Financial Services Industry – The Revenue Challenge
A major Australian financial services business came to Blue Ocean Strategy Australia with a challenge. Help us develop a series of new Blue Ocean Strategy creating products to fill a multi-million dollar gap in our revenue forecasts.
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 generally incremental product improvements. This 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 12 weeks, and utilising Blue Ocean Strategy techniques facilitated by the BOS Australia team, the client developed a list of over 100 ideas.
Using the Blue Ocean Strategy litmus test, these were refined to the four largest and most commercially viable.
By their own estimates, two of these four ideas had the potential to far exceed the identified financial gap on their own, while the other two had potential to meet or significantly contribute towards closing the gap.
After a series of internal roadshows to present, test and refine the ideas, a senior management group of approximately 20 people met to review the ideas, during which broad strategic and implementation overlays devised by the management group were applied and the organisation is now engaged in implementation.
The most common reaction from those exposed to the Blue Ocean Strategy ideas, was to express how logical, how obvious, and how potentially disruptive these ideas seemed in hindsight, with some disbelief that no-one had thought of them before. A hallmark of good Blue Ocean Strategies.