We are extremely excited to float this new short but powerful book chunk on "a business model perspective on blue ocean strategies". We are excited because this introduces a new section (after patterns and design techniques). This new part of the book is about strategic questions to challenge your business model. Another chunk like this will follow on "a business model SWOT".
What do you think? Do you like this chunk? Does it work for you? The goal was not to deeply describe the blue ocean strategy framework, but to blend it with the canvas to get the best of both worlds.
(This chunk will be another design challenge for Alan...)
Thanks for the excellent 11th book chunk and all the rest of them as well!
I believe, that the business model canvas and Blue Ocean Strategies blending provides a value added to a potential user and means a creative new tool.
I like it so much that I’m going to use it soon in the company I’m working on right now.
I really like this chunk. I am already using it in an SBIR proposal we are currently writing, because it fits what we are doing very nicely. I really examples, as well.
One minor item: the legend is confusing. You use green pluses for "adding" but then you use red crosses for "eliminating" - and visually, next to the plus, they look like multiplication. Especially in the context of you using = sign as well, which accentuates the "math equation" metaphor there.
People usually use plus and minus, OR cross and check mark.
I would go with the minus sign for elimination, especially since you already have that in the background/fourth column.
Sorry I missed several book chunk comments - things got busy for a while, and I figure we need to keep up with the group's pace for comments to be valuable to you.
Congratulation! Great chunk... the integration of the two concepts was great and page 6 is a very useful inspiration for strategic thinking...
I have only two concerns...
1. The Cique du Soleil example is (for me) very boring because I have read so much about the case over the past few years. (same counts for the Wii case, but it´s not soo boring). Both cases make it easy for the reader to link the concepts (this might be your overall goal, because you don´t have time to explain the whole concept), but I think that especially Innovation and Strategy Maverics will read your book and you might want to give them some new stuff to make them feel proud.
2. I find the promotion for blue ocean strategy book (with image of the cover, etc.) is too much... (unless you get additional advertising money from Kim and Morbourgne... which is a nice new revenue stream for the book project and could be explored with authors and publishers).
Anyhow, I think that your book has the power and energy to stay on its own feet and does not need this too bold link to the 3 year old blue ocean strategy wave...
Finally, you might want to contact the publisher and ask for permission to reprint the cover of the book... Otherwise they might file a lawsuit against you... (great free advertising, but can end up to be very expensive and risky).
A final complementary idea
We have tried to use the blue ocean strategy ideas and felt that we don´t want to rely just on gut-instinct. Hence we explored potential methodologies that will supply evidence for strategic decision making.
Back in 2007 we found the KANO MODEL methodology and hired Roger Verdan (ex GM executive and today independent consultant of Strata-gems: http://www.johnson.cornell.edu/sge/people/profiles/rvardan.html].
The course was a bit boring, but the methodology [http://www.kanomodel.com/] was a very useful complement for closing our knowledge gap.
THE KANO MODEL - SUPER EXECUTIVE BRIEFING
By applying the kano methodology (attribute definition that are confirmed with interviews and a questionnaire) you can categorize your product and service attributes into the following five categories [ I will relate these categories to the blue ocean four actions framework ]:
1. Must haves - (blue ocean: RAISE until a certain point and then MAINTAIN
2. Delighers - (blue ocean: ADD)
3. More is better - (blue ocean: RAISE)
4. Neutral - (blue ocean: REDUCE or ELIMINATE)
5. Inverse - (blue ocean: ELIMINATE)
Unfortunately, I don´t posess too useful material to share with you, but you will find lots of stuff on the web. In case you won´t be able to extensively write about the topic, I would recommend to at least mention and cross-reference it for the maverick reader...
Greetings from Mexico, DANIEL
PS: I drew this picture back in 2007... I tried to link Marketing, Blue Ocean and Kano Model concepts for our innovation methodology...
Unfortunately, I have never heard of fuerza bruta, but I will google it later...
When I saw the value curve, I rembered that I also found it kind of subjective to assign the right value variables...
Now, I was thinking that maybe we could integrate
1. Woodalls conceptualization of Customer Value (benefits vs sacrifices)
2. Anthony Ulwicks Job to be Done (Outcome driven innovation)
These methodologies will help the Business Model Innovator with the identification of the right variables...
Finally, with the Kano Model methodology you can then systematically evaluate and categorize each attribute of the Value Proposition and make more objective strategic decisions when applying the BOS four actions framewok.
This, however, might just be more complicated than necessry... Would love to hear how you make this process MECE, systematic and objective... Maybe my approach is just too complicated...
Daniel, thanks for the extensive feedback. Here my comments:
Cirque de soleil: you write "both cases make it easy for the reader to link the concepts" - that is exactly what we wanted to achieve and that is why we took an example that was prominent in the BOS book. The main goal of our book is convey the approach and enable people to use it. To go further, I believe we link the book to some online source for fresh examples...
BOS cover: Absolutely. I don't think the BOS cover will make it into the final design ;-)
KANO model: Really interesting insight! However, I am hesitant to put it in the book without discussion/description. I think the follow-up Hub for maverick readers who are really interested in deepening their business model innovation knowledge is the right place to convey this type of information.
PS: I like the ideas in the '07 picture. Combining methods and ideas always brings out new great & usable stuff!
Nice chunk, had a chance to catch up a little on the trip back to Ottawa. A few comments for you.
Blending: surprised I do not see the epicentre concept applied here. The first graphic on the bm canvas could easily reflect the two applicable epicentres.
Nintendo: don't know how you would add it in, but nintendo also used the non-customer approach by creating the Wii Fit to attract non-gamers and family friendly creative games to attract near customers.
Questioning: Again I think this section needs a better integration with the epicentre concept, or one wonders what the epicentre discussion was all about. There's a small disconnect in the elements of the book. If this isn't where you apply the epicentre concept, then what is the value of the earlier part of the book. Could be as simple as using consistent graphics.
This is a terrific chunk - I've used the blue ocean methodology for 20yrs before I knew it was called "blue ocean" - it's just a very logical way to approach innovation and it works. Your integration of the biz model and blue ocean is powerful. I have just a few suggestions:
1. Echo what pandza said about getting rid of the book cover on the first page - don't need to promote that, just state it and also some different examples than cirque de soleil - there were others in the blue ocean book (the french hotel, etc.) - part of this is because the other examples are more within reach for most companies - cirque de soleil is an amazingly innovative 'thing' - they created a whole new genre and were extremely disruptive and that's hard to do -
2. Don't know if I've missed this in conversation but when the book comes out, provide some link or access to a hub for readers to provide their own examples of biz model innovation in general, using the biz model within the book, and using this integrated approach
Cirque de soleil: As argued above, we took the example featuring most prominently in their book because our main goal was to illustrate how the BOS and BM canvas can blend. I agree that it is difficult to be as disruptive as the Cirque de soleil... that's why we have several incremental business model innovations in the rest of the book. Using the BOS section to show some disruptive examples reflects Kim & Mauborgne's spirit and serves our purpose. Those who want to use the blended approach for more "moderate" innovations will certainly do so - if we have been clear on how the blended approach works.
Hub for readers: Absolutely! Great point and indeed planned, though we are currently focusing on putting the book together. How such a reader's "Hub" will look like is still open to discussion. There will be BM questions such as value proposition, potential revenue streams etc.
I have only come on board last week so pardon me if I am suggesting something that has already been discussed. Although I am not a proponent of tools, a book of this nature might get a lot 'stickier' if we could provide some workbooks (templates if you wish). I am visualising these as 'webBooks' that one could use for guided business modeling.