The Gap Every Leader Feels—But Can’t Quite Name

We live in a world where:

• markets move faster than planning cycles
• partners change roles without warning
• value shifts from inside the organisation to the ecosystem between organisations
• customers behave across networks, not channels
• regulators influence pathways in real time
• technologies reshape boundaries overnight

Yet organisations are still run using:

• static frameworks
• linear planning
• siloed intelligence
• annual strategy
• task-based AI

This creates a structural gap:

Leaders today are attempting to run a ecosystem design with tools designed for a stable organisation or world. They disappoint but it does not need to be that way

This is the modern strategic mismatch.

The Shift: Why Today’s Models Can’t Deliver Tomorrow’s Advantage

Businesses are now operating in conditions where complexity exceeds the capacity of traditional frameworks.
Static models — strategy, organisation, innovation, transformation — were built for predictability, linear planning, and internal optimisation.

But the world has moved.
We face even greater complexity that needs to tackle new solutions:

• Interdependencies across sectors
• Converging technologies
• Non-linear value creation
• Urgent societal and sustainability challenges
• Intelligence (AI + human) becoming the new strategic factor of production

Organizations are discovering a hard truth:

You can no longer compete as a single firm — only as an orchestrator within an ecosystem or a critical part of the solution

This creates a vacuum in management logic until this recognition to “let go” and collaborate becomes essential for the longer term sustaining of business in impact and growth potential.
The IIBE fills that vacuum.

The IIBE: The New Operating Logic

The Intelligent Integrated Business Ecosystem (IIBE) is the first model that captures this new operating logic.

At its centre is an adaptive engine:
continuous sensing, insight generation, activation, reconfiguration, and learning.

Around this sits the fusion of Business, Innovation, and Entrepreneurial energies —
the three capabilities every organisation must balance to adapt, innovate, and transform.” What is different is applying the Dynamic Operating System in its Recognition, Principles, Progression, Evolution

We also need to Recognize Traditional AI Makes This Gap Worse

Most AI today:

• automates tasks
• optimises processes
• summarises content
• predicts outcomes
• classifies or clusters data
• task-based
• function-orientated
• blind to interdependence

But ecosystems are not tasks.
Ecosystems are not functions.
Ecosystems do not fit in spreadsheets or dashboards.

Ecosystems are:

• interdependent
• relational
• emergent
• fluid
• dynamic
• multi-actor
• multi-directional
• continuously evolving

This creates a major gap for decision makers to “see” and “navigate” for enabling organizations to respond in todays world

Traditional AI simply cannot interpret these dynamics.

That is why organisations feel they are:

• sensing too slowly
• mis-reading the system
• reacting instead of shaping
• missing early signals
• struggling to align partners
• unable to see propagation until it’s too late

It’s not a competency problem.
It’s a recognition problem.

The Missing Piece needs a solution that can fully connect up and understands Ecosystems in different highly dynamic ways

The IIBE Dynamic Operational Approach is moving towards filling this gap .

The Impact for Organisations

Organisations need to  gain the ability to:

• “see” the ecosystem as a dynamic system
• detect inflection points earlier
• orchestrate across partners with confidence
• strengthen resilience through the sharing of distributed intelligence
• move from annual strategy → to continuous adaptation
• run multiple micro-ecosystems with precision and constantly
• unlock new business models through systemic insight

This is a shift from:
managing complexity → to orchestrating advantage.

The Bottom Line

The IIBE has moved from a V1, to introduce the need of today within Business but is moving through a V2 version where the “dynamics” become even more central

IIBE is aiming to be the missing piece that makes ecosystems actionable, manageable, and strategically potent.

We do need to recognize that Ecosystems have or are becoming the dominant environment for growth, innovation, and resilience.

But today leaders lack so much, in insight, in understanding and a structure to follow. They are missing:

• the intelligence
• the sensing
• the interpretive capability
• the orchestration tools
• the dynamic intelligence model

IIBEis working towards exactly providing that.

This is the moment- our need for a North Star where:

• organisations stop guessing
• start sensing
• start orchestrating
• and begin shaping the ecosystem itself

And why IIBE is not incremental—but foundational in a world built for Ecosystems

IIBE needs building out in support, in equity and those recognizing the need for a new Strategic Capability understanding and working withi its parts. It is being built to operate in a more complex, challenging and collaborative way to solve multiple problems seen or be capable of solving in new cooperative ways.

Find out more then contact me

The post Searching for the missing piece in modern Ecosystems first appeared on Building Your Innovation & Ecosystem Intelligence.

The increasing pressure on business organizations to find real growth and impact is troubling. Expectations are growing with connected technology, the increased value from AI and the ability to collaborate all are requiring a different way to approach customers and provide radically new value opportunities.

Many of of existing organizations still operate with static operating models, hierarchical processes and siloed workflows. These modesl were built for predictability- not for complexity, interconnected markets, AI acceleration, or multi-party environments.

Today we are suffering from slower adaptation, fragmented intelligence, poor alignment across internal and external contributors, resulting in missed opportunities from this reluctance to collaborate, co-create or influence and shape markets beyond existing offerings.

What is necessary is to firstly explore why we need to shift to Ecosystems?

Business is in search of a new pathway but there is a real need to recognize the growing realities. I recently launched the IIBE blueprint (V1)- a practical, structured framework, in its inital explainations but this needs to move into its dynamic intelligent orchestrated system (V2) designed to offer a unified ecosystem architecture, designed to integrate intelligence, capability, purpose and collaboration into a single coherent operational model.

