Much of business today is caught up in managing short-term change that is growing in complexity and challenges.
So the challenges in the past year have been highly focused on supply chain disruptions, plugging gaps in technology solutions that can provide a higher flexible, agile, and advanced planning and production environment and continue to keep moving towards securing a more sustainable future that reflects the need to become carbon neutral, net zero.
Yet disruption is increasing; weare in a volatile world of constant change.
Today’s systems are highly stretched and have been designed and built for a steady, repeating business, the era of yesterday. Flexibility, agility, and adaptability have yet to be addressed sufficiently in design or mind shifts for our present and future operations to provide a different, more agile operating environment. Consistently has been the norm, whereas today it reacts to constant change coming from multiple, often unpredictable situations.
During May and June 2023, I worked through and concluded my thinking on why we needed to change our Innovation approach from far to often a linear one, and consider a new, more up-to-date, and dynamic solution for managing innovation, one that recognises the non-linear nature of so much of our undertakings today in innovation, from discovery to commercialisation.
I have called this the Composable Innovation Enterprise Framework– here is why and what went into this proposal that I feel should be adopted for managing innovation in the future.
As the investigation, validation, and viewpoints were built up over several posts, I felt summarising the series here gives you the appetite to delve into the posts themselves.
We need to shift our innovative thinking from static to dynamic.
We have been in very static, traditional approaches to innovation, very segmented and often insular, and as so often happens in innovation, it has complexities that seemingly grow and multiple changes, partly from what we discover in the development of new solutions but partly from far more rapid changes in the business landscape and our current innovation process often breaks down and limits the ability to manage this across the whole development to delivery lifecycle.
We need systems and processes that are flexible, adaptable, and can enable continuous improvements but are fully connected, transparent, and integrated across the entire business. We need to approach innovation differently through connected agility, have speed and automation more central, and provide roles for a great diverse set of participants.
A system that encourages forming strategic alliances, partnerships, and knowledge sharing to drive innovation and create shared value in open, thoughtful, and collaborative ways. This is where technology enables these connections and triggers different thinking in the quest for moving toward more extraordinary valuable solutions—the “connected” value of behaviours thinking ecosystems and operating on collaborative platforms.
I believe that innovation ecosystems transform how we approach and manage innovation.The value is in developing them outand here is why
By embracing the power of ecosystems, we can tap into the collective intelligence and resources of diverse partners, leading to breakthrough solutions and sustained growth. This document will explore the key aspects of innovation ecosystems and their value proposition.
Opening up our thinking toward ecosystems has a powerful effect: As we shift our mindset to embrace ecosystems, we experience a profound shift in our perspectives. Engaging different partners fosters emergent thinking and evolves our approach to managing relationships within these ecosystems.
Increased interactions and tightly controlled activities drive synergies: Ecosystem designs require enhanced interactions within the community. Activities within the ecosystem need to be tightly controlled to unlock the synergistic effects. Effective relationship management becomes crucial in driving innovation and adapting to the evolving ecosystem concept.
Agility and strong orchestration are essential for new business models: Ecosystems that give rise to new business models require a high capacity for agility within participating organizations. The dynamics of these ecosystems stretch internal capabilities and competencies. A strong orchestrator is needed to manage the challenges and cultural biases that can hinder progress.
Aligning partners based on needs rather than organizational priorities: Aligning partners within an ecosystem is different from aligning them solely to one organization’s needs. In the past, we adapted to the requirements of dominant organizations. In an ecosystem, partners align based on the platform’s needs, requiring a shift in perspective and a collaborative approach.
Nurturing the health of the ecosystem: The health of an ecosystem depends on three fundamental aspects: a. Recognizing the value each participant brings to the ecosystem, even if their values differ. b. Achieving critical mass within the ecosystem enhances robustness and maximizes combined effects. c. Fostering continuous performance and improvement through joint learning, leading to optimization effects and increased relevance.
