The Nine Stages that are needed for developing an understanding of your innovation capabilities, so as to make them more dynamic and as a result to be at the top of your innovation game.

This “step process” I believe gets you to the point of understanding what innovation capabilities are a better ‘fit’ for the purpose, to deliver on your innovation needs on a consistent, repeatable and evolving basis.

Building innovation capabilities take time; they are complex, highly structured and multi-dimensional. Any structured approach to tackling innovation takes time and considerable commitment. Any learning involves sensing, seizing and then transforming.

We are searching for what makes up the present system and what needs to be part of the future to create a ‘best’ innovation capability environment that is sustainable into the longer-term. Those that can be continually ‘orchestrated’ and constantly adapted to meet the strategic need.

We are striving towards a true ‘innovation coherency premium’ in design, knowing what makes up your core dynamic components. The outcomes are to know where to invest, what to dampen down and what aspects can evolve naturally and be ‘taken along’ as you focus upon the ones that are more dynamic and relevant to your innovation needs.

1. Getting Started – Understanding the Needs & Imperatives of Innovation Fitness

• Why we must travel this critical path for Innovation.
• The meaning of dynamic capabilities and innovation fitness landscapes
• Merging the theory with practical reality to produce new outcomes and positive results.
• Focusing on resources and performance – why is this important
• The problem is knowing what we have and what we really need and seeing the differences

2. The Fuel of Innovation Performance – the dynamics of innovation

• A sharper, clearer focus on innovation resources to meet the strategic need
• What is known about resources to sustain, enhance performance
• Knowing and aligning  your strategic criteria – for sound innovation approaches
• Getting innovation within the right context of your business
• Moving your resources in the right direction takes courage and decisive leadership

3. Getting even more specific – quantification and qualification

• Recognizing the building of scale, change rates and dynamics that happen over time and why we need to constantly build our innovation capabilities.
• Developing the resources to meet the need – structured, focused, clarified by bringing out the necessary discussion.
• An illustrative scenario for a directional innovation fitness landscape map
• Recognizing resources can come beyond the firm and then bringing these in successfully, in gradual steps. Managing within a more open environment.
• Achieving  mutual dependencies to support; recognizing the hindering ones
• Being aware of  the impact of different scenarios in the management of innovation allows for designing a flexible response capability

4. Building the Innovation Fitness Machine – reinforcing feedback, identifying needs

• Recognizing the current status, spotting emerging patterns, seeing spaces and gaps and identifying solutions.
• Beginning the ‘adaptive walk’ to get to higher fitness points needed to compete.
• Clarifying the complementary resources, looking to embed new routines quickly and set up follow through approaches.
• Introducing natural tensions into the system to trigger ‘step change’
• Resource dependence climate, culture, diversity, intensity, and uniqueness
• Reinforcing feedback – watching for dangers, managing the machine capacity, removing the brakes selectively
• Shifting your resources need not deplete or force other people to compete for them – working through the tensions within teams and silos.
• Matching resource dynamics with the innovation value chain & life cycle stages helps maintain momentum
• Simulation modeling the ‘what ifs’ and ‘why’

5. The Strategic Architecture – designing the system to perform as needed

• The step process for designing and executing the architecture design
• Diagnosing performance challenges and road blocks – resolving, moving on
• Lining up the solutions is not a linear process and needs careful management
• Addressing the effects of intangibles in the Strategic Architecture.

6. The Hard Face of Soft(er) factors – the hidden power of intangible resources

• Clarifying the impact of the intangibles and recognizing the time, climate and conditions are significant contributors to innovation activities.
• The different rivalry types: internal and external, inter department, inter projects and working through resolutions to these.
• Reflecting feelings and expectations, addressing all the different needs
• Measuring the tougher parts of intellectual capital
• The real value of your intangible resources
• Recognizing the value of hidden innovation and spotting its occurrence

7. Entering into Competitive Battle – the Dynamics of Rivalry, the Uniqueness of You

• Recognizing, developing, capturing, transforming, avoiding and outmaneuvering
• Your point of choosing what, where, how and when to compete.
• Building capabilities that are unique to you and hard to replicate
• Building sustainability into the innovation equation as ongoing
• Extending the turf, exploiting the situation, pushing beyond, seeking partners.

8. Building and Testing Capabilities to Perform

• Measuring capabilities through different fitness levels and scale.
• Learning to build capabilities as ‘ongoing’ and evolving for changing needs
• Re-Structuring the process for dealing with the dynamics of change
• Knowing the points of impact on performance to enable recognition and reality
• Managing innovation performance progressively across the spectrum of business need through testing and extending capability learning.
• Building from personal to the team, to organizational learning, in measured steps
• Recognizing the role of leadership, achieving strategic alignment and working on broadening out innovation competence at different organizational levels.

9. Keeping the innovation fitness wheels turning, keeping your eyes on the road

• Resolution of conflicting goals, control, and structure
• Dissecting conflicting positions, resolving the impasse
• Knowing the limits of human engagement
• Goals, controls, and measurements can dominate and strangle
• Keeping the measurements simple and clear
• Managing innovation as a critical strategic resource
• Merging the results into a greater alignment to Strategy and Approaches

The end result is looking to generate your fitness landscape

The post Understanding your innovation capabilities to make them more dynamic first appeared on Building Your Innovation & Ecosystem Intelligence.

Building on those that give the necessary dynamic result you are looking for; to purposefully build what is needed to deliver the required result.

I have reconfigured my thinking around what will influence the evolution leading from building ‘just’ internal innovation capabilities to a whole ‘network effect’ from these.

This work just gets more exciting as it evolves.

It relies on how you purposefully build and construct these capabilities and competencies. The orchestration is fundamentally dynamic, full of uncertainties but the need is still to connect the parts to deliver the right result. We need to orchestrate, to build and then conduct and deliver the right results, to the innovation goals we seek.

I was recently reading (again) some work that was undertaken to frame the need for asset orchestration, in different research by Sirmon et al during 2007 and 2008, that focused on the different actions of the manager, or asset orchestrator. They suggest there are three primary stages of structuring, bundling and leveraging resources for the purpose of creating new value for customers and gaining competitive advantages, however, temporary in today’s world. It is why this needs to be dynamic, ever-evolving, to keep orchestrating your assets continually.

These three primary stages can be broken down

The outcomes of the research suggest there are three primary stages of structuring, bundling and leveraging resources for the purpose of creating new value for customers and gaining competitive advantages, however, temporary in today’s world. It is why this needs to be dynamic, ever-evolving, to keep orchestrating your assets continually. These three primary stages can be broken down:

It is why this needs to be dynamic, ever-evolving, to keep orchestrating your assets continually. These three primary stages can be broken down and applied to our need to build a real innovation fitness into our innovation capabilities:

• Structuring involves acquiring, accumulating and divesting resources to form the organization’s resource portfolio.

• Bundling of integrating resources to form capabilities, that can stabilize or provide incremental improvements to existing capabilities, or that enrich and extend existing current capabilities and thirdly, pioneer, which creates new capabilities.

• Leveraging involves a sequence of processes to exploit the organization’s capabilities to take advantage of specific market opportunities. This includes mobilizing, offering a clear plan or vision of needed capabilities, coordinating for ways to integrate these necessary capabilities and finally, deploying to achieve a resource advantage (or gain) that promotes market opportunities and instill more entrepreneurial strategies to exploit new resource configurations

We are all facing these needs for greater asset synchronization or orchestration.

We need to learn also that innovation needs this growing orchestration, due to this increasing move from firm-centric to network-centric innovation. In my understanding of an orchestrator, they need to manage the tempo, knowing where and when to cue in the different players (learning) and to inject the intensity into the performance.

We are dealing with managing the tempo, interpreting the different passages and movements as interactions become distinct, providing fresh value to build upon.

We need to learn to identify, assimilate and exploit far more than ever, the value of knowing your innovation fitness, your dynamics and the terrain you wish to traverse in new innovation activity becomes even more critical. To create and to extract does clearly need to understand the what, why, where, when and how it needs to go about this.

Explore this site to learn more on building the dynamics into your innovation capabilities as I continue to work on building this into a solid methodology and solution-set.

The post The Orchestrator needs to orchestrate your innovation capabilities. first appeared on Building Your Innovation & Ecosystem Intelligence.

Innovation often fails to align with the strategic needs. This is often not the fault of the innovator happily working away with no specific guidelines, apart from the general remit of “we need to be more innovative”, it lies in the boardroom not communicating the board’s needs clearly enough down the organization.

Building up our capacity to innovation does need to understand and reflect the organization’s business activities but it is grasping the value creation aspects that will deliver the necessary capital-efficient and profitable growth.

Even the basic questions often remain unclear, those of are we looking to grow revenue, reduce costs, reduce working capital or improve our fixed capital? I expect the CFO would say “all of them” but each does have implications on the understanding of the fit and eventual role of innovation. Then where does risk fit into the strategic equation for innovation, it lacks often the clarity it needs.

Deciding that capabilities can be better leveraged requires a separation of exploit and explore.

The aligning of strategic direction (and importance) with any capability needs is in the understanding of what activities are diverging with core and those converging, then figuring out the future core. It is the two dynamics of exploitation and exploration we should be leveraging for our innovation and future growth

Today we need to exploit and explore and our capabilities need to be built fit for one of these two purposes. Exploiting is today’s business need, to leverage and improve the existing business and equally, in parallel, explore for tomorrow’s new business growth.

Then we also need to diverge and converge

The diverging ones need to have a real emphasis on improving performance, how they are managed for cash or to eventually sell or dispose of along with those converging on the new ‘known’ core of the business to grow and expand. So by recognizing these and that is not easy in itself, you are beginning to know and identify the capabilities you need to have in place to fix today and make it as healthy as possible, alongside those new capabilities that will create a new winning set of growth and value propositions.

We certainly need bolder investments in knowledge around the make-up of innovation capabilities

I certainly believe there is a real call for fresh and bolder investments in knowledge, in infrastructure that focuses on activities that spur new approaches that lead to innovation. These are not just the traditional ones based on managing today’s core but on finding those innovations that provide new value, the new generation activity that is occurring from recognizing how we can build, yes build for further exploitation (extending the life) and exploration (new understanding) and manage each as separate risk evaluation exercises with different metrics of progress.

We also need a deeper innovation grounding of internal workings and alignment

What I feel we need is a deeper grounding in what is actually going on inside organizations within their innovation activities and how these align with the needs of strategy and what is clearly missing. We start here as it gives us all this clarity and coherence, missing in much of our existing understanding.

We have the real opportunity today, in finding new ways of combining the four emerging forces of knowledge, technology, entrepreneurship, and innovation, which will drive the growth models of tomorrow. It is these that are forming the new innovations ‘black box.’

It is mastering this new ‘black box’ of actual innovation activities, exploring and exploiting the necessary innovation capabilities that are required to be ‘going on’ in organizations to achieve a closer coherence we need to radically improve the innovation performance.

I have plenty of ideas, frames and methods built up to help you make innovation fit and be more coherent in its contribution. Why not find out?

The post Moving towards Innovations Capability Coherence first appeared on Building Your Innovation & Ecosystem Intelligence.

The basic questions that need to be addressed are:

“what are our dynamic capabilities that will deliver innovation impact?

More importantly: “which ones should we focus upon to improve our capabilities and competencies over the longer-term?

We recognize resources are scarce as our starting point

Yet we fail to understand the makeup of innovation. We still don’t understand the parts that contributes to the ‘dynamics’ of innovation or how they combine for the interdependency of the parts we so often need. We fail to ask the questions constantly of which parts have the greater impact to deliver innovation, which is not so important? Innovation is still not treated in any form as a company-wide need, to build the integrated innovation management system or practices, it often stands alone or in pockets of isolated understanding.

We do need to bring innovation increasingly into our core, not just in thinking but in all of what we do and think. It is this holistic way we can make fundamental changes to how we go about our business as recognition of the dependencies is poorly understood.

This is what needs to change and can you answer these questions?

