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Smartpen in Australia utilised Blue Ocean Strategy and Social Media to create uncontested market spaces for the Livescribe Pulse Smartpen. This case study takes you through the key steps of Blue Ocean Strategy and how it was applied. Utilising social media was the core execution of the strategy
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Introduction
• This presentation covers how Smart Selling used Blue Ocean Strategy so as to create a sustainable business for Smartpen Australia.
• This version of the presentation includes explanation of the core components of Blue Ocean Strategy.
• Certain images within this presentation are owned by UCSI‐BOSRC and Blue O St tOcean Strategy.
• The Blue Ocean Strategy book is available from most good bookstores and AmazonAmazon
Background ‐ Livescribe
• The Pulse Smartpen was launched in 2007 in the USp• http://www.livescribe.com
• The Pulse Smartpen is a computer in a pen. It captures audio and synchronises this to what you are writing.
• The Pulse Smartpen has won international acclaim, including:g
Background ‐ Smartpen
• Smartpen is an Australian business that sells the pLivescribe Pulse Smartpen• http://www.smartpen.com.au
• Smartpen was the first reseller to offer Livescribe for sale in Australiain Australia.
• Smartpen has no retail presence – it’s a pure online storep p p• The start up model could be described as
‘bootstrapping the business’
The Problem
The Problem
• The competition arrived shortly after Smartpen launched p y ponline sales. It was announced that the Pulse Smartpen would also be sold through Officeworks
• Officeworks are a national retail office supplies chain similar to Staplessimilar to Staples
• Officeworks could spend more on above the line pmarketing and could out‐discount
• Officeworks had the retail presence to better capture impulse buyers
The Solution
• Smartpen wasn’t in a position to compete on traditional ‘red ocean’ termsred ocean terms
Going head to head wasn’t an option. They would’ve g p ydestroyed us
K. Palmer – Sales Manager Smartpen
• Smart Selling suggested using Blue Ocean Strategy –• Smart Selling suggested using Blue Ocean Strategy –focusing on value innovation rather than head to head competitionp
The Solution
• The Pulse Smartpen had significant hidden potential –• The Pulse Smartpen had significant hidden potential –the question for Smartpen was whether they could tap into that potentialp
Don’t Compete with Rivals, Make Them Irrelevantwww.blueoceanstrategy.com
Blue Ocean Strategy & Value Innovation
The Importance of Value Innovation
• Focusing on value innovation is central to what Smartpen• Focusing on value innovation is central to what Smartpen sought to achieve.
• Save costs by eliminating and/or reducing the barriers for non‐customers
• Lift value by raising or creating elements the industry has not offeredhas not offered
Don’t Compete with Rivals, Make Them Irrelevantwww.blueoceanstrategy.com
Using Blue Ocean Strategy
• Smart Selling worked with Smartpen through the core g p gStrategy steps:
1. Visual Awakening
2 Visual Awareness2. Visual Awareness
3. Socialising the Strategy (Strategy Fair)g gy ( gy )
4. Execution of the Strategy
Step 1 – Visual Awakening
Step 1 – Create an As‐Is Strategy Canvas
• The strategy canvas is both a diagnostic and an action gy gframework.• It captures the current state of play• It’s also used to create the To‐Be canvas
• Looking at the current market we created an As Is• Looking at the current market we created an As‐Is strategy canvas.
Step 1 ‐ Visual Awakening
• The As‐Is strategy canvas looked like thisgy
What Does This Tell Us?
• Smartpen had little opportunity to differentiatep pp y
• Officeworks controlled the factors that could most damage Smartpen’s ability to remain in the market
• Retail Location• Retail Location
• Above the line advertisingg
Step 2 – Visual Exploration
Visual Exploration – Six Paths Analysis
• As Smartpen transitioned into the Exploration stage, time h h l l kwas spent on the Six Paths Analysis – looking across
alternate industries, groups, products and services
• This analysis identified:• Apple stores – how they harness desire and pp y
enthusiasm.
I b i h d l f i ki• In business, who spends a lot of time taking notes or minutes?
• How do the sub groups of educators work and communicate
Step 2 ‐ Visual Exploration
• From this study we identified a number of new customer ( d )segments (see diagram).
