Spirited News & Observations II -- NGE/Baxter

WDW1974

Well-Known Member
Original Poster
OK ... let's start out with something that might give you a headache. ... I have hesitated to post anything related to this because, aside from giving me a headache, it runs counter to the capitalist structure that has worked to elevate both America and global innovation in delivering on the promise of ideas that were once only things to dream of.

That said, this news speaks to a major departure from the Disney we all know and brings with it problems aplenty. First and foremost, much of the problem here rests with a significant subset of corporate elites who subscribe to BOS -- Blue Ocean Strategy. All the while, these same executives have a profound misunderstanding of the foundation on which it rests and, even worse, are applying it to brands/products/life experiences incompatible with such flawed strategizing.

As I said, it gave me a headache. It gives me headaches. And, yes, Bob Iger is a big believer in Blue Ocean.
Within the top ranks of TWDC, it has not gone without notice that 'outsiders' who receive access to and the ear of The Weatherman are followers of the BOS way of thinking. Very much about utilitarian marketing paired to micro and hyper-targeted cost/price modeling. "Value Innovation" is something pounded away by Disney now, and this is directly drawn from BOS.

.. .um, for those who object to the use of the terminology 'value engineering', maybe this makes it better for you ...

Blue Ocean Strategy is stunningly basic in its footprint. Essentially, you just stop -- STOP -- competing in your industry and seek only to exploit your existing base. Competition is deemed irrelevant and can be ignored because you are not drawing from that 'ocean' but poaching in your own pond instead. (Many critics have made unflattering parallels to cult building and the need to drop a company or product into a defined death cycle for 'blue ocean' to derive the short term results so-called 'red oceans' have consistently delivered and continue to in the longer term.)

I believe Blue Sky mentioned in a few posts that it appeared as though Disney was conceding the O-Town fight. Not so far off, really.

The cost savings, 'lower costs in bringing greater value' is how it is phrased, are on the corporate end and all BOS readings should keep in mind they were drawn for and from the business community.

Walt Disney created a 'blue ocean'. Disneyland was a blue ocean. Walt was an innovator, that is what innovators do. That said, applying BOS to the iconic brand that built the ocean -- the industry -- is contrary to the continued life of the same. (Think: controlled contraction.)

Nevertheless, Bob Iger appears to be a zealous 'believer' in BOS and, as we know too well, technology. The Weatherman has been sold on the idea that predictive modeling is the only way for TWDC to continue to draw profit from P&R. All of NEXT GEN relies on numbers -- here, mathematical formula or coding. When you are turned away from a half empty TS restaurant you really want to eat at, BOS followers have the equation that makes this work to the top executive in Burbank.

As we move forward within this twisted BOS experiment, you may well encounter a time in the near future when you are told there are no rooms at WDW available (to you and your family). You will stay off-site only to learn once you arrive that a significant number of rooms are not filled. According to the math born of BOS, this is factored in as all that matters is delivering what Iger now is referring to as "a more compelling growth mode" while ... his parks 'tag and release' you to the World. No access to a favorite attraction, that is factored in as well.

You want to know why morale is so low and why folks like Tony Baxter are being banished from WDI, look no further than what serves as the foundation for so much of Disney's NEXT GEN experience ... Of course, as Mitch Joel of the Harvard Business Review and something of a proponent of this kind of thinking warns, "The trick is in not making these initiatives a parlor trick, but part of a well-thought out and strategic campaign. Now, take a step back and ask yourself this: How much of my marketing is a true utility for my consumer?."

Or as put by a LinkedIn member named 'MAG', another proponent of the 'blue ocean' scheme:

"We have one client who originally hired us for a Blue Ocean Strategy project — that was very successful, by the way — who is now convinced that Blue Ocean Strategy is a mirage...The trick is to create a sustainable competitive advantage. Maybe the real challenge is to identify the unique DNA of a business and position it so that it is perceived as distinctly different from, and better than, both in-kind and not-in-kind competition."

I think TWDC, I think Bob fumbled that one. Big time. (See Tony Baxter's letter of 'resignation' and start asking questions.)
 

WDW1974

Well-Known Member
Original Poster
^^ Fascinating stuff. Does Tom Staggs adhere to the same lame-brained idea?

Oh, absolutely. It may be as good a reason as any as to why Tom was moved from CFO to head P&R. This is a cancer that came into TWDC first through Strategic Planning in the mid-late 90s and metastasized into what BOS is now.

Sorta how no one viewed Pal Mickey or Destination Disney as anything harmful to WDW when Georgie K was helping develop it around 2002-03. A decade later, this is what we have ... as someone I respect a lot recently said ''fans don't quite understand the 'lag time' between these projects being toyed with and green lit and the actual effects, which often come years down the road.''
 

WDW1974

Well-Known Member
Original Poster
Everyone wondered why Michael Colglazier -- out of everyone out there -- wound up heading the DLR.
Anyone look into his background? ...

Now ... take an old-school Imagineer who knows what works and what doesn't ... make him as useful as an encyclopedia in a wiki-world and watch him slowly lose it as he hopes that someone will rid the Kingdom of the Blue Ocean madness ... and, yet, it doesn't happen.
 

Figments Friend

Well-Known Member
Now ... take an old-school Imagineer who knows what works and what doesn't ... make him as useful as an encyclopedia in a wiki-world and watch him slowly lose it as he hopes that someone will rid the Kingdom of the Blue Ocean madness ... and, yet, it doesn't happen.

Oh man...i SO feel for him.......
Talk about incredibly frustrating. A complete anti-creative atmosphere.
 

Genie of the Lamp

Well-Known Member
^^ Fascinating stuff. Does Tom Staggs adhere to the same lame-brained idea?

