Value innovation and how to successfully incubate “blue ocean” initiatives
ISSN: 1087-8572
Article publication date: 9 May 2018
Issue publication date: 15 June 2018
Abstract
Purpose
This masterclass examines the blue ocean value innovation process, how it works in practice and how it has evolved since the publication of Blue Ocean Strategy (2005) by W. Chan Kim and Renee Mauborgne as explored in their new book their new book Blue Ocean Shift (2017).
Design/methodology/approach
The main focus is the value innovation methodology that underlies blue ocean strategy.
Findings
Blue ocean strategy is a process of value innovation that uncovers new aggregations of demand by redefining the offering category.
Practical implications
Blue ocean strategy tends to focus on value innovation that uncovers new aggregations of demand by redefining the category while disruptive innovation tends to concentrate on new demand-creation that expands the current served market.
Originality/value
Blue ocean strategy sets out to reconfigure value propositions in compelling new ways that can deliver a quantum leap beyond the current red ocean value-cost frontier through raising buyer value and lowering company costs simultaneously. The emphasis on both value and innovation is essential to the creation of new “blue ocean” market spaces.
Keywords
Citation
Leavy, B. (2019), "Value innovation and how to successfully incubate “blue ocean” initiatives", Strategy & Leadership, Vol. 46 No. 3, pp. 10-20. https://doi.org/10.1108/SL-02-2018-0020
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited