The Blind Spot Advantage

How to create new value and growth opportunities

Introduction

Finding and exploiting blind spots is a powerful way to create new value and growth opportunities for businesses. Blind spots are areas of the market that are overlooked or ignored by competitors and can be found by taking a fresh perspective on the market and approaching it differently.

To identify and capitalise on these opportunities, businesses can use frameworks such as Clayton Christensen's "jobs-to-be-done" framework. It will help businesses understand customers' unmet needs and desires that existing products and services need to meet.

The Blue Ocean Strategy Framework, on the other hand, aids companies in developing new markets. Offering products or services that break away from traditional competition and make the competition irrelevant. This is achieved by exploring "blue oceans", or untapped market spaces where demand is waiting to be created, rather than fighting over the "red ocean" of existing markets.

The Blue Ocean Shift Framework builds on this by providing a step-by-step process for businesses to move from the current market to a new blue ocean. With tools and frameworks to help them understand customer needs and preferences, explore new product and service offerings, and build a winning business model.

By applying these frameworks, businesses can identify blind spots, create new value for their customers and business, and get ahead of the competition in the market.

Understanding Disruptive Innovation and the "Jobs-to-Be-Done" Framework

Disruptive innovation is a concept introduced by Clayton Christensen to describe how new technologies and products can create a new market and displace established market leaders. The key to disruptive innovation is that it starts by serving an underserved or non-existent market. Then, over time improves to the point that it can challenge the incumbent's position in the market.

One of the key tools for understanding where these underserved markets might be is Clayton Christensen's "jobs-to-be-done" framework. This framework focuses on understanding customers' needs and motivations rather than just looking at their demographic or psychographic characteristics. By focusing on the jobs customers try to do, businesses can gain a more nuanced understanding of the problems. Build an understanding of what their customers are trying to solve and where existing solutions need to catch up.

This deeper understanding of customer needs and motivations can then be used to identify opportunities for new products or services that better serve those needs. For example, the iPod was a disruptive innovation resulting from Apple's understanding that customers didn't want a portable music player. Rather a way to carry their entire music library with them wherever they went. The iPod filled this need with its large storage capacity and easy-to-use interface. It ultimately disrupted the existing market for portable music players.

Another example of a disruptive innovation that resulted from applying the "jobs-to-be-done" framework is the Swiffer cleaning system. Proctor & Gamble created a new market for disposable cleaning pads and trigger sprays that quickly took over traditional cleaning products. They understood why customers wanted a convenient, easy-to-use cleaning solution that didn't require a bucket and mop.

In summary, disruptive innovation can help companies identify underserved markets. Focusing on the jobs customers are trying to do and creating new products or services that better meet those needs. The "jobs-to-be-done" framework can be a powerful tool for gaining a more nuanced understanding of customer needs and motivations and has been used successfully by a range of companies to create new markets and disrupt established ones.

The Blue Ocean Strategy Framework

The Blue Ocean Strategy framework, developed by W. Chan Kim and Renée Mauborgne, by helping companies create new market space by unlocking uncontested market opportunities. The Blue Ocean Strategy's goal is to move beyond the constraints of existing markets by creating a new market space where competition is irrelevant and new demand is generated.

The Four Actions Framework is a key tool within the Blue Ocean Strategy framework. It consists of four actions companies can take to create new market space and unlock uncontested market opportunities. These actions are:

• Eliminate: identifying which factors in the industry should be eliminated or reduced, such as unnecessary features or high costs.
• Reduce: identifying which factors should be reduced or simplified, such as reducing the number of product features or the number of distribution channels.
• Raise: identifying which factors should be raised or increased, such as increasing product quality or customer service.
• Create an Identity for which factors should be created that do not currently exist in the industry, such as a new distribution channel or a new product feature.

Companies can use the Four Actions Framework to create new value for customers while reducing costs and differentiating themselves from competitors. This approach helps companies to create new market space and unlock uncontested market opportunities.

Several companies have successfully applied the Blue Ocean Strategy framework. One example is Cirque du Soleil, which created a new market space by combining elements of traditional circus acts with theatre and music performances. By eliminating animal acts and reducing the emphasis on star performers, Cirque du Soleil created a new type of performance that appealed to a broader audience.

Another example is Southwest Airlines, which created a new market space in the airline industry by offering low-cost flights focused on customer service. By eliminating certain amenities and reducing the number of routes, Southwest was able to keep costs low. It enabled them to differentiate itself from other airlines while still providing high-quality customer service.

In summary, the Blue Ocean Strategy framework helps companies to create new market space and unlock uncontested market opportunities by using the Four Actions Framework to identify new value for customers, reduce costs, and differentiate themselves from their competitors. Companies like Cirque du Soleil and Southwest Airlines have successfully applied this framework to create new markets and achieve business success.

The Blue Ocean Shift Framework

Blue Ocean Shift is a framework developed by W. Chan Kim and Renée Mauborgne, which builds on the Blue Ocean Strategy framework. Blue Ocean Shift is designed to help companies create new market space and unlock uncontested market opportunities. The purpose of Blue Ocean Shift is to provide a step-by-step process for creating a new market space.

