Know your ABCs– Awesome Value Proposition, Business Model, Cashflow Management
Crisis is the mother of innovation and now is the time to think Blue Ocean Strategy. We have to move beyond survival mode into revival mode. We need to change our thinking from being a Realist to an Optimist and finally a Revivalist! Blue Ocean Thinking helps us to create our own market space or Blue Oceans by pursuing Value Innovation – the simultaneous pursuit of differentiation (Value Up) and lower cost (Cost Down). It also helps us to move beyond existing demand by capturing noncustomers groups who are basically underserved or unserved by the industry. Practically, let’s look at some principles to chart your true north and begin the journey towards Blue Ocean Creation.
Awesome Value Proposition
Blue Ocean Thinking in itself helps in business navigation and creating the right bearings in order to navigate through the storm. How to define an Awesome Value Proposition? In Blue Ocean we have this term Pain Point. If you can solve the pain points of the customer or better still the industry, then you are on your way to create Blue Oceans. Another principle is 3 Tiers of noncustomers – look beyond existing demand – how can you leverage on the core strengths of your business to create value for noncustomers as well as pivot on your supply chain to make your rivals as revenue.
Building a Robust Business model
In business theory, a disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances. The term was defined and first analyzed by the American scholar Clayton M. Christensen. Through identifying and analyzing systems for possible points of intervention, one can then design changes focused on disruptive interventions.
Creatively manage your Cashflow
Thirdly, think about how to practically leverage on the pandemic by capitalizing on facilities from the government and banks, renegotiate business costs such rent as well as using smart value-based discounts to close deals not to mention looking at strategic pricing. Lastly, be empowered and be hopeful that the crisis will have a silver lining at the end of the day if we think Blue Ocean; after all, rough seas make excellent sailors. Blue Oceans Ahead!
With that said, I hope that 2021 will be a year of great innovations for you. Do contact us if you wish to establish an innovation charter for your company.