Today organizations essential design is for openness, agility and flexibility

October 13, 2013Posted inAbsorptive Capacity, Exploratory Walks & Needs, Impact & Scale, Mapping & Rugged Terrains
Integrated Networks need to be dynamic
Integrated Networks need to be dynamic

There is a need in any framework design for building a new integrated innovation network that it needs to have openness, agility and flexibility purposefully built into it. It is more than likely that in the past design, the legacy within existing systems needs radically dismantling and redesigning to reflect the multitude of changes happening.

The reality today is we have to tear down much of what we have built up and in place to reflect the changes occurring all around us. We need to account both internally, in making a new structure for crucial decisions, based on those far more dispersion principles but also on the external, in how you will be reacting to competition and the challenges being presented in changing market conditions.

The AC components that deepen the capacity to innovate

February 20, 2012Posted inAbsorptive Capacity, Outcomes & Expectancies

Generally, absorptive capacity should be focused on the capacity to make use of existing knowledge both internally and externally, placing the emphasis on the capacity to assimilate and transform it (often differently). It deepens the capacity that lies within an organization for exploring innovation further.

The importance is to develop the ability to achieve “new value recognition”in new and different ways.

How do you go about to recognize value when it is not linked to existing thinking?  Absorptive capacity can be a paradox. You require more external knowledge to ‘push’ beyond your existing knowledge learning and so absorbing from it; you are demanding more absorptive capacity to be in place.  Equally you need to combine this with the need to break down that “prior related knowledge” radically differently, so it can stimulate breakthroughs in your thinking. Absorptive Capacity can pose significant challenges to the organization. How you deal effectively with the absorption of knowledge determines it’s potential to be transformed for new innovative ability and this will be determined partly by  how you structure the attractiveness for a learning environment so it ‘takes hold’ and can be absorbed differently, for different needs.

Absoptive Capacity- Knoweldge Adoption Framework.

Explaining the key components shown in the above diagram

These components make up the essential elements of a ‘knowledge adoption’ innovation system.

Understanding Absorptive Capacity

February 20, 2012Posted inAbsorptive Capacity, System Solution models6 Comments

IFD AC only

Understanding Absorptive Capacity and how it works

“Absorptive capacity” is a term introduced through some academic research by Cohen & Levinthal, back in 1990 to describe an organizations “ability to recognize the value of new, external information (knowledge), assimilate it, and apply it to commercial ends”. Since then there has been significant academic contributions for exploring and validating this, in order to improve innovation performance and competitive advantage, yet it is still not well integrated into our innovation process. Why is that?

What we do need is to do is improve our HR management and network systems to build a more efficient transfer of knowledge throughout the organization so as to acquire and leverage new knowledge . This is part of applying the principles of absorptive capacity as we increasingly use more networks, external partners and collaborate with others we are accessing wider skills, inputs and competencies. We need to invest and learn what this does provide, to aid the innovation process. The theory goes that the more we understand, the more the innovative behavior and capability does goes up in potential and the more we have available a richer innovation choice .

The Model of Absorptive Capacity explores potential and realized knowledge.

Cultivating Absorptive Capacity

February 20, 2012Posted inAbsorptive Capacity, Impact & Scale, System Solution models
The flow of knowledge as our alternative currents
The flow of knowledge as our alternative currents

We need to cultivate Absorptive behaviour and allow it to flow.

We need a system to capture and allow knowledge to flow. For me the adoption model seems to be one worth investigating. If we want to achieve the goal of distributed innovation we need to have in place this possible framework around absorptive capacity to encourage different learning behaviours.. Nesta (www.nesta.org.uk) produced a useful report some time back called “Innovation by Adoption” and I feel this has a good framework that support distributed innovation.

The report argues in a place with a strong absorptive capacity three main outputs subsequently result from the flow of external or distributed knowledge: (1) the creation of new innovation; (2) the creation of new knowledge; and (3) that it does lead to new economic and social value.