Blue ocean strategy for project management - Revision history

Tkokotas at 14:07, 18 December 2018

2018-12-18T14:07:22Z

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			''Developed by Skúli Sigurðsson''


	= Blue Ocean Strategy =		= Blue Ocean Strategy =

30sigurdsson: /* Reach Beyond Existing Demands */

2016-09-26T20:24:31Z

Reach Beyond Existing Demands

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	=== Reach Beyond Existing Demands ===		=== Reach Beyond Existing Demands ===
	[[Image:ThreeCustomerTiers.jpg\|250px\|thumb\|border\|Figure 1: "The three tiers" <ref name=Blue_Ocean_Strategy>Blue Ocean Strategy – W.Chan Kim & Renée Mauborgne – 2015</ref>.]]		[[Image:ThreeCustomerTiers.jpg\|250px\|thumb\|border\|Figure 4: "The three tiers" <ref name=Blue_Ocean_Strategy>Blue Ocean Strategy – W.Chan Kim & Renée Mauborgne – 2015</ref>.]]
	To reach beyond the existing demands, companies need to look past the current customers and reach to the noncustomers which can be turned into future customers. There are three tiers of noncustomers, first tier ''(soon-to-be)'' it is the noncustomers that are closest to the market. Those noncustomers only buy your service or product out of necessity, if there were a substitute product they would eventually become a competitor’s customer. If values would be added to the current service or product those noncustomers would jump onboard.		To reach beyond the existing demands, companies need to look past the current customers and reach to the noncustomers which can be turned into future customers. There are three tiers of noncustomers, first tier ''(soon-to-be)'' it is the noncustomers that are closest to the market. Those noncustomers only buy your service or product out of necessity, if there were a substitute product they would eventually become a competitor’s customer. If values would be added to the current service or product those noncustomers would jump onboard.

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	The third tier ''(unexplored)'' of noncustomers, are those that the market has never tried to target. The market that doesn’t even know about the companies’ products or services.		The third tier ''(unexplored)'' of noncustomers, are those that the market has never tried to target. The market that doesn’t even know about the companies’ products or services.

	These three non customers groups~~, see~~ figure 1, should always be considered as a possible future customers. Each tier needs to be heavily researched and calculated to see which of them would expand the customer market the most. Also, the tiers can have overlapping commonalities which has to be taken into account. The idea with reaching beyond the existing demand is to catch the largest non-market share and expand the blue ocean. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref>		These three non customers groups (figure 4), should always be considered as a possible future customers. Each tier needs to be heavily researched and calculated to see which of them would expand the customer market the most. Also, the tiers can have overlapping commonalities which has to be taken into account. The idea with reaching beyond the existing demand is to catch the largest non-market share and expand the blue ocean. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref>

	=== Get the Strategy Sequence Right ===		=== Get the Strategy Sequence Right ===

30sigurdsson: /* Eliminate-Reduce-Raise-Create Grid */

2016-09-26T20:24:02Z

Eliminate-Reduce-Raise-Create Grid

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	== Eliminate-Reduce-Raise-Create Grid ==		== Eliminate-Reduce-Raise-Create Grid ==
	[[Image:Eliminate-Reduce-Raise-Create-Grid-1.jpg\|350px\|thumb\|border\|Figure 4: "The four actions framework grid" <ref name=Blue_Ocean_Strategy>Blue Ocean Strategy – W.Chan Kim & Renée Mauborgne – 2015</ref>.]]		[[Image:Eliminate-Reduce-Raise-Create-Grid-1.jpg\|350px\|thumb\|border\|Figure 3: "The four actions framework grid" <ref name=Blue_Ocean_Strategy>Blue Ocean Strategy – W.Chan Kim & Renée Mauborgne – 2015</ref>.]]
	The third and final tool is the eliminate-reduce-raise-create grid, and is used as a supplementary to the four action framework. This tool allows the companies to act on the four previously asked question in the ''four actions framework'' tool. This grid gives companies four instant benefits:		The third and final tool is the eliminate-reduce-raise-create grid, and is used as a supplementary to the four action framework. This tool allows the companies to act on the four previously asked question in the ''four actions framework'' tool. This grid gives companies four instant benefits:

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	''		''