• Our focus shifted to what barriers existed for these non‐customerscustomers
What Did We Hear from Non‐Customers?
• What does it do?
• I work in a small rural school. How do we buy one?
• This is my job. Will it help?
• Can I use the pen to create mini tutorials for my students?
• I work with students from non‐English speaking backgrounds; how will this help?
• Will it work with this third party application?• Will it work with this third party application?
Step 3 ‐ Visual Awareness – ERRC Grid
• Our field research led us to develop the following Four p gAction Framework
Step 3 – Visual Strategy Creation
Visual Strategy Creation – To‐Be Canvas
• Through a series of iterations a To Be Strategy Canvas was g gydeveloped
The Strategy Fair
• The To‐Be Strategy Canvas was successfully validated gy ywith all stakeholders.
• Executing the strategy involved two things:
1 Changes to the core Smartpen site1. Changes to the core Smartpen site
2. Development and execution of a social media pstrategy
Creating the Blue Ocean
• The Blue Ocean for non‐customers was in the social sphere – using social technologies to remove the barriers for these non‐customers so they could become customers
• To do this Smartpen focused on a social media strategy• To do this, Smartpen focused on a social media strategy that would allow it to connect with these non‐customers
Blue Ocean Strategy & Social Media
• At the core of the strategy were principles that included:gy p p
1. Listening – initially passive but soon conversational listening
2. Be in their social space – go out to their worlds and contribute.
3 Help everyone even if they didn’t purchase from Smartpen3. Help everyone – even if they didn’t purchase from Smartpen –help them anyway
4. Encourage Innovation – encourage users to innovate; crowdsource how and where the product could be developed
5. Be Patient – being social builds loyalty. It won’t happen overnight but it will happen
Social Media StrategyThis is one way of looking at the strategy
Out here we listen and
learn
The destinationdestination
The tools to facilitate the
SMARTPENdialogue
Social Media – Listen and Learn
Goal – Listen to the community and learn from themy
Strategy1. We use tools like Google Alerts, Twitter, and Scout
Labs to listen to the conversation
2. Scout Labs has proven more effective as we can track sentiment
3. Twitter search is good for Twitter specific traffic
Social Media – Engage. Dialogue
Goal – Go into the social world and engageg g
Strategy1. We contribute advice and knowledge in specific
social networks and forums
2. Be very diligent about not trying to sell
3. If we can’t meet their immediate need – send them to where they can (i.e. the enemy)
Social Media – Encourage Innovation
Goal – Capture innovative uses of the Livescribe Smartpenp p
Strategy1. By engaging with users we capture examples of how
the Smartpen is being used
2. Twitter, the blog, and Facebook attract users who want to share ideas and experiences p
Summary
Problem:Problem:Smartpen needed to compete against a major legacy retailer for sales of the Livescribe Pulse Smartpen
Solution:1. Smartpen used Blue Ocean Strategy to identify non‐
customers and the barriers that prevented them b ibecoming customers.
2 Social Media provided the means to capture these non‐2. Social Media provided the means to capture these noncustomers and create a blue ocean outcome
Acknowledgements
Blue Ocean Strategy: l h k h ll d h f• Special thanks to Phillip Ng and his team from USCI‐BOSRC
• Copyright for many of the standard Blue Ocean Strategy images in this presentation are owned by USCI‐BOSRC.
• Phillip can be contacted on (03) 9854 6166 phillipng@ucsi‐bosrc.com
Blue Ocean Strategy:• Visit their website – www.blueoceanstrategy.com
Contacts:• Mark Parker – Smart Selling – [email protected]
Twitter @smartsellingTwitter ‐@smartselling(0414) 72 5549
• Contact Smart Selling if you’re interested in learning how Blue O S ld h l b iOcean Strategy could help your business
Other Background
Smartpen: d b l h b l• Based in Brisbane, Smartpen supplies the Livescribe Pulse
Smartpen throughout Australia and New Zealand.
Smart Selling:• Provided the Blue Ocean Strategy and Social Media expertise
to Smartpen.p• Based in Brisbane Smart Selling is focused on delivering
innovation through the use of Blue Ocean Strategy and social business designbusiness design
• Smart Selling has since made a financial investment in Smartpen