All Leaders want to build an effective Organization that has a healthy Culture and Strategy that is aligned with each other. For many Organizations, Culture acts as competitive advantage that drives the results. In certain other cases, the Strategy acts as the driver from where the money comes from. The Organization’s Culture comes from the Founder and undergoes tremendous change over generations to align with Strategy adhering to Market Conditions. Vision, Mission & Core Values forms the foundation of building effective organization. The Core elements of the Organizations are Leadership, Culture & Strategy. The Key components that help drive building effective organizations are People, Process, Product/Services & Customer.
Predominant focus of this presentation is about Strategic Agility. While Operational Agility focusses on value gains from tweaking existing process and products, the Strategic Agility (a.ka. Blue Ocean Strategy) helps Organization to create new product with highest value and low cost with a new customer base. The disruptive (a.k.a Moon Shot) Innovation and Incremental Innovation aligned with these strategies.
How do we achieve Strategic Agility in an Organization? The Executive Management of a fictitious Video Game Console Organization called as ‘Blue Buddies’ wants to maximize the Share Price Index (SPI). There is good understanding of current players in the market and their offering. There is fixed budget for 9 years (each year separately) for the Organization to achieve the goal.
The first three years, the Organization drove Operational Agility and pose result on SPI and Market share end of every year. The results weren’t that appalling and as a result the Management decides to go for ‘Value Innovation’ with ‘Low Cost’ using Strategic Agility.
Blue Buddy Management starts with designing ‘The Value Curve or Strategy Canvas’ and uses ERRC Grid to eliminate, reduce, raise and create product features. They started to witness increase in SPI, Market share and Revenue initially but after 2 years the SPI plummeted with Revenue fall because of competitors being more Smart.
At the end of the 9th year, after many tweak in Strategy Canvas and ECCR, the Blue Buddies emerges as Market Leader and SPI/Revenue was ALL TIME HIGH.
Welcome to the Blue Ocean Strategy Case Study executed as part of Business Simulation workshop @ IIM-K. My team emerged as the winner at end of 9th year among 22 teams that participated in the workshop. Not only that, we are part of Top 5 teams @ IIM-K to achieve higher Share Price Index among all the teams who has ever played this simulation game at the college campus
Outline/Structure of the Talk
What is Strategic Agility ?
What is Operational Agility?
Incremental innovation and MoonShot Innovation ?
How these strategies are aligned with innovation with specific Industry Examples ?
What's Blue and Read Ocean Strategy and its alignment with Strategic Agility ?
What is Value Innovation and Strategy Canvas ?
The Strategic Agility Results of fictitious video game industry over 9 years covering Strategy Canvas, ERRC grid
How did the Organization manage to increase its Share Price by following Strategic Agility thus creating a new market on its own
How an Agile Mindset thinking can create a new market for products rather than creating competition in the existing market
How to create a Product with highest value and Least Cost - Value Innovation
How to decide features for a product that creates higher revenue and share price for your organization
How to use ERRC grid to Eliminate, Create, Raise, Reduce product feature for your product
Agile Coaches, Scrum Masters, Teams, Product Managers, Mid Senior Managers and Above especially Executive Mgmt..
Prerequisites for Attendees