How to navigate How to navigate How to navigate How to navigate How to navigate How to navigate How to navigate How to navigate Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?Blue Ocean?

VIAC Co.VIAC Co.

Value Innovation Action Camp KOREAValue Innovation Action Camp KOREA

ⓒ Kim & Mauborgne

What is Blue Ocean Strategy?What is Blue Ocean Strategy?What is Blue Ocean Strategy?What is Blue Ocean Strategy?

-- Create a hugely new market by creativity not Create a hugely new market by creativity not

competitioncompetition

-- Provides practical frameworks for the systematic Provides practical frameworks for the systematic

pursuit and capture of Blue Oceanpursuit and capture of Blue Ocean

Founded by Professors W. Chan Kim and Renee Founded by Professors W. Chan Kim and Renee Founded by Professors W. Chan Kim and Renee Founded by Professors W. Chan Kim and Renee MauborgneMauborgneMauborgneMauborgne at INSEAD at INSEAD at INSEAD at INSEAD

ⓒ Kim & Mauborgne

International bestsellerInternational bestsellerInternational bestsellerInternational bestseller----Blue Ocean strategyBlue Ocean strategyBlue Ocean strategyBlue Ocean strategy

Published in 32 language.Published in 32 language.Published in 32 language.Published in 32 language.

ⓒ Kim & Mauborgne

-- they they developed value innovation theory developed value innovation theory in in

early1990early1990’’ss

- Blue Ocean Strategy provides a systematic provides a systematic

approach to making the competition approach to making the competition

irrelevantirrelevant

-- adopted by companies of North America adopted by companies of North America

and Europe in last 10 years, such as Philips, and Europe in last 10 years, such as Philips,

Cirque Cirque dudu SoleilSoleil..

; it was successful!; it was successful!

INSEAD

W.Chan Kim professor and Renée

Mauborgne professor

Why do the word devote their attention on Blue Ocean Strategy?Why do the word devote their attention on Blue Ocean Strategy?Why do the word devote their attention on Blue Ocean Strategy?Why do the word devote their attention on Blue Ocean Strategy?

ⓒ Kim & Mauborgne

Red Ocean with Red Ocean with Red Ocean with Red Ocean with Bloody CompetitionBloody CompetitionBloody CompetitionBloody Competition

-- supply exceed demandsupply exceed demandsupply exceed demandsupply exceed demandsupply exceed demandsupply exceed demandsupply exceed demandsupply exceed demand

-- almost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence todayalmost All industries and companies in existence today

ⓒ Kim & Mauborgne

가치혁신가치혁신가치혁신가치혁신 << << << << 블루오션블루오션블루오션블루오션 전략전략전략전략

How to survive in Red OceanHow to survive in Red OceanHow to survive in Red OceanHow to survive in Red Ocean

= choice of low cost = choice of low cost = choice of low cost = choice of low cost orororor differentiation differentiation differentiation differentiation

Red Ocean Strategy = Competition Red Ocean Strategy = Competition Red Ocean Strategy = Competition Red Ocean Strategy = Competition StrategyStrategyStrategyStrategy

ⓒ Kim & Mauborgne

Blue Ocean Strategy = Creation StrategyBlue Ocean Strategy = Creation StrategyBlue Ocean Strategy = Creation StrategyBlue Ocean Strategy = Creation Strategy

Make the competition irrelevant!

ⓒ Kim & Mauborgne

Aisleconcessions

Fun And

Humor

Uniquevenue

Blue Ocean Strategy Basic Tool: strategy canvasBlue Ocean Strategy Basic Tool: strategy canvasBlue Ocean Strategy Basic Tool: strategy canvasBlue Ocean Strategy Basic Tool: strategy canvas

LowLowLowLow

HighHighHighHigh

PriceStar

performers

Animal Shows

MultipleShow arenas

Thrill and danger

Ringling Fros. And Barmum & Balley Value Curve

Smaller Regional Circuses

Achieving of both low cost and

high value : Cirque Cirque dudu SoleilSoleil

ⓒ Kim & Mauborgne

The venueThe venueThe venueThe venue of of of of Cirque Cirque Cirque Cirque Cirque Cirque Cirque Cirque dudududududududu SoleilSoleilSoleilSoleilSoleilSoleilSoleilSoleil

ⓒ Kim & Mauborgne

The strategy Canvas of The strategy Canvas of The strategy Canvas of The strategy Canvas of Cirque Cirque Cirque Cirque Cirque Cirque Cirque Cirque dudududududududu SoleilSoleilSoleilSoleilSoleilSoleilSoleilSoleil

Ringling Bros. and Barnum & Bailey Value Curve

Cirque du SoleilValue Curve

SmallerRegional Circuses

LowLowLowLow

HighHighHighHigh

PriceStar

performers

Animal Shows Aisle

concessions

MultipleShow arenas

Fun And

Humor

Thrill and danger Unique

venue

Theme

RefinedWatching

environment

MultipleProductionsArtistic

MusicAn dance

ⓒ Kim & Mauborgne

Is it circus or Is it circus or Is it circus or Is it circus or balletballetballetballet????

