This document presents a short but comprehensive case study on implementing a Blue Ocean Strategy and Business Model for the BlackBerry Smartphone. The case study could be used to guide the development of a Blue Ocean Strategy and Business Model for your product.

1.
BLUE OCEAN‐PERFORMANCE DASHBOARD
FOR RIM’S BLACKBERRY
Dr. Rod King
Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

2. General Information on the Tool of BLUE OCEAN DASHBOARD
WHO? WHERE?
WHAT?
• •
The Blue Ocean Dashboard is a tool that Business executives; managers Online:
•
seamlessly integrates the three most http://businessmodels.ning.com
Business planners; strategic planners
•
•
powerful tools for business management: Talks; Seminars
Small, medium, and large enterprises
•
•
Value (Supply) Chain; Blue Ocean Workshops; Training
Practitioners of Blue Ocean Strategy
•
Strategy; Balanced Scorecard • Consulting
Practitioners of Balanced Scorecard
WHY? WHEN?
• •
‘One‐Page Business Management’ Starting a business (from idea stage)
BLUE OCEAN DASHBOARD:
• •
Faster; Simpler; Free; Holistic Generating more revenue
A Faster and More Profitable Way to
• •
Integrated approach to managing Further reducing cost
Manage Strategies and Business Models
•
value (supply) chain, strategy, Facing competition in the ‘Red Ocean’
•
performance, and business model For uncontested customer experience
HOW MUCH?
HOW? WHAT NEXT?
•
• •
Free online (open innovation):
“Where currently are you (in the iPhone application for the Blue
http://businessmodels.ning.com
industry?)” Ocean‐Performance Dashboard
• • •
“Where do you want to go?” Otherwise, contact Dr. Rod King: Software/social network for Blue
• rodkuhnking@sbcglobal.net Ocean‐Performance Dashboard
“How will you get to the Blue Ocean?
•
What strategy and business model?” Partners for Collaborative Projects
BOBM8B. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

4. Company Overview of RESEARCH IN MOTION (RIM) – BlackBerry Date: April 3, 2009
Author(s): Dr. Rod King (rodkuhnking@sbcglobal.net) Ref.: …………………………………..…………………….
PRODUCTS/SERVICES
BUSINESS/INDUSTRY
COMPANY BACKGROUND
•
•
• Cell phone: BlackBerry Smartphone
Industry: Telecommunication
Location: Waterloo, Canada
•
• Niche: Personal/Wireless/Cell phone/
Founder(s): Mike Lazaridis;
Smartphone
Doug Fregin
•
• Model: Business to Consumer (B2C);
Revenue: US$3.04 billion (2007)
• Business to Business (B2B)
No. of Direct Competitors:
CUSTOMER VALUE PROPOSITION CUSTOMER BENEFITS/EXPERIENCE
COMPANY OVERVIEW OF:
• •
Secure cell phone for corporations Simpler user interface /Easy to use
RESEARCH IN MOTION (RIM) –
• •
Secure company e‐mail that can be Secure e‐mail access everywhere
•
accessed anywhere and at any time High reliability/Long battery life
BlackBerry
• •
Wearable, unobtrusive, real time, Web browsing capability
•
24x7, and low cost “pager” (laptop) Savings in training and support costs
MISSION
VISION
MAIN GOAL/OBJECTIVE/STRATEGY
•
Blue Ocean Strategy: to provide a highly “Connect to everything you love in
desirable and uncontested customer life”
experience while making the competition
•
irrelevant “Ideal solution for productivity and
profitability”
BOBM8A. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

6. Blue Ocean Map for RESEARCH IN MOTION’S BlackBerry (vs. Pagers): Strategic Journey to the Blue Ocean
IDEAL BLUE OCEAN (FINAL RESULT) Fractal Market Segmentation of Personal Telecommunication Tools
∞
BLUE OCEAN Experience:
BlackBerry Smartphone
Revenue
Cell phones/PDAs/
Smartphones
Blue Ocean Strategy
(+): DELIGHT
RED OCEAN Experience:
Pagers
Lowly differentiated and
Strategic
Red Ocean Strategy low-cost business model
Choice
(‐): PAIN
(Uncontested Market Space or New Category) No. of Competitors
BOBM1.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