1. Are we Recognizing The Problem? Static Frameworks Fail in Dynamic Conditions

“Most organisations are still operating with frameworks designed for stability.
They assume linear planning, controllable environments, predictable competitors, and slow-moving markets.

That world no longer exists.

Today we face systemic change, exponential technologies, distributed actors, and shifting value creation landscapes.
Static models simply cannot absorb this level of movement.

The consequence?
Missed opportunities, strategic blind spots, and a slow erosion of competitive advantage.”

2. The Shift: From Integrated Ecosystems to Intelligent, Dynamic Ones

“Over the past decade, ecosystems emerged as a collaborative model.
But most organisations built integrated or interconnected ecosystems — essentially static structures with partners.

The next decade requires something fundamentally different:

Dynamic, intelligent ecosystems — adaptive by design, orchestrated through purpose, guided by intelligence, and capable of continuous reconfiguration.

They are not defined by structure, but by movement.”

3. The IIBE: The New Operating Logic

“The Integrated Interconnected Business Ecosystem (IIBE) is the first model that captures this new operating logic.

At its centre is an adaptive engine:
continuous sensing, insight generation, activation, reconfiguration, and learning.

Around this sits the fusion of Business, Innovation, and Entrepreneurial energies —
the three capabilities every organisation must balance to adapt, innovate, and transform.”

4. The Dynamic Operating System: Principles, Progression, Evolution

“But what truly differentiates this model is the layer around it —
the dynamic operating system.

It brings together three essential elements that make an ecosystem intelligent:

a) Dynamic Principles

The operating grammar:
adaptive by design, orchestrated rather than controlled, reciprocal value flows, distributed decision-making, trust boundaries, circular intelligence loops, and regenerative intent.

These principles govern how the system behaves.”

b) Capability Progression

“No organisation becomes intelligent overnight.
They evolve from static → dynamic → adaptive → intelligent.

We have mapped the capability progression that guides this journey.”

c) Evolutionary Logic

“And all of this sits within the wider transformation from:

Integrated ecosystems (exploring today)
→
Intelligent ecosystems (2026–2030)
→
Regenerative, distributed ecosystems (2030+).

This makes the IIBE not just a framework — but a transformation logic.”

5. The Impact: A Strategy for the Next Decade

“Leaders are recognising that competitive advantage increasingly comes from the ability to orchestrate across networks, to operate with intelligence, to sense change early, and to respond with speed and coherence.

Dynamic ecosystems change the nature of strategy:
from planning to sensing,
from control to orchestration,
from efficiency to adaptability,
from linear value chains to circular value flows,
from isolated innovation to ecosystem-level innovation.”

6. The Value: A Complete, Validated, Actionable System

“The reason this work resonates with executives is simple:

It is not theoretical.
It is not abstract.
It is not another ecosystem canvas.

It is a complete, validated system that shows:

• how ecosystems operate dynamically
• how capabilities progress
• how intelligence is built
• how value flows
• how transformation unfolds
• how to execute with clarity

This is why dynamic ecosystems are not a trend —
they are the future operating model for business.”

7. The Message to Leaders

“The organisations that master dynamic ecosystems first will define markets, shape standards, and set the pace.

The shift is already happening.

The question is “not if this becomes the dominant operating logic,
but who becomes fluent in it early enough to lead.”

If you want to find out more and explore on the IIBE as it evolves into a more dynamic OS and what, why and how you can achieve the building out through Ecosystem designs and thinking then why not contact me here.

*Supported through Nano Banana, Chat GPT and Google Gemini in this evolution to IIBE V2.

The post Choosing Dynamic Business Ecosystems? We actually need them first appeared on Building Your Innovation & Ecosystem Intelligence.

Mid- market sized European firms especially have always been caught in growth traps, reliant on the strength of thier domestic customers and the economies they operate within. If Germany and Europe are doing well, then the mid-market firms does well. These form the backbone of our industrial here in Europe.

In the past decade, or even more, this reliance and dependancies on the European growth engine have provide stable markets where the experience and history of these mid-sied firms has been constantly expanded in what they know- in adjacent products, regional extensions and incremental progress improvments- not through bold new market plays, there was largely this “no need” attitude.

It becomes a radically different story when the markets plateau and growth starts to flatten or become less predictable. That lost steady reliable growth momentum, increasing market vulnerability from cheaper suppliers, especially from China, the constant concerns over succession within smaller business, that growth uncertainty raises the risks.

The growing feeling of isolation and vulnerability needs a different change of mindset. From independence into different froms of collaboration, networks and business ecosystems.

Tackling a number of issues are required for Mid-market firms

Can’t Scale, Can’t Convert.

That classic “dual” constraint of “can’t scale, can’t convert” where ambition has been tempered by years of a specific often singular focus, where that discipline and engineering excellence has become a straight-jacket in changing market conditions. Risk-taking outside of well-entreched comfort zones is often seen as reckless.

The scalable ecosystem mentality is limited to linear and self-driven (and self-financed), not on any reliances in network-based or co-created thinking. The established institutions or association bodies, relied upon for interpretation of new regulations, or a meeting place to bring specific advice or expertise, becomes limited by its established articles of association.

Mid-sized firms become increasingly globally marginal, trapped in an established prototpye extension or niche mode.

The Deeper Sysstem Issue- The constrains of no European Growth Infrastructure

Europe has a sound innovation infrastructure for its inputs, not as dynamic as it should be, but not really a mapped out growth infrastructure pathway, it is still fragmented.

