Why still bothering what the competition is doing? Can you really win the battle? Or wouldn’t it be much nicer to get out and create your own market, where YOU are the only supplier. Blue Ocean Strategy leads you to uncontested market space, making the competition irrelevant by creating and capturing new demand, breaking the value-cost-trade off and aligning the whole system of a firm's activities in pursuit of differentiation and low cost.

1. How to
get OUT
Stil Guide
of here? of Innovation
Open House
Reinhold Rapp
Grafing bei München, 30.01.2009
09.07.2009

2. get OUT of
Red Oceans
because they are
all about … 2

3. Competing in existing market space
Beating the competition
Exploiting existing demand
Making the value-cost-trade off
Aligning the whole system of a
firm’s activities with its strategic
choice of differentiation or low
cost
3

4. These are the professors
Chan Kim and
Renée Mauborgne
who found out that …
4

5. only 14 %
of all Business launches
are real value innovations (rather than „me-too“ value
improvements). But they have
a revenue impact of 38 %
and account for 61 % profit impact 5

6. so plunge yourself
INTO Blue Oceans
because they are
all about … 6

7. Uncontested market space
Making the competition irrelevant
Creating and capturing new
demand
Breaking the value-cost-trade off
Aligning the whole system of a
firm's activities in pursuit of
differentiation and low cost
7

8. Blue Ocean methods help you
to visualize by using
the strategic canvas …
8

9. To see where you are …
5
4
3
2
1
0
customer value customer value customer value price
customer value customer value customer value
Today's business
9

10. … and to see where
you can make a difference …
5
4
3
2
1
0
customer value customer value customer value price customer value
customer value customer value customer value customer value
Red Ocean Blue Ocean 10

11. … you work along the toolbox
Erase Reduce
What factors should be What factors should be raised
eliminated that the industry has well beyond the industry
taken for granted? standard?
Raise Create
What factors should be What factors should be
reduced well below the created that the industry has
industry standard? never offered?
11

12. CREATE by applying the
6 path framework
across
1 industries
across
6 across 2
strategic groups
time & trends
_ NEW
VALUES + 3 across
the chain
across of buyers
5 functional or
Emotional
appeal
4 across
complementary offerings 12

13. an example …
13

14. [yellow tail]´s value curve
]
5 Premium wines
4
3
Budget wines
2
1
Price distinctions Above-the- Aging quality Vineyard prestige Wine Wine Easy Ease of Fun and
in wine line and legacy complexity range drinking selection adventure
communi- marketing
cation
14

15. about us …
15

16. Stil GuideHouse
The Open
Open House consists of …
of Innovation, of Innovation
by Dr. Reinhold Rapp
Grafing bei München, 30.01.2009

17. The “Rule of 20”…
Experts
Customers We establish relationship
systems for making open
innovation a reality.
Partners
Co-Workers 17

18. … the Open House
Innovation Prozess …
We develop ideas to real innovations. In a systematic way - together.
18

19. … and Options for Realisation
We find the best options and modes
for implementing the results
of our process.
Stil Guide
Open House of Innovation
Grafing bei München, 30.01.2009

20. We put a strong emphasis
on identifying the right
talents and bringing them
together.
and also:
20

21. Reinhold Rapp
Open House of Innovation GmbH
Dr. Reinhold Rapp
Am Schammacher Feld 21
D–85567 Grafing b. München
Phone +49 (0) 8092 / 86 355 - 0
Fax +49 (0) 8092 / 86 355 - 53
21