The Word Café Podcast with Amax

S3 Ep. 195 Unlocking Innovation: Mastering the Blue Ocean Strategy to Transform Business Practices

Amachree Isoboye Afanyaa Season 3 Episode 195

Send us a text

Can the power of words truly shape our reality? Join me on this transformative episode of the World Cafe podcast, where I share my personal journey of self-discovery and growth, culminating in my pursuit of an MBA at Rome Business School. We’ll traverse the historical tapestry of trade, uncovering its profound influence on societal evolution and set the stage for an exciting discourse on the Blue Ocean Strategy. This groundbreaking business theory advocates for creating uncontested market spaces, fostering innovation, and strategic thinking in today’s fiercely competitive environment.

Shifting gears, the second part of our conversation dives into Chapter Four of the "Blue Ocean Strategy" book, spotlighting the paramount importance of strategic vision over mere data analysis. We'll unlock the secrets to transitioning from the cutthroat "red ocean" of competition to the expansive possibilities of "blue ocean" thinking. With tools like the strategic canvas and the critical examination of non-customers, we’ll reveal how businesses can uncover new demand and thrive. Drawing inspiration from the biblical story of Jacob and Laban, we’ll illustrate the immense value that can be created by strategically innovating with less desired resources, echoing the core principles of the Blue Ocean Strategy. Tune in to discover how these insights can revolutionize your business practices and unveil new opportunities.

Support the show

You can support this show via the link below;

https://www.buzzsprout.com/1718587/supporters/new

Speaker 1:

Hello there, welcome to the World Cafe podcast. This podcast has been designed with created content that centers on the power of words. Can we really do anything without speaking? Can we really do anything without the agency of words? Yes, that is what this podcast is all about, and I am your host, amakri Isuboye, your neighborhood word trader. I believe in the power of words, for it is the unit of creation. I trade in words to profit my world.

Speaker 1:

Yep, yep, yep. Good morning, good afternoon, good evening, good, everything, wherever you are at this particular instant, yes, on the surface of the earth, listening to me, how are you doing? Great, I am fine, I am fine, I'm doing just fine. How are you? Has it been at your end? Yes, yes, I will always ask that question because the truth is, that's why I'm here to share with you. You know experiences, learnings and all of that you know. But I need to know that you're good, that you're good, yes, and you know, somehow a little bit of sunshine from my end towards you and all of that. So this is the space where we come in to lean on one another's experience, to forge a positive path. That is why we are here, that's why I am here, that is why I mean, I sit here and I share moments with you. I share moments with you, yep, yep, yep, so so, so, yes, I'm good, I'm very good, I'm excited. I'm seeing a lot of so many changes happening all around me. Yes, yes, and you understand that the natural man does not necessarily like change. He just wants to be he or she. You know, mankind, I mean, just leave me where I am, and all of that. But somehow God and his infinite mercy and wisdom allows certain things to happen around us, to wake us up to what we ought to do, who we really are, and all of that. So what are we going to be doing today? Yes, I want to share something with you today. I call it lessons from Rome Business School. Yes, I started doing something with Arabias recently, actually my MBA just to broaden my horizon and get to know the world of business better. So, before I start anything, you know, there's this.

Speaker 1:

The other day, I sat down to consider two forces that I've seen in my lifetime, you know, and shaped the world, and I think it's not just in my own lifetime. It's there, you know, the forces of trade, trading as we want to call it, buying and selling. Whether you like it or not, there's this thing that goes on on the earth every blessed day Somebody is selling something or somebody is buying something. So it's like there's this exchange going on, you know, forever Like exchange. You want to call it night and day, give and take. You know you stand and you sit. So these principles shape the earth. You know, service providers basically what they do is trade. They're trading, you know, and all of that.

Speaker 1:

So, and I remember the lesson from Alexander the Great taught by his tutor, aristotle, from history books, you know, when he told him on his conquest and all that, that wherever you go and you conquer and you put your foot down on your footprint or whatever, the first thing you should do is to create a trade or trading or something form of that would bring people together, exchange you and all that. And by so doing, on his conquest, he did a lot of travels along the Asia Minor and all of that, and discovering routes and sea routes and what have you here and there and all of that. And well, that's in the history books. If you look at that, you see them there. But that thing is about buying and selling and you come to see that it defines every bit of the word trade and the word trade moves on to become what we call tradition. Yes, you trade in something tradition, and sometimes we get so stuck in it that this is how it's meant to be and all of that, and we will stick to that, okay, so just to give you a background of what I'll be talking about today, a background of what I'll be talking about today in Rome school. So particularly particularly, there's these hold on, give me a minute, alright, I'm back here.

