Blue Ocean Dashboard: Comprehensively Managing Your Business Model

BLUE OCEAN DASHBOARD
Comprehensively Managing the Performance of Your Business Model

Dr. Rod King

rodkuhnking@sbcglobal.net

Blue Ocean Dashboard for …………………………………………………………………………………………. Date: ……………………………….

Name of Product/Service/Facility: ……………………………..……………………..      Functionality: …………………………………………………………………….…

Customer Value Proposition: …………………………………………………………………….    Business/Industry: ………………..........…………………..….……………..

Goal/Objective: …………………………………………………………………………………………………………………………………………………………………………………………….

BUSINESS SYSTEM Description Performance Objectives: 20…… Blue Ocean Actions (Tactics/Customer Experience Quotient) Initiatives/
(“SEMPORCE”) of Best Current/ Projects
Cost: ‐ Revenue: + Other Raise Create Reduce Eliminate Other
ELEMENTS Future Resources
($) ($) Criteria (+) (+) (‐) (‐)
S: Suppliers/Materials

E: Employees/Know‐
ledge Assets/Culture

M: Machinery/
Equipment/Facility

P: Processes/
Activities

O: Outputs
‐      Product

‐ Service

R: Retailers/
Distributors/Channels

C: Customers/
Consumers

E: Environment

‐ Competitors

‐ Non‐customers

‐ Partners

‐ Investors
‐ Community/Gov.
BUSINESS MODEL: BUSINESS IDEAL BLUE OCEAN STRATEGY (How to create an uncontested Blue Ocean
(How does the organization work to deliver its EXPERIENCE customer experience and uncontested business model as well Program
ROI (%):
value proposition to customers/investors?) QUOTIENT as make the competition irrelevant?)

BOBM5.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

Blue Ocean Dashboard for GOOGLE INC. Date: April 4, 2009

Name of Product/Service/Facility: Google Search Engine/Ad Platform       Functionality: Search Engine/Advertising Market

Customer Value Proposition: Accurate results; Targeted ads; Monetization      Business/Industry: Computer (Software)/Advertising

Goal/Objective: To design an uncontested customer experience and uncontested business model as well as make the competition irrelevant

BUSINESS SYSTEM Description Performance Objectives: 2008 Blue Ocean Actions (Relative to Industry Standard) Initiatives/
(“SEMPORCE”) of Best Current/ Projects
Cost Revenue Other Raise Create Reduce Eliminate Other
RELATIONSHIPS Future Resources
($) ($) Criteria (+) (+) (‐) (‐)
Defects Defects
S: Suppliers/Materials
Highly productive/ Productivity No. of filed Fun/play Absenteeism Turnover
E: Employees/Know‐
creative workers Innovation patents/IP   R & D Waste Delays
ledge Assets/Culture
Efficient data centers Defects Defects
M: Machinery, etc.
PageRank; etc. Quality; ROI Revenue Customers Cost Defects (Six Sigma)
P: Processes/Activities
Google Search Engine/ Free search Customer Ease of use Unobtru‐ Clutter Purchased (Blue Ocean
O: Outputs
Bidding & advertising Sale of ads Experience Speed sive ads Complexity ranking for Strategy/
‐      Product
platform/Other Apps (appliance) Quotient (EQ) Relevance Other apps IT costs websites Innovation)
Search platform; Free search Service EQ
‐ Service
Adwords; Adsense Sale of ads
Website owners Sale of ads Channel EQ
R: Retailers/Channels
Web users; Website Sale of ads: Customer EQ Retention Loyalty Psychological Exit/Entry
C: Customers/
owners; Advertisers; Cost Per Click & Retention   Inertia/ barriers
Consumers
Enterprises (Search) Sale of product Friction
Env. quality
E: Environment
Yahoo/AOL/AltaVista/ (Cost Per Market share Exit/Entry Entry/Exit Bargaining Threat of (Competitive
‐ Competitors
Lycos/MSN Impression) barriers barriers power; Risks substitutes Strategy)
Users of classic search No. of Entry
‐ Non‐customers
engines/portals prospects barriers
Website owners/Affili‐ Sale of ads: Partner EQ Alliances
‐ Partners
ates/Content providers Cost Per Click Joint ventures Affiliates
Share price
‐ Investors
No. of Projects (Local)
‐ Community/Gov.
BUSINESS MODEL: Google Inc. – Search Engine   US$21.79b IDEAL BLUE OCEAN STRATEGY (How to create an Blue Ocean
(How does the organization work to deliver its uncontested customer experience and uncontested business Program
ROI (%):
value proposition to customers/investos?) model as well as make the competition irrelevant?)


Template for 4 Perspectives and Questions for Balancing a Blue Ocean Dashboard

INVESTOR PERSPECTIVE EMPLOYEE PERSPECTIVE

• •

How will the business make more What attributes, skills, resources, and

money (extraordinary profit)? outputs should employees have in
order to sustain a workflow and
culture that deliver extraordinary
value to customers and investors?

4 PERSPECTIVES AND
QUESTIONS FOR BALANCING

A BLUE OCEAN DASHBOARD

CUSTOMER PERSPECTIVE PROCESS PERSPECTIVE

• •
How will customers experience the What processes and strategies will
greatest delight and least pain? generate extraordinary profit as well
as deliver the organization’s value
proposition to customers/consumers?


Template for Zoomable Blue Ocean Dashboard

S: SUPPLIERS/MATERIALS E: EMPLOYEES/KNOWLEDGE ASSETS/   M: MACHINERY/EQUIPMENT/
FACILITY
CULTURE

E: ENVIRONMENT P: PROCESSES/STRATEGIES
BUSINESS MODEL (20…….)
• •
Competitors Brand/PR/Marketing Strategy
[Uncontested Customer Experience/
• •
Non‐customers/Non‐consumers Revenue‐generating Strategy
Customer Value Proposition/Business Goal
• •
Partners Cost‐reduction Strategy
(“BHAG”)/Strategic Intent/Vision/Ideal
• •
Solution/Revenue, Cost, Profit, and ROI]:
Investors   Value Innovation (Trade‐off) Strategy
• •
Gov./Community/Society/Env. Competitive Advantage Strategy

C: CUSTOMERS/CONSUMERS R: RETAILERS/DISTRIBUTORS/              O: OUTPUTS/PRODUCT/SERVICE
CHANNELS/INTERFACE


Template for a Classic Zoomable Page (for Visual Brainstorming/Documentation)


Blue Ocean Dashboard: Comprehensively Managing Your Business Model

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Blue Ocean Dashboard: Comprehensively Managing Your Business Model