Breakthrough Growth with

Blue Ocean Strategy®

Dr Peter Ting, Apr 29, 2012

Basic Understanding

on BOS

Challenge Current

Assumptions

Value Innovate as a Way of

Life

See a Pattern for Growth

Global Consulting Network

蓝海战略总部，英国BOSIC, UK

蓝海战略学院，马来西亚 MBOSI

欧洲工商学院蓝海战略研究所，法国INSEAD BOS Institute

MBA蓝海战略中心，美国MBA BOS Institute

蓝海战略金佰利克拉克区域中心，巴西Kimberly Clark BOS Institute

价值创新应用基地，韩国VIAT, KOREA

蓝海战略UCSI区域中心，马来西亚UCSI-BOSRC, Malaysia

Regional Consulting Network

JOURNEY BEYOND

THE BOOK

CONTENTS

WHAT is BOS?1

WHY BOS?2

WHEN to apply BOS?3

HOW to apply BOS? 4

WHAT ISBlue Ocean Strategy® ?

SEEING what everybody else

has seen

10

Thinking Differently

THINKING what

nobody else has

thought of …

“Phison’s future won’t be any easier

than was its past. But a voice deep

down in my heart always reminds me,

we won’t let anything stop us!

---K S Pua, CEO of Phison Electronics Corp

BLUE OCEAN: Uncontested New Markets

What is

Blue Ocean Strategy?

STRATEGY- Big Picture Execution Focus

12

Value Innovation:The Cornerstone of BOS

Costs

Buyer Value

Value

Innovation

The Simultaneous Pursuit of Differentiation and Low Cost追求差异化的同时做到低成本

Eliminate

Reduce

Raise

Create

Strategy

Alignment

Value

proposition

Profit

proposition

People

proposition

WHOLE-SYSTEM APPROACH: Strategy Alignment

Focus on buyers

Focus on shareholdersFocus on people working

for or with the organization

© Kim & Mauborgne; © UCSI Blue Ocean Strategy Regional Centre. All Rights Reserved.

Create Highly

Profitable Growth

Create

New Marketspace

Equip

Transformational

Leadership

Government

BusinessesIndividuals

SCOPE of Application

WHYBlue Ocean Strategy® ?

Going Global?

The Global Increasing Competitive Landscape

Rising Supplywith NO

Increasing Demand

Shrinking Trade Barriers with Intensified GlobalCompetition

Accelerated Commoditizationof Products & Services

Increasing Price Wars and Shrinking Profit Margins

Converging Branding in Overcrowded Industries

Are you caught in the RED OCEAN?

$Current

$Future

Q: What must be Eliminated, Reduced, Raised & Created ?

20

Economic Output

Transformative business discipline

Need to focus on…

Services and Innovations

高利润增长

经济产量

商业规律转化

品质

创新

货

服务

企业再造

Value Improvement

价值改进Value Innovation

价值创新

21

86%

14%

Business

Launch

Revenue

Impact

Profit

Impact

62%

38%

39%

61%

Me-Too & Value Improvement Blue Ocean creation

A Study of 108 Business Launches

WHY CREATE BLUE OCEAN BRANDS?The Profit and Growth consequences

Are U

prepared

for the future?

战略思想Strategic

Thinking

英语 (English)

管理方面: (Management)项目管理PMP、 物流IIEI、人力资源IPMA、 国际营销SMEI

技能方面 (Technical):欧洲能源EEM、注册管理会计师CMA、农业引智推广 (Agriculture)、翻译资格考试 (Interpretation/Translation)

价值

改进

Va

lue

Im

pro

ve

me

nt

价值

创新

Va

lue

Inn

ova

tio

n

WHEN TO APPLYBlue Ocean Strategy® ?

Brand Creation Growth Cycle

Pioneer Prosper Plateau

Decline

New

Growth

RATE

STAGE

CURRENT INDUSTRY LANDSCAPE

Attractive

Unattractive

RESOURCES & CAPABILITIES

Sufficient to beat the competition

Insufficient to beat the competition

STRATEGIC MINDSET of Leadership

Prefer to defend current strategic positions

Reluctant to venture into unfamiliar territory

Willing to pursue new opportunities

Orientation toward innovation

CHOOSING THE RIGHT STRATEGIC APPROACH

HOW TO APPLYBlue Ocean Strategy® ?

Where are we

TODAY?

Where do we want TO BE?

HOW to get there?

CLARIFY Strategic Intent

Begin with the END in Mind

Broken value/cost trade-off

via Value Innovation

Created unprecedented

new demand

Achieved highly

profitable growth

Strategic

Move

Origin of BOS: “Is there a PATTERN”

The Overall Framework of

Blue Ocean Strategy®

STRATEGY FORMULATION

PMS Map

As Is Strategy Canvas

BUM/BEC

Reach Beyond Existing Demand

BUM/BEC

6 Paths Framework

12

345

6

4 Actions Framework

ERRC Grid

To Be Strategy Canvas

As Is Strategy Canvas

ERRC Grid

To Be Strategy Canvas

Strategy Validation Strategy Execution

Get the Strategic Sequence Right

Price Corridor of the Masses

Overcome Key Organizational

Hurdles

Tipping Point Leadership

Fair Process

E

EE

Profit Model

BLUE

OCEAN

STRATEGY

Strategy

Formulation

Strategy

Execution

Strategy

Renewal

BOS IN ACTION: Recursive, Iterative & Dynamic

Field Validation

Growth

Monitoring

Self-Sustaining

Ecosystem

© Kim & Mauborgne; © UCSI Blue Ocean Strategy Regional Centre. All Rights Reserved.

Balance Brand

Management with Creation1

.

F

o

c

Innovation is about

Making Money2.

In

nI

n

Move Up the Value

Chain, NOT by Following3.Reorientation of

Strategic Focus4.Sustainable Growth is a

Continuous Process5.

SUMMARY: FIVE BOS STRATEGIC MINDSETS

Overview of our proposed approach in 5 waves

Time 1 Day ~ 6 - 12 mo.

Strategic dialogue

Strategy formulation

1

5

3

2

Set up a Value Innovation Centre

4 months

Identify the

strategic

challenges

Scale and

cascade BOS in

the organization

Formulate BOS

strategic options

Strategy validation

4

Select, fine tune

and validate the

new strategies

Execute the

new strategies

4 months

Execution plan

Design a tipping

point leadership

execution plan

2 months

35© Kim & Mauborgne; © UCSI Blue Ocean Strategy Regional Centre. All Rights Reserved.

Repackage yourself today

with a new story line that is

SIMPLE, DIRECT and TOUCHING!

Dr Peter & Dr Abby Ting

E: peter.ting@ucsiblueoceanstrategy.com

Website: ucsi-blueoceanstrategy.com