MBUBE: His Majesty making his remarks during a panel session at the Blue Ocean Strategy conference held at the Putrajaya International Convention Centre yesterday. Listening attentively are Malaysia Prime Minister Najib Razak(r) and Thailand Prime Ministe
PUTRAJAYA, MALAYSIA – A blue ocean is coming to our shores!
Well not in the literal sense. This is a new wave of doing business which advocates moving away from competition and channelling efforts towards innovation and creativity.
This basically means stop channelling all your efforts in trying to beat your competitor but rather use this energy to create your own market. The success of this approach, however, requires innovation and creativity.
The architects of this strategy Professor W. Chan Kim and Professor Renee Mauborgne call it the Blue Ocean because it represents a clean untapped market of ideas as opposed to a Red Ocean which they see as representing cut-throat competition between countries and businesses that has turned bloody while all pursue the same ideas.
His Majesty the King joined other heads of state and government yesterday to witness the success that this strategy has delivered for Malaysia and if his speech at the conference is anything to go by, we could soon be swimming in a Blue Ocean on our dry land.
Held during a week-long International Conference on Blue Ocean Strategy at the Putrajaya International Convention Centre in Malaysia, the host Prime Minister Najib Tun Abdul Razak, was beaming with pride as he told the story of how Malaysia continues to be rated amongst the top ten best performing economies of the world. “If we had continued with the old policies, we would have found the government and country swimming in an ocean of red,” he said in his official opening speech in reference to his government having saved about E11.5 billion by adopting the Blue Ocean Strategy (BOS) since 2009. This they did through creating more projects at reduced costs like using existing empty buildings for Urban Transformation Centres (UTC) which are centres in the cities that provide key government and private sector services in the same building.
Also by having the police and military share training facilities and repositioning 7 400 police officers from the desk to the streets for patrol, instead of hiring and training new officers.
There were huge savings in the rehabilitation of offenders where minor criminals were trained and used to contribute to agricultural production and given access to their families which has reduced repeat offenders to a very impressive figure. He listed several other initiatives that worked under this strategy which left visitors in awe.
...Let’s think outside the box - King
PUTRAJAYA, MALAYSIA –The country’s ability to leap out of her sluggish economic growth and poverty lies in tapping into creativity and innovation.
The king said this requires citizens to start thinking outside the box and not limit themselves to the tried and tested methods citing ICT, agriculture, implementation of the investor roadmap and the national vision 2022 as areas that could benefit the most from this new approach.
The King was speaking as a panellist at the International Blue Ocean Strategy conference in Putrajaya, Malaysia yesterday. The conference was a showcase of the successful implementation of a new thought process to governance which was adopted by Malaysia PM Najib Razak in 2009.
“The focus of the conferences, transforming nations through creativity and innovation remains critical because we have to find new ways of service delivery to our people. As leaders, we have to be futuristic in order to meet tomorrow‘s needs and expectations,” he said. He noted that Malaysia’s success following the adoption of the blue ocean strategy had helped deliver public programmes and services that are of high-impact, low cost and rapidly executed. “The great appeal of the blue ocean strategy is how it redefines the terms of competition where the goal is not to beat, but to make it irrelevant by creating new, untapped markets,” said.
At a global level, the king highlighted the fact that we are witnessing technological advancement that has seen productivity escalate to higher levels with the supply of goods exceeding the requirements, prices are falling and globalisation adds a component that facilitates new entrants and low production cost. So to create new markets and develop focus on non-customers, he believes the blue ocean strategy becomes a fundamental approach.
“Innovation has a key role on this matter, but it must be aligned with utility, price and cost. One way to approach the blue ocean strategy is to consider it as a process innovation.” The king also said the future of all governments is inevitably tied to how intimately we embrace technology. For developing nations like our kingdom, he said technology provided the country with an opportunity to leapfrog into cutting-edge applications that will improve our agriculture output, upgrade health care facilities and improve every other service.
“Technology is compelling us to relook our existing policies in order to create the infrastructure that will help us to connect better, communicate with ease and implement national plans to progress our people,” said the king.
He praised Malaysia for her unselfish sharing of success stories and the strategy behind this, counting Swaziland as a beneficiary of this philosophy.
“We now have a Malaysian university, the Limkokwing University of Creative Technology that has transformed the landscape of education in the kingdom and the SADC region. We are now more confident of a positive future for our youth that is graduating from an institution whose programmes add a critical component to areas like the innovation and competitiveness agenda that we are deliberating upon today.”
He invited more Malaysian institutions of creative technology to establish branches in Swaziland.
His Majesty noted that the long-term economic prosperity for Swaziland would depend more substantially on innovation and creativity, especially in the information and communication sector. He sees the Science and Technology parks as providing the required infrastructure to help realise this goal.
“In line with the blue ocean strategy on how to create new market space, there will be a particular focus on training schemes to secure a change from current dry land, subsistence farming to irrigated, commercial and expanded agriculture,” he said of expected transformation in the food self sufficiency initiatives. The king also said the African continent may be well endowed with natural resources, but innovation and technology have proven to be more sustainable and offer limitless opportunities for growth and development. Speaking of the upcoming SADC summit, the king said the region could use the Blue Ocean strategy to find innovative ways of raising funding for its industrialisation and integration agenda.
Briefly about the authors
of Blue Ocean Strategy
Professor Renée Mauborgne
Renée Mauborgne is The INSEAD Distinguished Fellow and a professor of strategy at INSEAD, the world's second largest business school. She is also Co-Director of the INSEAD Blue Ocean Strategy Institute. She was born in the United States. Mauborgne is a member of President Barack Obama's Board of Advisors on Historically Black Colleges and Universities (HBCUs). She is also a Fellow of the World Economic Forum.
Mauborgne is the co-author of Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Harvard Business Review Press). Blue Ocean Strategy has sold over 3.5 million copies and is being published in a record-breaking 43 languages. It is a bestseller across five continents. Blue Ocean Strategy has won numerous awards. Mauborgne is ranked No. 2 in The Thinkers50 listing of the World's Top Management Gurus.
Professor W. Chan Kim
W. Chan Kim is Co-Director of the INSEAD Blue Ocean Strategy Institute and The Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at INSEAD, France (the world’s second largest business school).
He has served as a board member as well as an advisor for a number of multinational corporations in Europe, the U.S. and the Asia Pacific region. He is an advisory member for the European Union and serves as an advisor to several countries. He was born in Korea.
Kim is a Fellow of the World Economic Forum. He has published numerous articles on strategy and management. Kim is ranked No. 2 in The Thinkers50 listing of the World’s Top Management Gurus.
Source – INSEAD website.