The Red Ocean Disruption (ROD) Scorecard: How Steve Jobs Differently Answered the 4 ROD Questions and Rapidly Disrupted the Music Industry

Red Ocean Disrup/on (R.O.D.) Scorecard: 4 ROD Ques*ons

Cost-‐effec*vely Improve and Innovate on Products, Services, and Business Models Date: ………………………………..

VISION (“LEAP OF FAITH”): What do customers & non-‐customers (stakeholders/“tribes”) ul*mately want or need from the system/business model?

PRESENT PERFORMANCE (“RED OCEAN”): What is the present performance, conven*on, or paradigm, given the func*on (job-‐to-‐get-‐done) of the system/business model?

STRATEGY, BUSINESS MODEL, AND EXECUTION CYCLE: How must the present performance, conven*on, paradigm, or “Red Ocean” of the system/business model be disrupted while geSng to the future performance, conven*on, paradigm, or “Blue Ocean”?

FUTURE PERFORMANCE (“BLUE OCEAN”): What is the desired future performance, conven*on, or paradigm, given the func*on (job-‐to-‐get-‐done) of the system/business model?

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#4ROD. Dr. Rod King. [email protected] & hQp://businessmodels.ning.com & hQp://twiQer.com/RodKuhnKing

VISION: INSANELY GREAT CUSTOMER EXPERIENCE: Seamless Music Experience (Everywhere); “A Thousand Songs in Your Pocket” -‐ Luxury SpoUers

PRESENT PERFORMANCE: Listen to Music (System/Product: Portable Music Player) Pain of Tradi*onal Portable Music Players u  Limited Song Storage u  “Ugly” Design u  Limited BaUery Life u  Bulky/Thick (Not Pocketable); Skipped Songs

Delight of Tradi*onal Music Players u  Portable Music

STRATEGY, BUSINESS MODEL, AND EXECUTION CYCLE: u  Red Ocean Disrup*on (R.O.D.) Strategy including E.R.I.C. (Eliminate; Reduce; Increase; Create) Tac*cs u  Business Model Disrup*on/Pa\ern/Resources: Luxury Spot; Asset Sale u  Lean Startup Project Execu*on (LSPE): DB-‐MAIL (Define; Build; Measure; Analyze; Improve; Learn) Cycle

& Business Model Storyboard

FUTURE PERFORMANCE: Listen to Music (System/Product: Digital Portable Music Player) Delight of Classic iPod u  “A Thousand Songs in Your Pocket” u  AUrac*ve “Cool” Design/Long BaUery Life/As Thin As a Deck of Playing Cards u  Seamless Music Catalog Organiza*on and Experience

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Red Ocean Disrup/on (R.O.D.) Scorecard for Apple’s iPod (2001) How Steve Jobs/Apple Answered the 4 ROD Ques*ons and Rapidly Disrupted the Music Industry


Zoom-‐in View of Red Ocean Disrup/on (R.O.D.) Scorecard for Apple’s iPod How Steve Jobs/Apple Answered the 4 ROD Ques*ons and Rapidly Disrupted the Music Industry

VISION: Seamless Music Experience (Everywhere); “A Thousand Songs in Your Pocket”

E: Eliminate •  Control BuUons •  Gray/Black Color •  On-‐off Switch

R: Reduce •  Size/Weight •  Thickness

•  Complexity of Use

I: Increase •  Price

•  Song Storage •  BaUery Life

C: Create •  LCD Screen •  Scroll Wheel •  Packaging

•  Fast Download •  Unique Ads

•  Disrup*ve Business Model

E.R.I.C. Tac/cs

Limited Song Storage

Limited BaQery Life

“Ugly” Design

Skipped Songs

Bulky/Thick

Portable Music

Pain Pain

Delight Delight

Red Ocean Specifica/ons (Features/Metrics)

Blue Ocean Specifica/ons (Features/Metrics)

PRESENT PERFORMANCE (Customer Experience: Pain/Delight)

FUTURE PERFORMANCE (Customer Experience: Pain/Delight)

Job To Get Done: Listen to Music (with Zero Pain)

Job To Get Done: Listen to Music (with Zero Pain)

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Present Performance:

Products That “Suck” -‐ Red Ocean Specifica*ons

Future Performance:

Insanely Great Product/Service/Business Model -‐ Blue Ocean Specifica*ons

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Strategy, Business Model, and Execu/on Cycle