Q: What and where do you place your resources to gain greater impact?

Q: What is important to recognize as needing additional ‘weight and focus’, what capability and competencies need to have a stronger emphasis and why? How can we identify these, make the innovation process more dynamic yet these embed constantly as routines? What would happen if we ignore certain innovation aspects, what would give greater impact to our business?

Q: How can we identify these, make the innovation process more dynamic yet these embed constantly as routines? What would happen if we ignore certain innovation aspects, what would give greater impact to our business?

Q: What would happen if we ignore certain innovation aspects, what would give greater impact to our business? What does it release in precious resources?

Why working towards an Innovation Fitness becomes important

 The pressing need for a firm is to integrate, build and reconfigure internal and external competencies/ capabilities to address rapidly changing environments and its ability to achieve new, more innovative forms in market position.

This calls for more ‘innovation dynamic capability” to be achieved.

Mapping out your innovation capabilities to the task at hand enables you to understand and relate to what is needed. Innovation Fitness Landscapes identify the opportunity spaces on where you need to focus your efforts- the appropriate resources to navigate the business terrain and explore and respond to the opportunities identified and deliver these into the market in a timely executed fashion.

The ability to identifying the emerging patterns provides the need to act and invest, you begin to make adaptive walks, you explore and exploit so as to move you to the higher fitness points where innovation viability is enhanced. To achieve this understanding demands an investment into this deepening of your innovation understanding. is needed to be in place

Greater innovation fitness building equates to more value creation potential. The ability to inter-couple landscape entities and exploit individual interactions alters your dynamics to innovate and improve repeatable cycle times and provides for increasing options to explore.

The ability to inter-couple landscape entities and exploit individual interactions alters your dynamics to innovate and improve repeatable cycle times and provides for increasing options to explore. You begin to build your sustaining capabilities and competencies to not just ‘apply’ to the jobs-on-hand but to the ones you see as offering a promising future.

As you grow in your confidence, you grow your options and in knowing your innovation dynamic capabilities you can leverage and expand your potential and business.

Knowing your innovation capabilities and competencies enables you to drive an increasing innovation agenda that capitalizes on this growing knowledge.

Talk to me on how you can go about this.

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The post Do you REALLY want to know how to innovate? first appeared on Building Your Innovation & Ecosystem Intelligence.

So have you ever asked what inhibits innovation? What would drive innovation success? What aspects of innovation are critical to have so innovative growth can be achieved? Where should a company place its emphasis to gain both an improving impact on its performance and strengthen its innovation capabilities?

Have you ever evaluated your capabilities, competencies, and capacities to innovation in light of a changing landscape?

One where competitors have gained new ground or you have been confronted with a more disruptive product that threatens your established position or has even the potential to threaten your very existence? Your ability to respond to changing positions are often determined by knowing which capabilities and capacities you can call upon and leverage for finding new solutions that accelerate and innovate your position to respond and stay competitive.

If we take the view:

“Innovation is holistic in nature, it needs to be addressed in this way. It covers the entire range of activities necessary to provide value to customers and a satisfactory return to the business. Although creating much of our innovation environment cannot be touched, heard, tasted or seen it can be felt, it is driven by the belief and commitment of our people and how they look towards innovating. It is probably best described as a pervasive attitude that allows business to see beyond the present and create the future. In short, innovation is the engine of change and in today’s fiercely competitive environment resisting change is dangerous.

 The key driver of the organization’s ability to change is innovation. However, simply deciding that the organization has to be innovative is not sufficient. That decision must be backed by actions that create an environment in which people are so comfortable with innovation that they create it”

The difficulty for many is that innovation is a complex process that has many intangibles within the total mix to manage. Management today is far happier managing the ‘harder’ aspects of business, not the ‘softer’ more intangible ones, where innovation often lies. That needs challenging and changing

There are many variables or factors for ‘innovation success’ and often organizations suffer from the inability to sustain innovation over time. There is a failure to fully appreciate or recognize that there are many interdependencies that surround innovation. Often ‘selective’ activities only generate limited success but sustaining innovation is often elusive without a more comprehensive, holistic approach.

