The Blue Ocean Strategy : How To Create Uncontested Market Space and Make the Competition Irrelevant

When Henry Ford made cheap, reliable cars people said, ‘Nah, what’s wrong with a horse?’ That was a huge bet he made, and it worked.
The whole idea of The Blue Ocean Strategy is to create uncontested market spaces that creates new demands and make the competition irrelevant.

The book describes Red Oceans as known market places that have bloody competition among businesses trying to win customers. Here there is a fixed existing demand of which every company wants a share.

The Blue Ocean on the other hand is an uncontested market place that creates demand for itself, which is not known to others. This makes competition irrelevant. Focus is on creating, not competing.

Value Innovation :

Value innovation occurs when company align innovation with utility, price and cost positions. Instead of using competition as the benchmark companies focus on taking leaps ion value for customers.

Idea behind value innovation if to break out of Value-Cost trade off.

Reducing Costs :

Reduced costs for the products are achieved by eliminating and reducing the factors that the conventional industry competes on.

Best example to illustrate this is the case study of Ford Model T.

Ford eliminated all factors like multiple colors and design variants and focused only on creating better cars for the masses.

Identifying Blue Oceans :

Identifying blue oceans needs managers and strategists of the company to brain storm on the strategy canvas. Where each manager holds his/her department accountable.

The strategy canvas’ focus must be shifted from competition to alternatives and from customers to non-customers.

Reconstruct Market Boundaries :

The author proposed a 6 step framework for identifying blue oceans in new market places :

  1. Look across alternative industries
  2. Look across strategic groups within industries
  3. Look across complementaries
  4. Look across the chain of buyers
  5. Look across functional and emotional appear to buyers
  6. Look across time

Reaching Beyond Existing Demands

To reach the customers in new markets, think of non-customers before customer differentiations.

There are 3 tiers of non-customers :

  1. Jump Ship : These can switch to competitors on any moment.
  2. Refusing : These are using competitors products.
  3. Distant : Product doesn’t appeal to these customers.

Examples of Blue Ocean Strategies Implemented by Famous Companies :

  1. Ford :

Ford standardized the car and made the options limited. This increase the quality of the car and brought the price point down.

2. GM :

General Motors found their blue ocean in making the cars fun, fashionable and comfortable.

3. Watson :

Watson computers introduced tabulators for businesses for the first time. They also introduced leasing pricing models which made it easy for businesses to own a tabulator.

4. Apple :

Apple created Apple II and tapped the new market for ready-made, easy to use personal computers.

5. Dell :

Dell on the other hand, found its blue ocean by changing the purchasing and delivery experience of the buyer. It allowed customization of the machines according to the needs of the buyer.

It is evident from the above examples that blue oceans are not unleashed by technology innovation per se but by linking technology to elements valued by buyers.

Strategy for Blue Ocean Implementation :

Two views on industry structure are related to strategic actions.

  1. Structuralist View :

Based on market structure to conduct and performance. This view on strategy deals with making sure that the company is making money in the red oceans.

2. Reconstructionist View :

This view is based on endogenous growth. It focuses on creativity not systematic approaches.

This view is responsible to find blue oceans for the company.

Both the views towards strategy are necessary to assert the company is making money is also exploring new markets to remain competent in future too.

Advertisements

Learning How To Learn : Course Experience

The human brain has 100 billion neurons, each neuron connected to 10 thousand other neurons. Sitting on your shoulders is the most complicated object in the known universe.

What is learning? Well basically, forming and consolidation neural patterns.

Recently I took the course “Learning How to Learn” on Coursera. I really wanted to figure out the best way to enhance my learning. And this course has been really helpful. It provides you with the right tools and tips to construct your own learning schedule. Methods shown in the course are scientifically proven and helps you understand your brain better.

Here is a quick summary of what I learned in the course :

WEEK 1 :

There are two modes of thinking :

  1. Focused Mode
  2. Diffused Mode

Focused Mode is where our mind is concentrating on following neural patterns that it is already familiar with and Diffused Mode where our mind is sort of relaxed and is ready to find new neural patterns.