(ERIC Tac*cs; DB-‐MAIL Cycle): Red Ocean Disrup7on-‐Lean Startup Project Execu7on

To Do

Zoom-‐out View of Red Ocean Disrup/on Scorecard for Apple’s iPod (2001) How Steve Jobs/Apple Answered the 4 ROD Ques*ons and Rapidly Disrupted the Music Industry

Vision (Ideal Final Result): UNCONTESTED MARKET SPACE

IN THE MUSIC INDUSTRY-‐ Ideal Bus. Model Specifica*ons * “Seamless Music Experience (Everywhere)” * “A Thousand Songs in Your Pocket”

Short/Medium/Long-‐term

Doing Done

Past Performance

(Analog/An*log) -‐ Black Ocean Specifica*ons

Key MVP is an acronym for “Minimum Viable Product” ERIC is an acronym for “Eliminate; Reduce; Increase; Create” DB-‐MAIL is an acronym for “Define; Build; Measure; Analyze; Improve; Learn”

Business Model (Baseline/Prototype: MVP)

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Benefits of Using a Red Ocean Disrup/on (R.O.D.) Scorecard

Cost-‐effec*vely Improve and Innovate on Products, Services, and Business Models

q  The Red Ocean Disrup*on (R.O.D.) Scorecard is a portable, holis*c, dynamic, and extremely versa*le tool/roadmap: use it to describe/develop/rate stories for planning, improvement, marke*ng, and innova*on projects

q  Simpler to understand and use especially in an environment of great uncertainty q  Common visual language and shared understanding for planners, strategists,

improvers, marketers, and innovators in various disciplines

q  Accelerated learning in improvement, marke*ng, and innova*on projects

q  Rapid formula*on and implementa*on of ideas as well as plans and strategies

q  Seamless knowledge transfer within and between domains

q  Can be customized or adapted for specific domains

q  Solu*on of apparently impossible problems and trade-‐offs #4ROD. Dr. Rod King. [email protected] & hQp://businessmodels.ning.com & hQp://twiQer.com/RodKuhnKing

Templates For

Rapidly and Itera*vely Answering The 4 Red Ocean Disrup/on (ROD)

Ques/ons

Red Ocean Disrup/on (R.O.D.) Scorecard: 4 ROD Topics (General)


VISION (“LEAP OF FAITH”):

PRESENT PERFORMANCE (“RED OCEAN”):

STRATEGY, BUSINESS MODEL, AND EXECUTION CYCLE:

FUTURE PERFORMANCE (“BLUE OCEAN”):


Date: ………………………………..

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Red Ocean Disrup/on (R.O.D.) Scorecard: 4 ROD Topics (Annotated)


VISION (“LEAP OF FAITH”): q  Vision Statement (Ul*mate Want or Need)

q  Customer Segment (“Tribe”)

PRESENT PERFORMANCE (“RED OCEAN”): q  Job-‐To-‐Get-‐Done & Product/Service/Tool/System

q  Pain

q  Delight

STRATEGY, BUSINESS MODEL, AND EXECUTION CYCLE: u  Red Ocean Disrup*on (R.O.D.) Strategy including E.R.I.C. (Eliminate; Reduce; Increase; Create) Tac*cs u  Business Model Disrup*on/Pa\ern/Resources: u  Lean Startup Project Execu*on (LSPE): DB-‐MAIL (Define; Build; Measure; Analyze; Improve; Learn) Cycle

& Business Model Storyboard

FUTURE PERFORMANCE (“BLUE OCEAN”): q  Job-‐To-‐Get-‐Done & Product/Service/Tool/System

q  Pain

q  Delight


Date: ………………………………..

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Red Ocean Disrup/on (R.O.D.) Scorecard: 4 ROD Ques*ons

Cost-‐effec*vely Improve and Innovate on Products, Services, and Business Models Date: ………………………………..

VISION (“LEAP OF FAITH”): What do customers & non-‐customers (stakeholders/“tribes”) ul*mately want or need from the system/business model?

PRESENT PERFORMANCE (“RED OCEAN”): What is the present performance, conven*on, or paradigm, given the func*on (job-‐to-‐get-‐done) of the system/business model?

STRATEGY, BUSINESS MODEL, AND EXECUTION CYCLE: How must the present performance, conven*on, paradigm, or “Red Ocean” of the system/business model be disrupted while geSng to the future performance, conven*on, paradigm, or “Blue Ocean”?

