Driving an innovative Blue Ocean simulation

April 25, 2011 | admin

When the Blue Ocean strategy was invented by Kim and Mauborgne, it was a revolution in the world of Business Strategy. Their book has been translated in more than 41 languages and sold over 1,000,000 copies.

TACT particularly likes BOSS (Blue Ocean Strategy Simulation) created by StratX. MBA students, teams or managers preparing for higher responsibilities need efficient learning tools to prepare for the business world. The Blue Ocean Strategy Simulation (BOSS) enables participants to test new strategies and methods all while respecting market realities.

Launched 1 year ago, Blue Ocean Strategy Simulation (BOSS) has already been used by B2B, B2C and healthcare companies leading to multiple application projects. BOSS has also been embraced by top universities and used by over 5000 executives and students.

Designed with extensive input from the authors of the best selling book Blue Ocean Strategy, BOSS enables the course participants to truly experience the power of Blue Ocean Strategy by applying the theory and using the methodologies and tools described in the book. Innovative, fun and highly effective, BOSS trains participants in strategic thinking and team-building. When used in an executive education setting, BOSS helps participants develop the skills needed to lead a BOSS initiative in their company.

During a BOSS-based course or teaching module, participants work in teams to manage a fictitious consumer electronics company over a six-year period.

The simulation framework allows the participants to break away from the competition and create a blue ocean of new market

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ce for their virtual company. A simulation-embedded case study provides a visual exploration of the market, using the Six Paths Framework to reconstruct market boundaries. Through rigorous analysis of the case, teams develop their Blue Ocean Strategy offerings using BOS tools, such as the strategy canvas, the value curve, the four actions framework, the ERRC grid, and so on.

In the real world, professionals can’t afford to fail. The simulated world takes that stigma away, giving professionals a risk free environment to apply their skills and work together to make practice perfect. Nothing else translates knowledge into results as quickly or accurately.

Throughout the simulation, participants are required to invest in both the Red Ocean components of their portfolio and the Blue Ocean opportunities. Each team makes numerous decisions within different business functions: R&D, Production, Marketing, Sales, Geographic Expansion, etc.

Participants, grouped in teams of 3 to 6, compete against computer-controlled firms and can see the outcome of their decisions in real time. Each team’s performance will be judged on profits generated, revenue growth, market share and the Stock Price Index, which reflects all of the former indicators. The ultimate goal is to maximize shareholder value. The simulation creates a fun, highly charged environment where strong teams are formed and come away energized and wanting to apply Blue Ocean Strategy principles to their business.

The BOSS experience is an invaluable step for participants on their way to becoming Blue Ocean strategists.

What is the difference between a lecture and a simulation? The statistics speak for themselves. The learning retention rate of

 

a standard lecture is only 5%. Give a professional the chance to practice by applying their knowledge, and their retention jumps to 75% to 80%.

For a detailed presentation click here

 

W.Chan Kim is Professor of Strategy and International Management at INSEAD Business School, France.
He has previously served as a Professor at the University of Michigan Business School and as a board member for a number of multinational corporations in Europe, the United States and the Asia-Pacific region. He has published numerous articles in the business press and is a frequent contributor to the Financial Times and the Wall Street Journal. Professor Kim is also a Fellow of the World Economic Forum.

Renee Mauborgne is also a Professor of Strategy and Management at INSEAD, as well as a Fellow of the World Economic Forum. Her research has formed the basis for numerous articles published in the business press. Professor Mauborgne’s current research focuses on strategy, innovation and wealth creation in the knowledge economy.