Innovation Leadership

Training
Day Two
Strategy Mapping
February 6, 2009

All materials NetCentrics 2008 unless otherwise noted

Welcome
Well spend the next hour or so
examining Blue Ocean concepts for
discovering unmet, undermet and
undiscovered opportunities using a
Strategy Map.

What We Want to
Accomplish

Goals for this section

Map an existing market, opportunity
or industry to understand the value
drivers
Seek out overserved, underserved or
unserved needs
Map a new product or service
offering against the industry

Key Points
Innovation often occurs when a product
addresses an underserved or overserved need
Seek out opportunities to differentiate in
existing products or services
Innovation always occurs when we identify and
serve unmet or undiscovered needs
These can become the Blue Oceans
Its important to understand what the industry or
market thinks is valuable, and compare/contrast
that with what the customers think is valuable

Need Hierarchy
Examine needs and solutions more
carefully
A more fine grained approach addresses:
Undermet needs
Overmet needs
Unmet needs
Undiscovered needs

Using this paradigm we can investigate

innovation opportunities

Overmet / Undermet
Overmet needs are needs that the current
offering or solution provides more
functionality or benefit than the customer
wants or can use
Undermet needs are needs that are
partially met by the current offerings or
solutions, but dont fully satisfy the
customer expectation
Both of these situations are instances
where innovation is possible.

Strategy Map
The strategy map, or strategy canvas,
is a concept suggested by Lee and
Mauborgne in Blue Ocean Strategy
The concept seeks to map the
average offerings in the industry on
a number of value segments to
identify overmet, undermet and
unmet needs or requirements

Identifying Overmet /
Undermet Needs

These needs
were overmet
by the existing
airline industry

These needs
were undermet
by the existing
airline industry

From Blue Ocean Strategy by Kim and Mauborgne

Southwest Airlines
Southwest identified a segment of the
population that did not care about
frequent fliers, seat choices and meals.
They felt the existing airline industry was
overly focused on these issues and many
clients didnt care
Southwest also identified some undermet
needs friendly service and speed that
the existing airline industry did not
address

Unmet needs
Note as well that Southwest identified
an unmet or undiscovered need
frequent departures
Frequent departures was not one of the
value drivers that the airlines delivered
or competed on
Southwest built its operational model
on the fast turn frequent departures
that the majors have yet to copy

Strategy Map
Using the Strategy Map in your
organization
Weve found it useful when
considering opportunities to innovate
in an existing market, or to discover
new opportunities

Strategy Map

Place the key value drivers along the bottom axis, and map a competitor
or industry in their provision of those value propositions. Also, consider
how valuable or important these value drivers are to the customer.

Creating your own curve

There are four actions you can take for
any of these value drivers to create a
new curve on the strategy map:
Reduce the delivery or emphasis of a factor
Raise a factor well above industry standard
Eliminate a factor all together
Create a new factor that hasnt been offered

Southwest Example
For the existing airline industry,
Southwest chose to:
Eliminate seating choices, food and
hubs
Reduce pricing
Increase friendliness and speed
Create frequent departures

Takeaways
Innovation can happen by reducing or
eliminating an existing factor or providing
even better solutions along an existing
factor (generally incremental innovation)
Innovation can happen by identifying a
completely new market or undiscovered
need (generally disruptive innovation)
Use a Strategy Map to identify what the
market thinks is important and identify
what the customer thinks is important

Questions

Exercise