Blue Ocean Strategy

A great book for anyone who is concerned with Innovation! It is both practical and challenging and has a similar feel to the Jim Collins books I have read. The book makes the central argument that real innovation is not about developing products that compete with competitors, but that real innovation makes the competition irrelevant because there isn’t any. So if your next big idea for business is a new product development launch don’t confuse it with real innovation. In my experience it is surprising how many businesses genuinely do.

The book sets out a framework for analysing where true innovation may come which I think any business could use. It essentially focuses on increasing buyer value whilst at the same time reducing costs to deliver “value innovation”. The book describes several strategy canvassing and definition techniques to help people understand where innovation can be developed these include the value curve, four actions framework, buyer experience cycle, buyer utility map, and blue ocean idea index which helps people to benchmark your innovation.

The book covers six key principals that facilitate this kind of innovation development:-

– Reconstruct market boundaries to find opportunities for innovation

– Focus on the big picture of what customers really want, not the existing numbers found in existing markets

– Reach beyond existing demand to find new customers

– Get the business model right and thing about the customer journey to your innovation

– Overcome key organisational hurdles that typically stifle innovation

– Build execution into strategy – ensure your business can execute

If you like this book, try reading Seizing The White Space as a nice complement.

Jul 12

2011

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By Norman

In Books I Like!, Common Purpose, Personal Development

Tags personal development

Brain Rules!

We are amazing! Every single one of us is amazing and if you don’t believe me just read Brain Rules. Even if you forget all the other things we can do as humans our Brains alone are so incredible they make even the fastest computer with the finest most developed software look very very slow indeed.

I don’t think I need to say too much more about the book, but it does seem to me that sometimes perhaps we take our Brains for granted. Here are the 12 principles discussed in the book and what they could mean for your business activities.

1 – Exercise boosts Brain power. If you need to concentrate on stuff, think clearly, remain focused and remember things – the best thing you can do is exercise for 30mins upwards every day.

2 – Our Brains have evolved. Whilst this means they can deal with the world we live in today, they also have a history which can sometimes explain what may appear to be irrational behaviour.

3 – Every Brain is completely different. This is because our Brains configure themselves based on what we are doing. If you want to become a faster reader – read more often – your Brain will do the rest.

4 – The Brain can only focus on one thing at a time. That’s right, there is no multitasking! The Brain looses attention after approximately 10 minutes at which point you must refocus it. Think about Presentations ones you have endured and ones you have delivered.

5 – If you repeat something you increase the chance of remembering it! Reproduce the surroundings where it first entered your Brain to increase the chances of remembering even more. How can you incorporate this into your marketing or into your sales pitches?

6 – To commit something to long term memory introduce the information gradually and at regular intervals adding more detail at each timed interval. What does this mean for your next strategy meeting or presentation?

7 – When you sleep your Brain organises the memories of the day. New information is best digested before sleep rather than after.

8 – If your Brain is stressed it is because it feels not in control. Give yourself or other people choices to reduce stress.

9 – Vision is your strongest sense. Use imagery to increase what you and others can remember. Powerpoint is configured to use text – but it is actually imagery that is more likely to be remembered.

10 – Smell stimulates emotions and memories at the same time for the Brain making it another very powerful sense. How can we use this in marketing, and what does it mean for the smell of your products?

11 – Our Brains our pre-programmed for life long learning and exploration – so never stop being curious!

I am in awe of my Brain and so should you be of yours! Take a look at John Medina’s site for more information – its a great web-site and a great book http://www.brainrules.net/the-rules!

Jul 08

2011

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By Norman

In Marketing Consultant Resources, Personal Development, The Wider Topic Of Business

Tags brands

News Of The World – A Quick Thought!

News Of The World Closure – When A Brand Breaks Unwritten Rules

This story is moving so quickly now it is almost impossible to keep up. Just like in the Arab Spring uprisings, social media tools have led to a groundswell of unrest and discontent at the actions of the paper. I do not want to try and unpick the whole story here – watch the bbc web-site for all the information you need. But the first thing that occurred to me this morning as I woke up is that News of the World has broken unwritten rules – and brands like people cannot really preserve relationships once they have done that.