8. Blue Ocean Dashboard for RESEARCH IN MOTION (RIM) Date: April 3, 2009
Name of Product/Service/Facility: BlackBerry Functionality: Cell phone/PDA/“Pager”/Smartphone
Customer Value Proposition: Secure e‐mail access everywhere 24x7 Business/Industry: Telecommunication: Personal
Goal/Objective: To create an uncontested customer experience and uncontested business model as well as make the competition irrelevant
BUSINESS SYSTEM Description Performance Objectives: 2007 Blue Ocean Actions (Relative to Industry Standard) Initiatives/
(“SEMPORCE”) of Best Current/ Projects
Cost: ‐ Revenue: + Other Raise Create Reduce Eliminate Other
RELATIONSHIPS Future Resources
($) ($) Criteria (+) (+) (‐) (‐)
Defects Bargaining Defects
S: Suppliers/Materials
power
Productivity No. of filed Training Absenteeism Turnover
E: Employees/Know‐
Innovation patents/IP R & D Waste Delays
ledge Assets/Culture
Defects Defects
M: Machinery, etc.
Quality; ROI Revenue Customers Cost Defects (Six Sigma)
P: Processes/Activities
BlackBerry Smartphone Sale of product Customer Reliability Ease of use Training time Complexity (Blue Ocean
O: Outputs
Experience Integration Security Support cost Installation Strategy/
‐ Product
Quotient (EQ) Battery life Folders Defects time Innovation)
E‐mail client software Subscription Service EQ
‐ Service
BlackBerry Smartphone Sale of product Channel EQ
R: Retailers/Channels
Corporate workers/ Sale of product Customer EQ Bargaining Exit/Entry
C: Customers/
Enterprise/Gov. & Retention power barriers
Consumers
Env. quality
E: Environment
Nokia/Apple/Palm/ Market share Exit/Entry Entry/Exit Bargaining Threat of (Competitive
‐ Competitors
Treo/Motorola barriers barriers power; Risks substitutes Strategy)
Users of pagers/ No. of Entry
‐ Non‐customers
budget cell phones prospects barriers
Nokia/Motorola/HTC Software Partner EQ Alliances
‐ Partners
Software developers license Joint ventures
Share price
‐ Investors
No. of Projects (Local)
‐ Community/Gov.
BUSINESS MODEL: RIM – BlackBerry (How US$3.07b Business IDEAL BLUE OCEAN STRATEGY (How to create an Blue Ocean
does the organization work to deliver its value Experience uncontested customer experience and uncontested business Program
ROI (%):
proposition to customers and investors?) Quotient model as well as make the competition irrelevant?)
BOBM5.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

9. Checklist on 4 Perspectives and Questions for Balancing a Blue Ocean Dashboard
INVESTOR PERSPECTIVE EMPLOYEE PERSPECTIVE
• •
How will the business make more What attributes, skills, resources, and
money (extraordinary profit)? outputs should employees have in
order to sustain a workflow and
culture that deliver extraordinary
value to customers and investors?
4 PERSPECTIVES AND
QUESTIONS FOR BALANCING
A BLUE OCEAN DASHBOARD
CUSTOMER PERSPECTIVE PROCESS PERSPECTIVE
• •
How will customers experience the What processes and strategies will
greatest delight and least pain? generate extraordinary profit as well
as deliver the organization’s value
proposition to customers/consumers?
BOBM5.32. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BOBM6.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

11. TOMCAT (Trade‐Off) Matrix: Categories of trade‐offs that are resolved by RIM’s BlackBerry/Opportunities for Blue Ocean Products
Customer’s Intent/Job: To securely access e‐mails at all times (Non‐)Customers/Industry: Telecommunication: Personal
Focus of (Non‐)Customer: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
Breakthrough Question: HOW TO MAKE (THE PRODUCT/ENTERPRISE/INDUSTRY OF) PAGERS IRRELEVANT?
(Non‐)Customer Needs (‐) 1 2 3 4 5 6 7 8 9 10
Reduce/Eliminate Cost Mainten‐ Time Defects/ Weight/ Effort/ Staff Complexity/ Rigidity/ Pain/
(Relative to Industry Standard) ance/ (Delivery/ Complaints/ Size/ Friction/ Depend‐ Information Inaccess‐ Barriers/
(+) Raise/Create Upgrade Aging) Waste Tool Energy ency Overload ibility Pollution
1 Value/Functionality BlackBerry BlackBerry BlackBerry
2 Quality/Automation
3 Performance/Productivity BlackBerry BlackBerry
4 Differentiation/Novelty/…
5 Speed/Agility
6 Aesthetics/Visual Appeal/Color
7 Ease of Use/Simplicity BlackBerry
8 Convenience of Use BlackBerry
9 Customer Service/Support BlackBerry
10 Fun/Entertainment/Adventure
11 Star Performers/Celebrities
12 Prestige/Legacy/Amenities
13 Wide Choice/Versatility
14 Hygiene/Cleanliness
15 Integration/Connectivity BlackBerry
16 Power/Strength/Wisdom
17 Accuracy/Reliability BlackBerry
18 Security/Safety/Health BlackBerry
19 Collaboration/Communication
20 Customization/Personalization
Eliminated trade‐off (other trade‐offs are partially resolved and therefore present opportunities for innovation)
BOBM7. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

12.
REFERENCES
1. King, R. (2009) The Infinitely Zoomable Page: The Ideal Tool for Blue
Ocean Thinking, Design, and Innovation. Fresno: Ideal‐Solution
Management.
2. Ross, E.; Holland, A. (2006) 100 Great Businesses and the Minds
Behind Them. Illinois: Sourcebooks, Inc.
3. Von Briesen, J. RIM’s Blackberry.
http://frontierstrategy.com/BlueOceanStrategy_RIMExample.html
Dr. Rod King
Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com