Assessing partners’ capabilities and managing strategic questions: Assessing partners’ ability to deliver their commitments is crucial, as it is often an unknown factor. Strategic questions need to be addressed, such as measuring the offering’s value within the ecosystem, understanding dependencies, managing risk, and estimating the timing for adoption.
The value of collaboration in tackling complex challenges: Innovation ecosystems offer significant benefits when addressing complex challenges that no single organization can solve alone. By fostering collaboration, knowledge exchange, and discovery, these ecosystems enable the development of innovative solutions that leverage diverse expertise.
The power of digital platforms and ecosystem design: Digital platforms play a central role in enabling collaborative environments within innovation ecosystems. Ecosystem design relies on building networks and relationships around valuable focal points, allowing for continuous interactions, knowledge sharing, and co-creation.
Benefits of innovation ecosystems: Participating in innovation ecosystems offers several advantages, including a. Access to a broader range of resources and expertise. b. Increased collaborations and co-creation opportunities. c. Scalability and speed in innovation efforts. d. Flexibility and adaptability in response to market changes. e. Potential for sustainability and social impact.
Conclusion:
Innovation ecosystems provide a powerful framework for driving collaborative innovation and unlocking new value. By embracing these ecosystems, organizations can tap into the collective intelligence, resources, and diverse perspectives necessary to tackle complex challenges, achieve sustainable growth, and make a lasting impact.
Through digital platforms and strategic partnerships, we can shape the future of innovation and create a more connected and prosperous world.
There needs to be a fundamental shift in how we manage innovation, which needs the power of ecosystem thinking and design. Not only in thinking and design but in how we structure its architecture, one based on platforms, open apps, and a marketplace where like-minded people and organizations go and participate in building new impactful innovation solutions together. This needs to be in open, highly collaborative ecosystems.
We need a better conceptual framework to build, one based on knowledge-based intelligence and well-grounded, driven by dynamic and constant interactions, events, and processes, so all involved can be engaged in building solutions that have fresh impact and value within the market space identified.
My mind map of the over-arching aims of a new innovation narrative is shown below.
Innovation & Ecosystems need to be our new thinking of design and delivery
An ecosystem approach on a common, shared technology platform that can significantly enhance the discovery, experimentation, exchange, exploring, and exploiting all the diverse skills and expertise from idea to commercialization and life cycle development and maturity.
The increased pace of change requires the ability to deploy, activate and utilize resources and assets to extract the potential through the diversity of the network formed within the ecosystem and the relationships engaged in the mutual pursuit
The end result needs to show actual robustness, genuinely dynamic and holistic in its dimensions and offerings, proving among its metrics faster learning rates, leveraging all that a technology-enabled platform offers, actual collaborations and shared engagements, supporting knowledge, data, insights, and people.
Open Collaboration needs to be top of mind
Innovation needs to rely increasingly on interconnected organizations organized around a central focal point of value and impact. An ecosystem design so organizations can act differently on strategies, business models, leadership, and customer engagement to build new value and worth.
We all need to recognize that Innovation and Ecosystems go together they make the potential for more sustainable solutions, they are the new combination that enables your thinking and design of new concepts and solutions to be “worked upon” in a more open, collaborative way where a richer diversity of thinking “comes into play” and the end result has that potential to be so much better than the sum of all the parts, it magnifies the sum!
I can remember getting completely “hooked” on Business Ecosystems by a series from Deliottes and one specific report, introduced and coordinated by Eamonn Kelley, with many contributors including Kelly Machese, Anna Muoio, John Hagel, and Larry Keeley. It was called “Business ecosystems come of age” and maybe it did not change my life, but it gave it a clearer focus- innovation ecosystems. Take a read, it is well worth it, its value then, 2015 has only matured in my mind.
I was also looking at another great piece by Deloitte on tapping into the Silicon Valley innovation ecosystem under a report called “How to Innovate the Silicon Valley Way” that came out in 2016. Another great motivation for focusing on innovation ecosystems.
One question asked in the Silicon Valley piece was “Why should enterprises give up transactional approaches in favor of dynamic, ecosystem-led innovation?
