Blue Ocean Innovation - From Market-Taker to Market-Maker. This presentation discusses formulating new opportunities for your business or others in a new, refreshing way. Providing you some skills and a toolkit to "arm" you. Helping you become an integrator.

7. Turbulent Competition in a World of Volatility 1975 2000 It’s hard for companies to stay on top! 2009 Value Innovation Associates Fortune 500 70% Replaced Fortune 500

14. 3 Circles

16. The Disruptive Innovation Model Disruptive Innovations Performance Time Performance That Customers Can Utilize or Absorb Sustaining Innovations Disruptive Technology

20. Grameen Bank: How They Forged the Blue Ocean © Kim & Mauborgne 2006 Commercial Banks Grameen Bank Collateralized lending No collateral Lend to mostly men 95% lending to females, women only traditionally receive 1% of commercial loans Lend mostly in towns Lend mostly in villages Lend on proof of repayment Lend on entrepreneurial potential Maximize profits Maximize social benefit and profits

22. CEMEX

27. Red Ocean vs. Blue Ocean Strategy © Kim & Mauborgne 2006 Red Ocean Strategy Blue Ocean Strategy Compete in existing market space Create uncontested market space Beat the competition Make the competition irrelevant Differentiation or low cost Differentiation and low cost Competitive Advantage Value Innovation Segment existing customers Attract noncustomers Exploit existing demand Create and capture new demand

29. Substantially Higher Returns from Investments in Blue Oceans Business Launch Revenue Impact Profit Impact © Kim & Mauborgne 2006 Red Oceans Market-Competing Business Launches Blue Oceans Market-Creating Business Launches

31. Pueblo or Puebla?

35. Four Actions Framework Reduce Which factors should be reduced well below industry standards? Create Which factors should be created that the industry has never offered? Raise Which factors should be raised well above the industry’s standard? Eliminate Which of the factors that the industry takes for granted should be eliminated ? A New Value Curve

36. The Strategy Canvas of Cirque du Soleil Hi Offering Level Lo Price Fun & Humor Unique Venue Aisle Concessions Multiple Show Arenas Thrills & Danger Animal Shows Star Performers © Kim & Mauborgne 2006

37. The Strategy Canvas of Cirque du Soleil Hi Offering Level Lo Price Fun & Humor Unique Venue Aisle Concessions Multiple Show Arenas Thrills & Danger Animal Shows Star Performers © Kim & Mauborgne 2006 Ringling Brothers Smaller Regional Circus Reduce Raise Create