Why we procrastinate?

Studies have shown that we procrastinate because when we are about to start a task that we are uncomfortable with our brain activates the parts that correspond to pain and thus wants to stay away with it.

Solution? Well, just get started. With practice this feeling will go away.

Don’t think too much and just “eat that frog”.

WEEK 2 :

Chunking : A chunk is a small interconnectable piece of information that you can learn at a time.

Basic idea behind chunking is to get a bigger idea of the topic that you are going to study and divide it into meaningful chunk. These chunks then get interconnected to to help brain learn effectively.

Mastery is just the art of increasing the number of chunks that you can interconnect.

Personally, I feel chunking is a great way to tackle procrastination too.

Illusion of competence :

When you are done with learning a topic. Force yourself to recall it.

What motivates you? Having a feeling of motivation and excitement towards learning helps the brain learn more effectively as feeling motivated releases dopamine which causes happiness.

Overlearning and Einstellung :

One should be beware of overlearning i.e repeating several times topics you already know. This causes the brain to go into Einstellung, which means that brain refuses to explore new neural patterns and becomes rigid to ones we already know very well.

Week 3 :

Habits are energy saver mode of our brains. When a habit has been formed our brain doesn’t overload itself with information and zombie mode kicks in.

Habit can be described with following parts :

  1. The Cue : Triggers that launches the zombie mode.
  2. The Routine : Habitual response in reaction to the cue.
  3. The Reward : Habits exist because we get reward.
  4. The Belief : To change habits we need to believe that we can change them.

Understanding how habits are formed and work can help us develop new good habits and get rid of the bad ones. 10 years from now everyone is going to know about your bad habits, your success is going to represent you. Now is the time to get rid of them.

Avoid Procrastination? Focus on process not the product.

Also, make your to-do list for the next day the night before. This will allow your diffuse mode to work on it while you will be sleeping.

WEEK 4 :

There is a difference in smartness of people. Smartness equals having a larger working memory.

But people with smaller working memory are scientifically proven to be more creative.

Deliberate Practice, practicing hard stuff again and again, can lift the normal brain to the realm of naturally gifted. Practicing certain neural patterns deepens the mind.

How to become a better learner?

Exercise : Exercising created new neurons in brain.

Life experiences : Gaining varying life experiences also enhances the brain.

Analogies and Metaphors : Can be used to learn and memorize effectively.

And finally ,

Virtue of less brilliant is perseverance and grit.

This course has been great for understanding how our brain works in nutshell. At least know you know how it works, you can make it work for you.

I am trying to become good at things that are way complex than what I have worked on till now. This was the reason why I took the course.

My takeaways were to practice, persevere and have patience.

I have started next course “Introduction to Algorithms by MIT”. This is a course that I always wanted to finish completely. Hopefully this time I can do that.

See you next time!

Zen and the Art of Motorcycle Maintenance : Reading Experience

The Japanese motorcycle maintenance guide says “ Assembly of Japanese bicycle requires great piece of mind”. There is a thing about everything you build, including bikes. If you build it with non-serene mind, then you build your problems into it.

The book takes you on a cross country bike journey that will teach you mind opening lessons that leave lasting impressions on your mind. Your mind will simple refuse to contract itself to older stage.

One of the most important lesson that book teaches you is to enjoy the common little things that life has for you. There is as much Buddha in cogs of bike, as there is at the top of the mountain.

Towards the beginning of the book the author says, “If you want to set out for the most amazing bike journey, you have learn the art of motorcycle maintenance.” The quote has so many meanings at different levels that your mind can explore the words in infinite ways.

As the bike journey progresses, author makes the point that the key to be doing great work is to be completely involved in it. Not like mechanics who listen music while working on the bike with no intention to make it great, the noise of the tools should be music.

