The AI-Driven Blue Ocean: Reimagining Innovation


DOI: https://doi.org/10.15308/Sinteza-2026-394-399
Authors:
Slavko Alčaković
Gordana Dobrijević

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Keywords:
Blue Ocean Strategy, AI, Value Innovation, Business Model Innovation, ERRC Framework


Abstract:
Red Ocean has become a common playground for today’s organizations, with fierce competition in all business spheres. In this paper we investigate whether the synthesis of Blue Ocean Strategy and artificial intelligence (AI) can redefine organizational growth and lead to innovation. By examining the AI-enhanced Four Actions Framework (the ERRC grid: Eliminate, Reduce, Raise, Create), this study investigates the shift of AI from an IT tool to a driver of business model innovation. Our analysis shows that global organisational AI adoption may serve as a technological boost which changes the traditional trade-off of cost vs. value. Empirical data show that AI creates trillions of dollars in retail, banking, and manufacturing. It also significantly reduces time-to-market by automating routine tasks and increasing hyper-personalization. Still, there is an important limitation to it - although AI can exceptionally accelerate creation of ideas, it cannot compensate for the lack of knowledge in human domain, since less competent people who perform tasks with AI get lower results compared to experts. We conclude that even though AI can be used in generating strategies, human knowledge is still vital for executing them.

CITATION:

IEEE format

S. Alčaković, G. Dobrijević, “The AI-Driven Blue Ocean: Reimagining Innovation,” in Sinteza 2026 - International Scientific Conference on Information Technology, Computer Science, and Data Science, Belgrade, Singidunum University, Serbia, 2026, pp. 394-399. doi:10.15308/Sinteza-2026-394-399

APA format

Alčaković, S., Dobrijević, G. (2026). The AI-Driven Blue Ocean: Reimagining Innovation. Paper presented at Sinteza 2026 - International Scientific Conference on Information Technology, Computer Science, and Data Science. doi:10.15308/Sinteza-2026-394-399

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