Today’s challenges are knowing your Fitness to Innovate.

Firm resources are scarce; we still don’t understand the ‘dynamics’ of innovation, the interdependency of the parts. Which parts have the greater impact, which ones are not so important, they just need to be maintained?

This is what I want to change, I want to establish a way we can understand and build the right capabilities and competencies to meet your innovation aspirations. This needs to address questions like, what and where do you place your resources to gain greater impact? What is important to recognize as needing additional ‘weight and focus’? What capability and competencies need to have a stronger emphasis and why? How can we identify these, make the innovation process more dynamic yet these embed constantly as routines? What would happen if we ignore certain innovation aspects, what would give greater impact to our business?

Finding practical capability identification requires a given structured approach:

Taking a practical approach we can begin to map out existing and future innovation capabilities and needs

1. Identification and classification of existing capabilities
2. Identification and classification of required future capabilities
3. Then, prioritization of these capabilities in light of the core capability criteria and strategic goals.
4. The Gap analysis involves a self-assessment and external clarification and comparison

We never start from blank innovation canvases.

None of us has a ‘blank’ innovation canvas, we have a present position and from our need from our innovation activity, we make choices on how we are going to change, to move from one position to a different one- traversing the landscape to achieve better solutions to meet different goals.

We do need to seriously understand the building of our innovation Fitness Landscape

Recently Ideascale has started to equally raise the importance of knowing your Innovation Fitness and is providing its view on an assessment. I welcome them into this arena for mapping out innovation fitness. They quite rightly state “getting fit as an organization has many benefits”. It is about investing in a fitness plan.

We are taking different approaches to determining innovation fitness, theirs is more general organizational fitness or program ready, mine is building sustaining and dynamic capabilities and capacity for innovation and your future but the critical message by both Ideascale and myself is this vital need for knowing your innovation fitness.Thinking fitness either way is better than none at all

I encourage you to think through ‘fitness’ and what it means to you. You have plenty of resources on this site to explore. Once you have a clearer view on what you want to achieve, then reach out and make contact with your choice of fitness coaches, they can help provide you a better innovating future.

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The post It is all innovation talk, not much real doing. first appeared on Building Your Innovation & Ecosystem Intelligence.

There is a really pressing need in Innovation to tackle and resolve and that’s our capabilities to innovate.

Yet do we know which are the critical factors for sustaining innovation success? What capabilities are needed to be built? What are not so necessary and will occur more naturally due to us finding these dynamic ones? Also, what capabilities that are in place we can stop investing money into on the mistaken belief they contribute to innovation.

It is becoming increasingly vital to understand those critical innovation capabilities for  an organisation to have in place, so as to deliver on the goals and vision required to grow the business and maintain its health for it to prosper and thrive.

The capabilities to beat out the constant threat of competition, meet disruption head on and produce the radical stuff we need to grow and sustain our businesses. This searching for the capabilities that can deliver is getting increasing harder in a more challenging and threatening world of intensified competition.

The question though is this: which are critical, which naturally occur when others begin to be put into place, which has limited or no real effect, or alter the dynamics of our innovation activities? Knowing these and the differences has a real innovators edge, it can help in advancing the ‘return on impact/investment’ (ROII), now that does have real business value in my opinion

Today, we lack this clear system model that draws the critical innovation factors out and gives them their appropriate values so they can be invest into so as to build and strengthen the innovation capacity. Can also the model be ‘pushed’ to equally provide the ability to model different future states and conceive future scenarios through different impact investments and capability needs?

We recognise resources are scarce, so we need to invest in the right ones

We still don’t understand the ‘dynamics’ of innovation, the interdependency of the parts. Which parts have greater impact, which are not so important? Innovation is still not treated company-wide in a holistic way as recognition of the dependencies is poorly understood. This is what needs to change.

What and where do you place your resources to gain greater impact? What is important to recognize as needing additional ‘weight and focus’, what capability and competencies need to have a stronger emphasis and why? How can we identify these, make the innovation process more dynamic yet these embed constantly as routines? What would happen if we ignore certain innovation aspects, what would give greater impact to our business?

