blue ocean strategy - creating value innovations

Stil Guide Open House of InnovationGrafing bei München, 30.01.2009Reinhold RappGrafing bei München, 09.07.2009

How toget OUTof here?

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get OUT of Red Oceans

because they areall about …

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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

Competing in existing market space

4who found out that …

These are the professors

Chan Kim and Renée Mauborgne

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only 14 %of all Business launchesare real value innovations (rather than „me-too“ value improvements). But they have

38 %

61 %

a revenue impact of

and account for profit impact

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so plunge yourself

INTO Blue Oceans

because they areall about …

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Uncontested market spaceMaking 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

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Blue Ocean methods help youto visualize by using the strategic canvas …

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Today's business

0

1

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customer value

customer value

customer value

customer value

customer value

customer value

price

To see where you are …

1010Red Ocean Blue Ocean

0

1

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customer value

customer value

customer value

customer value

customer value

customer value

price

customer value

customer value

… and to see where you can make a difference …

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Erase Reduce

What factors should be eliminated that the industry has taken for granted?

What factors should be raised well beyond the industry standard?

Raise Create

What factors should be reduced well below the industry standard?

What factors should be created that the industry has never offered?

… you work along the toolbox

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CREATE by applying the6 path framework

+NEWVALUES

_

acrosstime & trends

acrossindustries

acrossfunctional or Emotionalappeal

acrosscomplementary offerings

acrossthe chainof buyers

acrossstrategic groups

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an example …

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[[[[yellow tail]]]]´s value curve

distinctions in wine

communi-cation

Above-the-line

marketing

Wine complexity

Aging quality Vineyard prestige and legacy

Wine range

Price

Premium winesPremium winesPremium winesPremium wines

Budget winesBudget winesBudget winesBudget wines

Easy drinking

Ease of selection

Fun and adventure

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about us …

Stil Guide Open House of InnovationGrafing bei München, 30.01.2009

The Open Houseof Innovation, consists of …by Dr. Reinhold Rapp

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The “Rule of 20”…

Co-Workers

Customers

Partners

ExpertsWe establish relationship systems for making open innovation a reality.

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

Stil Guide Open House of InnovationGrafing bei München, 30.01.2009

… and Options for RealisationWe find the best options and modesfor implementing the results of our process.

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

and also:

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Reinhold RappOpen House of Innovation GmbH

Dr. Reinhold Rapp Am Schammacher Feld 21D–85567 Grafing b. MünchenPhone +49 (0) 8092 / 86 355 - 0Fax +49 (0) 8092 / 86 355 - 53