Blue ocean startup 101 - Intro
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Blue ocean startup 101 - Intro

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Blue Ocean Startup recognizes that Innovation on its own is not enough, but rather that Innovation + Execution = Success. ...

Blue Ocean Startup recognizes that Innovation on its own is not enough, but rather that Innovation + Execution = Success.
To achieve that we combined the two best methodologies on each: Blue Ocean Strategy (Innovation Without Competition) and Lean Startup (Execution) to allow companies to accelerate revenues through innovation.

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  • Make it Visual… Perhaps place the circle of the Lean Startup
  • Make it Visual……
  • Add the Cirque Du Soleil slogan and focus
  • Let the students create the list of elements – Show it to them in the table and then in the graph – Show them the final evaluation.
  • Let the students create the list of elements – Show it to them in the table and then in the graph – Show them the final evaluation.
  • Consider keeping this as the Cirque Du Soleil and put Southwest Airlines as an exercise for the end to fill in full
  • Consider making the example visual of what he did.

Blue ocean startup 101 - Intro Blue ocean startup 101 - Intro Presentation Transcript

  • Blue Ocean Startup:Innovation + Execution = Success Gil Rachlin www.linkedin.com/in/gilrachlin @gilrachlin www.blueoceanstartup.com http://www.skillshare.com/profile/Gil-Rachlin/5240900
  • Blue Ocean Startup? Blue Ocean StartupInnovate Execute Blue Ocean Strategy Lean Startup W. Chan Kim / Renée Mauborgne • Eric Ries • Make the competition irrelevant Allocate resources as DIFFERENTIATION and LOW COST = efficiently as possible: Value innovation • Develop MVP • Validated Learning • Build Measure Learn - Blue Ocean Startup- 2
  • Innovative and strategic Companies What made them Different from other players? - Blue Ocean Startup- 3
  • Three Characteristics of a good strategy Focus Split Catchy Clear differentiation Slogan from existing trend • friendly service, Speed and frequency • “Speed of a plane at the price of a car anytime you need it” • The digital entertainment center of your world • "Welcome to the digital music revolution." (2004) • Monthly subscription, No late fee, no due dates • “Save gas and time. Let Netflix deliver your movies again” How to create innovation? - Blue Ocean Startup- 4
  • Innovation Cycle 5
  • Innovate - Build – Measure – Learn• Focus on Customer Value• Focus on Conversions, sales and profits• Set your Base Line and Time Frame Ideas/ BOS Innovation Learn / Insights Build / Two Hypothesis: Resources • Value Creation Hypothesis - BOS • Growth Engine Hypothesis / Drivers (Growth Engine: Viral, Sticky, Paid) Product / Data / MVP Reports Base Line Measure / • Product Analytics: Metrics • Customer Analytics • Marketing Analytics - Blue Ocean Startup- From Lean Startup Loop 6
  • Measurement Types / Innovation Accounting: • Vanity Metrics – e.g. PageViews, Unique Visitors,1 Million Messages per day, funding • Actionable Metrics - Cause and Effect (vs. Vanity) – Help make decisions: a/b testing, pricing, cost per acquisition. – Focus on Customer Value, Conversions, sales and profits – Set your Base Line and Time Frame – E.g. when we shipped feature X, did it affect customer behavior? • Cohort Analysis – Go to the lowest level of analysis on groups of users with something in common. - Blue Ocean Startup- 7
  • Cohort Analysis: Core engagement metric: Time on Site Cohort retention• Did you make product alteration that only Week 3 cohort is exposed to?• Did you change your advertising that week?• Does Week 3 correspond with any major holidays or events? Courtesy of: http://jonathonbalogh.com/2012/03/24/introduction-to-cohort-analysis-for-startups/ - Blue Ocean Startup- 8
  • Engine of Growth Funnel Metrics: AARRR Initial MVP After Product Optimization Engine of Growth Viral Paid Acquisition: Visit Site / 5% 1 7% Registration Rate Activation: Sign Up 17% 90% Retention: Come Back 0.5 5% Referral: Invite Friends 0.3 4% Revenue: Buys Product 1% 11% Lifetime Value One time payment $9.99 per month for backup
  • When to Innovate again? Innovate when the barriers go down! Natural Monopoly / Legal Barriers (e.g. Patents) / Sales Volume Consumer loyalty to Innovative companies etc. Or else….?!Borders and Barnes &Nobles: Amazon –Blue Ocean – In Store Service Repeated Blue Ocean:Nook – Too late? - Online book store to - Online market place to - Mobile book to - Online cloudBlockbuster: Netflix–Blue Ocean – Rental of movies for Repeated Blue Ocean:few dollars Instead of high cost of - Subscription (no late fees)movies. - Online StreamingSubscription / Streaming – Too late? - Blue Ocean Startup- 10
  • Remember: • Innovate • Execute • RepeatRemember:If you get over the hill, you’ll begin to pick up speed!!! Stay Hungry, Stay Foolish! Steve Jobs. - Blue Ocean Startup- 11
  • Question???? Thank you!!!! Gil Rachlin.Contact Info: 646.580.0058 gil@blueoceanstartup.com www.linkedin.com/in/gilrachlin @gilrachlinSite: www.blueoceanstartup.comFree Gift: www.scanbizcards.com/promo/gilComing Classes: http://www.skillshare.com/profile/Gil-Rachlin/5240900 - Blue Ocean Startup- 12
  • Value Innovation Overall strategy of all company activities to bring value to themselves and to customers Industry Customers 1) What is our industry? Players? 1) Who are our clients? 2) Industry elements? Characteristics? 2) Main usage of offering? - Blue Ocean Startup- 13
  • Example: Apple iTunes – ERRC Elements Eliminate: Raise: • Buy Whole CD for one song • Best Sound Quality • Control on Usage and Usage learning • Availability for users (one place to find all) • UI, Browse, Search New Value Curve Reduce: Create: • Price per song (+Try Before • Complement with iPod/ you buy) Mac • Liberal Licensing to download digital content - Blue Ocean Startup- 14
  • Example: Apple iTunes’ Value Curve Visualization Eliminate Reduce Raise Create - Blue Ocean Startup- 15
  • What is Measured? KPI – Key Performance Indicators • Product Analytics: – Insights to usage patterns, bug paths etc. – Improve product roadmap, customer service etc. • Customer Analytics – Customer behavior to optimize services for customers and dealers. • Marketing Analytics – Keyword bidding to improve performance and reduce costs – Weblog data to offer additional services etc. - Blue Ocean Startup- 16
  • Important tips: • Marketing Goal - Not reduced cost  acquire customers and maximize your profits • Metrics depend on Industry / business type - Focus on Customer Value - Focus on Conversions, sales and profits - Set your Base Line and Time Frame • Examples: - Profitability of Each Customer (Life Time Customer Value) - Cost of Acquiring New Customers - Repeat Purchase Rate of Existing Customers - At least 1000 orders/impressions/clicks for 3% margin of error - Blue Ocean Startup- 17