Speaker 1:

So in a class, they gave us an assignment and something to do. You know the way business schools run give you class, they gave us an assignment and something to do. You know the way business schools run give you projects, give you assignments, not like the traditional assignment stuff that you need to go do some reading, research and all that. And particularly, we came upon this one the Blue Ocean Strategy. Yes, the Blue Ocean Strategy. Yes, the Blue Ocean Strategy.

Speaker 1:

And honestly, this is my first time as I'm coming into the space Arabias. Now, rome Business School. I got to hear about it. I was like, okay, what is a Blue Ocean Strategy? Because the business environment is dotted and defined by strategy. You know, you have concepts and what have you? Your ability to understand these concepts, these strategies and all that will reveal how you can apply them or apply yourselves to them and make the best of it. So I'm going to run through it. Certain learnings I have gotten. Then I'll let you know where I'm going to run through it. You know certain learnings I have gotten, then I'll let you know where I'm going to land. Uh, this conversation, as in the, the, the drone, so to say.

Speaker 1:

So, the blue ocean strategy is a business theory. It suggests companies are better off searching for ways to gain. You know uncontested market space, because your trade is about market, as in the market, where do you have those that would patronize you and all that. So that is a blue ocean. Blue ocean, in quote, you know what an ocean is A body of water. When you say it's blue, in a sense it's virgin, it's new, rather than competing directly with other firms in a highly competitive market. Or red ocean. So you see now that market that is highly competitive. You know why is it called red. Well, let's go. Maybe you understand, you get to know why it's called red as against blue, that's highly competitive. So the key concepts we look at here is the red ocean versus the blue ocean. So red ocean represents all the industries in existence today. In this space, industry boundaries are defined and companies try to outperform rivals to grab a bigger share of the existing market. And as the market becomes saturated, our prospects for profits and growth decrease, then leading to fierce competition or a bloody ocean. You know the sharks and all that. So you now see why it's called the red ocean.

Speaker 1:

The blue ocean, you know it refers to creation of new un top market, that's, on top market space, where competition is irrelevant because the rules of the game are waiting to be set. Yes, so a blue ocean. Demand is created rather than demand is created rather than fought over, allowing for rapid growth. So value innovation. So the cornerstone of Blue Ocean Strategy is value innovation. It occurs when companies align innovation with utility, price and cost position, creating value for both the company and the customers. This differs from the traditional innovation and the customers. This differs from the traditional innovation, which often focuses more on technology than on customer value. So the customer value drives the blue ocean strategy. You know, not technology per se. The customer, what would the customer? What would the customer? What would the customer, as we say, the customer is king and the kingdom will create yep. So, eliminate, reduce, raise, create greed no, did create greed. These are, uh, key concepts.

Speaker 1:

So a tool used to systematically assess how to break out of red oceans. Companies look at what factors in the industry can be eliminated, reduced, raised or created, you know, to break away from the competition. Then, strategic Canvas this is a diagnostic tool that provides a visual representation of companies' strategic position Relevant, solid relative to the competition. It helps companies, and I mean companies, to understand where they are and where they should be. So four actions I'm just giving you, you know, notes and all of that. Four actions framework Eliminate which factor the industry takes for granted should be eliminated. You're asking a question now which factor Reduce, which factor should be reduced, well below the industry's standard? That's the question that you raise. Which factors should be raised, well above the industry's standard? Create which factors should be created that the industry has never offered. So you're thinking outside the box, more or less, looking at those things that I would say. You're calling those things that be not as though they were, you're blocking them out of obscurity and all of that.

Speaker 1:

So, implementation so the Blue Ocean strategy encourages businesses to look outside the confines of their industry to identify non-customers, creating and capturing new demand. By breaking free from the traditional competitive mindset, businesses can discover Blue ocean of uncontested Market space where they can set the rules and achieve lasting growth. So this concept was actually introduced by W Chan Kim and Renee uh more Bong mob on hope I had that correct. I mean pronunciation right In the 2005 book Blue Ocean Strategy how to Create Uncontested Market Space and Make the Competition Irrelevant. I want to go into a particular chapter. I mean caught my interest and somehow I was given an assignment on it and I think I want to share that with you too.

