level playing field and that leaders value employees’ intellectual and emotional worth 14. Tipping Point Leadership - the theory of tipping points, which has its roots in epidemiology, hinges on the insight that in any organization, fundamental changes can occur quickly when the beliefs and energies of a critical mass of people create an epidemic movement toward an idea.
© 2009 Dr. Sarah Layton
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