Hello Everyone, a very good morning to one and all present here! We are team May-June.

We are here
to present our thoughts on Blue Ocean Strategy, Business Model Canvas and Mckinsey 7S model.

Let’s start by putting ourselves in the shoes of an entrepreneur who has a nascent idea and wants to
build a business out of it.

Now how do you decide to position yourself in the industry. There are three different ways to think
through this.

 Are you wanting to be one among hundreds of other competitors in the industry? – Me Too
 Do you want to be better in a few aspects than your competitors in the industry? – Me Better
 Are you envisioning to be the only player to be in this industry wanting to provide
products/services with an entirely new approach? – Me Only

If you choose the first two options, you are deciding to operate in a red ocean. This is called the market
competing strategy.

If you choose the third option, you have decided to operate in a blue ocean. This is the market creating
strategy.

Let’s delve deeper into these two strategies.

Here, let’s take a few minutes to think how enterprises are formed.

An individual comes up with an idea, conceptualises on the implementation and executes it. Once
he/she succeeds, it is natural tendency for others wanting to do business to follow their footsteps and
enter into the industry. This emergence of a common structure and approach among organisations in the
same field can be explained by what is called institutional isomorphism.

Typically, companies which operate in the red ocean take the structure of the industry, accept it and
create a strategy, implement it and run their business.

Whereas in blue ocean strategy, there is a mindset change with respect to how people think about
business. The structure of the industry is the way it is, not because of nature but because of the way the
already existing players conceptualised it.

So, the thought process of individuals implementing blue ocean strategy is to create a strategy which will
restructure the way business is done in that particular industry. There are some defining characteristics
of strategic moves that create blue oceans.

 Never use the competition as a benchmark

 Make the competition irrelevant by creating a leap in value for both the buyers and customers
 Reconstructing market Boundaries – venture into uncontested market spaces

The most important feature of blue ocean strategy is that it rejects the fundamental aspect of
conventional strategy: that a tradeoff exists between value and cost. That is, organisations can choose to
either follow the low-cost strategy or the differentiation strategy but not both.

Blue ocean strategy is based on the fact that there can be simultaneous pursuit of differentiation and
low cost.
Cost savings are made from eliminating and reducing the factors an industry competes on. Buyer value is
lifted by raising and creating elements the industry has never offered. This brings us to the paradigm of
Value Innovation. So, how do we operationalise a blue ocean strategy.

 Eliminate factors in your industry that no longer have value – Removing what customers don’t
want to pay for
 Reduce factors that overserve customers and increase cost structure for no gain – Decreasing
factors which are of insignificant importance
 Raise factors that remove compromises buyers must make – Increasing moderately/significantly
the identified drivers
 Create factors that add new sources of value – Identify new drivers

Let’s take an example of Uber.

Conventional taxi services had customers calling into offices, booking cabs, administrative personnel
allocating drivers, actual ride and payment. Uber recognised the rise of technology and smart phone
usage to combine technology and taxi services and created a niche market for itself. In this uncontested
market space, many non-customers (people who generally don’t even use cabs) also started getting
attracted. Uber has managed to both provide low cost and differentiate from a traditional taxi company.

So, if we look at it from the point of view of UBER,

Eliminate – Metered Fares,

Standing and hailing a cab
irrespective of weather
conditions.
Reduce – Professional Drivers,
Raise- On-Demand, Easy
Payment, Safety
Create – Turning non-customers
to customers across the
community and not only big
cities and region
Eliminate – Metered Fares,
Standing and hailing a cab
irrespective of weather
conditions.
Reduce – Professional Drivers,
Raise- On-Demand, Easy
Payment, Safety
Create – Turning non-customers
to customers across the
community and not only big
cities and region
Eliminate
  Personal calls for cab booking
 Taxi administrative office space and personnel
 Metered Fares (often high)
 Standing and hailing a cab irrespective of weather conditions
 Running and maintenance costs of taxi company owned vehicles

Reduce

 Human errors in making matches of the taxi driver and passenger

 Mapping the taxi ride avoiding traffic

Raise

 On Demand booking
 Easy Payment
 Customer safety (driver and vehicle verification)

Create

 Anyone with a car can register and find employment

 Ride sharing
 Ride tracking
 Comparative prices (different vehicles)
 Support system

Uber is considered the largest taxi company in the world with around 100 million users. This is how
organisations can envision and implement a blue ocean strategy to achieve success in the market.

