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BLUE OCEAN PROJECT MANAGEMENTA Simple Metric for Designing and Managing Blue Ocean Projects  Dr. Rod King Value Quotient (VQ) Management
WHAT IS “BLUE OCEAN”? Blue Ocean PLANNING Blue Ocean Strategy Blue Ocean Mission Blue Ocean Plan Blue Ocean Project Blue Ocean Vision Blue Ocean Product (Design) Blue Ocean Goal Blue Ocean Service (Design) Blue Ocean Objective Blue Ocean BUSINESS MODEL Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
WHAT IS THE VALUE QUOTIENT?A Universal Metric of Success and Decision-making + - Note Value Quotient  =  Advantage/Disadvantage =  Benefit/Cost =  Revenue/Cost =  Strength/Weakness =  Opportunity/Threat =  Reward/Risk =  Relevant Content/Noise =  Positives/Negatives =  Delight/Pain =  Good/Bad Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BLUE OCEAN RADAR for Southwest Airlines200,000ft View of the Value Quotient Ideal Value Quotient (Blue Ocean Transportation) Object/Core Job: Aircraft/Cars Ideal VQ = ‘Perfect 10’ Look within and across industries as well as in nature for similar or analogous resolution of trade-off Southwest (VQ = 3.4) Average Airline (VQ = 5.8/6 = 1.0) Car (VQ = 0.9) (Free) COST Value Quotient (VQ) = Benefit/Cost = Revenue/Cost =  Reward/Risk = Slope of Value Quotient Line Ideal Value Quotient (Blue Ocean)                Ideal Final Result of Continuously Implementing IVQ Decisions                       Job To Be Done (JBTD) at No Cost & With No Negative Effect Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
STRATEGY RADAR: 40,000ft View of the Value Quotient (Factors) Southwest Airlines 4 ELEMENTS OF BUSINESS MODEL: Competitive Advantage Strategies Quality (Q) ,[object Object],Cost ( C ) ,[object Object],Differentiation (D) ,[object Object]
  Reduce meals to level 2.1
  Increase friendly service to level 8.8Personalization (P) ,[object Object],Value Propositions (Innovative Processes) ,[object Object]
  Friendlier service at lower costTargeted Customer Segments (Niches) ,[object Object]
  Early adopter/innovator; Non-customersValue Quotient (VQ) ,[object Object]

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A Simple Metric for Designing, Evaluating, and Managing Blue Ocean Projects

  • 1. BLUE OCEAN PROJECT MANAGEMENTA Simple Metric for Designing and Managing Blue Ocean Projects  Dr. Rod King Value Quotient (VQ) Management
  • 2. WHAT IS “BLUE OCEAN”? Blue Ocean PLANNING Blue Ocean Strategy Blue Ocean Mission Blue Ocean Plan Blue Ocean Project Blue Ocean Vision Blue Ocean Product (Design) Blue Ocean Goal Blue Ocean Service (Design) Blue Ocean Objective Blue Ocean BUSINESS MODEL Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 3. WHAT IS THE VALUE QUOTIENT?A Universal Metric of Success and Decision-making + - Note Value Quotient = Advantage/Disadvantage = Benefit/Cost = Revenue/Cost = Strength/Weakness = Opportunity/Threat = Reward/Risk = Relevant Content/Noise = Positives/Negatives = Delight/Pain = Good/Bad Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 4. BLUE OCEAN RADAR for Southwest Airlines200,000ft View of the Value Quotient Ideal Value Quotient (Blue Ocean Transportation) Object/Core Job: Aircraft/Cars Ideal VQ = ‘Perfect 10’ Look within and across industries as well as in nature for similar or analogous resolution of trade-off Southwest (VQ = 3.4) Average Airline (VQ = 5.8/6 = 1.0) Car (VQ = 0.9) (Free) COST Value Quotient (VQ) = Benefit/Cost = Revenue/Cost = Reward/Risk = Slope of Value Quotient Line Ideal Value Quotient (Blue Ocean) Ideal Final Result of Continuously Implementing IVQ Decisions Job To Be Done (JBTD) at No Cost & With No Negative Effect Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 5.
  • 6. Reduce meals to level 2.1
  • 7.
  • 8.
  • 9.
  • 10. Cost = 1.3
  • 11. Value Quotient (VQ) = 4.42/1.3 = 3.4Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 12.
  • 13. Niche: Short-haul, low-cost air travel
  • 14.
  • 15. Founder(s): Herb Kelleher; Rollin King (1967 inc.; first flight in 1971)
  • 16. Revenue: $11 Billion (2008)
  • 17.
  • 19.
  • 20.
  • 21. REFERENCES Chesbrough, H. (2006) Open Business Models. Boston: Harvard Business School (HBS) Press. Christensen, C.; Raynor, M.E. (2003) The Innovator’s Solution. Boston: Harvard Business School (HBS) Press. Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press. King, R. (2009) The Zoomable Page for Multi-disciplinary Teams and Projects:How to Better Manage Large Amounts of Information from Diverse Sources. Fresno: Value Quotient Management. Dr. Rod King   Speaker, Consultant, and Trainer on Business Model Analysis, Design, and Innovation rodkuhnking@sbcglobal.net & http://businessmodels.ning.com http://twitter.com/RodKuhnKing

Editor's Notes

  1. ExerciseDesign an object (product/service/business model) that is extraordinary, accessible, uncontested, and personalized.