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Keynote Address Given at the PODi Applications Forum in Sydney Australia September, 2009.

Keynote Address Given at the PODi Applications Forum in Sydney Australia September, 2009.

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Transcript

  • 1. The Blue Ocean
    Presented by Kate Dunn,
    Founder and President Digital Innovations Group (DIG)
  • 2. Who Is This?
  • 3. Stockdale Paradox
    • Highest-ranking naval officer held as a prisoner of war in Vietnam
    • 4. Imprisoned for 8 years
    “This is a very important lesson. You must never confuse faith that you will prevail in the end—which you can never afford to lose—with the discipline to confront the most brutal facts of your current reality, whatever they might be.”
    Vice AdmiralJames Bond Stockdale (December 23, 1923–July 5, 2005)
    Source: Good to Great, Jim Collins
  • 5. Today’s Realities
    Midst of a worldwide recession
    Other forms of communication are proving effective and cost efficient
    Overall print volume is shrinking
    Price of print is declining
    Operating costs continue to increase
    Costs have been cut to highest levels
    Smaller businesses do not have the critical mass to be profitable in a commodity market
    The printing industry will look very different at the end of this recession
  • 6. To Survive and Thrive
    Increase profitable sales
    Print as a stand alone medium is becoming marginalized
    Profit comes from creating value
    The industry must find NEW ways to create value
    Those ways will cannibalize our traditional business
    We need Blue Ocean!
  • 7. Why Are You Here?
    Grow Profitable Sales!
  • 8. Great Ideas
    A combination of 2, maybe 3 great thinkers!
  • 9. Blue Ocean Strategy
    Authors:
    W. Chan Kim & Renée Mauborgne
  • 10. The Dip
    Author:
    Seth Godin
  • 11. Blue Ocean Strategy
    Value Innovation – focus is not on beating the competition but rather making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up “new and uncontested market space.”
  • 12. The DIP
    Quit the wrong stuff
    Stick with the right stuff
    Have the guts to do one or the other
  • 13. What is a Dip?
    • The long slog between starting and mastery.
    The Dip
  • 14. Why?
    We forget
    Why were here
    What we want to accomplish
    Why people will buy from us
  • 15. Your Competitive Advantages
    Differentiate your company
    Give people a reason to buy from you
    Help you stay focused
  • 16. Jay B. Barney
    “A firm is said to have a sustained competitive advantage when it is implementing a value-creating strategy not simultaneously being implemented by any current or potential competitors and when these firms are unable to duplicate the benefits of the strategy.
    Gaining and Sustaining Competitive Advantage,
    Jay B. Barney
  • 17. True Competitive Advantages
    Objective, not subjective
    “Do business with us because we have great quality and terrific customer service.”
    Is quantifiable not arbitrary
    “95% of our business comes from referrals.”
    Is different from the competition
    Is not a cliché
    “We exceed customer expectations.”
    Sustainable!
  • 18. 5 Fatal Flaws of Most Companies
    They don’t have a competitive advantages but think they do
    They have a competitive advantage but don’t know what it is
    They know what their competitive advantage is but don’t communicate it to their clients
    They mistake strengths for competitive advantage
    They don’t concentrate on competitive advantages when making strategic and operational decisions
  • 19. Another Key Concept
    The people who invest the time and the energy and the effort to power through the Dip become the best in the world
    Make the Dip longer, deeper and harder for all those who follow
    The ‘Right’ One
  • 20. Which Dip?
    The mass market is dying
    Not just in communications in all things
    Today there are a million micro-markets
    Each micro-market has a ‘best’
    Best is subjective; the customer decides
  • 21. Are We Getting This?
    What’s Apple’s market for personal computers?
    “style-conscious, designer’s, multimedia, student, family computer.”
    They Own This One!
  • 22. And They Know How to Work It
  • 23. Blue Ocean: Value Innovation
    Creates value simultaneously for both the buyer and the company
    Occurs when companies align innovation with utility, price and cost positions.
    Requires companies to orient the whole system toward achieving a leap in value for both buyers and themselves.
    Believes that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players.
  • 24. What’s Remarkable
    Criticizes Michael Porter’s idea that successful businesses are either low cost providers or niche-players
    Proposed instead that value can be found by crossing conventional market segmentation and value and lower cost.
  • 25. How?
    The innovation raises and creates value for the market while, simultaneously reducing or eliminating features or services that are less valued by the current or future market.
  • 26. The Strategy Canvas
  • 27.
  • 28. Southwest Airlines
    Emphasize friendly service, speed, and frequent point to point departures
    Focus
    Price against car transportation
    No extra investments in meals, lounges, and seating choices
    Divergence
  • 29. The Final Test…
    Compelling Tagline
    Delivers a clear message
    Advertises an offering truthfully
    Promotes interest and trust from customers
    "The speed of the plane at the price of the car—whenever you need it."
    Southwest Airlines
  • 30. How Did Airlines Get There?
    • Their strategies were formed reactively as they tried to keep up with their competition
    • 31. They lost uniqueness
    What makes you ‘Remarkable’?
  • 32. Value Map for Printers
  • 33. Value Map – Traditional Agency
  • 34. A New Type of Company
  • 35. A New Breed of Company
    High
    Service Offering
    Low
  • 36. Capitalizes on Trends
    Movement away from TV, Radio, Print advertising
    Focus on digital media
    New media – social media
    Provides automation for faster implementation and analysis
    Need to integrate all channels
  • 37. Now Let’s Add the Spice
    Ingredients:
    the right ‘micro’ niche
    Clear competitive advantages
    Remark-ability
  • 38. Violá
  • 39. Blue Ocean
    Cross channel communication
    Integrated channels
    Direct mail
    Email
    Landing pages
    Search Engine Optimization
    Social Media
    Cell
    video
    Automated tracking
    Campaign Management
    Marketing Automation
    Web to print for cross channel communication
  • 40. Combined with a Micro Niche
    Vertical Markets
    Horizontal Applications
    Delivery channels
    Geographic/Regional
    Company Characteristics
  • 41. Reinforced by
    Clear Competitive Advantages
    Know them
    Tell Them
    Keep Them
  • 42. Perseverance
  • 43. Makes You the Best!
    Remarkable!
    Money!