Today I would reverse that question “Why would any company still be locked into transactional approaches only functioning on its own resources?”
Today the struggle is to deal with increasing complexity, undoing the “knot” of difficult challenges and these cannot be undone or solved without collaborations outside one organization’s walls. We need to push this even further and totally accept that the hardest but best collaborations come from being involved in cross-industry or sector innovation systems.
I completed a series of posts in April 2023, published on this posting site, on cross-sector needs when considering or working in innovation ecosystems.
To get to a good understanding of cross-sector innovation ecosystems collaborations, you need to take a very considered holistic view of what is needed in any collaboration, let alone cutting across sectors to generate a successful outcome. All the elements of skills, processes, tools, capabilities, and behaviors are essential in supporting an effective collaboration across sectors that need to be involved.
I have summarized the key points of these four posts; click on the links referred to. I have outlined the multiple needs to consider so you are more aware of the differences and needs of managing within an ecosystem of collaborators.
After a series of posts introducing and explaining the thinking and design behind the Composable Innovation Enterprise Framework, I thought it would be a good idea to put this into a sequence of visuals that should take you through this to provide a decent understanding of its make-up and logic.
Organizations in today’s business environment need to adapt rapidly and dynamically, have the need to bring the innovation management process into a constant technological advancement, and be more tailored in its design by their own specific needs and not “offered” as a rigid set of solutions. We need to embrace a significant change in the way we “set about” innovation.
If you are interested in reading more in the series I have been posting then here are the links in the order of posting.
The importance here is recognizing the shift in mindset and thinking towards a Building Block approach to build up the Innovation Stacks. Each stack “sits” on a technology platform. Thinking through what this means requires understanding, relating, and putting a clear context of innovation, what you want to achieve, and how to set about this.
In my view any new approach to innovation needs to aim to achieve interdependent and interlocking innovation, solving problems that have not been addressed before and offering sustainable value, impact, and returns to all involved or significantly improving on the existing solutions. Today we are missing a comprehensive structure or innovation process to achieve this, we need a radically different approach to managing innovation.
I am suggesting a vertical and horizontal design applying innovation stack and building block approaches, all “housed” on a technology platform. This post explains this thinking, and validation and provides the way I envisage this.
Nothing can work in isolation.
We need an Innovation Mandate calling for a Radical Re-design of how we undertake innovation management, it is needed to bring innovation management into the 21st century in design and approaches.
I believe today; the innovation management process requires this fresh mandate to drive change to bring the process into today’s more technical period where our systems need to operate seamlessly and flow across the organization and the entire innovation process.
Introduction: Innovation ecosystems have emerged as powerful catalysts for driving transformative change and fostering collaborative solutions in today’s complex and interconnected business landscape.
As organizations open up their thinking and embrace ecosystem approaches, they experience a profound shift in perspective, recognizing the value of diverse partnerships and the need for new management models.
I have written about the value of innovation ecosystems in thinking and design. Over a series of posts, this has built up different arguments or points of value.
Here I am attempting to summarize my thinking today.
I have put them into two parts, both shared here; each highlights a different emphasis on the value of innovation ecosystems but has several cross-over points, seen in different ways.
Innovation is a complex process that requires effective connections and collaborations among individuals and teams.
Stepping back, I want to draw down on a series of perspectives I have found invaluable. A very inspirational article by Larry Schmitt on the Innovation Stack added to my thinking about innovation stacks. Then the depth of work Sangeet Paul Choudary has explored around Platforms and his Building Block Thesis is terrific.
Both of these contributions have helped me build further upon all the diverse viewpoints and strands of thoughts I have been researching for my solution framework, one of building out innovation stacks, building blocks, and the modular and component approaches for challenging the existing designs for any innovation management process.
My fun has been piecing these together to lead me to my suggested Vertical and Horizontal Framework for achieving a different innovation management design. I will go into the final proposed components in my next post. Here I offer a different perspective of innovation that leads to proposing such a change.
