Blue Ocean New Media Strategy
A recent review of the book got me thinking on the intersection of the Blue Ocean Strategy and new media implementation in the enterprise. Blue Ocean Strategy , released in 2005, has gained some momentum with regard to research and implementation in various business schools . INSEAD , where the authors teach, now has a Blue Ocean Strategy Institute , located in the France at Fontainebleau, just outside of Paris. This is where the Château, Versailles, built by the Sun King (Louis XVI), is located. My friend, Taylor Randall, is currently teaching at INSEAD. He had to convince his family to pick up and leave the US to take the one year post as a professor. I guess some of them were concerned they would be missing the creature comforts of the states, but I would rather be in France myself eating croissants and hanging at the Institute.
With the rise of new media in the enterprise, many organizations are experiencing GMOOT (Get Me One of Those). I first heard this wonky acronym from Jeff Ramsey of eMarketer at the OMMA Show this Fall. Many organizations are adopting or have plans to adopt many of the new tools to reach customers. While adoption of these tools is necessary, their relevance to consumers is most important and not just their availability. Sarah Layton of the Corporate Strategy Institute provided the following quote in the Consulting To Management - C2M Journal.
Business models usually start with the cost and build the price based on how much profit they want to make. Blue ocean strategies suggest starting with the utility to the customer and then setting the consumer price and designing the model so that the cost allows the profit desired. My experience is that companies juggle cost and price, trying to decide the highest price the market will bear and adding or subtracting features until they get a nominal product they think they can sell at the highest profit. Many times they never even get around to the subject of value to the customer.
Part of the BOS is to develop a set of methodologies and tools to create new market space. In this effort new and existing firms must develop processes in pursuit of innovation. The new methodologies enterprises will be adopting in the future include:
- openness with data (enabling data mashup - place on the website of your choice)
- open platforms (outsourcing the infrastructure to new media platforms with wider reach than restricted corporate IT Centers)
- experimentation strategies (allowing consumers as developers).
So how does this all relate to Blue Ocean Strategy? The authors point out that companies should not waste time breaking the competition but break away from competition and choose the path of innovation. New media in the enterprise is about freeing the data to be consumed in new ways not even yet realized. Maximizing value, utility, and costs by openness and monetizing (Dion Hinchcliffe http://web2.socialcomputingmagazine.com/ ) in non-traditional paths.
Forces against strategists:
How do you motivate others (IT, Marketing, Legal, Corporate) to become enthusiastic supporters rather than reluctant participants or, worse, saboteurs?
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