Pam Hoelzle

Seattle Business Consultants, Seattle Business Consulting, Adjunct Professor Northwest College
Kirkland, Washington

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Different? Marketable? Sustainable?

To grow in today's economic climate it's not enough to have a brand...or to tell a good story...you must offer value innovation; Differentiation. Marketability and Sustainabilty these are the keys to business growth.

Written Dec 13, 2008, read 1297 times since then.

What makes you different?

Lately I've been growing businesses using Blue Ocean Strategies, the revolutionary process presented in the national bestseller Blue Ocean Strategy. Written by two Harvard professors, Kim and Mauborgne, this book gets my vote for the marketing/business book of the century.

Business is the art of executing differentiation in a manner that is financially sustainable. Anyone can tell a story about being 'different' and 'unique' but the proof is in the pudding; do clients vote with their dollars, their engagement, time?

I'll use the chicks above to make my point. (oops Biznik doesn't input images; go to www.pamhoelzle.typepad.com and look at image of group of dark just hatched chicks with a yellow chick in their midst)

Now, if you didn't go see the picture, just imagine being the only yellow chick in a hen full of just hatched dark brown chicks; this chick has difference encoded into her. Her DNA is unique; she can't, not be different. Her difference is not 'brand' 'spin' or 'story' rather good ole fashion integrity: It's who she is.

Now, imagine being one of the dark chickens. You just want to be different, but you aren't so you decide to do something that makes you 'different.' In a jam, you borrow a leaf and wear it as a sarong. Sure, now your different from the other dark chickens; not as diffferent as ms.yellow feathers mind you, but the problem is, your difference is not integral, your 'difference' keeps slipping and after a fairly serious session in the hen house you can't even find that darn sarong....

How you dress up a business is not differentiation.

Now imagine your one of the brunette chicks and lucky you you hatched with yellow wings and beak; now that's unique! You can't take your beak off at night, its not a 'story' or just good ward-robing its your recipe, your DNA you show up different time and time again.

Consistent differentiation that is encoded into the business recipe, the model is differentiation.

Then there's the brunette chick that looks like all the rest of the pack but she has superior foot speed. She decides this is her claim to fame, her differentiation strategy; the way she attracts mates and gets enough food! Who knows it may be different- it may not be - is it sustainable? Being the best on certain competitive elements is certainly differentiation the question is; does the target client value this element; foot speed and will they vote with their time and dollars..proposals and seed?

Integrity matters. Imagine each of these chicks as separate, unique businesses each with their own; yellow, dark with yellow beak and wings, dark with leaf sarong or brunette: business models.

True differentiation is designed into the business model; the recipe of the business.

Your business model is either different or it's not and if it ain't' different it's not sustainable; you better at least look for a leaf...quick or change pens and go hang out with the zebra's- now your different- question is are you different where it counts? Do you provide an innovative difference of high value?

The key to making the competition irrelevant according to Kim and Marborough is to create a recipe that provides the highest level of 'value innovation.' Value Innovation is the key to differentiation, marketability and sustainability in business. Being different, is not enough you must be different on innovative elements and offer them to your target at a value.

After reading and practicing the art of blue ocean strategies with 20 or so teams I am still a student of blue ocean strategies but one thing I know for sure; differentiation is not optional; You must be different to grow and you must be different where it counts...and the client must believe its a good value.

If my business provides something innovative that meets my target clients wants and needs and I do it in a different way at a price that is lower than my clients expected I've found true value innovation. I will grow if I execute value innovation; Differentiation. Sustainable. Marketable.

Are you innovatively different? Or just different?

Are you different in the areas that clients value?

Are you providing your differentiated solutions to clients at a price that's lower than they expect to pay for this innovation?

Differentiation = Business Growth; done right.

Learn more about the author, Pam Hoelzle.

Posted by Joe Kennedy, Bellevue, Washington | Dec 15, 2008

Great article Pam. I'm definitely going to be reading the book ...
Posted by Pam Meehan, seattle, Washington | Dec 15, 2008

Interesting, I think the book seems to have some great ideas on marketing.

