Blue Ocean, Red Ocean…

21 04 2009

If you have not read the book on Blue Ocean Strategy, I would highly recommend it.  No matter what industry you are in or how competitive your market is, it should make you think about innovation.  Most companies I have worked with find it difficult to integrate innovation into their management cycle, and therefore innovation is done in an ad hoc manner.  

While a Blue Ocean (Red Oceans are competitive markets where everyone has spilled blood) market play may not be for everyone, you can think of new ways to measure the business, process improvements, compensation plans, marketing tactics, etc if you create a more formal manner for innovation.

Additionally, you might find a great deal of value of reassessing the competitive landscape.  It never hurts to discuss how would a new competitor attack the market.  All great businesses find themselves under threat from unseen ideas – this may just give you a more proactive manner to see the ideas coming.  




External & Market Indicators

25 02 2009

One item most organizations struggle with is leveraging external indicators. Early last year, the price of gas created a chain reaction. Most companies cost of goods sold increased to where they were forced to raise their prices as their margins eroded.  

Even if we do that, we typically do not have a systematic way to incorporate the learning into a business process. What we would need is the ability to understand the external indicators, know of potential sources for the information, and work these into ongoing environmental scans.  

What is the value of understanding how the consumer price index impacts your revenues? What happens if you were able to move before your customer in terms of supply chain interruption? In some cases, this could mean millions to your top or bottom line. There are a number of organizations that knew the market was struggling in 2008, but did nothing to prepare.  And a number of those names will never be the same (GM, AIG, Circuit City, etc).

When is the last time you did a formal environmental scan, discussed the results, and put new actions into place?