EU and national ecosystems are far more tuned into startups (innovation) or corporates (industrial scale), still very national and sector centric and this “missing middle” is so often structurally unsupported or not appreciated as a real economic backbone. It does not support essential scaling.

Policy programes emphasise priority sesctors (green, digital, AI or health) but the mid-sized firm lacks cross-domain potential such as connecting one part of industrial automation into energy transition or smart mobility, these are locked into their islands of specialiation.

These gives a growing lack of ecosystem orchestration skills and cross-sctor or boarder incentives leaves firms isolated, even when technically brilliant, in given areas. They are dependent on domestic customers, in a changing connected world, and have really narrow funding channels to experiment and extend beyond their knowns.

With over 250,000 mid-sized firms being the backbone of Europe’s industrial and service economies that deliver quality, resilience and employment so often face invisibility to change. They are often “too big for startup incentives, too small for industrial policy focus”

They face the constrain loop

Taking a typical cycle of operating in a present comfort zone- lmited horizon- reliance on agencies and a small band of cumomers- fragmented funding- lost agility and in that repeating (doom) loop that reinforces internal caution and having that external structure reinforcing stagnation in todays’ globally competitive world.. The “loop” needs as different growth logic.

How can we re-cast these mid-sized firms so vital but seemingly unsupported?

REFRAMING- the Ecosystem pathway.

The real advantage of thinking and designing Ecosystems is they can multiply what no one firm can achieve on their own.

You can move from ownership into access, from isolation to otrchestration. You can share capabilities, assets, engineering and product knowledge, understading broader markets and recognise innovation differently. It is co-creation, cross-border solutions to shared European challenges can accelerate and shape the European network so differently

Introducing the Integrated Interconnected Business Ecosystem (IIBE)

This can provide the essential blueprint to a structured pathway for collaboration-led growth.

The approach through Ecosystems enables connection, mot control through shared networks, not fixed assets with collaborations spreading costs, accelerating learning, benefiting from diversity and diversity of experiences.

The goal is to turn engineering into innovation growth- the conversion catalyst.

That need to reframe innovation from “product-led” to “problem-led” through shared ecosystem pilots by attracting new partners and investors by co-owning outcomes. Be these shared ambitions from these external connections, finding new market pathways and shared go-to-market models, building out these independent ecosystem networks, exploring new value constellations, and scaling through coordination not control as the needed shifts to take place.

The IIBE moves firms from engineering silos to market ecosystems by building ecosystem understanding, participation, access not acquisition. By building from precision into participation, scaling through collaborations, converting engineering excellence into market ecosystems and not waiting for policy dependency to become ecosystem independent.

Take a read of

A Comprehensive Guide Recommending Business Ecosystems for Mid-Sized Firms ,as well as

A Guide for Ecosystem Business Model Building for Mid-Sized Firms

Europe’s mid-sized firms don’t need another subsidy or waiting for government to catch up in tthe relaities ofb the today and the future. They need an ecosystem strategy.

Mobilization- from insight to action

The IIBE entry points to determine

1 Firstly discover your ecosystem readinness in 90 mnutes

2 Recognizing a Ecosystem pathway and what it means

3 Understanding that the IIBE can become the bridge from excellence to scale

4 Recognizing shared resources and what that means

5 Explore your existing growth constraints to reframe them as ecosystem opportunities.

Building this into the next growth framework for connection logic, a pragmatic, informed route to scale and diversify with always the emphasis “start small, build confidence (and understanding), grow collectively and seek out those new growth curves.

The mid-sized firm, especially in Europe (as well as the USA) is under threat. The independence of operations, reliantance on a given and selected group of customers is under “global threat”.

Competition is coming from multiple angles in price, in quality challenges, in market erosions in established markets and cost of entry into new ones becoming inhibitive with a time to be “established” really challenging.

Staying increasing “marooned” or increasingly vulnerable can be replaced by a very different thinking- one of exploring and adapting an Ecosystem deign and thinking.

Come talk to me to explore this further.

The post Tackling the Mid-Market Growth Dilemma- think Ecosystems first appeared on Building Your Innovation & Ecosystem Intelligence.

Often organizations are weighed down by legacy; it chokes off innovation and much of the potential creativity. This comes in many forms; in its culture, in its history, its core markets or products, in its systems, structures, and processes built around innovation practice.

Today, we are confronted with a very different global marketplace than in the last century. National borders and regulations built to protect those that are ‘within’ in the past have rapidly become a major part of the ‘containing- restraining’ factors that are rendering many previously well-respected organizations as heading towards being obsolete and not in tune with today’s different world where global sourcing determines much.

They are increasingly trapped in declining markets, starved of the new capabilities and capacities to grow a business beyond ‘traditional’ borders, so this means they are unable to take up the new challenges that are confronting them. They see themselves as reliant on hanging on to the existing situation as long as they can, often powerless to make the necessary shifts, failing to open up, finding it increasingly more than difficult to find the ways of letting go, of changing. They are trapped in legacy.

Legacy can choke an organization in so many ways to limit expansion. 

How can we break out of this and rethink? When we begin to investigate legacy to cut loose and design differently, it begins to infringe, it challenges, it simply attacks what has taken often years to build and those most involved become defensive and fit to hang onto what has been established, as it feels familiar.

It feels like ‘their’ legacy is being destroyed and what they have fought hard to gain now needs protecting. Most organizations never feel fully capable to address legacy, they even will deliberately design duplication into their operating model, they will recognize they are far from optimal and more often than not, live with the consequences. In today’s world, this is a real mistake.