How we see the world affects how we think about it. There are two ways to see the world, the classical way where everything is logical and the other is the romantic way.

Classical way of thinking runs the knife on views, something is cut. And when the logic in the logic is found, the beauty of the unknown is lost.

Romantic way of thinking is all about enjoying the continuum of things.

Quality is the thing that author says that you know what it is, but still you can not define it. Like you know what makes a tomato soup good, but yet you can not define what makes up its quality, both materialistic and spiritual.

World consists of three things : Mind, Matter and Quality.

The author was a student of University of California at one point, before his nervous breakdown. Studying there he made some amazing point on the thinking of Plato and Aristotle. How dialectic way of thinking is different from rhetoric way of thinking, but at the same time one doesn’t proves the other wrong.

My two the favorite quotes from the book are :

  1. “The only zen you’ll find at the top of the mountain, is the zen you take with you”.
  2. “The test of the machine is the satisfaction it gives you. There isn’t any other test. If the machine produces tranquillity it’s right. If it disturbs you it’s wrong until either the machine or your mind is changed.”

This is the best book that I have ever read. No matter what you are doing in your life and how old are you, this books touches your mind at levels so deep that you didn’t even think it was possible. But you’ll have to keep the beginner’s mind to learn.

As the author states, “sometimes it is better to travel than to arrive”. I was carried away with the philosophical ideas presented in the book and the serenity that the country side description provides.

Knowing that Chris, the son of the author, with whom he set out for this bike journey is dead was a little sad. But again in snap that increases the importance of all the lesson and the author was expounding throughout the book about life and zen.

A recommended read for everyone.

The next book that I have picked is “The Blue Ocean Strategy”.

5 notes on MVP architecture pattern for Android

                                                           Image credits Macoscope

MVP (Model View and Presenter) is an architectural pattern inspired by the popular MVC pattern.

MVP addresses two main points :

  1. Make views as dumb as possible. The dumber the better.
  2. Make each layer loosely coupled and easily testable in isolation.

I am using MVP in one of my production project and have used in some dem0 apps. Here are my 5 notes on using MVP for android.

  1. Package Structure :

Android project contains lots of code and files even for application of medium complexity. Even when not following MVP I have found that arranging the project files in such a way that files that are accessed together are put in same package is more efficient and intuitive than any other approach.

What I prefer doing is create separate package for separate verticals of the app and put all related files like activities, fragments, views, presenters, adapters etc in that package.

ex. packages like add task, view task, list task for a To-Do app.

2. Libraries that are useful for MVP :

In MVP you want your model and presenter to be independent of the life cycle of view. For this, you can use dependency injector library like Dagger2.

Other than that, using RxJava and reactive programming principles for creating presenter is also becoming increasingly popular.

Libraries you can use for this purpose are : RxAndroid and EventBus.

3. Managing Remote and local data sources in the Model :

Android apps have to fetch data from the server. At the same time fetched data must be cached to make the app usable offline and increase the speed.

What I prefer doing is to create three model classes :

1. Remote Data Source

2. Local Data Source

3. Data Repository

All presenters talk to Data Repository class. Data repository model contains references to Local and Remote data repository and calls data from either according to situation.

As the name suggests Local Data Source deals with cached data and disk storage whereas Remote Data Source deals with API calls and responses.

4. User Experience is the top priority :

One thing that we all have to keep in mind that the real test of application is, if it is able to provide user a nice experience.

At the end of the day, user only notices the user experience of the application and not the architecture used. So if you have to make some design sacrifices to make the UX better, do it.

The real test of the machine is the satisfaction it provides to the mind. There is no other bigger test.

5. Testing Advantages :

Main motive behind MVP pattern was to make the testing of layers easy.

Basic idea is to keep the presenter and model android free, so that they can be tested without Android instrumentation by the JVM itself.

Views can then be tested by Android Instrumentation tests.

Mockito and Espresso can come handy for testing purposes.

