CHARTING Your Company’s Future -Blue Ocean Strategy W. Chan Kim Renée Mauborgne

About Me 蕭復元 南投、台中 學歷 實習工讀 興趣 成大交管系 交大運管所物流組碩二 任老師 運輸行銷與管理研究室 台鐵台中站 中華電信台中營運處 興趣 棒壘球、唱歌

About Authors W. Chan Kim (金偉燦) Renée Mauborgne Korean-born business theorist Renée Mauborgne American economist and business theorist Professor of Strategy and Management at INSEAD Creating Value Innovation Network (VIN) Co-author of the 2005 book Blue Ocean Strategy 歐洲管理學院(INSEAD) 策略和國際管理講座教授 價值創新網路(Value Innovation Network，VIN)的創辦人，這個網路是由價值創新的實踐者組成，落實各種價值創新概念的全球社團

Outline Introduction Revealing Your Strategic Profile Drawing Your Strategy Canvas Conclusions

Introduction

Big Picture Standard: Brevity

Strategic-Planning Process Problem INTRODUCTION Strategic-Planning Process Problem Large document – mishmash of data from various parts Lengthy description, Outline of numerous goal Attach a full budget – surfeit spreadsheets

Strategy Canvas Strategic planning based on drawing a picture INTRODUCTION Strategy Canvas Strategic planning based on drawing a picture Easy to understand and communicate Engage more people within an organization Unlock the creativity of participants

Revealing Your Strategic Profile

REVEALING YOUR STRATEGIC PROFILE 3 Things in 1 Picture Strategy profile: depict the factors that affect competition Competitors’ strategy profile Show how it invests in the factors Basic Component → Value Curve

Southwest Airlines Example for the Short-Haul Airline Industry REVEALING YOUR STRATEGIC PROFILE Southwest Airlines Example for the Short-Haul Airline Industry World largest LCC Pioneer point-to-point travel between midsize cities

3 Complementary Qualities REVEALING YOUR STRATEGIC PROFILE 3 Complementary Qualities Focus Divergence Compelling Tag Line The speed of the plane at the price of the car - Whenever you need it.

DRAWing Your StrategY CANVAS

4 Steps of Visualizing Strategy DRAWING YOUR STRATEGY CANVAS 4 Steps of Visualizing Strategy 1 Visual Awakening “As is” strategy picture 2 Visual Exploration Go into the field 3 Visual Strategy Fair “To be” strategy canvases 4 Visual Communication Comparison and Support Case: European Financial Services (EFS) A 150-year-old financial services group Boost overall revenue by 30%

Visual Awakening 2 problems: Resolve differences of opinion DRAWING YOUR STRATEGY CANVAS Visual Awakening 2 problems: Resolve differences of opinion Slow to accept the need of change Vested interest in the status quo Time will eventually vindicate their previous choice Draw the value curve → Wake-up call EFS deeply divided, they must reach a common understanding Different factors are important in different regions People’s pet ideas Case EFS

Visual Awakening Case EFS Defects in the strategy Lake of Focus DRAWING YOUR STRATEGY CANVAS Visual Awakening Case EFS Defects in the strategy Lake of Focus Similar to competitors No memorable tag line

Visual Exploration Send managers into the field Too often outsource DRAWING YOUR STRATEGY CANVAS Visual Exploration Send managers into the field Too often outsource Rely on other people’s report Interview people, including lost, new, competitors’ customers Reach outside the industry’s boundaries Overturn many conclusions Account relationship manager Speedy confirmation of transaction Redraw value curves & write a compelling tag line Case EFS

Present → Vote → Explain (Feedback) DRAWING YOUR STRATEGY CANVAS Visual Strategy Fair Case EFS Attendees: senior executives & EFS’s constituencies Present → Vote → Explain (Feedback) Result: Ignore the separation of on-line & off-line Buyers from all markets have a basic set of needs If met needs, customers will forgo everything else

Visual Strategy Fair Case EFS Computerization: Automatic confirmation DRAWING YOUR STRATEGY CANVAS Visual Strategy Fair “The FedEx of corporate foreign exchange: easy, reliable, fast and trackable.” Case EFS New strategy Ease of use Security Accuracy speed Computerization: Automatic confirmation Payment-tracking service (as FedEx do for parcels)

DRAWING YOUR STRATEGY CANVAS Visual Communication Communicate to employees in a easily understood way 1 page picture: new and old strategic profiles Explain what need to be eliminated, reduced, raised and created Case EFS EFS’s new priorities The gaps that need to be closed

Conclusion

“The soul never thinks without an image.” - Aristotle

The End Thank you