Blue Ocean & Business Model Innovation

Slide 1: Capgemini Consulting Bas van Oosterhout Blue Ocean as a means for Business Model Innovation Create uncontested market space Make competition irrelevant

Slide 2: From Red Ocean Strategy to Blue Ocean Strategy… Blue Ocean Basics Differences between Red Ocean and Blue Ocean Red Ocean Blue Ocean  Compete in existing market  Create uncontested market place place  Make the competition irrelevant  Beat the competition  Create and capture new demand  Exploit existing demand  Break the value/cost trade-off  Make the value/cost trade-off  Align the whole system of a  Align the whole system of a company‘s activities in pursuit of company‘s activities its strategic differentiation and lower cost choice of differentiation or lower cost Capgemini Consulting Blue Ocean Innovation | Bas van Oosterhout

Slide 3: The Six Principles of Blue Ocean Strategy Blue Ocean Basics The 6 Principles Formulation Principles Risks mitigated Reconstruct market boundaries Search risk Focus on the big picture, not the numbers Planning risk Reach beyond existing demand Scale risk Get the strategic sequence right Business Model risk Evaluation Principles Overcome key organizational hurdles Organizational risk Build execution into strategy Management risk A Blue Ocean is formulated and evaluated based on six principles which aim at reducing the risk concerned with each principle. Capgemini Consulting Blue Ocean Innovation | Bas van Oosterhout

Slide 4: Formulating a Blue Ocean is done based on the methodology Blue Ocean Formulation The Methodology How to reshape your markets and propositions so that you become the to-beat company? Focus on the big Reconstruct market Reach beyond Get the strategic picture, not the boundaries existing demand sequence right numbers 6 paths: Visual Awakening Buyer utility √ 1. Look Across Alternative Industries 2. Look Across Strategic Groups Within Industries Visual Exploration Price √ 3. Look Across the Chain of Buyers 4. Look Across Complementary Visual Strategy Product and Service Offerings Fair Cost √ 5. Look Across Functional or Emotional Appeal to Buyers 6. Look Across Time Visual Communication Adoption √ Capgemini Consulting Blue Ocean Innovation | Bas van Oosterhout

Slide 5: Formulating a Blue Ocean is done based on the methodology Blue Ocean Evaluation The Methodology How to execute your Blue Ocean Strategy? Overcome key Build execution into organizational strategy hurdles Strategy formulation process Cognitive Motivational Attitudes Resource Political Behavior Strategy execution Capgemini Consulting Blue Ocean Innovation | Bas van Oosterhout

Slide 6: A Generic Business Model overview ECO System Offer Customer Partner Customer Network Relationship Core Value Value Proposition Distribution Customer Capabilities Configuration Channel Segment Cost Revenue Structure SUCCESS Streams Finance Adapted from Alexander Osterwalder, The Business Model Ontology, a proposition in a design science approach Capgemini Consulting Blue Ocean Innovation | Bas van Oosterhout

Slide 7: Let’s start creating your Blue Ocean Capgemini Consulting Blue Ocean Innovation | Bas van Oosterhout