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Smart e-Governance
An entry strategy for Smart Cities
Adapting the Blue Ocean Strategy*
Shubham Bhattacharya
July 26, 2013...
Smart City – ‘Smart’ solutions & services
across verticals
2
Smart transportation
Smart government
Smart energy
Smart wate...
Or an old wine in a new bottle?
3
Marketing
term for new
customers
Aggregation
of various
products
Greenfield
&Brownfield*...
Battle for “Data”, the next strategic asset!
•Smart Transportation vendors will lose control of transit data
•Payment serv...
KEY ELEMENTS OF COMPETITION!
MAPPING THE VALUE CURVE*
Strategic Canvas – Representing the benefit of strategic factors
5
*...
What govt. customers care about?
6
Data Security
G2G* collaboration
Vendor Brand Name
Turnkey Solution Provider
Greenfield...
What industry incumbents compete on?
7
ICT infra.
Cloud
solutions
M2M & IoT
deployments
BI from data
Predictive
analytics
...
Key factors of competition in industry
Transportation
focus
Green &
Brown field
projects
Mobility
infrastructure
Urban
pla...
Focus on ITS*, ability to deliver green &
brown field projects matter mostValuetoBuyer
Low
High
The Value Curve
• The valu...
Lets tweak the value curve
To find an under-addressed need
• Develop new markets
• Establish own niche
To devise an altern...
ERRC: THE 4-ACTION FRAMEWORK
Entering un-contested markets…
11
Key
Elements
Eliminate
Reduce Raise
Create
Identify good costs & bad costs, add
previously not offered benefits
ELIMINIATE
REDUCE
RAISE
CREATE
Expensive
Least import...
Map key elements - in the Red Ocean*
Red Ocean
ValuetoBuyer
Low
High
Key factors of competition
13Shubham Bhattacharya
*Re...
Eliminate Reduce Raise Create
Map key elements, apply 4-action framework
Red Ocean
ValuetoBuyer
Low
High
Key factors of co...
Eliminate Reduce Raise Create
Map key elements, apply 4-action framework,
plot new value curve
Blue Ocean
Red Ocean
Valuet...
Eliminate/Reduce unfavorable factors
• Eliminate direct competition with established
players
Transportation
Focus
• Avoid ...
Raise focus on favorable elements
• Boost through BPI* solutionsG2G collaboration
• Leverage BI to analyze patterns & unra...
Create new offerings in e-Government
solutions
• Improve G2C* engagement: ease data
collection, service provisioning
Citiz...
THE IMPACT & FIT
The alignment test
19
Organizational implications…
Is there scope for technology
development?
Can current research
capabilities be leveraged?
Is...
Thoughts…?
21
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Smart e governance - an entry strategy for smart cities - adapting the blue ocean strategy

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Smart e governance - an entry strategy for smart cities - adapting the blue ocean strategy

