Innovation: Just what is a “Blue Ocean Strategy?”


I used to be confused when people talked about innovation in Financial Services. They said it went on but there was very little evidence.

Gradually, over the years, I realised that the nature of FS innovations was such that they were merely presented in marketing campaigns as being of benefit to the customer when, in truth, they were more about improving the company’s bottom-line.

Insurers and banks are now in deep, dark, holes of their own making because, whilst the NEED to innovate and to rebuild customer TRUST is apparent, any successful product or service innovation MUST respond to what their existing and prospective customer demands:

Transparency

Value

Sustainability

These require more than a “creative spark” they require a cultural shift before the process can even begin…

Just what is a "Blue Ocean Strategy?" I thought that this was a far better summary, of what "Blue Ocean" is about, than I could manage. Well worth a read as it may spark THE idea that provides you and/or your business with a "new path" through these tough trading conditions:  Renee Mauborgne, Co-Author of Blue Ocean Strategy Summary: The primary concept is simple: Blue Oceans represent unknown, uncreated market space. They become wide open opportunities once disco … Read More

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Just what is a "Blue Ocean Strategy?"


I thought that this was a far better summary, of what “Blue Ocean” is about, than I could manage. Well worth a read as it may spark THE idea that provides you and/or your business with a “new path” through these tough trading conditions:

Renee Mauborgne, Co-Author of Blue Ocean Strategy

Summary: The primary concept is simple: Blue Oceans represent unknown, uncreated market space. They become wide open opportunities once discovered and executed. Red Oceans, on the other hand, represent known markets. These are highly competitive, segmented, bloody, shark-infested waters with shrinking opportunities. Throughout history, markets are born as blue oceans and evolve to red through competition, commoditisation and over supply. The goals of a blue ocean strategy:

Create uncontested space

Make competition irrelevant

Create and capture new demand

Break the value-cost trade-off

Align your entire system in pursuit of low cost, high margin Read more of this post

Insurance & Professional services


Are we so vain or focussed upon short term results that we can’t see the big picture?
How much easier would it be to attract prospective clients, convert new business and retain existing customers if the product(s) from your direct competitors only offer a one dimensional solution whilst yours provide a host of features and services?
I DO understand that terms like Blue Ocean strategy, Disruptive innovation, etc. can sound like phrases from a superfluous business language but that doesn’t mean to say that the best course of action is to cover your ears…a particularly unwise move in a tough trading climate. Instead try listening and interpretting the feedback from your customers and start to look beyond short term results to new opportunities to create a sustainable strategy for the future of your business.
What is your “Unit of Business”? Should your business be “limited” by the current range of products and services with increased pressure for sales (less scope to deliver service) activity and/or reduce pricing to maintain market share (refer to “Dual Pricing” blog item)?
 
You know what you do, as do your customers. If they already value what you do for them at the moment and you provide them with the opportunity to contribute to what you can deliver to them (and others) in the future they are less likely to be tempted by the “pile ’em high sell ’em cheap merchants.” In tough times these sales-orientated organisations get even busier trying to win your customers with mere promises! Why? Because the feed off the financial pressures that are impacting businesses on a daily basis
If you care about your ‘customers’ and the survival of your business get proactive. It may not be “attack” but it is a better form of defence than waiting until it is too late when you find out that, like many businesses in the current climate, your customers have reviewed current supplier arrangements.
Many are, understandably, coy about having believed someone else’s sales pitch. Even when their first instinct is to remain loyal and/or question whether the salesman can deliver what they need. Too many solid, longstanding, relationships are damaged (often permanently) by a lack of clear strategy based upon what you already do sufficiently well to have secured your existing clients and position in your marketplace.
IF YOU ARE INTERESTED TO LEARN MORE ABOUT HOW I AM TRYING TO STRUCTURE SOLUTIONS TO THESE ISSUES, CREATE NEW PRODUCTSAND TO GIVE SERIOUS PROFESSIONALS THE ABILITY TO BEAT THE SALESMEN PLEASE FEEL FREE TO GET IN TOUCH: davidmillbrae@hotmail.com