Best solution ideas cut costs by minimizing or eliminating aspects not valued by your target audience while enhancing the value offered to the target audience by amplifying or introducing elements they find valuable. While explaining the Blue Ocean Strategy, Chan Kim and Renee Mauborgne suggest a useful tool to develop such ideas.
ERRC Graph

How It Works?


Step 1

Determine What Your Target Audience Doesn't Care About

Check the outputs of your insight mapping exercise. Consider elements within the solutions currently used by the target audience that they do not value. While it might seem that your target audience values every aspect, reality often involves a few specific values driven by limited resources. Seek answers to the below questions. (I will use the example of an hotel service to illustrate the approach.)

  • Which elements can be completely eliminated, even if they are considered default or must-have features of relevant solutions? For instance, envision an accommodation service without an hotel reception desk.
  • Which elements can be reduced? Evaluate features where you can go below the standard, such as imagining an accommodation service with minimal services like room service, restaurant, and a mini-bar. Ideas derived from these perspectives will contribute to cost reduction in your new solution.
Login or register for free to get the full content.