The world is changing

You can’t afford to keep heads buried in the sand like an ostrich, although that’s actually a myth stating when ostriches are faced with an attack by predators they bury their heads. New global adversaries are altering our landscape and forcing us to become increasingly competitive, forcing us to often reluctantly alter our established ways.

We can’t afford not to refresh and renew on a constant basis. We need to not just adapt, become more agile but we must think through what, where and how we manage. We need to build a more dispersed network of innovation connections within and outside our organizations to gather and synthesize knowledge that has potential value and future worth.

To allow this to happen, for knowledge to flow into, within and across organizations we need to strip away many of the constraints built into our structure that are designed to ‘contain’ knowledge, whereas today we have to ‘spread’ knowledge far and wide, so we can make the new connections to build int this existing knowledge the  new value points where innovation resides.

Today we have solutions to make a real change and address those legacy systems.

Today we have a solution, we can migrate our current systems into the cloud, breaking them up and building some unique APIs that can ease the transition to cloud services by decoupling critical parts of a company’s cumbersome legacy infrastructure.. These become microservice architecture, providing modular and improved flexibility with the aim of decreasing time to market for example. Or building a suite of small services that allow more external people to contribute, a greater agility in response and build greater independence but can still be internally managed.

So we break down some of those legacy systems into vital chunks that can benefit from external partnering, so as to speed up innovation-to-market. These are driven far more by the business perspective not the technology aspect alone. You are looking to find increased business value by breaking out of some of your legacy problems.

Any journey starts with ‘letting go’

Control gives comfort; we constantly design this into the system. The larger we are, the greater the controls built into the system it seems but somehow, controlling for control sake, does need replacing; we need to let go of more than we realize to reduce the constraints placed on our business. We need to replace ‘command and control’ built up over numerous years with something different. The cloud offers a way forward by finding points of value that can be broken out to accelerate innovation performance.

We need to begin to ask a range of strategic questions that question our legacy so we can be released to move forward.

The post Organizational legacy so often chokes innovation first appeared on Building Your Innovation & Ecosystem Intelligence.

Jeffrey Phillips and I are launching our fourth collaboration together, this time we are exploring innovation ecosystems and the growing impact they are having in the business world through their ‘conecting and collaborating difference’ that can lead to vastly different final customer experiences.

I just want to reaffirm what he has written on this, originally over on his site.

This is what he wrote:

Save

The post Innovation, ecosystems, platforms and the promise of more to come first appeared on Building Your Innovation & Ecosystem Intelligence.

Unless this changes it will continue to erode the clients’ confidence in these service providers and they will be seeking increasing internal solutions to tackle their problems. I think if this trend continues it will be a mistaken course.

Consultants are not addressing many of the changes occurring and ignoring opportunities to adapt to different circumstances, they are simply not putting up a strong case of their engagement by redesigning their business models or opening themselves up to different forms of collaboration.

In many ways, the consulting industry specializing in innovation is its own worst enemy.

It is highly fragmented, often highly specialized in certain innovation practices, and much of the advice comes from a cottage industry of independent practitioners, caught up in executing and little time for advancing their own knowledge.

There is this sense that consultants are resolutely staying very internally driven, self-promoting, still trying to convey the story of innovation mastery, when clearly this is lacking in rapidly changing market and technology conditions and due to this staying ahead of the knowledge curve are actually failing the client.

Many consulting firms have spent the last decade trying to make themselves more efficient, going from craftwork to selling one solution as a mass production to many, to yield ever-increasing fees, so as to gain a re-occurring return on a one-off invested solution. Innovation solutions simply need to be crafted to each set of circumstances mostly, in my opinion, and that conflicts with this repeating model.

When clients were pushing down prices it made sense to offer general solutions but the disruptive forces occurring in clients’ markets are requiring far more the return to crafting individual solutions.

Larger Consultants have been offering body shops, and set-piece solutions, to offset client resource shortfalls. This sits less well in a time where demand for unique innovation is required to offset these disruptive forces coming from often unexpected sources.

The two, quality versus quantity of consulting, are difficult to equate coming from the same consulting firm. Bespoke needs to be recognized as necessary for innovative solutions.

The scrabble for consultants is to re-position themselves back at the high-value end but they need a greater depth of knowledge, expertise and experience to convince clients of this need to change differently than simply providing resources. Both clients and consultants are struggling with their own legacy of where resources reside and what value these can provide.

The mismatch of client needs and consultants’ offerings.

The client is increasingly requiring more organic or holistic solutions not a ‘piecemeal’ innovation offerings. These separate pieces often don’t dovetail into one complete innovation system because they are supplied by a variety of different service providers, all having their own ‘pet’ approaches.

Perhaps there is a real mismatch between clients’ needs in aspirations and budgets and the available innovation consultants’ ability to match and relate to specific industry practices and scale to meet client needs.

There also seems this perpetual dilemma of clients’ wishes that are hard to reconcile with operational realities to turn their organizations from being focused on effective and efficient into agile and adaptive, required for innovation.

Often the two are caught in the classic “who does what”, “how much each can and should manage” and the ability to handover or what happens when the consultant finishes the project and leaves, taking a level of knowledge with them that was never given time to reside inside the clients.

Consultants are far too cautious for their own good

Consultant firms, on the other hand, are moving far too cautiously to any form of collaborative form, they tend to bring ‘experts’ in for ad hoc, one-off assignments when they need deeper expertise. Wherever possible consultants want to manage as much as possible internally to ‘keep’ the fees generated inside. This is not a recipe for building lasting relationships that have mutual value in growing understanding.