Well we know for a fact Bob, Kevin Mayer and Bruce adhere and believe in BOS, so I would imagine Staggs adheres to the same lame-brained idea as well to go along with Rasulo and Franklin as well with many others I could have listed. Sooner or later, Disney is going to start treating themselves like they are a monopoly so don't expect great quality one after another from any of their units esp. the Movie Studios and P&R division. This is also the reason I hate the fact that Iger won't just fix this company internally (of course I wouldn't want him to either). Sure, he acquired Pixar, Marvel, and Lucas Film, but what exciting films do you see in development at WDAS right now and more importantly in the future? Why is their movie studios division losing money and losing their animators? Why is their interactive studios never obtaining a profit? While it's nice to be hands off at times, eventually you're going to have to have your heresay on things and have to take hard stances on pressing issues at hand. So yes TWDC is not willing any more to reach out to new customers rather they are just going to squeeze out every last possible disney addict fanboi they can to achieve their ill minded goal. Iger lacks a vision so what does he do, he takes it upon himself to only satisfy his fanbase at hand and not reach out to potential new ones. Talk about not wanting to internally grow a business here.
 

flynnibus

Premium Member
hrmm... these types of discussions are like psychology.

It's a chicken and the egg - does the scenario exist FIRST and the term is used to formulate and describe the behavior.. or does the strategy exist first, and people implement it.

Look at Apple. From what I've read about Blue Ocean, one could describe Apple's parlay into iTunes Music Store as a Blue Ocean move. But were they working with the theory of 'uncontested waters' to start with.. or did they simply believe building the end to end customer model was the right way to land the ultimate user experience.. and oh.. btw.. make major money for Apple and position it as a runaway leader in the space.

I also do not believe the 'stop what you are doing' is part of any BOS either - but about where to look for new opportunities.

Is it really different than the description of 'green field' opportunities? It's just a strategy of find a gimmick you can promote to customers that benefits you too.. in a uncontested space. It's not really new thinking - just a new way of describing behavior people have been doing previously.

And drawing parallels between 'Value Innovation' and cost cutting is completely wrong. Impacting your cost structure is not simply 'reduce cost'. Its intended to describe innovation that improves you, while also benefiting the customer. Example: Integrating your shipping system with your online ordering system. You benefit from improved efficiencies and reduced labor.. while the customer benefits from faster ship times and things like online order status. THAT is 'Value Innovation' - not the 'value engineering' that has been used synonymously with 'slashing costs' used on this site.

I can certainly see how the foundation being built for NextGen could be described as a Blue Ocean move. As I've been saying for some time now, a move to change the baseline expectation of what experiencing a theme park is like. Instead of competing in a attractions arms-race.. instead step to the side and redefine the experience. In effect, making the competition less relevant and define a new space (new Ocean). There is certainly overlap in the Blue Ocean model and the type of action I was describing.

Does that make them a subscriber to Blue Ocean? I have no idea... I always have had a hard time with people trying to pigeon hole people's behaviors based on models devised independently.

Did I mention I hated psychology? :)
 

Goofyernmost

Well-Known Member
So at what point does Disney go from being a Blue Ocean to a Red Ocean or is that what we are witnessing.

Based on profits, wouldn't one have to say that it is working as we speak? Uni is building things to increase their core, but it will still take a while to beat out Disney or is it even possible considering real estate to ever really beat the old man down and let the Oceans run Red?

Also what prospectus are they using that regains the value of NextGen and how, amortized over how long?
 

scpergj

Well-Known Member
Well...that explains the putrid smell I was getting from this whole thing...

I wonder how this will work when current customers finally get feed up with the stale and poorly maintained parks and stop visiting. Guess the Weatherman will be long gone by the time major losses show up on the books.
 

articos

Well-Known Member
Oh, absolutely. It may be as good a reason as any why Tom was moved from CFO and head of P&R. This is a cancer that came into TWDC first through Strategic Planning in the mid-late 90s and metastasized into what BOS is now.

Sorta how no one viewed Pal Mickey or Destination Disney as anything harmful to WDW when Georgie K was helping develop in around 2002-03. A decade later, this is what we have ... as someone I respect a lot recently said that fans don't quite understand the 'lag time' between these projects being toyed with and green lit and the actual effects, which often come years down the road.
No one realizes how far in advance TWDC works. CFO should never end up in the CEO, President or Chairman spot of a creative company, by definition.
 

WDW1974

Well-Known Member
Original Poster
Oh man...i SO feel for him.......
Talk about incredibly frustrating. A complete anti-creative atmosphere.

Absolutely.

WDI was a MAGIC factory in the truest sense. Hell, the entire company was. Now, it's all about not taking creative risks, burning through money like it is simple waste paper for some things, while being as cheap as can be on others (in other words, reaching down to pick up pennies as dollars fly over their heads).

I can't say Tony was a victim. No one who gets paid what he did to do what he did is a victim. But was he wasted? Was his talent wasted by TWDC? Absolutely.

This is why I want to see him go to UNI. I want to see him unveiling Potter in Hollywood or one of the international UNI park projects and saying ''these are the kind of attractions and themed environments we USED to create when I was at Disney ... only better!''
 

mvieguy

Active Member
When Eisner was in TWDC, Was he a supporter of Blue Ocean. Dont get me wrong. I though Eisner did wonders in the Eighties. however, for whatever Reason once Katzenberg left, and he almost lost Pixar, Eisners Days were numbered. However I always wondered How Effective Eisner was in the 2000's?
 

aladdin2007

Well-Known Member
I believe Blue Sky mentioned in a few posts that it appeared as though Disney was conceding the O-Town fight. Not so far off, really.

What exactly does the above statement mean? TDO is just going to get worse?.
 

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