Summary by: Dedy Budiman M.

Pd
www.dedybudiman.com | Jan 2018
 Blue Ocean Shift adalah proses sistematis untuk memindahkan
organisasi Anda dari pasar ramai dengan persaingan ketat yang
ibarat samudera merah penuh hiu ke samudera biru yang terbuka
lebar, atau pasar baru yang tanpa persaingan.
Blue Ocean Shift
is a five-step
process that
allows any
organization to
make the
transition from
an existing,
crowded market
into a clear new
market space.
There are three overall components
to a successful Blue Ocean Shift

1 2 3
Adopting a blue ocean Having practical tools Embracing the concept of
perspective: that guide the process: humanness:

Looking to the far These will translate a Inspire people and build
their confidence, so that
horizon, recognizing that blue ocean perspective they drive the process
different questions have into a whole new forward and can successfully
to be asked, and offering implement the shift to a
pondering what could be blue ocean.
Based on the three components above, we will look
at three key notions that underpin a successful Blue
Ocean Shift

01 02 03
Understanding Developing a Developing
the concept of Blue Ocean “Humanness.”
market mindset
creation
Sebelum melakukan
pergeseran samudera
biru, bagaimana
memindahkan organisasi
dari bersaing di pasar
menjadi menciptakan
pasar, pertama-tama
Anda harus memahami
Strategi Penciptaan
Pasar (Market Creating
Strategy) dan bagaimana
cara kerjanya.
DISRUPTION IS A
POWERFUL WAY TO
CREATE GROWTH.
BUT THINKING
ONLY ABOUT
DISRUPTION
LEAVES A LOT OF
OPPORTUNITIES
OFF THE TABLE.
Nondisruptive creation is where one’s gain doesn’t have to
come at the expense of others. Nondisruptive creation
generate growth and employment without necessarily
replacing existing businesses or industries
Market-creating strategies take one of
three forms:
A breakthrough answer to an existing problem
which usually takes the form of disruptive creation. For
example, boats and airplanes allowed for a new marketplace
of transportation that did not exist beforehand.
Identifying an entirely new opportunity or solving a new
problem
a wholly non- disruptive form of growth and creation. For
example, Cirque Du Soleil created a new form of circus for
both adults and children; they extended the market for circus
goers.
Redefining the problem and offering a new solution
which has elements of both disruptive and non-disruptive
market creation. For example the smartphone disrupted less
sophisticated cellular phones, but also expanded the market
by enabling new mobile experiences.
Model Pertumbuhan Market Creating Strategy

GROWTH

NONDISRUPTIVE CREATION

DISRUPTIVE CREATION

A breakthrough Identifying an entirely Redefining the

answer to an new opportunity or problem and
solving a new offering a new
existing problem
problem solution

Tiga Cara Melakukan Market Creating Strategy

• It is important to
understand that a Blue
Ocean Shift does not merely
mean “Innovation.”
• A blue ocean is created
when a new value-cost
frontier is opened, and a
Blue Ocean Shift occurs
when an organization
successfully “shifts” into the
newly created frontier.
 Para Inovator teknologi boleh
jadi menelurkan ciptaan
menakjubkan, namun mereka
jarang menjadi yang
menetaskannya.
Yang menciptakan Personal
Computer adalah MITS, tetapi
yang mendominasi
(menetaskannya) adalah Apple
dan IBM.

Pusatkan Perhatian ke Inovasi

Nilai, Bukan Inovasi Teknologi
THE BLUE OCEAN MINDSET
Seeing new opportunities instead of nothing but competitive
red oceans requires adopting a different mindset, one based
on four fundamental principles.

• Do not take the conditions and boundaries in your industry as a

given: instead, think in terms of changing those boundaries to
work in your favor. Unleash your imagination.
• Make the competition irrelevant: do not focus on gaining an
advantage over the competition; that is backward looking and
keeps you focused on what the organization has achieved to
date. Instead, unleash your forward-looking creativity.
• Rather than fighting over existing customers, focus on how to
create and capture new ones: in most industries, existing
customers are just a tiny sliver of the world of non- customers
waiting out there. Create new demand by finding these non-
customers.
• Go beyond the value-cost trade-off: instead of choosing
between differentiation and low cost, actively pursue both at
the same time.
FROM LIMITATIONS
TO NEW OPPORTUNITIES
Humanness
• Adopting a blue
ocean mindset also
includes embracing
the concept of
“humanness.”
• Building this
concept into the
process of a blue
ocean shift inspires
your people, gives
them confidence,
and allows them to
drive the process of
change.
Humanness brings out
people’s emotional
engagement so that they
have the confidence to act.
Once they have that
confidence, they can then
start to use the tools and
processes that will unleash a
blue ocean shift
 Atomization
There are
three
elements to
the blue Firsthand
Discovery
ocean process
that build the
attitude of
humanness. Fair Process
 Atomization