Often this ‘keep it in-house’ whatever it takes, promotes that in-breed fault and is not reflecting the commonly held view today, “that all knowledge does not reside within its own walls”; they still reluctantly hang on to the closed system of inventing only inside here.

This often manifests itself in the host of variations in what is claimed as their ‘unique’ versions of “common innovation” where they constantly reinvent the wheel in their own approaches to processes, definitions, tools, frameworks, systems of working and idea management etc. I often feel those “unique solutions” are often just simply mutton dressed up as lamb.’

The resultant cost of rework if clients bring in a different consultant grows.

Today I think part of the clients experimenting and learning internally is due to this disappointment with the consultant. Clients are becoming extremely selective for the use of any outside advice. Many clients are simply building their own innovation teams with individuals that have had some given time consulting to offset, defray and strengthen their own in-house capabilities.

The reality is these are often more ‘at odds’ with the business units, seen as elite, out of touch often just pursuing their own agenda, not accountable, and often less supportive of the current business needs.

Also, innovation itself is going through really a massive change.
The need for ecosystems, platforms, the greater use of analytics, big data and reliance on technology are all crowding in on innovation delivery.

The emphasis on thinking through new business models, combining design thinking, lean management, customer development, prototyping, experimenting outside the lab, collaborating with clients, finding different partners, the different exploitation of research techniques are all breaking out in different forms and combinations is radically altering approaches to innovation.

Also collaborating and networking are far more essential to innovation exchange, be this in the early idea forming stages but increasing in the development and execution of innovative solutions. Partnerships are diverse, delivering on the need of the job to be done. Orchestration is increasingly playing its part to manage all the assets and knowledge coming into play.

The innovation consultant can lead or can be simply a bit player in this synchronizing of innovation activities or offering ‘leading’ advice.

I have suggested in past posts that we all need to think differently:

innovation is based on the thinking around the shift from products to solutions, from transactions to growing far more value-adding ongoing relationships, from a supplier of product services, into highly valued network partnerships, exploring innovation across all options, instead of delivering on discrete elements; this requires managing the whole ecosystem of the innovation design differently.

The external innovation consultant needs to change

I get the distinct impression the focus of most innovation consultants is still locked into product innovation or improving the process of the pipeline/portfolio, the idea generation and project execution model. It is not evolving into broader services or accounting for the transformations underway at the clients end.

While the consulting firm stays closed-up, intent on delivering their own solutions,will mean they are often far too busy catching up, lagging in their own emerging practice and due to this ‘lag’ have lost any leadership position in many things relating to innovation.

To overcome this you need to be engaged, to be able to piece together fragments of information to gain the insights that independence can offer. Consultants need to explore and experiment themselves in a laboratory and pilot testing environment, that allows clients to work alongside them to learn and gain from this in collaborative ways. Both learn and both benefit going forward in new ways.

Sadly general well experienced innovation practitioners are actually thin on the ground. You do need to search hard for these but they are available. This exploring and extracting insight requires dedicated experience and constant involvement in broader innovation understanding

Often even the large consulting practices can’t afford to have more than a few experts scanning this innovation terrain yet clients, again and again turn to the broad consulting provider for specialist advice.

The one real change that is occurring is in thought leadership from consultants

Clients often lack real deep insight or draw out the implications of these emerging practices, they want to work more alongside others in experimental practice spaces to truly figure out how to respond to them or understand the implications to their own business. It is only part of the innovation knowledge puzzle for the client.

They need to constantly look elsewhere to piece this together, if at all they can, as so often the reporting loses much of its value as it is not translated into suggested solutions if the consulting industry fails to provide these services or knowledge laboratories.

There is increasing value in the thought leadership pieces emerging from the large, well connected consulting firms. Their ability to extract knowledge from their clients and increasingly match this with merging practice is valuable.

The work of many of the larger consultants in the field of thought leadership, including Deloitte’s, Bains, McKinsey, Booz, PWC, A D Little, PA Consulting and some others, has begun to provide a much greater insight through their access to C-level people and their ability to provide reports on best or emerging practice.

This is helping understand changes occurring and the emerging practices around organizations’ current thinking of innovation, yet it is failing to be fully translated into the client application.

Translating thought leadership to new practice is a real opportunity for all
Presently much of this thought leadership is failing to be translated into practical solutions, they remain research findings.

Thought leadership seems to be increasingly dominating the marketing activities of consulting firms, and with some good cause: clients require evidence and good thought leadership, it does matter to them, to figure out their internal solutions.

I’m not unhappy with that, I’ll be honest, as my competitive space is largely about understanding emergent innovation practice to relate and absorb the findings and then attempt to connect the thinking to improving innovation practice within client thinking at individual, team or organizational level.

I’ve been shifting my business model in the past few years, into a far more advisory one than consultative for clients, attempting to connect the multiple and different dots coming in from multiple sources to help this thinking and understanding.

We come back to the reason why, what used to work before, often doesn’t now.

If the innovation consultant needs to question the changes occurring all around them, then they need to ask “why not develop a different type of sustaining collaborative arrangement?” One where they, the consulting firm have scale and resources, become far more aligned with people like me, who have the entrepreneurial energy and zeal that explores and exploits, probes and connects, offering a further validation path that clients might value.

There is so much convergence, linkage, networking, and integration pieces occurring that none of us can remain islands of specific knowledge, we must find innovative ways to collaborate, to build an ecosystem of knowledge that provides clients a real competitive advantage. I want to participate in far more scaling, proving and validating.