Until recently public opinion and probably the opinion of advertisers was that News of the World had come close to, or had broken some rules of journalism. But if that got to the heart of a good story about someone who chose to live in the media spot-light it was somehow ok. It was down to the individual to fight it out with the paper using the courts if necessary to put their side of the story across.

That changed the moment people realised phone hacking was not reserved for politicians and high profile celebrities – it was used in a wide ranging number of stories including those of innocent members of the public who have suffered terrible tragedies. This is not acceptable and it breaks an unwritten rule of journalism. What you can do to a celebrity or politician is not that same as what you can do to an ordinary member of the public who is unfamiliar with that world.

When a brand breaks an understood and known rule it will be damaged, but if it does the right thing it can recover, and in some cases even become more respected. Break an unwritten rule and it is almost certainly terminal.

Apr 25

2011

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By Norman

In Books I Like!, Common Purpose, Personal Development

Made to Stick

This book is a nice complement to “Making Ideas Happen”. The book sets out that one of the problems with making ideas happen is that we simply forget them. Whilst some things seem to stick in our minds other things simply do not. Unfortunately often the gem of a good idea, or a suggestion to make something that isn’t working work often just doesn’t get remembered and therefore is never actioned.

The book suggests six characteristics of ideas that are sticky:-

-They are simple – if you cannot explain your idea in three sentences or thirty seconds it probably isn’t clear enough in your mind and therefore won’t be able to resonate in someone else’s.

– They are unexpected – that is not to say Gimmicky and a fad or hype, but they have something that triggers enquiry and interest

– They are tangible – not pie in the sky visions that people instinctively understand probably won’t happen

– They are credible – perhaps through demonstration, perhaps through logic or research, or perhaps through other people’s support, but in some way ideas must have a credibility factor to stick

– They are emotional – ideas that do not appeal to people’s emotional intelligence are unlikely to get a positive response, people just think there is a possibility of more work. You must show your passion and seek it from the audience to make an idea stick

– The idea, the problem, and the solution can all be communicated neatly into one simple story. People remember stories not academic theory or financial formulas. If you want your idea to stick tell it as a story.

I think this is quite a useful checklist. Next time you have an idea and you need other people to help you make it a reality why not try this and see if you can make it sticky!

Apr 08

2011

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By Norman

In Books I Like!, Marketing Consultant Resources, Personal Development

The New Business Road Test

This is a most useful book for anyone who is contemplating starting their own business. It is a very good compliment to Business Model Generation. The book argues that writing a business plan is not an effective way of creating a business because it is a) too formal and rigid, b) produced in isolation and away from the market forces that the business will be exposed to, c) written with a heavy slant towards writing what an investor or lender would want to hear and d) completed with little customer endorsement or consideration of the practicalities involved in building a business.

One interesting argument in the book is also the recommendation to separate the decision of creating a business from that of the product, market or industry to enter. The book argues that often start-up business fail not because of internal weaknesses, inexperience or capability, but because they have simply entered industries or markets that are not attractive and where the odds are already stacked against them.

The book offers not what I would describe as a business modelling template, but instead a framework for developing a business idea and evaluating the chances of being successful. This is based on seven factors : macro and micro market forces combining to assess the markets attractiveness, macro and micro industry strengths and weaknesses combining to show how sustainable the industry might be and how attractive it might be to operate in, the internal teams propensity for risk and whether this is in equilibrium with business objectives, the connections and influence that the management team have, and the ability of the total team to execute, or ship as Godin would say! I think this is a clever balance between conceptual business or marketing appraisal and the more practical but equally relevant considerations.

My key out take was that successful businesses need to be placed in the right place at the right time but most importantly with the right people on the job. A good enjoyable read!