FUTURE PERFORMANCE (“BLUE OCEAN”): What is the desired future performance, conven*on, or paradigm, given the func*on (job-‐to-‐get-‐done) of the system/business model?

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Red Ocean Disrup/on (R.O.D.) Scorecard: 4 ROD Descrip*ons


VISION (“LEAP OF FAITH”): Brief statement or tagline that describes a dream benefit, trade-‐off, ul*mate want/need, apparently impossible goal, or ideal final result of a system (project/business model/product/service) for a targeted customer segment (“tribe”)

PRESENT PERFORMANCE (“RED OCEAN”): Current level of outcomes, results, trade-‐offs, specifica*ons of a business model (system/product/service) from business (internal) and customer (external) perspec*ves for a product/service/business model/tool/system

STRATEGY, BUSINESS MODEL, AND EXECUTION CYCLE: Set of itera*ve processes and ac*vi*es as well as business model disrup*on for winning customers in a compe**ve environment as well as detailed tac*cs and experimental ac*ons for the business model (system/product/service) to achieve future performance specifica*ons

FUTURE PERFORMANCE (“BLUE OCEAN”): Desired, proposed, or hypothe*cal level of outcomes (results, trade-‐offs, or specifica*ons) in the short/medium/long-‐term from business (internal) and customer perspec*ves for a product/service/business model/tool/system

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Date: ………………………………..

Zoom-‐in View of Red Ocean Disrup/on (R.O.D.) Scorecard


VISION: ……………………………………………………………………….…….……….

E.R.I.C. Tac/cs

R: Reduce

I: Increase C: Create

E: Eliminate

Pain Pain

Delight Delight

Red Ocean Specifica/ons (Features/Metrics)

Blue Ocean Specifica/ons (Features/Metrics)

PRESENT PERFORMANCE (Customer Experience: Pain/Delight)

FUTURE PERFORMANCE (Customer Experience: Pain/Delight)

q  PRODUCT q  SERVICE q  BUSINESS MODEL q  TOOL/SYSTEM

q  PRODUCT q  SERVICE q  BUSINESS MODEL q  TOOL/SYSTEM

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Job To Get Done: …………………………………….

Job To Get Done: …………………………………….


Date: ………………………………..

Present Performance:

Products That “Suck” -‐ Red Ocean Specifica*ons

Future Performance:

Insanely Great Product/Service/Business Model -‐ Blue Ocean Specifica*ons

To Do

Vision (Ideal Final Result): UNCONTESTED MARKET SPACE

IN …………… INDUSTRY -‐ Ideal Bus. Model Specifica*ons

Short/Medium/Long-‐term

Doing Done

Past Performance

(Analog/An*log) -‐ Black Ocean Specifica*ons

Key MVP is an acronym for “Minimum Viable Product” ERIC is an acronym for “Eliminate; Reduce; Increase; Create” DB-‐MAIL is an acronym for “Define; Build; Measure; Analyze; Improve; Learn”

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Business Model (Baseline/Prototype: MVP)

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Zoom-‐out View of Red Ocean Disrup/on (R.O.D.) Scorecard


Strategy, Business Model, and Execu/on cycle

(ERIC Tac*cs; DB-‐MAIL Cycle): Red Ocean Disrup7on-‐Lean Startup Project Execu7on

3


Date: ………………………………..


PRESENT PERFORMANCE (“RED OCEAN”)

STRATEGY, BUSINESS MODEL, AND

EXECUTION CYCLE

FUTURE PERFORMANCE (“BLUE OCEAN”)

Red Ocean Disrup/on (ROD) Storyboard Cost-‐effec*vely Improve and Innovate on Products, Services, and Business Models

VISION (“LEAP OF FAITH”) (Customer Segment/“Tribe”):

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PRESENT PERFORMANCE (“RED OCEAN”)

STRATEGY, BUSINESS MODEL, AND

EXECUTION CYCLE

FUTURE PERFORMANCE (“BLUE OCEAN”)

STRATEGY

BUSINESS MODEL/RESOURCES

EXECUTION CYCLE

PRODUCT/SERVICE/TOOL PAIN (-‐)

DELIGHT (+)

PRODUCT/SERVICE/TOOL

PAIN (-‐)

DELIGHT (+)

Red Ocean Disrup/on (ROD) Storyboard -‐ Annotated Cost-‐effec*vely Improve and Innovate on Products, Services, and Business Models

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VISION (“LEAP OF FAITH”) (Customer Segment/“Tribe”):