Consultants must learn within themselves to collaborate, exchange and value a greater ‘collective pool’ of innovation knowledge, otherwise, solutions being offered to clients remain incomplete, stilted and lack the real diversity of understanding they require to combat a different set of market conditions than in the past. They need greater transformational services.

Collaboration in the making?

Perhaps we have here a collaboration in the making, that is for the clients (markets) benefit and bridges some of the current client / consulting gaps that I feel are there.

I wonder if the larger consulting company can see beyond their own noses for the value in this?

The post The Challenges Being Faced by Innovation Consultants first appeared on Building Your Innovation & Ecosystem Intelligence.

I am presently reading an early release draft of a book written by Mike Docherty of Venture2, on innovation, and I would certainly recommend the read when it comes out.

The book Collective Disruption will be available as of February 2015.

The book as Mike wrote to me, is aimed at corporate leaders, both in large and small companies, charged with new sources of transformative growth and makes the case for co-creating new businesses with entrepreneurial partners.

It builds on a foundation of open innovation, but is focused specifically on new business creation (vs core business support).

I know that Mike is passionate about the intersection of corporate innovation and entrepreneurship for co-creating new businesses and business models. As CEO of Venture2, a consulting and new ventures firm, he works with leading brand companies and start-ups to commercialize breakthrough new products and businesses.

Mike has experienced disruption many times.

This crisis is personal one to Mike, as he has seen and been involved in numerous points of innovation disruption.

As he states in his book: “I have been on both sides of the conference table as it (disruption) has unfolded. In my work inside and outside of big brands, I have come to know, respect, and work alongside the managers who have to make innovation work for both the company and the customer. Theirs is a serious challenge. I know because it has been and continues to be, mine as well”.

Mike was part of the turnaround team at Sunbeam Corporation some years back, who combined became really creative thinkers and they become well respected in pioneering many of the aspects of open innovation. They achieved an impressive delivery of 150 product launches in the second year by leveraging partnerships and the internal creative forces, going from the previous 10 new products in the first year.

This experience took Mike into a new direction and helped form his business evolution in his work with his venture business and boutique consulting practice, Venture2.

In his book, he clearly stated open innovation is not enough.

The core of his book is firstly arguing the old definitions of innovation are dead (this I totally agree with) and as he states new ideas are coming from everywhere, emerging competitors are disrupting established companies every day. Companies need to increasingly focus on new business creation for step-change growth.

Yet as he states, and I totally agree, this is a scary place to go for big companies, as this is transformative innovation and most are simply not good at undertaking this.

His book sets out to address that ‘soft spot’ in the big-company skill set. It is all about understanding, learning ad playing the collaborative disruption game. This he believes comes through a collective disruption model where you engage more with the entrepreneurial ecosystem to create market-disrupting businesses.

That means collaborating earlier and more deeply with partners and that’s the roadmap he’s trying to share with this book.

Mike lays out some practical approaches in each phase of corporate/start-up co-creation: discovery, definition, incubation and integration. And he supports his case with interviews and examples from some leading exponents of innovation

He offers a book for the insider of big organizations but also for the partners found outside, as well as for the many entrepreneurs that will find they are dealing with big organizations.

They need faster scale up and preparation for a successful exit, early engagement of the bigger company into the new value proposition, either threatening them or enabling them to enter into a new area of their innovation.

So this is a book that goes beyond transactional approaches and focuses on the need for relationship-based networks and a solid understanding of the innovating ecosystem, one of collective disruption for future growth.

So we are at the end of the old era of innovation?

That era did have self-imposed walls and traditional (old-fashioned) design. Today we need to build our ecosystems, seeking out partners and entrepreneurs alike. This does call for being far more disruptive, as Mike suggests in his book “Collective Disruption,” we need a new order, where you can navigate, always with some risk, into new growth opportunities by constantly learning and collaborating with others.

I would argue once you become familiar with managing in disruptive times, in working with partners all dependent on each other, in mutual and ever-increasingly ecosystems, you learn to look well beyond your old self-imposed borders.

You will suddenly see this new innovation expanse where you can begin to roam to explore increased innovation opportunities. You recognize that migration of constantly moving and change becomes essential, a necessity that gives you a greater chance to not just survive but feed off of those new innovation opportunities.

A place Mike suggests: “where you’re living the unique challenge of creating transformational and step-change growth”.

Finding that set of collaborating capabilities and competencies that can be successfully unleashed as our new innovation activities, ones that can be radically different- they create real growth. One’s where agility, lean and risk-taking become more of the norm, they are dynamic, ever evolving and changing, and so those innovation activities are richer in eventual outcomes.

A place to keep you healthy and sustaining and growing by traversing constantly across a very different, ever-changing (and challenging) landscape, than the one you left behind that also needs renewal.

For some reason reading this book triggered thoughts of the mass migration of Wildebeests in East Africa

As I was reading through the opening chapters, for some reason, it triggered a thought of the mass migration of the Wildebeest in East Africa. The old-established practices of innovation are exhausted; we do need to change our approaches and mindsets to find those new ‘feeding grounds’ of innovation.

Why this book triggered this is that disruption is becoming part of our business life, or it should be. To stay alive today or to remain healthy, you have to leverage and extract from the whole innovation ecosystem to create the different conditions; equally, you need to take increasing risks to transform and improve your chances of survival.

