Since I wrote a post on Red  Ocean Apps, I must write a post about Blue Ocean.

IMG_3053So what exactly is blue ocean, well first let me re-define Red Ocean.  Read Ocean is when there is blood in the water.  The over all point is that there is competition in the market and you have suppliers look and operate like commodities which place supply and price pressure usually resulting in doing extra just to maintain a position in a market.   Blue ocean is the fast food industry and specifically chicken nuggets.  If I’m coming out with a fast food chain, I need to have chicken nuggets and fries a a reasonable price for kids.

But I digress, Blue ocean is an untapped market. Blue ocean strategy is when you and your organization build upon innovation in a new way.

Mankind as had the wheel for over 200,000 years.  Of that 200,000 years, 195,000 of them the fasted pass of man on land was 5 miles and hour.  Blue ocean at that time was any technology beyond the wheel that made mankind able to go faster than 5 miles an hour.

The Challenges

Doing things and blue Ocean is hard. Its is not impossible.  At the end of the day, blue Ocean is what Intel’s Robert Noyce and Gordon Moore did when starting Intel with a one page business plan.

 

To give you a quick history,  Robert Noyce and Gordon Moore were employees under Shockley Semiconductor Laboratory.  William Shockley  (the proprietor) had studied his undergraduate degree at Caltech( California Institute of Technology) and moved east to complete his PhD at MIT  (Massachusetts Institute of Technology).   He wanted to come back home after having success on the east coast.  Shockley graduated in 1936 and immediately started work at Bell Labs. Through the 1930s and ’40s he worked on electron devices, and increasingly with semiconductor materials. This success led to the 1947 creation of the first transistor, in partnership with a few others. That transistor achievement changed the course of human history.

Shockley was brilliant but horrible with management of people. 7 critical employees wanted to leave based upon miserable treatment by Shockley. The men were not willing to leave without Robert Noyce.  They asked him to join them.  He reluctantly accepted a role with them. The now group of 8 men became known as the  Traitorous Eight.   These men are eight men who left Shockley Semiconductor Laboratory in 1957 and started Fairchild Semiconductor.

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As Fairchild started, newly employed by Texas Instruments, Jack Kilby recorded his initial ideas concerning the integrated circuit in July 1958. Jack successfully demonstrating the first working integrated example on 12 September 1958. In his patent application of 6 February 1959, Kilby described his new device as “a body of semiconductor material … wherein all the components of the electronic circuit are completely integrated.” This was the very first integrated circuit.

Six months after Kilby, Robert Noyce at Fairchild Semiconductor developed his own idea of an integrated circuit that solved many practical problems Kilby’s had not. Noyce’s design was made of silicon, whereas Kilby’s chip was made of germanium. Silicon was the first person to ionize Silicon making it a conductor of electricity.  Noyce an other credited were able to develop a new approach to microchips that he believe would change the world. He believed in his Blue Ocean.

Soon the men from the Traitorous Eight started to leave Fairchild Semiconductor.  They were frustrated that things were not going as they anticipated with the new company.  The last two at the company from the Traitorous Eight were Robert Noyce and Gordon Moore.  The two men left Fairchild not knowing what they would do next.

The two men came up with a new idea and created something what was special. The had a secret that they knew how to do better than anyone at the time.  The knew how to create ionized silicon.  They were in an area where sand was all around them.  What better place to create ionized silicon than a place where there was a lot of sand?  So Robert Noyce and Gordon Moore called the friend that helped them finance Fairchild and with a 1 page business plan, and created Intel.

Author Rock took that one page business plan and put up $10,000 of his own cash.  Rock raise the other 2.5 million by selling convertible debentures.   Intel Corporation was founded on July 18, 1968. 47 year later they are still the dominate play in their blue ocean microchip market. Under Intel they created the ionized  silicon chip that you see progress as the feature image above this article.

 

Intel is Still Blue Ocean
Today, Intel is still does amazing work.   Here’s How Intel’s New Chips Could Boost the PC Market from The Motley Fool.  The idea of Silicon Valley without ionized silicon is not possible.  To be clear, Ionized Silicon comes from Silicon.  Silicon comes from sand.  Sand is not a conductor of electricity.  Silicon is not a conductor of electricity.  Ionized silicon is an exceptional conductor of electricity.  Because of Ionized Silicon we have the computers we use today.  Because of Intel’s 10X technology superiority  market dominance, Intel has maintained over an 80% share of the PC microchip market for decades .

The Reality of Blue Ocean

I appreciate that not everyone will want to take the time and pains taking effort required to do something blue ocean.  Blue ocean is hard, but not impossible. With Lean Mobile Apps we can help you do something that is unique buy building a business application strategy which will help you with you companies blue ocean commitment.