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.