Financial Services Industry – The Revenue Challenge
In mid 2012 a major Australian financial services business came to Blue Ocean Strategy Australia with a challenge. To help develop a new Blue Ocean Strategy creating product to fill a multi-million dollar gap in their forecast revenue.
The organisation had completed an extensive review of all existing and future planned products and services. It had developed plans to extract as much revenue from these as possible by pursuing highly competitive but incremental product improvements. But they were still left with a revenue gap measuring in the tens of millions of dollars per annum.
With a small but diverse team from across the organisation, over a period of 10 weeks, and utilising Blue Ocean Strategy techniques, the team developed a long list of over 100 ideas.
Using the Blue Ocean Strategy litmus test, these were refined down to the four largest and most commercially viable.
By their own estimates, two of these four ideas both have the potential to far exceed the identified financial gap, while the other two have potential to meet or significantly contribute towards closing the gap.
After a senior management group of approximately 30 people reviewed the ideas, during which broad strategic and implementation overlays devised by the management group were applied to the ideas, the organisation is now engaged in implementation.
The most common reaction from those exposed to the Blue Ocean Strategy ideas, is to express how logical, how obvious these ideas seem in hindsight, with some disbelief that no-one had thought of them before. A hallmark of good Blue Ocean Strategies. So watch this space.
To learn more about Blue Ocean Strategy:
DOWNLOAD THE MAP – Download our 12 Week Blue Ocean Strategy Navigation Map
WEBINARS – Attend a webinar (podcasts coming soon!)
WORKSHOPS – Attend one of our 2 day Deep Dive workshops, to immerse yourself in the tools as you apply them to your own business
BOOKSTORE – Visit the Amazon bookstore for a curated list of books, audio and articles
Source: Extracts from the book Blue Ocean Strategy. (c) Kim & Mauborgne, 2015. Boston. Harvard Business School Publishing