Watching the frantic herds of the wildebeest migration crossing the Mara River can be very spectacular; there are often scenes of great panic and confusion as the massive predator crocodiles in the river wait to pounce. Utter disruption yet necessary to survive and prosper for all involved.

For business, are these predators the consultants advising a business with often conflicting messages adding even more panic, or the entrepreneurs, who seize the ‘feeding opportunity’ to fatten up by creating the frenzy that goes with this crossing point?

When you make a significant move away from your established ‘feeding grounds’ you suddenly have such an expanse of new opportunity but it is not without risk, the risk of crossing over, recognizing the other side is essential to be the place for new, real growth.

I could not get this thinking out of my head of migrations as I continued into the book. Strange isn’t it on what sometimes does get triggered as connections as you read a book?

Are we about to witness this mass movement to find new innovation opportunities?

Mike’s book Collective Disruption certainly nudges us along, it does lay out a case for change, a contributing part of the processes and understandings that needs to ‘stir the forces’ we do need to bring about for real innovation change.

Mike, in his book, partly catches that sense of the wind of change, that is blowing and needed for innovation. Mike offers some highly practical solutions and thinking, based on his depth of knowledge and experiences within his work of approaching your need to change, with an imaginative framework to help you navigate the terrain, so as to make the necessary transition for yourself and your organization.

Innovation, certainly is for me, in real need of changing; the global forces and those competing are making the mass within our companies restless for change.

We are on the road to migration; finding new solutions built far more based on collective and disruptive approaches, that will offer far better innovation outcomes for sustaining our futures and opportunities for achieving better levels of growth we need.

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Often organizations are weighed down by legacy; it chokes off innovation and much of the potential creativity. This comes in many forms; in its culture, in its history, its core markets or products, in its systems, structures and processes built around innovation practice.

Today, we are confronted with a very different global market place than in the last century. National borders and regulations built to protect those that are ‘within’ in the past have rapidly become a major part of the ‘containing- restraining’ factors that are rendering many previously well-respected organizations as heading towards being obsolete and not in tune with today’s different world where global sourcing determines much.

They are increasingly trapped in declining markets, starved of the new capabilities and capacities to grow a business beyond ‘traditional’ borders, so this means they are unable to take up the new challenges that are confronting them. They see themselves as reliant on hanging on to the existing situation as long as they can, often powerless to make the necessary shifts, failing to open up, finding it increasingly more than difficult to find the ways of letting go, of changing. They are trapped in legacy.

Legacy can choke an organization in so many ways to limit expansion. 

How can we break out of this and rethink? When we begin to investigate legacy to cut loose and design differently, it begins to infringe, it challenges, it simply attacks what has taken often years to build and those most involved become defensive and fit to hang onto what has been established, as it feels familiar.

It feels like ‘their’ legacy is being destroyed and what they have fought hard to gain now needs protecting. Most organizations never feel fully capable to address legacy, they even will deliberately design duplication into their operating model, they will recognize they are far from optimal and more often than not, live with the consequences. In today’s world this is a real mistake.

The world is changing; you can’t afford to keep heads buried in the sand like an ostrich, although that’s actually a myth stating when ostriches are faced with attack by predators they bury their heads. New global adversaries are altering our landscape and forcing us to become increasing competitive, forcing us to often reluctantly alter our established ways.

We can’t afford not to refresh and renew on a constant basis. We need to not just adapt, become more agile but we must think through what, where and how we manage. We need to build a more dispersed network of innovation connections within and outside our organizations to gather and synthesize knowledge that have potential value and future worth.

To allow this to happen, for knowledge to flow into, within and across organizations we need to strip away many of the constraints built into our structure that are designed to ‘contain’ knowledge, whereas today we have to ‘spread’ knowledge far and wide, so we can make the new connections to build int this existing knowledge the  new value points where innovation resides.

Any journey starts with ‘letting go’

Control gives comfort; we constantly design this into the system. The larger we are, the greater the controls built into the system it seems but somehow, controlling for control sake, does need replacing; we need to let go of more than we realize to reduce the constraints placed on our business. We need to replace ‘command and control’ built up over numerous years with something different.

We need to begin to ask a range of strategic questions that question our legacy, so we can be released to move forward.

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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.

Increasing knowledge dispersion, shorter cycle times demanded to meet and respond to ‘breaking’ opportunities requires you to effectively manage these across your network in speedy response cycles, having in place a highly focused management and clarity of what is important and needing to worked upon. Even harder strategic choices, evaluating what gaps are needed to be filled in capability constraints, the ability to project and build a new collaborative culture play significant roles in any design and managing across this network.

Any new design has to carefully reflect on overcoming existing obstacles as well as anticipating and  accounting (as best it can) new barriers. You consistently are working towards the maximization and leverage of this new dispersed knowledge and what it can collectively bring  in its contribute into that ‘greater’ competitive advantage than the old system was able to achieve.

Building new designs for innovation needs to be more central in our thinking.

To make innovation more central, it has to designed in. This is not just building an internal innovation core but today it has to go one step further. We need to build into our thinking structures and flexible designs for constructing a dispersed integrated innovation network. This firstly needs recognition of its growing critical importance, then it requires a understanding of what and where this impacts on today’s existing organization design and then followed by a huge organizational commitment to make the evolutionary changes, in its sustaining and management. Our worlds are full of growing complexity that is being faced, externally within our market places and we need to be far more externally facing to understand these.

