Blue Ocean Strategy
for Museums activities and operation of historical sites and buildings (ISIC 9102)
Blue Ocean Strategy (BOS) earns a high score of 8 due to its potential to revolutionize the often-traditional museums and historical sites industry. The industry frequently operates in a 'red ocean' scenario, competing for limited visitor attention and funding. BOS offers a structured approach to...
Eliminate · Reduce · Raise · Create
- Overreliance on static text panels and glass cases These methods often overwhelm visitors and hinder engagement, especially for younger generations and those seeking active learning. Eliminating them reduces setup costs and encourages dynamic presentation.
- Fixed, linear visitor routes and pre-defined narratives Such rigid structures limit visitor autonomy and prevent personalized exploration, alienating those with different interests or time constraints. Eliminating them allows for more organic, self-directed discovery.
- Strict 'no touch' policies for all artifacts While preservation is key, blanket restrictions limit tactile learning and hands-on engagement, crucial for deeper understanding and connection for many visitor segments. This fosters a passive viewing experience.
- Sole focus on academic experts as content authorities Over-reliance on a single, expert-driven perspective can alienate broader audiences seeking diverse interpretations or personal relevance. Shifting this can lower expert dependency costs and broaden appeal.
- Vast physical storage of rarely displayed collections Maintaining extensive physical archives for infrequent display incurs significant costs in space, preservation, and staffing. Reducing this burden allows resources to be reallocated to visitor-facing innovation.
- High general admission fees for basic access Steep entry prices act as a significant barrier for non-customers and families, limiting access and perceived value. Lowering these can attract a broader, more diverse audience base, boosting overall engagement.
- Formal, didactic docent-led tours While valuable for some, these traditional tours can feel restrictive and passive for others, limiting individual discovery and interaction. Reducing their prevalence encourages more self-paced or interactive alternatives.
- Immersive, multi-sensory storytelling experiences Elevating the use of sound, light, scent, and tactile elements moves beyond purely visual engagement, creating memorable, emotional connections to historical narratives. This makes history feel alive and relevant.
- Personalized content delivery and visitor pathways Tailoring the experience to individual interests, pace, and learning styles through digital or physical means significantly enhances engagement and perceived value. This transforms a generic visit into a personal journey.
- Community co-creation and participatory interpretation Involving local communities and diverse voices in shaping exhibits and programs increases relevance and ownership, fostering deeper connections and attracting new visitor segments. It shifts from institutional monologue to dialogue.
- Direct relevance to contemporary societal issues Explicitly connecting historical events and artifacts to present-day challenges and conversations makes the past immediately pertinent, attracting visitors seeking understanding and context for current affairs.
- Gamified educational quests and interactive challenges Introducing game mechanics transforms passive viewing into active problem-solving and discovery, appealing especially to younger audiences and families. It makes learning engaging and fun, fostering deeper understanding.
- Digital twin experiences and virtual exploration Offering high-fidelity digital replicas of sites and artifacts allows for global access, pre-visit engagement, and deeper digital interaction. This expands reach beyond physical limitations and creates new revenue streams.
- AI-powered conversational historical guides Implementing AI guides provides on-demand, personalized information and answers, enhancing the visitor experience with intelligent interaction. This offers a scalable and always-available expert presence without high staffing costs.
- Hybrid physical-digital co-creation workshops Allowing visitors to physically create objects while integrating digital tools for design or historical context offers a unique, hands-on, and memorable experience. This blends traditional crafts with modern technology and personalization.
- Flexible subscription or membership models for access Moving beyond single-entry tickets to models that offer ongoing access to physical sites, digital content, and exclusive events encourages repeat visits and builds a loyal community. This stabilizes revenue and fosters deeper engagement.
This ERRC grid aims to unlock a new market space by transforming museums and historical sites into dynamic, personalized, and interactive learning hubs. By shedding outdated, passive presentation methods and embracing technology and participatory design, we can attract 'experience-seeking non-visitors' who find traditional institutions inaccessible or unengaging. They would switch because this new offering provides relevant, emotionally resonant experiences that connect history to their lives through active discovery and co-creation, rather than passive consumption.
Strategic Overview
Blue Ocean Strategy (BOS) provides a compelling framework for 'Museums activities and operation of historical sites and buildings' to break free from the conventional competition for visitors and funding within the existing 'red ocean' of the cultural sector. Instead of competing on traditional metrics or making incremental improvements to existing offerings, BOS encourages creating uncontested market space, making competition irrelevant. This involves simultaneously pursuing differentiation and low cost, known as 'value innovation.' For cultural institutions, this means moving beyond the traditional exhibit-focused model to conceive entirely new categories of experiences or services.
This strategy is particularly pertinent for an industry grappling with challenges such as 'Declining or Stagnating Visitor Numbers' (MD01), 'Visitor Fatigue & Engagement' (MD08), 'Maintaining Relevance & Innovation' (MD07), and 'Funding Gaps and Resource Allocation' (IN05). By identifying and capturing new demand, Blue Ocean Strategy can lead to significant revenue growth, enhanced public relevance, and a sustainable future by offering unique value propositions that appeal to non-customers—those who currently do not engage with museums or historical sites.
4 strategic insights for this industry
Identifying and Converting Non-Customers
BOS emphasizes looking beyond current visitors to understand why non-customers (people who rarely or never visit cultural institutions) choose alternatives. These non-customers represent the biggest opportunity for new demand. For example, a historical site might realize that many local families with young children are 'non-customers' because they perceive museums as 'boring' or 'too quiet.' This insight can drive creation of active, play-based historical experiences.
