BLUE OCEAN STRATEGY:

TOOLS AND METHODOLOGIES

NOOR DIANA HAYATI BINTI KAMUDIN

STRIDE
KEMENTERIAN PERTAHANAN MALAYSIA
1
BOS TOOLS AND
METHODOLOGIES
 FORMULATION
Visualizing Strategy (Graphically captured)
Visual Awakening Visual Exploration
Where are we now? What are the possibilities?

1 2 3 4

BOS
Process
Visual Communication Visual Strategy Creation
How can we get everyone to execute? How do we chart a new path?
6 5
The As-Is Strategy Canvas

Comparing our position with competitors (SWOT)

Perspective of the Management

Identification of Key Competitive/Value

Factors

Value curves capture the profiles offering

to stay competitive
The As-Is Strategy Canvas

Horizontal axis:
Show the value elements
the industry competes
on and invest in.

Value elements:
- What do the
provider(s)
offer to their
customers
- Not less than 5
and more than 12
- Always put cost as the
first value elements and
rate it on an absolute
value basis

Value Elements
 The As-Is Strategy Canvas

Vertical axis:
Show the offering level that
customers receive across
all the value elements.

Offerings:
- Inside-out perspective
Offerings

(what provider offers).

- Scale: Low to High
i.e. 0 – 5
0 – 10
0 – 100%

Value Elements
IMPRISONMENT
S
 As-Is Strategy Canvas
OUTPATIENT SERVICES

HIGH

LOW

Manual/ Screening Friendliness Accurate

Multiple process flow Diagnosis
Registration

Underperforming Waiting Bureaucracy Communication Skills

Staff time
Buyer Experience Cycle/Buyer Utility Map
(BEC/BUM)

From Customers Point of View

Different Stages of Buyer Experience Cycle

Buyer Utility Map : Act at Levers

Identification of Pain Points

- negatives that can be turned into positive
Exploring Buyer Experience – Getting Services at Hospital/Clinic
Activity Experience
Locate Hospital/Clinic – Drive • Difficult to locate – new office – not in
to & Find Parking GPS
• Car Park Full – Time taken to park
Locate counter-Take Number- •• Confusion
Car park very narrow
- signage notbays
accurate – take time to
Registration locate
• Long queue at counter
•• Customer servicetime
– no- proper explanation
Wait to be Long waiting large number of patients/family
called members
• Insufficient seats
Consultatio •• Lack
TV not functioning
of communication
n • Diagnosis not being explained in
details
Wait - Collect • Long waiting
Medicine time

Pay Parking & Drive • Parking Payment machine - difficult to

away locate
• Change - coins only /no notes
 Levers of Utility – Hospital/Clinic
Customer productivity Increase customers’ productivity by
helping them to do things faster,
better, or in different ways e.g.
instant on-line transaction
• Locating / Parking – time
consuming
• Explanation – simple – easy to
understand ?

Simplicity Makes life easier for the user of the • Filling forms - Is it simple /easy
product or service e.g. tea/coffee
sachet or 3-in-1
Convenience Makes activities easier to perform Is it convenient ? – Location, Waiting
and lets a customer save time or area
frustration e.g. robotic vacuum
cleaners, ATM

Risk Minimizes customers’ financial or •Car park

physical risk e.g. on-line banking – •Crowded
can print old statement, online
tracking FedEx

Fun & Image Delights the customer Leisure activities /

e.g. Apple’s iPod For children /
Entertainment
while waiting
Environmental Provides friendliness towards the Layout
Friendliness environment e.g. recycling Environmental friendly practices
Waste management
 Buyer Utility Map/Buyer Experience Cycle
- Outpatient Dept.
Utility Levers Location/ Counter Waiting Consultation Pharmacy Pay
Parking Services Time/ Parking
Facilities Fees
Customer X X X X
productivity

Simplicity X X X

Convenience X

Risk X X

Fun & Image X X

Environmental
friendliness
 Noncustomers
Three Tiers of Noncustomer

Existing
customers

“soon to be” “refusing” “unexplored”

Noncustomers who are Noncustomers who Noncustomers who
on the edge of your consciously choose are in markets distant
market, waiting to jump against your market from yours
ship
 How noncustomers are created?

• As customers, we put up with “pain points”

• As “pain points” increases, we become a “soon-to-

be” noncustomer.

• We become a “refusing” noncustomer when we do

not want to put up with the “pain points” anymore.

• We become noncustomers when our needs are not

met.

• As noncustomers, we turn to alternatives or

substitutes.
 Noncustomers
Government
Hospital

Existing
customers

“soon to be” “refusing” “unexplored

- People with
medical card
- Alternative
medicine believers
”
- Health
tourism
industry
 Eliminate-Reduce-Raise-Create (ERRC) Grid

ERRC Grid pushes organization not only to ask all four

questions,
but also to ACT on all four to create new value curve
ERRC Grid provides four immediate
benefits:

 It pushes organizations to
simultaneously pursue differentiation
and low cost.
 Identifies organizations who are only
raising and creating thereby raising
cost.
 Makes it easier for managers to
understand and comply.
 It drives organizations to scrutinize
every factor in competing.
 ERRC Grid in NBOS

ELIMINATE RAISE
Low Cost to the Initiative with high Cross-ministerial
Government cost to the initiatives with high
government and impact to the
low impact to the rakyat
rakyat
Value
Innovation
(NBOS) REDUCE CREATE
Similar initiatives New creative and
executed by innovative
different ministries initiatives for the
High Impact to the and agencies rakyat
Society

Low Cost High Impact

to the Government to the
INPRISONMEN
T
Eliminate-Reduce-Raise-Create (ERRC) Grid

ELIMINATE RAISE

• Underperforming Staff • Friendliness

• Manual/Multiple Registration • Accurate Diagnosis
• Communication Skills

REDUCE CREATE

• Waiting Time • Lounge, Boutique Café and

• Screening Process Flow Kids area
• Bureaucracy • ‘Help Yourself’ programs
• Alternative Treatment Unit
 To-Be Strategy Canvas

Give your strategy canvas a tag line

to capture its offering
Three tests for an effective Value
Curve and a compelling Blue Ocean
Strategy

Divergenc
e

Compeling Foc
Tagline
us
INPRISONMEN
T
 Strategy Canvas
OUTPATIENT SERVICES

Eliminate Reduce Raise Create

HIGH

LOW

Manual/ Screening Friendliness Accurate ‘Help

Multiple Process Diagnosis Yourself’
Registration Flow Programs

Underperforming Waiting Bureaucracy Communication Lounge. Alternative

Staff Time Skills Boutique Café Treatment Unit
and Kids Area
Start by doing what's necessary; then do
what's possible; and suddenly you are doing
THANK YOU
the impossible.
~ Francis of Assisi
~
diana.hayati@stride.gov.my
Change your thoughts and you change your
world.
~ Norman Vincent Peale ~
In order to succeed, we must first believe that we can.

~ Nikos Kazantzakis ~
Don’t pick a job, pick a BOSS.
New ideas pass through three periods:
Your first boss is the biggest factor in your career 1) It can't be done.
success. A boss who don’t trust you won’t give 2) It probably can be done, but it's not worth doing.
you opportunities to grow. 3) I knew it was a good idea all along!
~ William Raduchel ~ Arthur C. Clarke ~
26
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