Lots of questions that we do need to find answers too.

Greater fitness equates to more value creation potential. The ability to inter-couple landscape entities and exploit individual interactions alters your dynamics to innovate and improve repeatable cycle times and provides for increasing options to explore.

The solution is a framework that shows promise but it needs to go further and advance more into practice. What are the mutual dependencies, how the innovation ‘system’ behaves, what are its more important impact factors which are weaker and what should be considered in the ‘best’ innovation environment?

Building this capabilities to innovation, drawing out the ones that are more dynamic and need the greater focus makes for interesting work. Care to participate and pilot it further?

The post One pressing need in Innovation understanding. first appeared on Building Your Innovation & Ecosystem Intelligence.

Building on those that give the necessary dynamic result you are looking for; to purposefully build what is needed to deliver the required result.

I have reconfigured my thinking around what will influence the evolution leading from building ‘just’ internal innovation capabilities to a whole ‘network effect’ from these.

This work just gets more exciting as it evolves.

It relies on how you purposefully build and construct these capabilities and competencies. The orchestration is fundamentally dynamic, full of uncertainties but the need is still to connect the parts to deliver the right result. We need to orchestrate, to build and then conduct and deliver the right results, to the innovation goals we seek.

I was recently reading (again) some work undertaken to frame the need for asset orchestration, in different research by Sirmon et al during 2007 and 2008, that focused on the different actions of the manager, or asset orchestrator. They suggest there are three primary stages of structuring, bundling and leveraging resources for the purpose of creating new value for customers and gaining competitive advantages, however, temporary in today’s world. It is why this needs to be dynamic, ever evolving, to keep orchestrating your assets continually.

These three primary stages can be broken down

The outcomes of the research suggest there are three primary stages of structuring, bundling and leveraging resources for the purpose of creating new value for customers and gaining competitive advantages, however, temporary in today’s world. It is why this needs to be dynamic, ever-evolving, to keep orchestrating your assets continually. These three primary stages can be broken down:

It is why this needs to be dynamic, ever evolving, to keep orchestrating your assets continually. These three primary stages can be broken down and applied to our need to build a real innovation fitness into our innovation capabilities:

• Structuring involves acquiring, accumulating and divesting resources to form the organisations resource portfolio.

• Bundling of integrating resources to form capabilities, that can stabilise or provide incremental improvements to existing capabilities, or that enrich and extend existing current capabilities and thirdly, pioneer, which creates new capabilities.

• Leveraging involves a sequence of processes to exploit the organisations capabilities to take advantage of specific market opportunities. This includes mobilising, offering a clear plan or vision of needed capabilities, coordinating for ways to integrate these necessary capabilities and finally, deploying to achieve a resource advantage (or gain) that promotes market opportunities and instil more entrepreneurial strategies to exploit new resource configurations

We are all facing these needs for greater asset synchronisation or orchestration.

We need to learn also that innovation needs this growing orchestration, due to this increasing move from firm-centric to network-centric innovation. In my understanding of an orchestrator, they need to manage the tempo, knowing where and when to cue in the different players (learning) and to inject the intensity into the performance.

We are dealing with managing the tempo, interpreting the different passages and movements as interactions become distinct, providing fresh value to build upon.

We need to learn to identify, assimilate and exploit far more than ever, the value of knowing your innovation fitness, your dynamics and the terrain you wish to traverse in new innovation activity becomes even more critical. To create and to extract does clearly need to understand the what, why, where, when and how it needs to go about this.

Explore this site to learn more on building the dynamics into your innovation capabilities as I continue to work on building this into a solid methodology and solution-set.

The post The Orchestrator needs to orchestrate your innovation capabilities. first appeared on Building Your Innovation & Ecosystem Intelligence.

Determining future innovation outcomes requires a greater understanding of what capabilities are more useful to develop, those that offer a more dynamic capacity. Do you know yours?

Can you separate these from the many you have that fail to give innovation impact?

We never start from a blank innovation canvas.

