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
Using the Business Model Canvas, businesses can explore different business revenues streams, from product and service bundling as well as potential strategic partnerships that they can make for their business. How can you pivot and reinvent your business model in order to be profitable? Value Up, Cost down – Value Innovation Example – Korean Air – How did they apply Value Innovation
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!