	The grid consist of 4 blocks, where each block refers to one of the four actions (figure 4). In each block the focus points are marked, so it is visual to everyone where the focus lies. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref> <ref name=5_Prove_steps_to_creating_your_own_blue_ocean_strategy>[http://www.theinnovativemanager.com/blue-ocean-strategy/ "5 Prove steps to creating your own blue ocean strategy"]</ref>		The grid consist of 4 blocks, where each block refers to one of the four actions (figure 3). In each block the focus points are marked, so it is visual to everyone where the focus lies. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref> <ref name=5_Prove_steps_to_creating_your_own_blue_ocean_strategy>[http://www.theinnovativemanager.com/blue-ocean-strategy/ "5 Prove steps to creating your own blue ocean strategy"]</ref>

	== Three Characteristics ==		== Three Characteristics ==

30sigurdsson: /* Four Action Framework */

2016-09-26T20:23:48Z

Four Action Framework

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	== Four Action Framework ==		== Four Action Framework ==
	[[Image:FourActionsFramework-1.jpg\|350px\|thumb\|border\|Figure 3: "The four actions framework" <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref>.]]		[[Image:FourActionsFramework-1.jpg\|350px\|thumb\|border\|Figure 2: "The four actions framework" <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref>.]]
	The four action framework (Figure 3) is the second tool, and is used to reconstruct the buyers value to create new values.		The four action framework (Figure 2) is the second tool, and is used to reconstruct the buyers value to create new values.

	There are four key questions used, to create new value curve for new markets. Those are:		There are four key questions used, to create new value curve for new markets. Those are:

30sigurdsson: /* Strategy Canvas */

2016-09-26T20:23:34Z

Strategy Canvas

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	== Strategy Canvas ==		== Strategy Canvas ==
	[[Image:StrategyCanvas-1.jpg\|350px\|thumb\|border\|Figure 2: "Strategy Canvas framework" <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref>.]]		[[Image:StrategyCanvas-1.jpg\|350px\|thumb\|border\|Figure 1: "Strategy Canvas framework" <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref>.]]
	The strategy canvas is the first tool, it is used to diagnose where in the current market competitors are focused on when producing and delivering their product or service to the customers. To understand each market, the principal factors in the specific markets are identified.		The strategy canvas is the first tool, it is used to diagnose where in the current market competitors are focused on when producing and delivering their product or service to the customers. To understand each market, the principal factors in the specific markets are identified.
	The strategy canvas consist of two axes, x and y (figure 2). The previously identified principals in each market are placed along the x-axis, no matter the order. The y-axsis goes from low to high, so the relevant principle can be rated accordingly to the current standard of the market. Once every principal has been rated, it is easy to see where the lack of focus is and where the main focus lies. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref> <ref name=Strategy_Canvas>[http://strategycanvas.org/#/edit/w9lETYN1kz "Strategy Canvas"]</ref> <ref name=5_Prove_steps_to_creating_your_own_blue_ocean_strategy>[http://www.theinnovativemanager.com/blue-ocean-strategy/ "5 Prove steps to creating your own blue ocean strategy"]</ref>		The strategy canvas consist of two axes, x and y (figure 1). The previously identified principals in each market are placed along the x-axis, no matter the order. The y-axsis goes from low to high, so the relevant principle can be rated accordingly to the current standard of the market. Once every principal has been rated, it is easy to see where the lack of focus is and where the main focus lies. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref> <ref name=Strategy_Canvas>[http://strategycanvas.org/#/edit/w9lETYN1kz "Strategy Canvas"]</ref> <ref name=5_Prove_steps_to_creating_your_own_blue_ocean_strategy>[http://www.theinnovativemanager.com/blue-ocean-strategy/ "5 Prove steps to creating your own blue ocean strategy"]</ref>

	== Four Action Framework ==		== Four Action Framework ==

30sigurdsson: /* Divergence */

2016-09-26T20:23:01Z

Divergence

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	=== Divergence ===		=== Divergence ===
	When two or more companies are competing in the same market, they focus on the same values. In that case does divergence not exist. Therefore, creating a product or service in the same field but with different focus factors, ~~then~~ divergence has been created. When the divergence is present, new markets are being formed. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref> <ref name=The_Cheet_Sheet>[http://www.cheatsheet.com/breaking-news/marketing-tips-of-the-week-compelling-taglines-and-cool-dotcom-names.html/ "Marketing tips of the week"]</ref>		When two or more companies are competing in the same market, they focus on the same values. In that case does divergence not exist. Therefore, creating a product or service in the same field but with different focus factors, divergence has been created. When the divergence is present, new markets are being formed. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref> <ref name=The_Cheet_Sheet>[http://www.cheatsheet.com/breaking-news/marketing-tips-of-the-week-compelling-taglines-and-cool-dotcom-names.html/ "Marketing tips of the week"]</ref>