Speaker 1:

That's chapter four of the Blue Ocean Strategy. You know the title is focused on the big picture, not the numbers. So this emphasizes the importance of strategic vision over getting bogged down by data and numbers during the planning process. Yeah, you know, for those of us who are traditional in our business processes, data analysis that goes on to create paralysis. At the end of the day, you keep going about those, so you focus on the big picture here. The big picture, not the numbers. So the key idea here is to shift from the focus from incremental gains within a competitive market as a red ocean thinking to creating new uncontested market space as the blue ocean. So the key insights here one strategic planning should be visionary. So instead of concentrating solely on existing data, market share and incremental improvement, businesses should focus on the broader strategic vision. This means understanding the overall direction and goals of the company and how to create a blue ocean where competition becomes irrelevant.

Speaker 1:

Two companies the second point on that is companies are encouraged to look beyond their current operations and consider how they can redefine the market and create value in innovative ways. Secondly, or two. Number two the strategic canvas and the big picture. The chapter introduces the use of the strategic canvas as a tool to help visualize the big picture. This involves mapping out the factors that define competition in the industry and comparing your company's performance against those factors. By seeing where the industry and comparing your company's performance against those factors. By seeing where the industry is focused and how companies are competing, businesses can identify opportunities to break away from the competition by creating new factors and significantly altering the existing ones.

Speaker 1:

Number three avoiding the pitfall of over-analysis. Yes, it creates paralysis, so over-reliance on numbers and data can trap companies in red ocean thinking, where they make decisions based solely on existing competitive dynamics. You know, use that model. So the chapter encourages leaders to avoid this trap by using visual tools and brainstorming techniques to develop more creative, forward-thinking strategies. The goal is to cultivate a culture of innovation rather than focusing on short-term, numbers-driven decision-making. So number four the three tiers of non-customers. So instead of focusing narrowly on existing customers and therefore on the numbers they represent, the chapter urges companies to consider non-customers, those who were not currently buying their products or even, yes, services. So by identifying and targeting these non-customers, businesses can find new demand and create new. As in blue oceans, this approach expands the market, often far beyond what the numbers alone would suggest is possible.

Speaker 1:

So visualizing strategy. So the chapter advocates for use of visual tools to simplify complex strategies and communicate them effectively within the organization. And communicate them effectively within the organization, tools like the strategy canvas can be instrumental in helping teams and learners see the big picture and align their actions with the company's overall strategic goals. Visualizing strategy also helps in simplifying communications, ensuring that everyone in the organization understands and is aligned with the strategic vision. So practical application. In essence, this chapter encourages businesses to think beyond immediate numbers and day-to-day competition. It suggests that by focusing on a broader strategic vision. By seeing the big picture, companies can create and capture new market space, driving long-term growth and success. So the emphasis is on innovation and creating value in ways that competitors are not currently doing, rather than just improving on what already exists. This approach requires a shift in mindset from competing within a defined market to creating new markets altogether, which is the essence of the blue ocean. So you see, now it's pushing us away away from quote-unquote, the traditional way of doing business.

Speaker 1:

So I sat down for a moment. You know, usually that's what I do when I get into uh stuff like this, when I come across uh new, what apparently is new to me, even if it's not new totally. So I looked at it from the lens of scriptures. Yes, I always do that because that's where I get everything, yes, from scriptures. It inspires me. So I looked at the story of Jacob. Yes, for those of us who have read that story and who know that story, jacob serving order under Laban I said, can we bring out the blue ocean strategy from what Jacob did under Laban? So I queried, I went on to check and all of that. So let me give you what I came. You know what I gleaned from my queries and research. So Jacob, after working for Laban let's put it in the context of the story now After working for Laban for many years and desiring to build wealth for his own household, struck a deal with Laban Regarding the flocks.

Speaker 1:

Jacob proposed that he would take as his wages all the speckled, spotted and dark-colored sheep and goats, while Laban would keep the rest. This arrangement, you know, initially seemed to favor Laban, since such animals were fewer in numbers. So let us see the blue ocean strategy here now. So the elements of the blue ocean strategy in Jacob's approach. So Jacob said Number one creating uncontested market space. That was what Jacob did. First of all, strategic innovation. Jacob essentially created a new market in quotes for himself by proposing to take the less desired and less common animals as his wages. By doing this, he was not competing directly with Laban for the wealth of the existing flock, but rather creating a new way to generate wealth. That was uncontested. Number two, or point number two under point number one, that's, creating uncontested market space, non-traditional value creation. Uncontested market space, non-traditional value creation.

