Disruptive and Experience Innovations in Blue Ocean Strategy - Essay Example

Name) (Instructor) (Course) (Date) The Blue Ocean Strategy Introduction Many companies are faced by the incapability to establish new demands and increase their shares on the market. The blue ocean strategy provides an outline for the creation of unchallenged space on the market and changing the concentration from existing rivalry into creating inventive demand and value. Such a strategy implies the basic knowledge of the maximization of market opportunities and risk minimization (Kabukin, 2014,Pg. 12). Components The Blue Oceans constitute creation of new values, lack of competition and new customer bases. There is creation of demand, rapid and profitable growth, setting of rules, increased market spaces that are not yet discovered. It has value innovation in which companies can increase their values. There is strategic decision making in which the company makes decisions based on the set strategies and objectives it intends to achieve in the long run. It also involves creation of new market spaces in which companies ought to ignore existing competition and focus on creation a new market space (Adams,2012). Furthermore, there is value innovation through benchmarking and the use of different approaches to the market. The major focus of companies has to be creating values for customers rather than competition and innovation ought to be given priority by the managers. In addition, companies have to establish strategic plans through a ‘strategic canvas’ in which the elements affecting the competition of a company are highlighted. Disruptive Innovation Disruptive innovation is innovation that is of significant effect on markets as well as the firms’ economic activities in the respective market. It thus concentrates on the effect rather than the uniqueness of discoveries. Any kind of innovation can therefore be termed as disruptive. These are major changes which adjust completely an industrial sector. Among the presumed examples of such innovation are seen in the education sector, health systems and the transport sector. For instance in higher education, such innovation is said to lead to a potentially new Higher Education Ecosystem. In an analysis of the UK higher education, the innovation will lead to open access, control and learning, public private funding, more privately funded institutions and the highly selective(Ivy League) components of the education system. The highly selective, privately funded and research intensive component constitutes limited providers of education. The existing notion concerning the of a “UK Ivy League” is an early indicator of disruptive innovation ( Kennie & Price, 2012, pg. 5). The very lucky few quadrant constitutes less providers. It is mostly made up of research intensive members. It can be predicted that public resources will be more concentrated not solely in research but also on some kinds of education necessities. Higher education institutions that have mutual collaborations with their localities have access to public resources in such localities. Such institutions gain financial beneficiaries by differentiating themselves through their services to the public and exemplary activities. The vertically integrated quadrant is made up of varsities with numeral interconnected components. Such institutions obtain worthwhile advantages through their capability to establish close and bearable relationships. There is also an increase in investors who want to make maximum use of value from the rapidly expanding area of Open Educational Resources. The Networked for Profits quadrant exhibits the influence of private investors in several ways. There is increasing development in global integration (Bocken et al.,2014). The Squeezed Undifferentiated middle is majorly dominated by the existing system. In the health industry, disruptive innovation is seen through provision of healthcare services in minute clinics (Thune, 2015).This is majorly for the integration of simple, high quality health care services to fit the lifestyles of the consumers. Disruptive communication has also influenced the technological scope through the invention of several communication devices such iPads and cellular phones. The ipad performs multiplicity of functions and reduces the burden of having to carry laptops as well as the heavy costs. Technology has also enabled cell phones to have added advantages over the radio as well as computers as they can be used to perform the functions performed by such devices. Experience innovation Innovation is mostly determined by technology and the increasing knowledge capacities. It is sometimes based on experience thus called experience innovation. Such an innovation is based on the experience of people. As such, people analyze their experience in a field and tus come up with ideas to improve the operations in this field. Such an innovation is beneficial as it is based on the loopholes that exist and development of ideas to curb them (Kotesha, 2014, Pg. 28). There is development of new methods to improve on operations and improvements in technology. Such technological advancements ensure effectiveness in operations thus eventually improving value. This strategy is beneficial as there is improvement in the old system. Such bright ideas improve a company’s competitiveness in the market and increase the value. Despite the much acclaim that such an innovation receives, there are setbacks that render it disadvantageous. For instance it requires a lot of time in order to be effectively implemented. Such an innovation cannot be carried out unless a person has the experience of the problem they want to improve and rectify. It therefore requires a lot of time and resources in order to be adequately facilitated. Value innovation approaches In order to maximize its value and the value of its products, a company has to put in place an approach that will enable it to realize effective value innovation as a strategy to help in development. Such approaches include the project approach, the business model, incremental and radical innovation and value chain innovation. In the project approach, the company establishes a project that is targeted at eventually improving the value of the products. Such a strategy, though time consuming proves effective in the strategic approach to development. Such a strategy requires a set team to monitor the progress in the results, and this eventually proves effective towards value improvement( Bocken et al., 2015) In the business model, the strategy constitutes analysis of the business transactions of a company and the profits. As such, all the business activities of the organization are recorded and an analysis carried on later. In this approach, the company keeps track of its transactions in order to establish the major financial challenges that it may be facing so that it can rectify such loopholes. The value chain approach bases on the continuous records in the values of a product. From the above discussion, it is evident that value innovation approaches have a greater contribution to the field of strategy as they provide the means to improve value. Reference List Adams, Z., and Deakin, S. (2014) 'Institutional solutions to inequality and precariousness in labour markets' British Journal of Industrial Relations, 52: 779-809. Bocken, N.M.P., Bakker, C., De Pauw, I. 2015. Product design and business model strategies for a circular economy, Sustainable Design & Manufacturing Conference, Seville, 12-14 April 2015. Bocken, N., Short, S., Rana, P. 2014. Using the value mapping tool for sustainable business thinking. International Conference on Sustainable Design and Manufacturing, 28-30 April 2014, Cardiff, Wales, UK Kennie, T. and Price, I. (2012). Leadership and innovation lessons from professional services irms. Stimulus paper. Leadership Foundation for Higher Education (available at www.lfhe.ac.uk/publications/lfresearch/index.html) Kennie, T. & Price, I.(2012). Disruptive Innovation and the Higher Education Post. Stimulus Paper. Matchaya G., Allen, P., Turner., S, Bartlett, W., Perotin, V., and Zamora B. (2013) 'Recent evidence on the changing mix of providers of healthcare in England' International Journal of Public and Private Healthcare Management and Economics, 3(2): 18-34. Kotecha, A., Turner, S., Vasilakis, C., Utley, M., Fulop, N., Azuara-Blanco, A., Foster, P. J. (2014) 'Improving care and increasing efficiency – challenges in the care of chronic eye diseases' Eye (London) 28: 779-783. Thune, T., and Mina, A. (2015) 'Hospitals as innovators in the health care system: a literature review Van de Bunt and Sultan, N (2012). “Servant-leadership: the Online Way! E-learning where Community Building is Key”, The European Journal of Open, Distance and E-Learning (EURODL). Read More