The five-step process of Blue Ocean Shift is as follows:

1. Get started: This involves organising a team and defining the project's scope. The team should identify the company's key challenges and opportunities and set goals for the project.
2. Understand where you are now: In this step, the team conducts a comprehensive analysis of the current state of the market and the company's position within it. This involves assessing the competition, identifying customer needs, and understanding the key trends and drivers of the market.
3. Imagine where you could be: This step involves brainstorming and ideation to generate innovative ideas for creating a new market space. The team should focus on identifying unmet customer needs and developing new value propositions to address those needs.
4. Create your strategic move: In this step, the team develops a strategic plan for creating a new market space. This involves applying the Four Actions Framework of the Blue Ocean Strategy: eliminate, reduce, raise, and create. The team should identify areas where they can eliminate or reduce factors. Considered important in the market, focusing on creating new factors that are not currently being offered.
5. Make your shift: This final step involves implementing the strategic plan and launching the new product or service into the market. The team should closely monitor the performance of the new offering and make adjustments as necessary to ensure that it meets customer needs and drives growth for the company.

Companies that have successfully applied the Blue Ocean Shift framework include Samsung, Ford, and Philips. For example, with its Galaxy Note series, Samsung used Blue Ocean Shift to create a new market space in the smartphone industry. The company identified unmet customer needs for larger screens and stylus pens and created a product that addressed those needs. This resulted in a significant increase in market share and revenue for Samsung.

Leveraging Blind Spots to Create New Value and Growth Opportunities

The "jobs-to-be-done" framework, the Blue Ocean Strategy framework, and the Blue Ocean Shift framework can help companies identify blind spots and create new value and growth opportunities. The "jobs-to-be-done" framework allows companies to understand their customers' needs and motivations more nuancedly, allowing them to create products and services that meet those needs. The Blue Ocean Strategy framework helps companies identify uncontested market space and create a strategic plan to enter that space. The Blue Ocean Shift framework provides a step-by-step process for implementing the Blue Ocean Strategy.

By leveraging blind spots, companies can disrupt and create new market space. This can lead to increased revenue, new customers, and brand recognition. One example of a company that successfully leveraged blind spots is Airbnb. By creating a platform allowing homeowners to rent unused space, Airbnb disrupted the hotel industry and created a new market space. Another example is Netflix, which disrupted the movie rental industry by offering a subscription-based service. It allowed customers to access unlimited movies for a low monthly fee.

In conclusion, leveraging blind spots can be a powerful way for companies to create new value and growth opportunities. By using the "jobs-to-be-done" framework, the Blue Ocean Strategy framework, and the Blue Ocean Shift framework, companies can identify these blind spots and create a plan to enter new market space.

Why Using Ethical and Sustainable Frameworks is Worth Considering for Businesses

Businesses face increasing pressure from customers and regulatory bodies to act ethically and sustainably. Adopting ethical and sustainable frameworks can help businesses to meet these expectations and demonstrate their commitment to responsible business practices. By following the guidelines in these frameworks, businesses can identify gaps in their practices and take action to improve them. It can improve reputation, increase customer trust, and reduce the risk of legal or regulatory action. In today's business landscape, where sustainability and ethics are critical components of success, using ethical and sustainable frameworks is a worthwhile investment for any business.

Here are some more specific guidelines on how businesses can use these frameworks in practice:

• Identify the relevant framework: The first step is identifying the most relevant framework for your business. Consider your business model, industry, and the stakeholders involved.
• Assess your current situation: Once you have identified the framework, assess your current situation against the relevant guidelines. Identify the areas where your business is falling short of the recommended standards.
• Develop a plan of action: Based on the assessment, develop a plan to address the gaps. This plan should outline the steps you will take to improve your practices and compliance with the relevant framework.
• Implement changes: Implement the changes outlined in your plan of action. This may involve updating policies and procedures, training employees, and changing business processes.
• Monitor and evaluate: Regularly monitor your progress against the relevant framework. This will help you to identify areas where you need to improve and adjust your approach.
• Communicate your progress: Finally, communicate your progress to stakeholders. This may involve sharing reports, certifications, or other documentation demonstrating compliance with the relevant framework.

By following these steps, businesses can use these frameworks to improve their practices, reduce risks, and demonstrate their commitment to ethical and sustainable business practices.

Conclusion

In conclusion, by shining a light on the blind spots of your market, your business can unlock a world of new opportunities and create significant value and growth. Through the powerful combination of Clayton Christensen's "jobs-to-be-done" framework, the Blue Ocean Strategy framework, and the Blue Ocean Shift framework, businesses can gain a deeper understanding of their customers. They will be able to identify unmet needs and create innovative solutions that carve out new market space.

The benefits of leveraging blind spots are many, from disrupting the market and unlocking untapped demand to creating new market space that allows for significant growth and differentiation. Successful companies like Airbnb, Uber, and Cirque du Soleil have all applied these frameworks. They could identify and capitalise on blind spots, creating new market categories.

As a business, it is essential to understand the needs and motivations of your customers and think creatively about market space. This means looking beyond your industry and analysing the broader context in which your business operates. By leveraging the frameworks discussed in this article, businesses can shift their focus from competing in crowded markets to creating new markets and driving meaningful growth.

In today's fast-changing business landscape, it is more important than ever to remain agile and innovative. By capitalising on blind spots and creating new value and growth opportunities, businesses can stay ahead of the curve and secure their place as industry leaders.