ⓒ Kim & Mauborgne

Which of the factors Which of the factors Which of the factors Which of the factors Which of the factors Which of the factors Which of the factors Which of the factors that the industry that the industry that the industry that the industry that the industry that the industry that the industry that the industry takes for grantedtakes for grantedtakes for grantedtakes for grantedtakes for grantedtakes for grantedtakes for grantedtakes for granted

Should be eliminatedShould be eliminatedShould be eliminatedShould be eliminatedShould be eliminatedShould be eliminatedShould be eliminatedShould be eliminated

1. Eliminate1. Eliminate1. Eliminate1. Eliminate1. Eliminate1. Eliminate1. Eliminate1. EliminateWhich factors shouldWhich factors shouldWhich factors shouldWhich factors shouldWhich factors shouldWhich factors shouldWhich factors shouldWhich factors should

be created that be created that be created that be created that be created that be created that be created that be created that the industry hasthe industry hasthe industry hasthe industry hasthe industry hasthe industry hasthe industry hasthe industry hasnever offered?never offered?never offered?never offered?never offered?never offered?never offered?never offered?

4. Create4. Create4. Create4. Create4. Create4. Create4. Create4. Create

Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should be raised wellbe raised wellbe raised wellbe raised wellbe raised wellbe raised wellbe raised wellbe raised well

above the industryabove the industryabove the industryabove the industryabove the industryabove the industryabove the industryabove the industry’’s s s s s s s s Standard?Standard?Standard?Standard?Standard?Standard?Standard?Standard?

3.Raise3.Raise3.Raise3.Raise3.Raise3.Raise3.Raise3.Raise

2. Reduce2. Reduce2. Reduce2. Reduce2. Reduce2. Reduce2. Reduce2. Reduce

NewNewNewNewValue CurveValue CurveValue CurveValue Curve

The principle (ERRC) to break the valueThe principle (ERRC) to break the valueThe principle (ERRC) to break the valueThe principle (ERRC) to break the value----cost tradecost tradecost tradecost trade----offoffoffoff

Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should Which factors should be reduced well be reduced well be reduced well be reduced well be reduced well be reduced well be reduced well be reduced well

below the industrybelow the industrybelow the industrybelow the industrybelow the industrybelow the industrybelow the industrybelow the industry’’’’’’’’s s s s s s s s standard? standard? standard? standard? standard? standard? standard? standard?

Company Company Company Company Company Company Company Company ValueValueValueValueValueValueValueValue

Buyer ValueBuyer ValueBuyer ValueBuyer ValueBuyer ValueBuyer ValueBuyer ValueBuyer Value

ⓒ Kim & Mauborgne

Blue Ocean of New York City Police Department?Blue Ocean of New York City Police Department?Blue Ocean of New York City Police Department?Blue Ocean of New York City Police Department?

•• In less two years and without In less two years and without

an increase in his budget, an increase in his budget,

Bratton turned New York City Bratton turned New York City

into the safest.into the safest.

NYPD Blue Ocean of Bill Bratton

ⓒ Kim & Mauborgne

ERRC of New York City Police DepartmentERRC of New York City Police DepartmentERRC of New York City Police DepartmentERRC of New York City Police Department

LowLowLowLow

HighHighHighHigh

Widespread Widespread Widespread Widespread patrols of patrols of patrols of patrols of

subway systemsubway systemsubway systemsubway system InvolvementInvolvementInvolvementInvolvementof officers inof officers inof officers inof officers inProcessing Processing Processing Processing

arrestsarrestsarrestsarrests

Arrests ofArrests ofArrests ofArrests ofWarrant violatorsWarrant violatorsWarrant violatorsWarrant violators

In daytimeIn daytimeIn daytimeIn daytimeIssuance of deskIssuance of deskIssuance of deskIssuance of desk