  1. 1. Smart e-Governance An entry strategy for Smart Cities Adapting the Blue Ocean Strategy* Shubham Bhattacharya July 26, 2013 * Authored by W. Chan Kim & Renée Mauborgne
  2. 2. Smart City – ‘Smart’ solutions & services across verticals 2 Smart transportation Smart government Smart energy Smart water Smart buildings CAGR: 16.2% Smart Cities 2012: $6B 2020: $20B 21% 14% 65% Share 19.5% 24.0% CAGR Source: Pike Research Shubham Bhattacharya
  3. 3. Or an old wine in a new bottle? 3 Marketing term for new customers Aggregation of various products Greenfield &Brownfield* * Greenfield : New Cities, Brownfield: Existing Cities Shubham Bhattacharya
  4. 4. Battle for “Data”, the next strategic asset! •Smart Transportation vendors will lose control of transit data •Payment service providers testing contactless payment technologies Visa & MasterCard •Several entrants competing for a share of this pie •US Mobile Payment Market: Growing at CAGR: 47%. From ~$13B in 2012 will reach $90B in 2017 1 Mobile Wallet •NFC* enabled handsets & mPOS* vying micro-transactions •Global Mobile Payments Market: $617B by 2016 2Mobile Banking 4 1,2: Source: Gartner Inc., Forrester Research, MOBILE Payments Market Guide 2013, The Paypers *NFC : Near Field Communication *mPOS:Mobile Point of Sale Shubham Bhattacharya
  5. 5. KEY ELEMENTS OF COMPETITION! MAPPING THE VALUE CURVE* Strategic Canvas – Representing the benefit of strategic factors 5 *Value Curve: To be defined, elaboratedand built in subsequentsection
  6. 6. What govt. customers care about? 6 Data Security G2G* collaboration Vendor Brand Name Turnkey Solution Provider Greenfield & Brownfield projects * G2G: Governmentto Government Shubham Bhattacharya
  7. 7. What industry incumbents compete on? 7 ICT infra. Cloud solutions M2M & IoT deployments BI from data Predictive analytics ICT: Information& CommunicationTechnologies | M2M : Machine to Machine | IoT: Internet of Things | BI: Business Intelligence Shubham Bhattacharya
  8. 8. Key factors of competition in industry Transportation focus Green & Brown field projects Mobility infrastructure Urban planning G2G collaboration BI from data Data security QoS* improvement Turnkey provider 8 * QoS: Quality of Service Shubham Bhattacharya
  9. 9. Focus on ITS*, ability to deliver green & brown field projects matter mostValuetoBuyer Low High The Value Curve • The value of key competing factors to the buyer! Key factors of competition 9 *ITS: Intelligent transport systems Shubham Bhattacharya
  10. 10. Lets tweak the value curve To find an under-addressed need • Develop new markets • Establish own niche To devise an alternate entry strategy • Avoid head-on competition • Choose path of least resistance To explore ways to reach the consumer • Gain access to data Value Innovation & 4-Action Framework: Reduce costs & maximize buyer value 10Shubham Bhattacharya
  11. 11. ERRC: THE 4-ACTION FRAMEWORK Entering un-contested markets… 11 Key Elements Eliminate Reduce Raise Create
  12. 12. Identify good costs & bad costs, add previously not offered benefits ELIMINIATE REDUCE RAISE CREATE Expensive Least important Expensive Less important Not so expensive Important Relevant New offering 12Shubham Bhattacharya
  13. 13. Map key elements - in the Red Ocean* Red Ocean ValuetoBuyer Low High Key factors of competition 13Shubham Bhattacharya *Red Ocean – The current scope of competition
  14. 14. Eliminate Reduce Raise Create Map key elements, apply 4-action framework Red Ocean ValuetoBuyer Low High Key factors of competition 14Shubham Bhattacharya
  15. 15. Eliminate Reduce Raise Create Map key elements, apply 4-action framework, plot new value curve Blue Ocean Red Ocean ValuetoBuyer Low High Key factors of competition 15Shubham Bhattacharya
  16. 16. Eliminate/Reduce unfavorable factors • Eliminate direct competition with established players Transportation Focus • Avoid expensive Greenfield projects in light of equipment-leasing financial liability Green & brown field projects • Reduce operating expenditure incurred by expensive hardware deployments Mobility infrastructure • Reduce dependence on projects with high sales turnaround time & customer acquisition costUrban planning 16Shubham Bhattacharya
  17. 17. Raise focus on favorable elements • Boost through BPI* solutionsG2G collaboration • Leverage BI to analyze patterns & unravel gaps in offering vs. customer needsBI from data • Promote & participate in initiatives to secure data accessData security • Assess demand management and improve citizen services’ QoSQoS improvement • Be a preferred System Integrator for turnkey solutionsTurnkey provider 17 •*BPI: Business Process Improvement Shubham Bhattacharya
  18. 18. Create new offerings in e-Government solutions • Improve G2C* engagement: ease data collection, service provisioning Citizen engagement • Improve G2B* interaction: boost economic activity G2B engagement • Alleviate corruption: reduce monopoly & discretion, raise accountability Transaction Transparency 18 *G2C: Governmentto Citizen; G2B: Governmentto Business Shubham Bhattacharya
  19. 19. THE IMPACT & FIT The alignment test 19
  20. 20. Organizational implications… Is there scope for technology development? Can current research capabilities be leveraged? Is there a need to augment current research capabilities? 20Shubham Bhattacharya
  21. 21. Thoughts…? 21

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