Blue Ocean Innovative Strategy Frameworks
To complete this Shared Activity:
• Read and Review the analysis below.
• Respond to this analysis by offering potential critical directing questions and specific and constructive ideas for improving this analysis. (2-3 paragraphs)
• Be sure to support your postings with evidence. Consult the Harvard Referencing Style Guide for proper citation and referencing information.
In reviewing mobile communication, it was interesting that the first mobile phone was discovered in 1946, by a company called AT&T, who worked tirelessly in a lab for a decade to achieve this feat, as stated at www.corp.att.com Fast forwarding to the 2000's, AT&T's mission seems to have changed from its earlier discovery, ‘Our mission is to exploit technical innovations for the benefit of AT&T and its customers by implementing next-generation technologies and network advancements in AT&T's services and operations.'
For AT&T to have a technology strategy, by reading their mission it is pretty clear that AT&T adapt the Blue Ocean Strategy technique to further its objective (mission). As Kim, W., & Mauborgne, R., (2004) refers utilising this strategy is not about technology innovation but using the technology that is already there and exploiting it into something else that no one else has or even thought of.
In a contrasting scenario, in the case of Cirque du Soleil, they used what was in place to totally change the business of circus. Cirque du Soleil adapted the circus, but omitted all of its costly elements such as the animals and due to this cost re-structuring provided a more sophisticated and actual theatre feeling to its audiences, enchanting scenes with excellent music. As Kim, W., & Mauborgne, R., (2004) states Cirque du Soleil created a market space, that no one has filled and has managed to change the circus theme without actually inventing the circus. This typifies the Blue Ocean Strategy.
Siemens, who use a different strategy which is more traditional based and that is to use resources and money to be innovative and invent new patents and ideas. This is evident in in the culture of ‘Open Innovation at Siemens." As stated by Lakhani, K., Hutter, K., Prokrywa, S., & Fuller, J., (2013), Siemens in 2008 was to start the launch of the first open innovation project, where they utilised more than 80 countries and over 35,000 employees to participate in open innovation projects and to mobilise new product ideas.
Siemens in 2012 had global revenue of more than Euro78 billion and held 57,300 patents. This was clearly evident in them inventing products and being innovative. However in the year 2012 Siemens had invested Euro4 billion which was 5.4% of the company's revenue in this process.
So two differing strategies in innovation, one that uses others innovations and as their mission statement states exploit what has already been invented and make it better for AT&T, whereas Siemens mission is the global and innovative of people, that use their knowledge to benefit customers, www.siemens.com In my view the effort derived from a purely innovative and inventive way for Siemens does provides a good benefit but the amount of cash and amount of people to truly develop a product seems extraordinary, given the amount is in billions, a normal company can only imagine to spend such wealth on new ideas, how can it truly keep up.
AT&T however only bring new products into reality if they can use an existing product and transform it into a benefit for themselves and the customer, it seems they are only in business to make a profit, is that the right way?