The whole process of a blue ocean shift is daunting to

contemplate. Instead, break the challenge into small, concrete
steps that can be easily grasped, acted on, and ‘won.’
 • When people are told that
change must happen, they do
not commit to the process and
will be resistant and even
resentful. Instead, create the
conditions that allow people
to make discoveries for
Firsthand themselves.
Discovery • Not only will this prevent
people from feeling
manipulated, the very act of
discovery helps people to
develop a more open and
forward-looking mindset. They
will see things they had never
thought of before.
Fair Process
• This requires three fundamentals:
• Engagement, so that people
are actively involved in
driving the process
• Explanation, so that people
are reassured that they
understand the thinking
behind each stage
• Clear expectations, so that
no-one is surprised.
• This contributes to an
atmosphere of trust, helping to
ensure everyone’s voluntary
cooperation.
 The Five
Steps of a
Blue Ocean
Shift
Step One: Get Started
• Traditional organizational
assessments focus on
market share and
industry attractiveness;
but, market share is a
lagging indicator that
shows where the industry
has been, and
attractiveness only gives a
snapshot of where the
industry stands right now.
• Instead, the first step
should be based around
the concepts of value
and innovation.
 To see how vulnerable or healthy your portfolio really
is, use the concepts of Pioneer, Settler, and Migrator to
assess how much value the product or service offers.

Pioneer
Value Innovation

Migrator
Value Improvement

Settler
Value Imitation
• Pioneers: products that break
away from the competition.
Pioneers are value innovations,
the key to renewing the
portfolio and opening up new
frontiers.
• Settlers: the other end of the
spectrum, Settlers offer only
value imitation, converging with
the rest of the industry and
offering little prospect of
growth.
• Migrators: somewhere between
the two, migrators offer some
improvement over the
competition, but they do not
represent innovative value.
To plot the Pioneer-
Settler-Migrator map,
first identify your key
businesses, products
or services. Choose the
heads of each of your
organization’s main
units to participate and
have each manager
identify where the
products fall on the
map
• Working as a group
both ensures a
sense of fair process
and gives everyone a
perspective on what
others in the
company are
thinking
• The “whole group”
includes all decision
makers
To define the scope of your Blue Ocean Shift, look
for a business, product or offering that has most
or all of the following characteristics:

• A settler or low migrator

• Is headed by a manager who is
eager to break into a blue
ocean
• Has no other major initiatives
underway
• Clearly has very limited options
for growth.
 BLUE OCEAN SHIFT: Exercise Template

The Pioneer-Migrator-Settler Map

Pioneer
Value Innovation

Migrator
Value Improvement

Settler
Value Imitation

Key for plotting:

Large revenues Small revenues

© Chan Kim & Renée Mauborgne. Blue Ocean Shift. All Rights Reserved.
 BLUE OCEAN SHIFT: Exercise Template

The Pioneer-Migrator-Settler Map

Current Planned
Portfolio Portfolio

Pioneer
Value Innovation

Migrator
Value Improvement

Settler
Value Imitation

© Chan Kim & Renée Mauborgne. Blue Ocean Shift. All Rights Reserved.
Step Two: Understand Where You Are Now
• The next step is to
build a clear, shared
picture of the current
strategic landscape by
creating a Strategy
Canvas. This not only
helps to build your
strategy, it also makes
sure that everyone is
working from the same
overall picture.
• The Strategy Canvas is
a one-page visual that
tells a story in the form
of a graph.
 The horizontal axis shows the key factors that the industry
competes on, while the vertical shows the offering level that
buyers receive or experience for each of these factors.
• The blue ocean team first identifies between
five and twelve key competing factors for the
“As-Is” Strategy Canvas.
• Factors can relate to an offering’s product,
service, or delivery platforms, but all should
describe a key aspect of the offering from
the buyer’s point of view.
• For example, a charity’s list of factors for the
fund-raising industry might include pity
pleas, soliciting grants, year-round events,
recognition of donors, and so on.
 BLUE OCEAN SHIFT: Exercise Template

As-Is Strategy Canvas

High
Offering Level

Low

Price

Key Competing Factors

© Chan Kim & Renée Mauborgne. Blue Ocean Shift. All Rights Reserved.
• Once the team has decided
on the key factors list, pick a
best player against which to
plot the offering as a
reference; either the
industry leader or your
strongest competitor.
• Then, using a five-point
scale from very low to
average to very high, have
the team rate the offering
level of each factor for your
product and then for the
reference company.
 BLUE OCEAN SHIFT: Exercise Template

Key Competing Factors

Your Company’s Your Competitor’s

Key Competing Factors
Offering Level Offering Level

List the key factors the industry currently competes on Rate on a 1-5 Likert- type scale Rate on a 1-5 Likert- type scale

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

© Chan Kim & Renée Mauborgne. Blue Ocean Shift. All Rights Reserved.
• Selagi mengidentifikasi
faktor-faktor persaingan
utama yang akan muncul di
sumbu horizontal, pastikan
untuk menjabarkan dari
sudut pandang pembeli,
bukan organisasi
• Orang – orang baik atau
teknologi canggih adalah
contoh faktor organisasi
yang orang sering keliru
anggap sebagai faktor
persaingan utama.
• Orang – orang baik, di
mata pembeli bisa menjadi
kecepatan layanan
terhadap konsumen.
Teknologi Canggih bisa
diterjemahkan menjadi
kemudahan penggunaan.
Step Three : Imagine Where You Could Be
• Now that the team has a
strategic overview of the
current state of play, the next
step is to help them envisage
how they might shift from the
current red ocean into a new
blue ocean.
• This means charting the
hidden constraints in the
industry and identifying the
new demand that could be
unlocked.
 • Develop an overview of all the
underlying assumptions and boundaries
that make up the ‘pain points’ that limit
the industry.
• These are not just constraints, they are
Draw up opportunities to change the picture.

