Editor's Note: If you are interested in becoming an expert on Innovation Management, take a look at Flevy's Innovation Management Frameworks offering here.  This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts.  By learning and applying these concepts, you can stay ahead of the curve.  Full details here.

10914592880?profile=RESIZE_710xWhen new technology and rivals cause disruption in industry markets, many long-standing firms have to expend great effort to survive.  One of the possible causes of disruption is insufficient readiness to produce new products and services during unpredictable times.

Some firms form partnerships in order to mitigate disruptions.  Productive collaborations need the proper people, procedures, and organizational support—a whole ecosystem.

Developing a suitable Innovation Ecosystem is essential for ensuring success and identifying and managing causes of conflict.

Conventional Innovation Management is incapable of meeting present requirements.  Dual Innovation has evolved into a need for organizations in today's industries to withstand the fierce competition.

Dual Innovation refers to expanding existing Business Models in new ways while simultaneously developing entirely new Business Models.  For such ambidexterity, firms need to have an Innovation Management Model that assists them in innovating more efficaciously and sustainably.

The contemporary technique of Dual Innovation is based on 3 Innovation Fields and two strategic Action Directions.

The 2 strategic Action Directions are:

  1. Adapt—Modification of existing fundamental business or Operating Models.
  2. Scale—The intensification of validated, far-reaching, or even disruptive Innovation concepts in order to cause large business effect.

The 3 Innovation Fields have been christened "Playing Fields," and each has its own conditions:

  1. Playing Field 1—Optimize the Core.
  2. Playing Field 2—Reshape the Core.
  3. Playing Field 3—Create the New.

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The 3 Innovation Playing Fields are a consequence of the connection and influence of Innovation on the core business.  The proximity of the Playing Fields to the core business, which is the basis for their distinctiveness, relates to:

  • Business Model.
  • Technological capabilities, and
  • Implicitly, to time scale.

Other elements that contribute to the uniqueness of each Playing Field include accounting, metrics, methodologies, and tools, as well as organizational and individual requirements.  For any Playing Field to be effective, it takes devoted leadership and administration.

The 3 Innovation Playing Fields are distinct in the following ways:

  1. Playing Field 1—Optimize the Core—involves a Centralized Ecosystem Strategy with clear and distinct problems/solutions, partnering with linkups to the prevalent Business Model, a focus on ensuring value, and a stable industry.
  2. Playing Field 2—Reshape the Core—is contingent on a mixed Ecosystem Strategy, i.e., implementing both Centralized and/or Adaptive methods concurrently or sequentially.
  3. Playing Field 3—Create the New—is based on the Adaptive Ecosystem Strategy, the principal requirements for which are partners with diverse competencies, an emphasis on value development, and flexibility vis-a-vis relatedness to industry.

The 2 Innovation streams - Playing Fields 1 and 3 - supply Playing Field 2. (Reshape the Core).

Innovation activities across all 3 Playing Fields need the selection of the optimal partner Ecosystem for success. 

Adaptive Ecosystems are suitable for sectors in flux where there is a great deal of uncertainty and the general circumstances are not yet determined.  Centralized Ecosystems are efficient in mature sectors and stable environments.

Adopting the most suitable partner Ecosystem is accomplished by relating the unique objectives and motivations of the Playing Fields to the characteristics of the 2 Ecosystem types.  Such integration yields the following 3 models for managing dual innovation ecosystems:

  • Model 1—where both Business Unit Focus and Corporate Focus result in an unified Ecosystem.
  • Model 2—where Corporate Focus is only necessary since the ecosystem is centralized.
  • Model 3—When a Business Unit-specific emphasis is required for the Exploration of new concepts.

Interested in learning more about Dual Innovation Ecosystem Strategy?  You can download an editable PowerPoint presentation on Dual Innovation Ecosystem Strategy here on the Flevy documents marketplace.

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To be competitive and sustain growth, we need to constantly develop new products, services, processes, technologies, and business models.  In other words, we need to constantly innovate.

Ironically, the more we grow, the harder it becomes to innovate. Large organizations tend to be far better executors than they are innovators.  To effectively manage the Innovation process, we need to master both the art and science of Innovation.  Only then can we leverage Innovation as a Competitive Advantage, instead of viewing Innovation as a potential disruptive threat.

Learn about our Innovation Management Best Practice Frameworks here.

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