Conclusion :

MVP, in my opinion is so far the best way to architect your android application project. It simplifies many issues like testing and making views lighter. Combine it it RxJava and dependency injection and you’ve got a nice recipe for android projects.

I am learning more about RxJava and testing frameworks will share my views on that soon.

Thanks.

Rise and Shine : How joining the 5 AM club affected my life

Being an early riser isn’t about trumpeting how hard you work. It’s about doing everything within your power to help your business achieve success; and if that means you have to get up at an hour not known to most, then you might as well enjoy the sunrise.

It is no secret that many high achievers have been advocating about the importance of waking up early in the morning. I have been following Robin Sharma for quite some time now and he proposes something called as the “5 AM club”. He refers it is as the elite club of people who wake up at 5 AM, each day and try to get the most out of the day.

I took the challenge for myself to wake up at 5 AM every day without fail for the entire month of November as a habit building process. I believe that against all the odds if you can sustain the habit for 1 month, you can stick with it for a longer time. That is the power of habit.

Becoming an early riser

It was obviously not easy to become an early riser. I had a typical teenager schedule prior to this. Stay up late till 2 AM and then sleep till 10 AM.

The first step I took was to decrease the waking up time gradually. Reducing it by 1 hour every 3 days.

I needed some additional help anyways. I asked one of my friends to wake up at 5 AM (Saumya this is you :P). If someone is holding you accountable for something, there is always a push to do it.

How waking up at 5 AM affected my mind and life?

  1. It allows me to enter the flow state : You get up early in the morning, no one is up. Enough time to do self-introspection and follow the morning rituals to get in the mood to conquer the world.
  2. Intrinsic motivation : When you get stuff done in the morning itself. It acts as an intrinsic motivation to keep going. You are optimistic and energetic for the entire day.
  3. Self-discipline : I started this challenge at the worst time. Cold November mornings. It took me a lot of mental strength to get out of warm bed to cold weather. But in the end, it was all worth it.

My new “Early Birdie” morning rituals

I wake up at 5 AM nowadays, and seldom fail at that.

5:30 to 7:30 is the time set apart for personal improvement. No email, no internship work, no college studies. Working on skills that you want to see yourself doing better with.

7:30 to 8:30 I exercise. Again the importance of exercising can not be emphasized more to become a high achiever. It gives more energy that is always helpful.

Then around 9 I start working and go forward with the day.

11 PM is the time to call the day and prepare for tomorrow. No mobile phone to bed and doze off at 11:30.

Do we all have to wake up at 5?

Yes and no. Though I certainly recommend it to try being the member of the 5 AM club at least once. Experience the hours of the day that are not known to most. Feel the sunrise and early morning serenity. It is a different kind of experience, a zen on its own.

How to detect emails, phone numbers, web URLs, hashtags in Android TextView? : SmartTextView library

Smart Text View

Star On GitHub Follow On GitHub

Many applications in android use TextView that detects and highlight various string patterns like emails, phone numbers, web URLs and even hashtags.

This functionality is very common and and is used extensively and frequently in many app. Thus to ease the process of adding this functionality I have authored an Android library SmartTextView.

Find and Star it on GitHubhttps://github.com/priyankvex/SmartTextView

smart_text_view_small

Features

  • Detect emails, mobile numbers, URLs
  • Detect #hash_tags and @mentions
  • Use default intents or set custom callbacks.
  • Set different colors for each pattern.

 

Usage

compile 'com.priyankvex:smarttextview:1.0.1'

In layout xml file

  <com.wordpress.priyankvex.smarttextview.SmartTextView
        android:layout_width="match_parent"
        android:layout_height="wrap_content"
        android:textSize="9pt"
        android:id="@+id/textView"
        />

