I’m listening to the book Blue Ocean Strategy by W. Chan Kim, Renée Mauborgne. I read the book a few years back, and it changed my life. Suddenly I had tools that I could use to describe the value that I was offering in my projects and business. These same tools could help me find new value innovations in a systematic way. I’ll quickly tell you about two tools that you can use today.
The strategy canvas can help you quickly understand what value the companies are currently offering. Each value offering is displayed along the bottom of the graph, and the rating that you give that attribute is plotted as a dot on the graph. The connected dots for the alternative way of achieving the same result is called the value curve.
Here is an example of a value curve for lawn mowing options. The new company is innovating on value to the customer by providing some work for the customer to do. In return, the customer feels a significant amount of accomplishment because they were part of creating a beautiful lawn.
Eliminate, Raise, Reduce, Create Grid
The Eliminate, Raise, Reduce, Create Grid (ERRC Grid) gives you a framework that helps you plan what additional value you can give to the customer. The ERRC Grid is defined as follows:
- Eliminate: What can you get rid of that is generally expected within your industry?
- Raise: What can you provide well above your industry’s standard?
- Reduce: What aspects of your offering can you reduce so that it is less than what is normally expected? Even when you reduce this part of the offering, customers do not care?
- Create: What new value you can create that you can give to customers?
The value curve above shows which elements are eliminated, raised, reduced and created in our fictional lawn care company.
Acknowledgement: The Strategy Canvas and the Eliminate, Raise, Reduce, and Create grid are concepts presented by W. Chan Kim and Renée Mauborgne in the book Blue Ocean Strategy.