It is becoming absolutely essential to make these commitments in rapidly changing circumstances and global challenges to seek out innovations potential that lies across the globe, in every corner and the organization needs to have all the essential connections and avenues to this, to capitalize and turn the knowledge gained into commercial innovation opportunity. The more you are networked and get closer to emerging opportunity, the greater chance to translate this (quickly) into new innovation value to meet different  and common market needs.

We all  have come to recognize today, that “all knowledge does not reside within one place” and how we set about dismantling and redesigning our organization for tapping into global innovation knowledge will determine our future place in any competitive race. Innovation needs to be fully designed into the core of what we do.

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Well one I recently finished has been one of those rare books that got the Paul Hobcraft treatment; considerable underlining, scribbles in the margins, circles around some pages that I want to refer back too as quickly as I can. You can never achieve that same sense of ‘ownership’ and possession through the e-reader can you, or am I missing something there?

So the book that joined that elite pantheon to the innovation gods on my top shelf was one written by Yves Doz and Keeley Wilson entitled “Managing Global Innovation – frameworks for integrating capabilities around the World”, printed by Harvard Business Review Press. I really recommend it.

The Key to bridging your Global Innovation Gap

The book is all about providing the understanding of integrating your global resources to build and leverage a global innovation network. I think it does a good job in explaining the different parts, the considerations and the tougher aspects of making this work for you.

Ok, I’m a sucker when it starts off by discussing the innovation challenges, then starts climbing into chapters on optimizing the innovation footprint, then communications, receptivity and then how to organize for global projects focusing on collaborative and integrated innovation, it does draw you in.

I’ll leave you to explore this in your own time, if global innovation and integrating is your bag. Equally I think it will be more than helpful in thinking this fully through or recognizing gaps within your present operations.

What the book does for me

Why it is one of those books for me is where it keeps coming back and placing the focus, on knowledge attainment, seeking out receptivity, transferring and integrating complex and codified knowledge. This emphasis fits so much with my own passion and constantly pushing “Absorptive Capacity” that it felt like coming home, that reaffirming feeling. The difference was the book took you through a different level of journey and understanding to add a whole lot more in my own thinking around this area.

Collaborative diffusion, building distributed innovation ecosystems, compatible strategic ambitions, cultural compatibility and discussing the interdependencies all challenge your thinking. As the authors nicely sum up in Chapter 7 it is how the behaviour of decision makers needs to move from that in-built notion of “being successful by competing” on their individual level and changing their mindset for more collaborative innovation across this diverse and global network.

The authors suggest this new way of managing is a difficult one to adopt and sustain but suggest the best way, perhaps the only way, is through constant practice and having a positive reinforcement of what makes for successful collaborations. I’d also add that ability to experiment, to learn from others around you constantly and recognizing ‘winning and being successful’ is not reliant on just yourself, it is leveraging everything that is all around you that builds your experience and knowledge.

Globally Integrated Innovation

We live in a world of huge diversity and dispersion of knowledge. There is a growth and constant push into new markets, emerging new competitors that are increasingly challenging us to find solutions to this management of global networks, both inside and outside our organizations in more integrative approaches to capture the ‘best’ of innovation.

Today’s present structures of the innovation organization, the systems required, the processes, the diversity of cultures, different mindsets and the focus on extracting the best from this mix of structure and resources is hard and complex.

The authors argue the scope and scale of the tasks should not become an impediment to action and suggest three dimensions of change to help in this. I’ll leave you to search for these.

They warn there is one huge caveat to achievement.

Senior management’s vision, their commitment and attention to this will not achieve this globally integrated network alone.  It is the recognition that failure to implement strategic change is often this lack of buy-in from groups of middle managers who remain happy with the status-quo or unaware of the need and rationale for the required change.

These gaps within organizations are due to the lack of dialogue, openly discussing threats and challenges and being inclusive in the implementation. This took me back, again, to my own arguments and suggested solutions to bridge that gap, through the Executive Innovation Work Mat.

“Knowledge is increasingly dispersed”

We return to knowledge in the wrap up within the book, where the authors have identified five radical shifts taking place that will lead to greater knowledge diffusion and diversity: 1) globalization and the opening of new markets; 2) increasing technological complexity and convergence; 3) demographic changes; 4) greater external pressures, in particular environmental concerns (and scarcity); 5) offshore outposts and outsourcing.

Knowing what makes up the complexities of global innovation and managing and harnessing this in dispersed networks is a real challenge and there is no better place to start than in picking up a copy of this book and working through it thoughtfully and thoroughly, to “organize, build and manage a global innovation capability from design to execution”

My final thought – beyond the previous boundaries of innovation

With innovation increasingly moving beyond its previous boundaries of simply leaving it to the scientists or marketing departments has long gone, for today and in the future, innovation is about open, inclusive, exploration and harmonization to extract the best.

Innovation has moved beyond products into new services, changing value propositions and business models and needs this constant reorganization around changing the innovation activities. Technology- based alone is not enough pursuing greater functionality; we are increasingly in the disruptive era of simplification, which captures far more of the imagination and where the increased movement of wealth generating opportunities lie.

Look at the effects of reverse innovation, jugaad or frugal innovation and where this has potential, the strong underlying movement in start-ups that are far more ‘needs related’ or serving ‘unmet needs’ through lean approaches than those in the past, of simply cruising along for opportunity with a vague business concept.

Everything has become so much sharper in why we have to focus our minds down, it is far more on what and where innovation can give us the next growth opportunity and that comes from all the diversity we can muster. Managing in the global innovation space is no different, it needs a dedicated focus and understanding, to find the unique mix that suits your needs and knowledge accessing and translating becomes the global unlocking key.

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