Thanks for the article, very helpful!
Posted by Mark Walters, Bellevue, Washington | Dec 15, 2008

I love this point: "Your business model is either different or it's not and if it ain't' different it's not sustainable."

Great article, thank you, Pam.

Mark
Posted by Pam Hoelzle, Kirkland, Washington | Dec 16, 2008

Okay check out www.pamhoelzle.typepad.com if you want to see the photo I was referring to- in the article! A group of just hatched chick's one is yellow the rest are dark, brunette colored. The photo is important...we need a way to put photos on these articles- Biznik...

Joe- yes for a serial entreprenuer this book is a must read...it will reframe the way you see opportunities

Pam- yes you will look at Marketing differently and how systematic integral great marketing and communication is...

Mark- sustainable...will someone undercut your price and offer the competitive element and steal your opportunity? How broad is the market? You may be different but does the strategic price and margin offer you true financial sustainability?

Onward

Pam
Posted by Peter Chee, Redmond, Washington | Dec 16, 2008

Pam, thanks for the writing such a thoughtful article. I love reading this kind of stuff. You're speaking to my heart when you use words like "value innovation"!

I've been a part of the dot-com days where millions where spent on a various promotion events, as you can see that wasn't too sustainable.

I just read the Amazon review for Blue Ocean Strategy. Looks like an interesting read.
Posted by Pam Hoelzle, Kirkland, Washington | Dec 17, 2008

So my question for all of you what is value innovation to you and how are you providing it to your clients; NOW? Tell me...I am interested...
Posted by David Kalstrom, Maricopa, Arizona | Dec 17, 2008

excellent article - an answer to a prayer - im in a place where I needed exactly what you have to say - you've been a blessing to me today
Posted by Pam Hoelzle, Kirkland, Washington | Dec 17, 2008

David

Thanks that's my real intent - if I can be of help - you can schedule a call with me- on me- to assist you at your current intersection...exciting things always happen at intersections...just make sure and pick a direction and keep moving... Pam 425 218 5864
Posted by Paul McFadden, Bellevue, Washington | Dec 18, 2008

Thanks, Pam. You are a great and engaging writer. Keep up the great work!

Paul
Posted by Frith Barbat, Seattle, Washington | Dec 19, 2008

Thanks for this article Pam. It made me pause and think about how I present what I do to the world, and whether the clients I'm looking for value what I offer. Great stuff.
Posted by Pam Hoelzle, Kirkland, Washington | Dec 20, 2008

Do we all have in place mechanisms for our clients to talk with us and dialogue? Ongoing feedback as to their experiences, their perceptions of our product, services; experiences? Social media, client surveys, blogs, twitter? What is your tribe saying about you, what do they feel about your product, what else would they like you to do, offer, be? Value innovation is providing solutions that exceed clients expectations...and sometimes providing things they don't even know they need but solve the 'pain' in our clients lives.

What are your listening tools? How do you go about understanding your clients and how are you engaging them in helping you better serve them?

Innovate...Differentiate...Value...NOW

Pam
Posted by Robert Lani, Seattle, Washington | Dec 23, 2008

Thanks Pam,

Excellent article. All the executives at my last company talked so highly of that book but I never bought onto it. After reading what you wrote, my skepticism has lifted and I am going out to get the book and give it a shot!

Robert
Posted by Pam Hoelzle, Kirkland, Washington | Dec 25, 2008

Great Robert

Let me know what you think and there are many additional resources for more information regarding Blue Ocean Strategies if you'd like. Pam
Posted by Mark Walters, Bellevue, Washington | Dec 25, 2008

I downloaded an audio copy of the book from the King County Library system's website. I can listen to it from my laptop and from my MP3 player.

You need a King County Library card and you have to set up an account with NetLibrary.

Here is a link that will get you started.

http://tinyurl.com/7fwjmy

What an amazing free service!

Happy Christmas.

Mark | http://www.walterslawfirm.com/