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Blue Ocean Dashboard: Comprehensively Managing the Performance of Your Business Model
You've used the Business Model Canvas to prepare or document your innovative business model. So, what's the next step? In other words, what tools or methodologies should be applied after knowing and sharing ideas on how your business should innovatively create value for customers, investors, and other stakeholders?
Two tools readily come to mind and both are developed by Robert Kaplan and David Norton. The tools are Strategy Maps and the Balanced Scorecard. Both tools are inextricably linked and cover a business from four perspectives: Financial Perspective; Customer Perspective; Internal Perspective; Learning and Growth Perspective. However, Kaplan and Norton neglect other perspectives in the value chain such as from suppliers and distributors/channels. In addition, the structure of the Strategy Map and Balanced Scorecard does not perfectly match the structure of the Business Model Canvas. The Balanced Scorecard assumes that the enterprise already has an explicit strategy which is subsequently translated into a performance dashboard. Although a Strategy Map logically precedes a Balanced Scorecard, the tool of Strategy Map was developed after the Balanced Scorecard. Nevertheless, the Strategy Map focuses on "internal elements" of the value chain or ecosystem and neglects competitive forces.
Given the inadequacies of the Balanced Scorecard and Strategy Map, I set out to design a comprehensive dashboard that could be used for managing a value chain as well as a business model. The Blue Ocean Dashboard is shown below.
In addition, to documenting information on a business model such as from the Business Model Canvas, the Blue Ocean Dashboard can be used for documenting and managing Blue Ocean strategies. (The term of "Blue Ocean" is linked to the seminal work of W. Chan Kim and Renee Mauborgne in their book, "Blue Ocean Strategy." ) There are other aspects to the Blue Ocean Dashboard but I'll leave out those for another day.
Coming back to the issue of what to do after mapping a business model on the Business Model Canvas, one option is to translate the new business model into a performance framework using the Blue Ocean Dashboard. As an example, I translated Google's business model (and Blue Ocean Strategy) using information from Chunk Nr. 4 of Alex Osterwalder's book as well as from other literature on Google. I've included a presentation of the Blue Ocean Dashboard in MS Excel and for download for those who would like to use the Blue Ocean Dashboard. An advantage of the Excel format is that rows and columns can be hidden so that a Blue Ocean Dashboard can look like a Balanced Scorecard or a simpler dashboard.
Hopefully, using the Business Model Canvas in conjunction with the Blue Ocean Dashboard would help an enterprise or entrepreneur to steer a business model so that it better delivers on its value proposition.
I'd be interested to hear your feedback.
Best,
Rod.
Two tools readily come to mind and both are developed by Robert Kaplan and David Norton. The tools are Strategy Maps and the Balanced Scorecard. Both tools are inextricably linked and cover a business from four perspectives: Financial Perspective; Customer Perspective; Internal Perspective; Learning and Growth Perspective. However, Kaplan and Norton neglect other perspectives in the value chain such as from suppliers and distributors/channels. In addition, the structure of the Strategy Map and Balanced Scorecard does not perfectly match the structure of the Business Model Canvas. The Balanced Scorecard assumes that the enterprise already has an explicit strategy which is subsequently translated into a performance dashboard. Although a Strategy Map logically precedes a Balanced Scorecard, the tool of Strategy Map was developed after the Balanced Scorecard. Nevertheless, the Strategy Map focuses on "internal elements" of the value chain or ecosystem and neglects competitive forces.
Given the inadequacies of the Balanced Scorecard and Strategy Map, I set out to design a comprehensive dashboard that could be used for managing a value chain as well as a business model. The Blue Ocean Dashboard is shown below.
Blue Ocean Dashboard: Comprehensively Managing Your Business Model
View more presentations from Rod King.
In addition, to documenting information on a business model such as from the Business Model Canvas, the Blue Ocean Dashboard can be used for documenting and managing Blue Ocean strategies. (The term of "Blue Ocean" is linked to the seminal work of W. Chan Kim and Renee Mauborgne in their book, "Blue Ocean Strategy." ) There are other aspects to the Blue Ocean Dashboard but I'll leave out those for another day.
Coming back to the issue of what to do after mapping a business model on the Business Model Canvas, one option is to translate the new business model into a performance framework using the Blue Ocean Dashboard. As an example, I translated Google's business model (and Blue Ocean Strategy) using information from Chunk Nr. 4 of Alex Osterwalder's book as well as from other literature on Google. I've included a presentation of the Blue Ocean Dashboard in MS Excel and for download for those who would like to use the Blue Ocean Dashboard. An advantage of the Excel format is that rows and columns can be hidden so that a Blue Ocean Dashboard can look like a Balanced Scorecard or a simpler dashboard.
Blue Ocean Dashboard for Google Search
View more presentations from Rod King.
Hopefully, using the Business Model Canvas in conjunction with the Blue Ocean Dashboard would help an enterprise or entrepreneur to steer a business model so that it better delivers on its value proposition.
I'd be interested to hear your feedback.
Best,
Rod.
Comment
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Comment by Rod on July 2, 2009 at 9:08am
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Hi Karl,
Thanks for your response. I'll directly get in touch with you for more detailed discussion.
Best,
Rod.
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Comment by Karl Burrow on July 1, 2009 at 3:48am -
Hi Rod,
Sorry for the late reply. Yes I would be interested in pursuing this further especially for the Japan market.
I have a number of contacts and parties I am working with that I am sure would keen to pursuing this.
Japan is a prime market for improving and implementing scorecards, dashboards etc.. in key areas such as life sciences, retail and finance.
Let's have a chat about this within the next week if your time is available.
Regards,
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Hi Karl,
Thanks for your comments. I'm very interested in discussing and reviewing the application of the Blue Ocean Dashboard to case studies in Japan. I'm also looking forward to collaborating with interested parties.
Have you got suggestions on possible contacts in Japan? Would you be interested in further exploring this idea of collaboration.
(You could reply directly to me at rodkuhnking@sbcglobal.net )
Best,
Rod.
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Comment by Karl Burrow on May 18, 2009 at 9:04am
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Hi Rod,
I am very intrigued by your scope as well. Actually it is a good approach. I have used K & N approach with tactical measures and strategy maps and yes I as agree it does neglect distribution channel, end to end customer focus ans the value chain from the perspective of the customer working backward toward the organization. In consensus BSC does assume the enterprise already has a well planned/thought out strategy. A dashboard will only produce what ever performance metrics and data that has been captured. Your approach would be quite useful for discussion in the Japan Market. Trying go get a hold your presentation and samples for review in Japan.
Best Regards,
Karl
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Hi Cesar,
Thanks for your comment. I'm glad that you found the Blue Ocean Dashboard interesting and useful.
Best,
Rod.
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Comment by Cesar Picos on April 24, 2009 at 7:53am -
Hello Rod,
Very interesting scope, I like very much the work you made with this Dashboard, combining the two concepts of Business Models and BOS, it is going to be very useful!
Thanks.
Cesar.
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