Blue Oceans, taken from the
highly successful publication, Blue Ocean Strategy, and is defined as a product
or service that is operating in an uncontested market space, which is opposed
to Red Oceans, where the product or service is swimming in contested market
competition. Taking the theory from this publication, Richard (Dick) K. Lee, CEO and
Chief Innovation Officer, Value Innovation Inc. (VI) developed a ten-step
methodology that serves to facilitate companies in discovering Blue Ocean
opportunities through the usage of a number of key tools and techniques, which
this blog posting will briefly explore.
Based on a particular project,
the exploration of the Value Chain can provide the project team with a good
foundation to discover if there is a Blue Ocean to exploit. By asking a number
of key set questions, project teams can identify who the Most Important
Customer (MIC) is within that particular Value Chain, this in-turn illustrates
who the project should be focusing its value proposition.
An As Is Value Curves is
created to illustrate the company’s current offering to their MIC, by mapping
the perceived level of value delivered based on a number of key Elements of
Performance (EoP). The As Is Value Curve is then mapped against the current
best in class offering on the market, which identifies if the company is
swimming in a Red Ocean. If this is the case, then the Value Curves will also
illustrate where the Blue Ocean opportunities lie, by proposing to increase the
value delivered to particular EoPs that are currently in direct competition,
the company has discovered a Blue Ocean opportunity space that can be innovated
upon.
The most important step in the
VI process is Contextual Interviewing, which is carried out with the identified
Most Important Customer. By asking
open-ended questions, the Contextual Interviews are a good tool in uncovering
hidden unmet needs, which may unearth additional EoPs to the Value Curve. Also,
by asking questions based on the EoPs that are lined up to be improved to
create a Blue Ocean product or service, the Contextual Interviews serve as a good
validation tool, ensuring that the company is focusing on the right EoPs to
improve.
I have been lucky enough to have attended two of Dick Lee’s
interactive and highly engaging sessions on the Value Innovation methodology,
which has not only opened my mind, but has improved my knowledge and
understanding of this exciting process and approach. This iterative process and
methodology is incredibly thorough and serves as a firm approach at the Front
End Innovation phase of projects – as it will ensure that the project is going
to deliver exceptional value to the MIC all the time, every time.
Dick Lee has just published a new book entitled Value Innovation Works: Move Mountains.....Deliver Sustainable, Profitable Growth. Deliver Exceptional Value to the Most Important Customers in Your Value Chains. Please visit the following link for more information on this new and exciting publication: Value Innovation Works
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