Information and communication technology has become a game-changer today, with its impact felt in every sector across the world. In India, IT products and services at $180 billion billing contribute 7.9 percent to the GDP, the bulk of which comes from exports. In exports, the US takes up the lion’s share at 40 percent. Being players in a mature market, not only are US businesses willing to adopt new technologies, but they are also willing to pay well commensurate with the value they derive.
Small and medium IT solution providers try to fight for a place in an overcrowded marketplace unsuccessfully or with marginal success, unable to grow their revenues significantly. Many a time, they are stuck with betting their services revenue streams on a platform that is fast becoming outdated but are still trying to milk it for what it’s worth. Companies offering IT services sometimes are unable to differentiate themselves either through a domain-oriented play or an IP-led play where they leverage a product built by them.
Their greatest dream is to get a toe into a large organization, but it can prove to be elusive since such organizations look for vendors with experience and reputation. Because the SMBs also have difficulty retaining talented employees or finding investors as they cannot promise a right exit, their growth becomes severely restricted.
Do not despair, if you face something similar. If you are ready to break the mold and become a path breaker, Blue Ocean Strategy is the solution for you.
A Game-Changing Strategy
Blue Ocean strategy is being able to create new demand. It is not necessarily revolutionary but is a solution offering that makes competition irrelevant. Instead of going after the same pie as everyone else, find new problems to solve.
The six ingredients to successfully leverage this:
- A willingness to learn, and the perseverance to persist
- The ability to scale horizontally or vertically
- An understanding of trends and predicting the future
- Strong fundamentals
- Networking and nurturing relationships
- Aligning the team and providing them with the necessary training and orientation
To develop your Blue Ocean Strategy, look within, understand your capabilities, and choose your markets wisely; Stick to the course, do not get distracted. It helps bring focus and play with the big boys.
Congruent Experience
Congruent was staring down the barrel of a gun two decades ago because we were trying to jostle in the Red Ocean. But by entering the Retirement Plan industry in the US and handling back-office operations for leading companies, we were able to start specializing in that vertical. So much so that now we offer an IP-based platform in addition to services. We found our niche and developed expertise in the segment through experience as well as by aligning our team with the organizational goals through proper training and certifications. We are invited to bid for projects even in situations where some large vendors are already approved because we speak the business language of our customers.
Remember, choosing the Blue Ocean strategy is only the starting point, not an end in itself – executing the strategy is what will separate the professionals from the amateurs.
