Strategic Innovation…What does this mean for my business?
Are creativity and innovation the same?
Companies today must repeatedly remind themselves that if they fail to re-invent themselves to meet current market challenges, they will find their market share shrinking or gone in time to come.
It seems the latest buzzword in business is creativity. In fear of losing out many individuals and organisations jump onto the bandwagon of creative thinking with little knowledge of its purpose or direction and no understanding of its application for corporate success. Creativity without focus or framework can provide results that have no commercial value. Creativity that adds value to businesses is Innovation. However innovation is not an act of spontaneity. It is targeted effort to make something new happen through a structured and well organised approach and accordingly allow businesses to reap the rewards.
What does Red look like?
Red oceans are characterised by well defined and accepted industry boundaries and established competitive rules of the game. Companies are embroiled in the art of war, constantly strategising to oust another from a densely congested market space. They are often incapable of understanding or recognising the path less trodden, which is often less confrontational yet creates greater business value. However being caught in the throes of competition results in companies remaining in red oceans where the focus is more defensive, concentrated on the elimination of rivals to emerge victorious.
Finding the Blue
Make competition irrelevant
The latest corporate insight comes together in the form of an approach that is new and improved. It is the logical way to achieve outstanding performance – the Blue Ocean Strategy, is intended to generate sustained growth with higher probability and greater impact. Its simple methodology comprises of a comprehensive set of tools and frameworks based on key principles to help companies boost performance through value innovation.
Think about the Apple iPod, why is it so popular in spite of being priced 300%- 400% higher than other MP3 players? Or Starbucks coffee, why do consumers spend up to 5 times more than a local coffee shop to stand in line to get a cup? They did it not by creating new products but by delivering key offerings that customers’ desire. Thinking innovatively is the key to helping them carve their niche and enjoying higher profit margins. Leading training consultancy macsimize focuses on helping companies innovate in order to reap maximum benefit by putting creativity through a simple framework. Carl Thong, Managing Director of macsimize says “Clients often tell us that they try to encourage their management teams to be creative, but they are still not able to extract commercial value from their efforts. This is where we can help them by using key concepts from the Blue Ocean Strategy. We train management teams to link leadership and innovation so that it can be imbibed in their corporate culture. Managers learn to avoid staying in a market place where features are piled onto a product that its customers do not particularly value.
When you find your blue ocean you will not have competitors as you will be creating uncontested market space where you are the only player” says Mr. Thong.
Bring on the Blue
macsimize suggests the following in 5 easy steps:
1. Know where you are: you need to know where you are to find out where you want to be. A self analysis to know where you currently stand in the market place.
2. Adopt an inside-out view: Look at your company from within and ask yourself what am I currently offering my customers and what am I going to offer my customers?
3. A structured brainstorming session: You need to generate many ideas to come out with a great one; however these ideas need to be viable and not just ‘out of the box’
4. Adopt an outside-in view: Put yourself in your customers’ shoes and ask the question – What do my customers want? What do they value most and what are they willing to pay for?
5. Find your blue ocean: Eliminate, reduce, raise and create the features of your products and services and create a new offering for your customers based on value not features.
Using innovation to create a new offering will help you create an uncontested marketplace - at least until it is imitated, the key is to make sure this process then becomes a part of your corporate culture – thinking innovatively to constantly be in the blue.
Log on to www.macsimize.biz find your blue ocean today. To get more information email Ayesha Mathias: [email protected] or call +852 93002390
Paul Arkwright
Publisher
