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Dual Innovation has evolved into a need for organizations in today's fiercely competitive markets.
Innovation Management entails overseeing the entirety of an organization's Innovation process. The Innovation Management process consists of steps ranging from conception through effective implementation, including decision-making, action-taking, and the formulation and execution of an Innovation Strategy.
Organized and cutting-edge Innovation Management requires 2 core competencies:
- Discovering new products.
- Taking advantage of current possibilities.
For such ambidexterity, firms need an Innovation Management Model to help them Innovate more efficiently and successfully.
Effective Dual Innovation Management Systems in enterprises are predicated on 4 fundamental premise, all of which are seen as necessary conditions:
- Balanced Portfolio Approach.
- Equal importance to Exploitation and Exploration.
- Separation of Exploitation and Exploration initiatives.
- Support by a proper Idea Management System.
Since effective Innovation Management also rely on additional factors, these 4 prerequisites are not exhaustive.
Let's examine some of these circumstances in further detail.
Balanced Portfolio Approach
Innovation Management employs a balanced portfolio strategy. The whole Innovation portfolio may be subdivided into Exploration- and Exploration-focused Innovation projects.
Exploitation-focused initiatives relate to operating the main business by applying and enhancing existing Business Models or technology competencies.
Equal importance to Exploitation and Exploration
Exploration and Exploitation projects are equally crucial to a company's long-term viability, thus top executives must be on board with giving them the same degree of attention.
Exploration endeavors cannot thrive without the unwavering support of the company's senior management, notably the CEO.
It is essential for the success of Innovation ventures that the senior management has a comprehensive grasp before to devoting time and resources to really exploratory projects.
Receiving permanent support and appropriate funding for Exploration efforts is a specific implication of onboarding senior leaders.
Allocating the appropriate proportion of a business's resources between Exploration and Exploitation is dependent on the enterprise's Business Strategy and circumstances, among other factors. This should be the CEO's responsibility.
Separation of Exploitation and Exploration initiatives
Exploration-focused enterprises are distinguished from Exploitation-focused ventures based on organizational anchoring, governance, and finance views.
The operational business units are intertwined with businesses centered on Exploitation.
Exploitation-focused initiatives include core Transformations, i.e., radically redefining how present business is conducted.
Innovation Governance is the responsibility of a business unit's decision-makers, accompanied by a specialized Innovation Board.
Exploration-focused ventures are conducted by a dedicated unit. The organization is overseen by a "chief explorer" who reports directly to the CEO.
Exploration-focused endeavors relate to Strategic Transformations, i.e. modifying the way business is conducted.
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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.
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