None of us has a ‘blank’ innovation canvas, we have developed a present position; one that is built on a legacy of past work and from our needs built up from our innovation activity, also in the past. As these develop we make choices, we sometimes become locked into certain structures, systems and processes, so we find it often highly difficult on how we are going to change, to move from one position to a different one – traversing the landscape to achieve better solutions to meet different goals that meet the present or future needs.

Have you ever evaluated your capabilities, competencies and capacities to innovation in light of a changing landscape? 

One where competitors have gained new ground or you have been confronted with a more disruptive product that threatens your established position, or has even the potential to threaten your very existence? Your ability to respond to changing positions are often determined by knowing which capabilities and capacities you can call upon and leverage for finding new solutions that accelerate and innovate your position to respond and stay competitive.

Do you know which are your more dynamic and valuable capabilities?

How do you go about and recognize these and to be able to separate them from many of your existing assets, that make a valuable contribution but do not have the dynamic potential to change, to rapidly increase performance and offer a distinctive future advantage.

The more dynamic, evolving ones  that lead to new growth identification, new creations and solutions, that deliver new opportunities to compete in changing market conditions. These strengthen not just critical capabilities they build upon them a far more distinctive advantage.

Today we need to constantly orchestrate our innovation capital; it needs to be context specific and highly interconnected. Are yours?

Gaining awareness is an evolutionary path of becoming highly adaptive

• Knowing your dynamic capabilities to traverse a highly competitive landscape needs an understanding.

• Knowing your innovation fitness is becoming essential for your future growth and sustainability.

Exploring this dedicated site set up for determining the practice of building your innovation fitness is a good starting point.

The end result is offering you the components to focus upon through by identifying and building those dynamic capabilities

Can I help you identify and determine your core dynamic components? I believe so, why not find out and ask?

The post The dynamic points of innovation understanding first appeared on Building Your Innovation & Ecosystem Intelligence.

I often go back to this as it provides a real source of understanding of the shifts being undertaken within our organizations, to make the fundamental shifts in their thinking to understand where today’s and our future value creation will come from; something that is mostly due to this increasing importance of the digital changes occurring all around us.

Radical changes in the environment we are currently witnessing requires a more radical set of responses. The tangible sources of value creation are being replaced by our abilities to manage all the intangibility that is the source of our potential competitive advantage. It is found in constantly recombining the different sources of these intangibles, turning them into dynamic capabilities. It is the synergistic effects from harnessing these different sources collectively and constantly exploring and exploiting them.

This report is suggesting that the real sources of value creation and competitive advantage in the digital economy lie in fluidity and constantly evolving the intangibles. We still are failing to come to grips with this, to understand its force and position in today’s thinking. Technology or digitization has been such an underlying catalyst to this shift going on.

They see through their research, that the increasing digitization of economic activities has improved the detailed measurement of business activities (which aids better strategy formulation and positioning), enabled faster and cheaper experimentation (which fosters organizational ambidexterity and increases the likelihood of spawning innovations), facilitated the easier sharing of observations and ideas (which allows for the capturing of insights and learning from network members), and increased the ability to replicate innovations more quickly (which improves transaction cost efficiency).

These they suggest are the dynamic ‘factors’ of the digital economy, and must be harnessed in addition to the conventional factors of production, if firms seek to not just survive but also thrive in the new normal.

They are also outlining in this report,that  there are seven intangible sources of competitive advantage and are in effect, interconnected and complementary. The real sources of value creation today and gaining competitive advantage lies in fluid and constantly evolving intangibles, such as firm strategy and positioning, radical innovation and first mover advantages, intangible resources and competencies, organizational ambidexterity, network effects and externalities, transaction cost efficiency, and relational optimality.

It is the smart configurations, unique to each organization, of applying several or more of these intangibles that will create the new value in product and services and drive an even greater business model innovation change, to gain and sustain the competitive advantage.

The thinking they suggest requires a new ecosystem paradigm shift, needing a reinvention of the business model. I would suggest on the very way we manage innovation.

We must recognize our existing approaches to innovation need radically changing.

The post Shifting our dynamics to innovate within the digital age first appeared on Building Your Innovation & Ecosystem Intelligence.