Mar 17

2011

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By Norman

In Books I Like!, Personal Development, The Wider Topic Of Business

Tags business models innovation

Seizing The White Space

I really enjoyed reading this book. It is clear to me that the nature of innovation has changed dramatically over the last decade or two. As companies look to grow through building new revenue streams they are increasingly faced with new challenges to bring products to market. Firstly the start-up is able to move quicker than ever, use the internet and other purchasing tools to manage down upfront costs, and communicate with its audience in timely and relevant manor often without cost.

Secondly and perhaps an even bigger challenge is that fact that to fully maximise the potential of innovation, established businesses now often need to adopt radically different business models. This can often cause at best “growing pains” or at worst mean never actually making it to market.

In this book Johnson explains how businesses must think radically about innovation and step far away from the comfort zone of existing markets. In doing this Johnson argues that businesses need to completely reconstruct their business model in order to make the innovation viable and over time maximise the opportunity.

I also liked Johnsons summary of what a business model should look like and I think this is a useful tool for anyone considering a start-up

1) What is the compelling customer proposition. What is it that you can do, that they need to get done, and how do you do it better than anyone else

2) What is the formula for profitability

3) What are the resources and processes that deliver both 1 and 2

The book also defines areas that are rich for innovation and again I think this is useful food for thought for any business

1) Can you transform an existing market by doing something totally different, eg EasyJet

2) Can you create a new market all together, eg Apple iStore and applications for mobile smart phones

3) Can you confront an inevitable industry change, eg Tata Motors

Overall I think this book provides useful material for any CEO or Director who is engaged in trying to develop a start-up business or bring new revenue streams to an existing one.

Mar 10

2011

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By Norman

In Books I Like!, Marketing Consultant Resources, Personal Development, The Wider Topic Of Business

Tags business models business strategy marketing consultant norwich

Business Model Generation

I would describe this book as almost like a mini guide to an MBA, or an exercise book for an entrepreneur. The style of the book makes it easy to read and the visual look and feel of it is just great and refreshingly different for a business book dealing with something as technically difficult as business model innovation.

As the title suggests this book is all about business model generation, but what makes it unusual is the way it takes you through the process step by step almost as if a business coach was sitting alongside you.

It also provides some great resources. Marketing and business analysis tools, frameworks for creativity, a really great model to understand how your business and business model could work, further reading references and extracts from other books (most of which are covered within my blog incidentally!) which are all of relevance.

There isn’t too much detail or anything too controversial to write about in a review, but it is still a really useful book to have. It is also very easy to read and very visual which allows the reader to think more about their business rather than just reading the book.

I would recommend this book to anyone grappling with business modelling, but also to consultants who are facilitating workshops for clients. The book is full of tools and frameworks, and also points you to further resources should a particular area be of interest to you.

Jan 05

2011

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By Norman

In Personal Development, Project FB

Tags business services norwich. start-ups

The Lowest Cost Viable Product

Project FB – Update.

So recently we have completed what I would describe retrospectively as the nice, exciting, and even easy parts of starting a business. We have done the brain storming, looked at the opportunities and evaluated them, come up with the ideas and concepts. Finally having considered all of this, we have said OK – this is our product, our idea, our brand.

It has several advantages. The product sits in a category that has been highly commoditised, so we can offer a premium alternative and refresh the market. The product does not currently seem to exist in a premium fashion; it isn’t like producing another niche beer, another premium meat pie, or another special cake. So everything sounds like a good opportunity exists, but this is where the challenges really lie.

How does one go about converting the idea into a tangible product at low cost to gauge consumer feedback? I have read a lot recently about a concept called “the lowest cost viable product”. In essence this is saying, what are the bear essential aspects, ingredients, or materials that are needed to produce something that can be used to gauge consumer opinion? Whilst this may sound like just a sensible approach to buying an initial proto-type it is actually a much deeper thought than that. This is because it fights in the face of a person’s natural tendency to want the product to be received well and therefore engineer in un-necessary and costly attributes that are not needed or perhaps not relevant to the consumer or customer. The challenges we have faced include under pricing the product and being too easily moved into reducing the price point, over packaging the product to give a premium feel, providing un-necessary marketing support material, a tendency to rush the flavour development process, and a drive to bring too many flavours to market too early.