And how can Uber go about presenting this strategy to venture capitalists
and other investors to attract capital?

BMC
[Slide 1: Business Model Canvas (Title)]

What if I ask you to pitch your startup in 5 min, and it will decide whether I will invest in you or
not?
That’s the most challenging part of the startup journey of the founder. You have to convince the
jury members in 5 mins, and that’s all—no additional time to present yourself. And then you will
be bombarded with many questions if you have not given a proper idea or missed something
important. Then how to make sure that you have covered the most important things? And here
comes the BMC- and Its not Brihanmumbai Municipal Corporation, but it is Business Model
Canvas, a highly used model by any entrepreneur to present their ideas.

[Slide 2: Uber Example (BMC Image)]

So now let us look at UBER.

Uber's Business Model Canvas includes customer segments of riders and drivers, who use their mobile
app to request and provide rides.

Their value proposition is focused on convenience and affordability, making it easier and cheaper for
riders to get around, and allowing drivers to earn extra income by providing rides.

Their channels include their mobile app and social media.

Customer relationships are a key aspect of Uber's business, with a focus on providing reliable automated
service and ensuring passenger safety.

Revenue streams for Uber come from ride fees charged to passengers and surge pricing.

Their key activities include driver recruitment and platform development, as well as ongoing efforts to
improve the rider and driver experience.

Key resources for Uber include their technology and brand, which have allowed them to become a
dominant player in the ride-hailing industry.

Key Partners for Uber include Local authorities, payment gateway providers and auto manufacturers.

Finally, Uber's cost structure includes marketing and legal expenses, as well as costs associated with
maintaining and developing their platform.

Slide 3: Advantages of BMC

1. Focus – By focusing on elements, customers, value proposition, and revenue streams etc.,
businesses can more easily identify areas where they can add value and generate revenue,
and can develop strategies to improve their performance.
2. Speed and Agility - The Business Model Canvas is a flexible and adaptable tool that allows
businesses to quickly develop and test new business models. By using the canvas to iterate
through different ideas and scenarios, businesses can identify the most promising
opportunities and pivot quickly in response to changing market conditions.
3. Common Language - By using a shared vocabulary and visual representation,
stakeholders can more easily communicate their ideas and perspectives, and can
collaborate more effectively in developing and implementing strategies.

Slide 4: Application of BMC

I hope Most of us will start their business at some point of their life, and these applications of
BMC will surely help them
 1. Startups and Service Design – The Business Model Canvas can be used by entrepreneurs
and startups to identify and develop their business models. By iterating through different
scenarios and testing assumptions, startups can refine their strategies and increase their
chances of success.
2. Innovation- In search of new direction – An y change in any block of BMC will require
changes in the other blocks. For example, in the case of customer-driven business model
innovation, a new customer segment is targeted. This will lead to required changes in the
value proposition, delivery channels, infrastructure, etc. thus it leads to innovation.
3. Be smart… or at least pretend to be!- Many people are now using the canvas on a daily
basis. Whether by sketching it on a piece of paper while chatting with a colleague, or asking
about the intended customer experience. It has become a famous tool to impress your
colleagues and you can also use it in your summer internships.

Slide 5: Most Frequent Mistakes

Insaan galtiyon ka putla hai aur galtiyaan to insaano se hi hoti hai

(humans are prone to commit mistakes, but one should not make mistakes here .) , (Ashwin use English
part written in bracket)

These are some of the mistakes you must avoid.