In java Activity or Fragment

mSmartTextView = (SmartTextView) findViewById(R.id.textView);
        mSmartTextView.setEmailColorCode("#3cb371");
        mSmartTextView.setPhoneNumberColorCode("#ff33aa");
        mSmartTextView.setHashTagColorCode("#f37735");
        mSmartTextView.setUrlColorCode("#ffc425");
        mSmartTextView.setMentionColorCode("#57b884");
        mSmartTextView.setDetectMentions(true);
        mSmartTextView.setDetectHashTags(true);
        mSmartTextView.setText(sampleText);
        mSmartTextView.setSmartTextCallback(this);

To use custom callbacks

implements SmartTextCallback

IIMBx: EP101x DO Your Venture : Course Experience on edX

The best way to win is to show grit and bid on your strengths and intuitions. I have been trying to start my own company now for quite a some time. This course came into my mail box by edX, title looked captivating and thus I decided to take it.

It was a light course. Not much effort needed other that just watching the videos and doing some assignments.

The course was focused on making people get off with their venture from the idea phase to execution phase.

Throughout the course I was evaluating  my ideas and operations using the learnings given by the course and it has been of some help at least.

The course was divided into 5 weeks :

Week 1 : The “Do” Philosophy 

DO philosophy is based on “do or do not. There is no try”. There is a gap between intent and action and thus best bid is to don’t wait for halcyons days and just DO IT.

It proposed a term equifinality which means that every entrepreneur and his path is different and there are many ways to entrepreneurship.

It then provided interviews with various startups like Bums On Saddle, Hobby in a Box etc founders sharing their journey so far.

Week 2 : Opportunities, Idea Creation & Generation!

This week was focused on how entrepreneurs come up with ideas. Few of them are  :

  • Hobby driven ideas
  • Painstorming
  • Change in some rules and regulations

Each of these points can provide you with a nice venture idea. I already had my idea prior to the course and thus just thought about it again from these view points.

Week 3 : Idea validation and Evaluation

After the idea has been selected. We have got to validate and evaluate it.

Some if the methods for this are :

  • Personal feasibility
  • Market feasibility
  • Customer feedback

Best way to validate idea is to talk to customers. Real unknown customers. Not just people in your acquaintance. We here at Rainbow Shelf went out to talk to retail shop owners (around 10) and tried to explain them the idea. Response was not very encouraging but it was an experience that helped us.

Week 4 : Lean Canvas

This week was all about the lean methodology used in startups. I have read the book The Lean Startup  and thus this all made sense to me.

The 5 principles of lean startup are :

  1. Entrepreneurs are everywhere
  2. Entrepreneurship is management
  3. Entrepreneurship is validated learning
  4. Build, Measure, Learn
  5. Innovation Accounting

The course also provided a lean canvas that should be used by startup to assess their idea.

Week 5 : Effectuation

Effectuation, which is defined as a “logic of thinking, discovered through scientific research, used by expert entrepreneurs to build successful ventures“.

This week was about measuring the uncertainty in the entrepreneurship.

Effectuation has these 4 principles :

Bird in Hand Principle – Start with your means. Don’t wait for the perfect opportunity. Start taking action, based on what you have readily available: who you are, what you know, and who you know.

Affordable Loss Principle – Set affordable loss. Evaluate opportunities based on whether the downside is acceptable, rather than on the attractiveness of the predicted upside.

Lemonade Principle – Leverage contingencies. Embrace surprises that arise from uncertain situations, remaining flexible rather than tethered to existing goals.

Crazy-Quilt Principle – Form partnerships. Form partnerships with people and organizations willing to make a real commitment to jointly creating the future–product, firm, market–with you. Don’t worry so much about competitive analyses and strategic planning.

 

Overall. I wasn’t expecting very complex and hard material in the course just normal guidelines stuff and this was exactly what the course provided. This course was offered by IIMB. And showed many startups that are incubated there are NSRCEL.

As of now I have taken many scattered courses on entrepreneurship from University of Maryland to MIT to IIMB. Now i have decided to just take the specialization offered by Coursera  and that should be enough for time being until my company scales.

I have now shifted my focus to learn more core technical and domain knowledge that will be required to build remarkable company that can stand out that bring value to its customers.