a Buyer • The Buyer Utility Map will help the

team members to see not only that
Utility every industry has pain points, but also
that these are problems that can be
Map solved.
• The Map lists the six stages of the buyer
experience, and the six utility levers
that the organization can ‘pull’ to affect
that experience.
Starting with the buyer
experience cycle, the
team members should
put themselves in the
place of a buyer and
imagine the total
experience offering,
from purchase through
to disposal, identifying
the specific activities
that fall within each
stage of the cycle
 Buyer Experience Cycle
At each stage, managers can ask a set of questions to gauge the
quality of buyer’s experience.

Purchase Delivery Use Supplements Maintenance Disposal

How long does it How long does Does the product Do you need other Does the product Does use of the
take to find the it take to get require training or products and require external product create
product you the product expert assistance? services to make this maintenance? waste items?
need? delivered? product work?
Is the product easy to How easy is it to How easy is it to
Is the place of How difficult is store when not in If so, how costly are maintain and dispose of the
purchase it to unpack use? they? upgrade the product?
attractive and and install the product?
How effective are the How much time do Are there legal
accessible? new product?
product’s features and they take? How costly is or
How secure is the Do buyers functions? maintenance? environmental
How easy are they to
transaction have to issues in
Does the product or obtain?
environment? arrange disposing of the
service deliver far
delivery product safely?
How rapidly can more power or options
themselves? If
you make a than required by the How costly is
yes, how costly
purchase? average user? Is in disposal?
and difficult is
overcharged with bells
this?
and whistles?
Uncovering Blocks to Buyer Utility
Uncovering blocks to buyer utility can identify the most compelling hot spots
to unlock exceptional utility.
Purchase Delivery Use Supplements Maintenance Disposal

Customer Productivity: In which stage are the biggest blocks to customer productivity?

Simplicity: In which stages are the biggest blocks to simplicity?

Convenience: In which stage are the biggest blocks to convenience?

Risk: In which stage are the biggest blocks to reducing risks?

Fun and Image: In which stage are the biggest blocks to fun and image?

Environmental In which stage are the biggest blocks to environmental friendliness?

Friendliness:
 ▪ A Blue Ocean Shift means creating new demand
and growing the industry. To do that, the team has to
understand who the non-customers are and why
they are not buying your product or service.
▪ There are three tiers of non-customers.
▪ In the First Tier are those who patronize the industry
because they have to, not because they want to; if
Identify they find a better alternative they will quickly move
the total to it.

demand ▪ The Second Tier are the refusing non-customers,

people who have consciously rejected the industry
landscape offering perhaps in favor of an alternative or
because it is too expensive.
▪ The Third Tier are all those who could benefit from
your offering, but have never considered
themselves as potential customers.
Step Four : Find How To Get There
• The next step in a Blue
Ocean Shift involves
systematically
reconstructing market
boundaries.
• In order to identify new
opportunities where
others see only red
oceans, the team will
systematically work
through the Six Paths
Framework, with each
Path revealing key
insights into the existing
constraints and hidden
opportunities in the
industry.
Four Actions Framework
Eliminate/Reduce/Raise/Create Grid

Eliminate Raise

Reduce Create
Key Factors
Your Company’s Offering Your Competitor’s Offering
Key Competing Factors Level Level

List the key factors the industry currently competes on

Rate on a 1-5 Likert type scale Rate on a 1-5 Likert type scale
plus those that your ERRC grid shows as a "CREATE"

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5
Step Five : Make Your Move
• The final step in
launching the Blue
Ocean Shift involves
holding a Blue Ocean
Fair and creating the
Business Model.
• To decide which
strategic offering to
pursue, hold a Blue
Ocean Fair that brings
all of the team
members together
with the organization’s
key decision makers,
along with some
customers and non-
customers, over the
course of a few hours
 ▪ Give an overview of the current red
ocean reality in the industry and make
the case for a Blue Ocean Shift.
▪ The team presents each of the strategic
options they created, summarizing the
benefits for buyers or users and
outlining the economic benefits to the
organization.
▪ Attendees move around the room,
The Fair should visiting a display station for each option
be structured as with poster-sized versions of the to-be
Canvas from Step Four and the
follows: Eliminate-Reduce- Raise-Create grid.
▪ The attendees vote for the options they
consider most compelling. One this is
complete, ask attendees for the
rationale behind their votes.
▪ The executive team decides which Blue
Ocean option to pursue.
Finally, it is time
to roll out your
Blue Ocean
Shift. For the
smartest Rollout
Strategy, start
small – to iron
out any last-
minute bugs
and hiccups –
then go fast and
wide.