1. Treating canvas like a checklist - There are no prizes for being fast, the aim is to
understand the connections and relationships between the boxes.
2. Mixing up current and future - Mixing the both will not serve the purpose of using this
model.
3. Not putting in numbers- Don't only use qualitative data only, show some generosity
towards the numbers and use them whole heartedly.
4. Too much information - Be concise and control your emotions about expressing yourself.
But dont lose on important ones
5. Listing features rather than benefits

Slide 6: Strengths and Weaknesses

S-
 Focus on the problem-solution fit
 Visual representation of business model
 The centrality of value
 Defines the main business components and their relationships
W-
 The Business Model Canvas is NOT a strategy: You still need a strategy
 Another missing part is the strategic purposes, the mission and vision of a
company
 Doesn’t take into account the competitive arena
  Human, and team interaction is not taken into account

MCKINSEY 7S
Currently we all are going to LaS organizations and also our summer internship
projects are ahead of us. What if your manager doesn’t allot you a project and still
tells you to figure out challenges that the organization is facing and to solve it?
Here McKinsey 7S model comes in handy to diagnose and analyze organizations.

What is the Mckinsey 7S framework?

McKinsey 7S framework is a tool that analyzes firm’s organizational design by

looking at 7 key internal elements: strategy, structure, systems, shared values,
style, staff and skills, in order to identify if they are effectively aligned and allow
the organization to achieve its objectives.

Strategy: What is strategy? – it is a Plan or course of action in allocating resources

to achieve identified goals over time.

Some of the questions that we can ask are

 What are the key strengths and successes of our current strategy?
 What is the ideal strategy that would support our vision and mission? What
would it look like?

Structure: It is the skeleton of the organization or the organizational chart. Some

of the questions that we can ask here are

 What are the core values and beliefs that underpin our organizational
structure?
  What is the ideal organizational structure that would enable us to achieve
our strategic goals and objectives? How would it support our employees
and customers?

Systems: are the outinized processes and procedures followed within the
organization.

Some of the questions that we can ask are

 What are the current systems that support our business processes and
operations?

 What changes can we make to our systems to further enhance our

performance and achieve our strategic goals?

Shared Values: talks about the way in which key managers behave in achieving
organizational goals

Some of the questions that we can ask here are

 What are the core values and beliefs that define our organizational culture?

 What are the strengths and positive aspects of our current culture?

Skills: refers to the Capabilities of the staff within the organization as a whole

Some of the questions that we can ask in this case are

 What are the strengths and positive aspects of our current employee skill
set?
  What skills and competencies do we need to develop to achieve our
strategic goals and objectives?

Style: refers to the way in which key managers behave in achieving organizational
goals

 What leadership styles are currently in place in our organisation?

 What leadership style is ideal for our way ahead?

Staff: talks about the Personnel categories within the organization

 What are the strengths and positive aspects of our current staff and talent
pool?

 What skills and competencies do we need to attract and retain to achieve

our strategic goals and objectives?

 How can we build on our current talent pool to create an outstanding team
that supports our strategic goals and objectives?

Where to use Mckinsey 7s model?

• To facilitate organizational change.

• To help implement new strategy.

• To identify how each area may change in a future.

• To facilitate the merger of organizations.

How to use McKinsey 7S Model:

• Step 1: Identify the areas that are not effectively aligned

• Step 2. Determine the optimal organization design

• Step 3. Decide where and what changes should be made

• Step 4. Make the necessary changes

• Step 5. Continuously review the 7s

Looking at the strict Do’s and Don’ts of this framework:

1. It is important that we Ensure that all seven elements are considered and
aligned in any change initiative
2. It is a must to involve all relevant stakeholders in the analysis and
planning process
3. One of the major DON’T’S is focusing solely on just one or two elements
and ignore the other aspects
4. And finally, DO NOT expect quick or easy results; because significant
changes take time and effort

Over the years, several Indian organisations have used the McKinsey 7S
framework to analyse their operations and improve performance. For example:
In 2017, Tata Motors used the McKinsey 7S framework to identify areas for
improvement in their sales and marketing strategy. The company analysed the
alignment between its various facets and used the results to make changes to its
sales and marketing approach.

In 2016, Reliance Industries used the McKinsey 7S framework to analyse its

operations and identify areas for improvement. The company assessed the
alignment between its strategy, structure, systems, shared values, style, staff, and
skills and used the results to streamline its operations and improve its
performance

In 2014, Wipro Technologies used the McKinsey 7S framework to analyse its

organisational culture and identify areas for improvement. The company assessed
the alignment between its strategy, structure, systems.

So, we see that in the past, major organisations have used the McKinsey 7S
framework and that speaks volumes about the its utility. With this, I would like to
end our presentation. Thank you!