Why is Blue Ocean Strategy an evergreen for shifting business models and new product development?

Published in 2005 by INSEAD professors W. Chan Kim and Renée Mauborgne, Blue Ocean Strategy book has become a global phenomenon, as it has sold in over 3,5 million copies and was translated into 44 languages.

Thy hype over the new attitude on competing and the idea of creating new markets of so called noncustomers was extremely strong for a few years. But it’s gone. Today, marketers, trainers, entrepreneurs and business people in general have found a new hype – Alexander Osterwalder’s Business Model Generation and Value Proposition Design.

While it is out of question that the tools created by Osterwalder (and 470 practicioneers from 45 countries as the book was co-created) are very useful and make thinking about business models much less complex, I believe that Blue Ocean Strategy can still greatly support thinking about new products and businesses as it makes it easier to see things from other perspective.

Banking is necessary, banks are not – how to deal with disruptive technologies and uberification of everything

Disruption means a fundamentally better alternative for solving a customer problem, in a cheaper, quicker and more convenient way with technology playing an essential, enabling role. It does not mean evolutionary change, but it is radical in the way it influences businesses and societies (Girn, 2014). It creates a new market and value network to eventually disrupt existing ones and displace established leaders (Bower, Christensen, 1995).

Disruption in few words is what Uber did to taxi drivers, how Spotify has changed the music business and how Airbnb diminishes the incomes of hotels all over the world. (more…)