Speaker 1:

Jacob found a way to create value from something that was not highly valued by Laban the speckled and spotted animals, thereby generating wealth in a non-traditional way. Two value innovation manipulating genetic outcomes. Jacob employed a strategy where he played, or rather sorry, he placed peeled branches in the watering trough, which he believed would influence the breeding patterns, resulting in a higher number of speckled and spotted offspring. Whether through divine intervention or his understanding of selective breeding, this action resulted in Jacob increasing his share significantly Undervalued resources Jacob turned what Laban considered low-value resources speckled and spotted animals into a significant asset. This is akin to value innovation in Blue Ocean Strategy, where companies find ways to deliver new value in ways their competitors aren't even considering. All right Strategic shift, changing the game by negotiating for the less common animals and then finding a way to increase their numbers, jacob effectively changed the rules of the game. Laban could not have anticipated that Jacob would prosper so greatly from this deal.

Speaker 1:

Avoiding direct competition. Jacob's strategy avoided direct competition with Laban over the existing flocks. Instead, he focused on creating value in a new area the speckled and spotted animals. And spotted animals, so similar to how companies in the blue ocean create market spaces rather than competing in crowded ones. Jacobs now, in conclusion, I just this thought Jacobs' action under Laban's service. You know, a biblical example of the principles later described in the blue Ocean Strategy. By creating a new source of value, avoiding direct competition and innovating within his unique context, jacob was able to build significant wealth. His approach is a classic example of how strategic thinking can create opportunities in seemingly constrained environments, much like businesses can create new market space through blue ocean strategies.

Speaker 1:

So, you know, I had to apply it and this is how I learned. Honestly, when I see business concepts, when I see natural concepts, when I see concepts in the society, I bring it through the mirror of scriptures and I try to analyze it, because I always this is my conviction there is a spiritual underlining factor to everything we do. So you can see clearly here how to go about the blue ocean strategy. Now I decided to come on to share this with you because a lot of us we've been thinking of how, maybe in your business, yes, how to up your game, how to, you know, have that market share, and it's like the competition is so stiff. Hello, calm down. Apply the blue ocean strategy to your business. Sit down. You need to sit down. You know Enough of the? Okay, let me look at the data. Let me look at that, the analysis and all that. It will paralyze you, but can you see what people are not seeing? Opportunities there you created.

Speaker 1:

So you are now coming from the point of customer yes, what would the customer like, value-based? And you approach it from that angle and you begin to create it. I know the world we're living today, we have this. The social media space is so agog with so many things. You know, you know dancing to create, you know to win clients. Or somebody said I need more followers, I need all of that. I don't think you need more following. In my opinion, I think what you need is create more value. That value, you know, would drive in more following, just like what Jacob did. I mean that's a blue ocean strategy.

Speaker 1:

Now you, you see that when, joseph, I mean when jacob, I beg your pardon when jacob spoke to laban, laban, from where he was like boo, I agree, speckled Our animals don't produce all of that but he did not see what Jacob was. Jacob had taken his time to study the breeding process because he's in the field, he sleeps, feeds them and water and all of that. So somehow he's broken through his thought process. He's broken through the barriers, you know, those barriers that were to traditional thinking of way of doing business and he's like, ooh, he just had this eureka moment and it's like I'm going to make this proposal to my boss. So that is what you need. You know, the blue ocean strategy.

Speaker 1:

All right, guys, I just felt to stop by and share this with you, and I hope this helps you in your own line of business and what have you and all of that. But just to let you know, I'm available if you want us to have more conversation around this, you know, yeah, I can help you. Yeah, provide that support, you know, and you, you know, share with you and all of that. See how we grow together. All right then, guys, it has been an amazing time. I am super, super, super, super, super excited sharing this with you and I hope, uh, you got one or two things from this. All right, then. This is the space where we come into, lean on one another's experience to forge Till I come your way again. Bye for now.

Speaker 1:

Awesome time it has been with you on the World Cafe podcast today. Thank you for being there. You can catch me up on my social media handles Twitter, facebook, linkedin and Instagram all at Amakri Isoboye. Also, you can get copies of my books A Cocktail of Words the Color of Words by H Aaron Notebook and Hocus Pocus on God on Amazon and Roving Heights online bookstores. You can also subscribe to my YouTube channel at the same address, at Amakri Issawe. I love to hear from you and how this podcast has impacted you. You can leave me a message at my email address, amakrigaribaldi at gmailcom. That is A-M-A-C-H-R-E-E-E-G-A-R-I-B-A-L-D-I. Yes, till I come your way again. Bye for now.