My learning from the process is simple but very valuable. Use other people to sense check what you believe to be essential purchases or aspects of a proto-type. Don’t assume you know what the consumer expects, start bare and then work up if you need to. Resist calls to lower price at least until you have let real consumers have their say. And be comfortable with accepting you may still be working with a proto-type even when others start to think of it as a finished product – keep listening and refining.

The next challenge…. if we have a brand and product that people like….. can we build a business model that is robust?

Nov 17

2010

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By Norman

In Marketing Consultant Resources, Personal Development, Project FB

Tags brands marketing marketing tools

Finding Consumer Groups That Mobilise Your Brand

We have all been hearing recently about “the big society”. But I was thinking that haven’t we always had a kind of big society, that is pockets and groups of people who are happy to get together to help make something happen or support a particular cause?

Over the last thirty years we have seen brand after brand align itself behind a particular cause or charity and then build a customer following of people who also share in that cause, charity or belief. With the emergence of social media tools and an explosion of information from both the internet and digital TV it has become easier to communicate with likeminded people, build a pool of people, and build a plan to make something happen.

I think that businesses with strong brands have a real opportunity here to get involved in “the big society” because of this. If a business / brand can find a problem that they can help to solve and then engage with a group of like minded individuals who are willing to also help, is there not an opportunity to marry up the resources of business with the resources of people and make something happen? I think the trick is to identify the audience that can mobilise each other into action and identify the problem and solution that motivates them and make sure all of this fits with the brand.

For example, many premium food brands tend to target “foodies”. There is a growing concern that young people in the UK do not know where food comes from. Does this not offer premium food brands an opportunity to engage with farmers, gardeners, allotment owners, and somehow build an education platform for schools to tap into? Would a food brand that developed such an educational programme involving food growers a) educate young people b) build stronger relationships with key suppliers c) build a new following of consumers from a non foodie community such as gardeners?

Consumers of products are buying into more and more causes that are interesting, compelling and relevant to them – because the internet enables them to. Marketers have an opportunity to respond to this and consider multiple segments to target for mobile, active and engaged consumers.

Oct 13

2010

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By Norman

In Books I Like!, Personal Development

Tags brands business models

Ben and Jerry’s Double Dip

“How To Run A Values Led Business And Make Money Too” is the basis of this very interesting and thought provoking book. The story charts the rise of Ben and Jerry’s ice cream, from two guys with one ice cream parlour all the way to international expansion and public floatation’s.

Through their journey Ben and Jerry have always integrated their values into the business. They argue that it doesn’t matter too much what your values are, but that there is considerable added value to be gained by integrating these into every aspect of your business. The book nicely demonstrates how Ben and Jerry have integrated values into everything from the way they source ingredients and work with suppliers, to the way they develop packaging and promote the business. Ben and Jerry integrate their values into recruitment , into expansion, often opening “partnership stores” offering people from disadvantaged backgrounds the opportunity to work in a store for example.

Ben and Jerry argue that by doing this they have not only created a business that they feel very proud of, but they have built a brand that has more value, with more depth, substance and meaning to its customers than the competition, a stronger sense of loyalty from its fans, and considerably more exposure in the media at a much lower cost. The book gives some good examples of how Ben and Jerry have linked new flavours, packaging materials, promotional activities to a particular cause that they care about and perhaps more importantly in some way captures the mood of the moment amongst its customer base. This approach they argue creates a stronger call to action amongst customers who are prone to not only buy the product, but encourage others to buy as well, and builds a groundswell of interest in the business amongst the media and local communities.

If you are setting up a new business I think it is well worth considering this book. It is far easier to implement some of the ideas in the book when starting out, as opposed to trying to move into some of these areas at a later date.

The book is very detailed, and therefore sometimes quite difficult to read, but it is packed full of examples, case studies, and insights not just from the Ben and Jerry’s team, but from likeminded businesses and the partners they have worked with over the years.

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