CHARTING Your Company’s Future -Blue Ocean Strategy

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

2. About Me 蕭復元 • 南投、台中 • 學歷 • 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 • 實習工讀 • 台鐵台中站 • 中華電信台中營運處 • 興趣 • 棒壘球、唱歌

3. About Authors W. Chan Kim (金偉燦) • Korean-born business theorist Renée Mauborgne • American economist and business theorist • Professor of Strategy and Management at INSEAD • CreatingValue Innovation Network (VIN) • Co-author of the 2005 book Blue Ocean Strategy

4. Outline • Introduction • Revealing Your Strategic Profile • Drawing Your Strategy Canvas • Conclusions

5. Introduction

6. Big Picture Standard: Brevity

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

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

9. Revealing Your Strategic Profile

10. 3 Things in 1 Picture REVEALING YOUR STRATEGIC PROFILE • Strategy profile: depict the factors that affect competition • Competitors’ strategy profile • Show how it invests in the factors • Basic Component → Value Curve

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

12. 3 Complementary Qualities REVEALING YOUR STRATEGIC PROFILE • Focus • Divergence • Compelling Tag Line The speed of the plane at the price of the car - Whenever you need it.

13. DRAWing Your StrategY CANVAS

14. 4 Steps of Visualizing Strategy DRAWING YOUR STRATEGY CANVAS Case: European Financial Services (EFS) A 150-year-old financial services group Boost overall revenue by 30%

15. Visual Awakening DRAWING YOUR STRATEGY CANVAS 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

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

17. Visual Exploration DRAWING YOUR STRATEGY CANVAS 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

18. Visual Strategy Fair DRAWING YOUR STRATEGY CANVAS 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

19. Visual Strategy Fair DRAWING YOUR STRATEGY CANVAS “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)

20. Visual Communication DRAWING YOUR STRATEGY CANVAS 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

21. Conclusion

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

23. The End Thank you