Appearance ticketsAppearance ticketsAppearance ticketsAppearance tickets

ArrestArrestArrestArrest

GroupGroupGroupGrouparrestarrestarrestarrest

Focus onFocus onFocus onFocus onQualityQualityQualityQuality----ofofofof----lifelifelifelife

crimescrimescrimescrimesArrests pf warrantArrests pf warrantArrests pf warrantArrests pf warrantViolators duringViolators duringViolators duringViolators duringSleeping hoursSleeping hoursSleeping hoursSleeping hours

Use of Use of Use of Use of “bust busesbust busesbust busesbust buses”For processing For processing For processing For processing

arrestsarrestsarrestsarrestsTrain sweepsTrain sweepsTrain sweepsTrain sweeps

For safeFor safeFor safeFor safeatmosphereatmosphereatmosphereatmosphere

Before

Bratton’s

Appointment

How Bratton Refocused Resources?

After

Bratton’s

Appointment

ⓒ Kim & Mauborgne

Blue Ocean Strategy consists ofBlue Ocean Strategy consists ofBlue Ocean Strategy consists ofBlue Ocean Strategy consists of…………

�� The Formulation of Blue Ocean Strategy The Formulation of Blue Ocean Strategy

Body Body �������� Value InnovationValue Innovation

�� The Execution of Blue Ocean Strategy The Execution of Blue Ocean Strategy

Head Head �������� Tipping Point Tipping Point Leadership Leadership

Arms & LegsArms & Legs�������� Fair ProcessFair Process

ⓒ Kim & Mauborgne

Why does technology innovation fail?Why does technology innovation fail?Why does technology innovation fail?Why does technology innovation fail?

ⓒ Kim & Mauborgne

To execute Blue Oceans strategy successfullyTo execute Blue Oceans strategy successfullyTo execute Blue Oceans strategy successfullyTo execute Blue Oceans strategy successfully

FPFP

FPFP

VI

TPL

Roles of Arms & Legs are importantRoles of Arms & Legs are important..

ⓒ Kim & Mauborgne

Buyer viewBuyer viewSupplier viewSupplier view

Existing

customersNon-customers

Strategy Focus Shifts Strategy Focus Shifts Strategy Focus Shifts Strategy Focus Shifts

Beating the

competition

Making the

competition irrelevant

ⓒ Kim & Mauborgne

LetLetLetLet’’’’s draw Strategy Canvas!s draw Strategy Canvas!s draw Strategy Canvas!s draw Strategy Canvas!

ⓒ Kim & Mauborgne

Where is Your Own Blue Ocean?

Seek and You will Find!

ⓒ Kim & Mauborgne

Find your blue ocean navigation in VIAC Korea!Find your blue ocean navigation in VIAC Korea!Find your blue ocean navigation in VIAC Korea!Find your blue ocean navigation in VIAC Korea!

�������� contact uscontact uscontact uscontact uscontact uscontact uscontact uscontact us

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ee--mail; mail; sweetsori@viac.co.krsweetsori@viac.co.kr

3F 3F ZepoZepo Bldg, #725Bldg, #725--7, 7, YeoksamYeoksam 22--dong dong GangnamGangnam--gugu, Seoul 135, Seoul 135--921 Korea921 Korea

• Professors Professors Professors Professors W.ChanW.ChanW.ChanW.Chan Kim and Kim and Kim and Kim and ReneReneReneRene�eeee MauborgneMauborgneMauborgneMauborgne are the are the are the are the sole originators, founders, and owners of the sole originators, founders, and owners of the sole originators, founders, and owners of the sole originators, founders, and owners of the “ Value Value Value Value

Innovation/Blue Ocean StrategyInnovation/Blue Ocean StrategyInnovation/Blue Ocean StrategyInnovation/Blue Ocean Strategy’ family of concepts, family of concepts, family of concepts, family of concepts,

frameworks, tools, processes, methodologies, etc. frameworks, tools, processes, methodologies, etc. frameworks, tools, processes, methodologies, etc. frameworks, tools, processes, methodologies, etc.

• Accordingly, all such materials shall contain the proper Accordingly, all such materials shall contain the proper Accordingly, all such materials shall contain the proper Accordingly, all such materials shall contain the proper copyright notice: copyright notice: copyright notice: copyright notice: “ⓒⓒⓒⓒKim & Kim & Kim & Kim & MauborgneMauborgneMauborgneMauborgne”. . . .

• The name The name The name The name “Blue Ocean strategyBlue Ocean strategyBlue Ocean strategyBlue Ocean strategy” has been registered for has been registered for has been registered for has been registered for

Trademark.Trademark.Trademark.Trademark.