Business Model Perspective
Federica Galfo M38/000789
Stefano La Cognata M38/000799
Tetyana Koptyayeva M38/000695
BLUE OCEAN STRATEGY
Chan Kim and Renée Mauborgne “ Blue Ocean strategy” “How to create uncontested market and make competition irrelevant”
BLUE OCEANS
= unknown market spaces with few competitors
Blue Ocean strategy
VALUE INNOVATION (Differentiation)
= Search for “Blue Oceans”
• Exploring non customer groups
• Challenging the industry’s strategic logic
FOUR ACTIONS FRAMEWORK
Key questions a company should ask itself:
1. Which of the factors that the industry takes for granted should be ELIMINATEd?
2. Which factors should be REDUCEd well below the industry standard? 3. Which factors should be RAISEd well above the industry standard? 4. Which factors should be CREATEd that the industry has never offered? Blue Ocean value innovation Business model canvas +
By reducing or eliminating less valuable features and enhance or create high-value features that do not increase the cost base, we can increase value while reducing costs. Changing elements on the right-hand side has implications for the lefthand side.
Business model perspective on blue ocean Powerful analysis of innovation
Asking the Four Actions Framework questions (eliminate, create, reduce, raise) to each business model Building Block, it will be easy recognizing implications for the other parts of the business model. Different perspectives
Cost impact exploration Identification of the highest cost infrastructure elements
Evaluation about what happens if they are eliminated or reduced.
Hypothesis about how to compensate for their absence. Identification of possible infrastructure investments and how much value they create.
Value proposition impact exploration
Four
Actions
Framework questions.
Simultaneous
questioning on the impact on the cost side
Evaluation
about elements needed to change the value side.
Customer impact
Exploration
Four
Actions
Framework questions about each Building
Block on the
Stefano La Cognata M38/000799
Tetyana Koptyayeva M38/000695
BLUE OCEAN STRATEGY
Chan Kim and Renée Mauborgne “ Blue Ocean strategy” “How to create uncontested market and make competition irrelevant”
BLUE OCEANS
= unknown market spaces with few competitors
Blue Ocean strategy
VALUE INNOVATION (Differentiation)
= Search for “Blue Oceans”
• Exploring non customer groups
• Challenging the industry’s strategic logic
FOUR ACTIONS FRAMEWORK
Key questions a company should ask itself:
1. Which of the factors that the industry takes for granted should be ELIMINATEd?
2. Which factors should be REDUCEd well below the industry standard? 3. Which factors should be RAISEd well above the industry standard? 4. Which factors should be CREATEd that the industry has never offered? Blue Ocean value innovation Business model canvas +
By reducing or eliminating less valuable features and enhance or create high-value features that do not increase the cost base, we can increase value while reducing costs. Changing elements on the right-hand side has implications for the lefthand side.
Business model perspective on blue ocean Powerful analysis of innovation
Asking the Four Actions Framework questions (eliminate, create, reduce, raise) to each business model Building Block, it will be easy recognizing implications for the other parts of the business model. Different perspectives
Cost impact exploration Identification of the highest cost infrastructure elements
Evaluation about what happens if they are eliminated or reduced.
Hypothesis about how to compensate for their absence. Identification of possible infrastructure investments and how much value they create.
Value proposition impact exploration
Four
Actions
Framework questions.
Simultaneous
questioning on the impact on the cost side
Evaluation
about elements needed to change the value side.
Customer impact
Exploration
Four
Actions
Framework questions about each Building
Block on the