Blue Ocean Idea (BOI) Index

Blue Ocean Strategy Glossary : Blue Ocean Idea (BOI) Index

Blue Ocean Idea (BOI) Index is a simple yet robust tool to verify if a new business idea meets the criteria of a Blue Ocean Strategy. Often, companies believe that a great idea is enough to generate a commercial success. Of course, great ideas must create a significant leap in buyer utility. But the offering must also be priced so that it is within the reach of the mass of target buyers, while at the same time guaranteeing a handsome profit to the company by reducing its cost structure. Managers must also ensure that before executing the strategy, they have addressed any adoption hurdles ― fears and resistance coming from employees, business partners, or the general public in response to the change created by the new business idea.

In this perspective, the Blue Ocean Idea index tests the following four criteria, in that order:

1. Does the new offering provide exceptional utility?
2. Is the price easily accessible to the mass of target buyers?
3. Does the cost structure meet the target cost?
4. Are adoption hurdles addressed up front?

If the answer is no at any step, it is important to return to the previous step until the answer is yes to each question.

Source: For more Blue Ocean Strategy Glossary, visit www.blueoceanstrategy.com