	=== Compelling Tagline ===		=== Compelling Tagline ===

30sigurdsson: /* Focus */

2016-09-26T20:22:02Z

Focus

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	=== Focus ===		=== Focus ===
	While developing the strategy canvas, companies have made clear ~~in advance~~ where they want to differ from the current markets. Those points are where they place their ''focus'' on. Most red ocean companies tend to focus on to many points, which turns into average products or services. While, blue ocean companies have fewer focus points and deliver higher quality for those focus areas. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref> <ref name=The_Cheet_Sheet>[http://www.cheatsheet.com/breaking-news/marketing-tips-of-the-week-compelling-taglines-and-cool-dotcom-names.html/ "Marketing tips of the week"]</ref>		While developing the strategy canvas, companies have made clear where they want to differ from the current markets. Those points are where they place their ''focus'' on. Most red ocean companies tend to focus on to many points, which turns into average products or services. While, blue ocean companies have fewer focus points and deliver higher quality for those focus areas. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation</ref> <ref name=The_Cheet_Sheet>[http://www.cheatsheet.com/breaking-news/marketing-tips-of-the-week-compelling-taglines-and-cool-dotcom-names.html/ "Marketing tips of the week"]</ref>

	=== Divergence ===		=== Divergence ===

30sigurdsson: /* Renew Blue Oceans */

2016-09-26T20:18:14Z

Renew Blue Oceans

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	=== Renew Blue Oceans ===		=== Renew Blue Oceans ===
	Once a blue ocean has been spotted and created, it will eventually turn into a red ocean. The reason for that is, when a company creates a strategy to form a new market space, there will always be someone who will imitate. Imitators are competitors and therefore does competition arise within that ocean and it turns red. With time competition just gets tougher, harder and more bloody. In that case looking across time and into the future is highly important, renewal is needed to re-gain that competitive advantage and always to stay ahead ~~of them~~.		Once a blue ocean has been spotted and created, it will eventually turn into a red ocean. The reason for that is, when a company creates a strategy to form a new market space, there will always be someone who will imitate. Imitators are competitors and therefore does competition arise within that ocean and it turns red. With time competition just gets tougher, harder and more bloody. In that case looking across time and into the future is highly important, renewal is needed to re-gain that competitive advantage and always to stay ahead.
	Renewal of blue oceans are however not always necessary, e.g. if the competition can be dominated, and the profit stream is still huge. Swimming as far as possible into the ocean should be the goal before deciding to renew it. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation		Renewal of blue oceans are however not always necessary, e.g. if the competition can be dominated, and the profit stream is still huge. Swimming as far as possible into the ocean should be the goal before deciding to renew it. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation
	</ref>		</ref>


	= References =		= References =
	<references />		<references />

30sigurdsson: /* Align the Value, Profit and People Proposition */

2016-09-26T20:16:52Z

Align the Value, Profit and People Proposition

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	There are three types of proposition that each firm has to align to successfully adapt a sustainable strategy, those are: ''value proposition'', ''profit proposition'' and ''people proposition''.		There are three types of proposition that each firm has to align to successfully adapt a sustainable strategy, those are: ''value proposition'', ''profit proposition'' and ''people proposition''.

	''Value proposition'': it must be clearly visual within each firm for them to attract ~~potential~~ customers ~~to buy~~.		''Value proposition'': the value must be clearly visual within each firm for them to attract customers.

	''Profit proposition'': each company has to make money of off what they offer.		''Profit proposition'': each company has to make money of off what they offer.

30sigurdsson: /* Build Execution into Strategy */

2016-09-26T20:15:05Z

Build Execution into Strategy

← Older revision		Revision as of 20:15, 26 September 2016
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	=== Build Execution into Strategy ===		=== Build Execution into Strategy ===
	Changing strategies requires significant change within each corporation. These changes cannot be made only with the top players within each firm. The need for everyone, from the top down to the bottom employees, to participate in these changes is key to success. Therefore, the need for trust from all employees is ~~necessary~~ for the strategy to be successfully applied and sustainable. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation		Changing strategies requires significant change within each corporation. These changes cannot be made only with the top players within each firm. The need for everyone, from the top down to the bottom employees, to participate in these changes is key to success. Therefore, the need for trust from all employees is a necessity for the strategy to be successfully applied and sustainable. <ref name=Blue_Ocean_Strategy>W. Chan Kim & Renée Mauborgne (2015) The Blue Ocean Strategy. USA. Harvard Business School Publishing Corporation
	</ref>		</ref>