Creating New Value Curves with the ERRC Grid
The Eliminate-Reduce-Raise-Create (ERRC) grid is central to BOS. It forces institutions to challenge industry conventions: What attributes of traditional museum visits can be Eliminated or Reduced (e.g., quiet reverence, static displays)? What can be Raised far beyond industry standards (e.g., immersive storytelling, personal interaction)? What entirely New elements can be Created (e.g., interactive VR history, escape room-style historical puzzles, community co-curation)? This leads to fundamentally different value propositions.
Shifting Focus from Competition to Value Innovation
Instead of benchmarking against other museums or historical sites, BOS encourages looking across alternative industries (e.g., entertainment, education, tourism, wellness) to identify best practices and potential value innovations. For instance, a historical house might draw inspiration from wellness retreats to offer 'historical mindfulness' sessions, thereby creating a new category of experience and appealing to a new audience.
Leveraging Digital and Immersive Technologies for New Markets
Digital technologies offer fertile ground for Blue Ocean creation. Virtual reality historical reconstructions, augmented reality tours, gamified learning platforms, or interactive online archives that allow global participation can create new market spaces that are not bound by physical location or traditional visitation patterns. This can significantly reduce costs associated with physical presence while raising accessibility and engagement.
Prioritized actions for this industry
Conduct a systematic 'Pioneer, Migrator, Settler' (PMS) analysis of current and potential offerings.
Evaluate existing and planned programs to identify 'settler' (me-too) offerings, 'migrator' (improved but not fundamentally new) offerings, and 'pioneer' (blue ocean) ideas. This provides a clear picture of the innovation landscape and highlights where true new value creation can occur.
Apply the Eliminate-Reduce-Raise-Create (ERRC) grid to redefine core experiences.
Challenge assumptions about 'what a museum or historical site must be.' Brainstorm what can be eliminated (e.g., silent galleries), reduced (e.g., didactic text), raised (e.g., immersive storytelling, personal interpretation), and created (e.g., co-created content, interactive digital narratives). This leads to a new value curve.
Develop and launch pilot 'Blue Ocean' experiences targeting identified non-customer segments.
Based on ERRC and non-customer analysis, create specific, innovative programs that address the unmet needs of non-customers or significantly differentiate from existing offerings. Start with pilot projects to test viability and gather feedback before full-scale implementation. Examples include 'History Hackathons' at a historical site or 'Sensory Archaeology' exhibits.
Form strategic partnerships with organizations from 'non-traditional' sectors.
Collaborate with technology companies, gaming studios, performing arts groups, wellness providers, or local businesses to co-create hybrid experiences. This can expand reach, diversify funding streams, and bring in new perspectives for value innovation.
From quick wins to long-term transformation
- Conduct a 'strategy canvas' exercise to visualize current value curves of the institution and its key competitors/alternatives, identifying areas for differentiation.
- Internal workshops to identify 'non-customers' for existing offerings and brainstorm reasons for non-consumption.
- Cross-functional teams from different departments (curatorial, education, marketing, operations) to work on Blue Ocean ideation.
- Develop 'buyer utility maps' to pinpoint areas where the institution can deliver exceptional, new utility to various stakeholder groups (visitors, educators, researchers, community).
- Allocate a dedicated budget for 'blue ocean' experimentation and R&D, recognizing that not all innovations will succeed.
- Pilot small-scale, innovative programs or digital offerings designed to attract new segments identified through non-customer analysis.
- Embed Blue Ocean principles into the institutional strategic planning process, making value innovation a core organizational competency.
- Redesign internal processes and potentially organizational structure to support agility and rapid prototyping of new experiences.
- Cultivate a culture that embraces calculated risk-taking and learning from failures, fostering continuous innovation beyond traditional preservation roles.
- Mistaking incremental improvement for blue ocean creation: Simply adding a new exhibit or improving an old one is not a blue ocean.
- Risk aversion: Fear of deviating from traditional museum practices or concerns about alienating existing donors/visitors.
- Insufficient funding for innovation: Blue Ocean creation requires investment in research, development, and piloting.
- Failure to communicate new value: Without clear communication, new offerings may not attract the intended non-customer segments.
- Lack of organizational alignment: Innovation efforts may be undermined if not supported by leadership and integrated across departments.
Measuring strategic progress
| Metric | Description | Target Benchmark |
|---|---|---|
| Non-Customer Conversion Rate | Percentage of individuals identified as non-customers who convert into first-time visitors for blue ocean offerings. | Achieve 20% conversion from identified non-customer segments within 2 years of launch. |
| Revenue from New Experiences | Percentage of total operating revenue generated from newly created 'blue ocean' programs or services. | Target 15-20% of total revenue from blue ocean offerings within 3-5 years. |
| Media & Public Engagement (New Narratives) | Number of unique media mentions, social media shares, and public discourse related to innovative, blue ocean initiatives, reflecting new relevance. | Increase positive media mentions by 30% related to innovation annually. |
| Visitor Diversity Index | Measurement of the demographic and psychographic diversity of visitors to new blue ocean offerings compared to traditional offerings, indicating broader appeal. | Significant increase in visitor diversity scores (e.g., 25% wider reach across age, interest, and cultural groups). |
Other strategy analyses for Museums activities and operation of historical sites and buildings
Also see: Blue Ocean Strategy Framework