This, for me, was so well structured and offered such a high level of clarity on the pathway they are pursuing, combining innovation and digital, with the outcomes emerging, of building a new suite of Business Models.

I can only simply touch on it here, I suggest you do your own drawing of conclusions.

The Insurance industry has been struggling to adjust and adapt to the rapid changes occurring yet so many are hanging onto the traditional way of doing things. It is so refreshing to see how Munich Re are venturing out, exploring and exploiting, in multiple ways to learn a new innovation pathway.

I follow the two big Re-Insurers, Swiss Re and Munich Re specifically and the innovative differences are quite significant. Swiss Re seems locked far more into traditions and I am still to be convinced they have yet to embrace innovation, certainly from an external perspective, in the same way as Munich Re is undertaking. I struggle with Swiss Re’s messages on where they are exploring the future of Insurance. The way I view, it seems far more unclear, even random, they seem far more closed down with isolated attempts to explore opportunities.  Whereas Munich Re is constantly opening up to change, exploring and seems far more comprehensive and holistic. It seems one is undertaking “words are simply spoken” the other “actions underscored”. Maybe I am wrong.

The reason I found the Investor Day presentation so good was its comprehensive coverage of the way those involved on the day covered the Framework and Infrastructure initially, then explained through different examples their Business Transformation journey, and how these parts are extending out for their total offering, in exploring new business models and solution offerings.

If only the vast majority of Corporate Organizations could set about describing their transformation in such a concise and visual way.  It would give such a raise on the clarity of what is being explored, experimented with, and embedded, besides showing clearly if innovation is central and core, or simply given “lip service”.

All I can achieve here is in this post, is first, a real praise for the presentation and provide just a few ‘teasers’ from a presentation deck that is 140 slides long. You get such a strong feeling of how digital and innovation are being combined in new ways from this.

They not only provide a foundation and a clarification of where innovation fits but they provide a clear outline of the ongoing progress and at the results to date.

Munich Re is “forming an interlocking business model” in what they are currently undergoing. One that is providing a growing range of digital solutions and indicating how active they are in continuously transforming and extending their business. They take this opportunity to discuss, through selective projects, the level of detail that gives you a good undercurrent of their commitment and belief, in the transforming they are undertaking, one of searching for innovation synergies in all of what they are exploring.

They are looking to enable technology and digital innovation to improving their 1) existing business models, looking to 2) disrupt existing business models and 3) establish new business models in selective insurance sectors, to continuously learn and adapt. This updating is on sales, retention and service outlooks. They are looking to put into place “best user experience” where they can through digital and customer-centric platforms. They are looking to become, where possible the virtual insurance company from what they are learning and experimenting with.

As like many other industries, Munich Re is building a new digital factory that taps into the trends occurring across industries (Industry 4.0 for example) and in managing risk in different ways. They are looking to work through new risk scenario’s, extend insurability and risk mitigation or prevention, add new products, solutions, and new extended services and open themselves up to a more hybrid customer ecosystem, serving across multiple channels. All of this with the aim of having efficiency increases and growing automation.

Within this Munich Re have recognized that the transforming occurring across industries from standard products, established borders is requiring different system solutions and different investments

Part of this set of solutions is building out the digital ecosystem they see as essential where data analytics, predictive analytics and basically looking to further exploit turning data into value and risk assessment becomes paramount.

The mix of digital ingredients and having the approach to building a more agile, flexible and modular design approach gives a strong impression they are driving much innovation within the Insurance Industry. As they continue to make further strategic investments and investments in their innovation they will continue to push the boundaries for transforming the industry. For example, they illustrate the Canadian approach to their digital marketing platform.

Without a doubt the presentation was well-structured. It shows this is a journey they are embarking on and you get that clarity from the commitment from the top in exploring avenues that can lead to new opportunity or new learning. This is no finished roadmap but it does give investors and multiple stakeholders a really decent understanding of how Munich Re are managing their transformational journey

In a further update in January 2018, I have lifted out this slide from the Equity Story on why you should invest in Munich Re. Two points come across, a vigorous management attention and a strong attention to a cohesive business strategy that explores transforming ideas into tangible results in investments, experiments and learning for moving towards a tangible business impact

An excellent job of communicating the Innovation Story in my mind

The whole value of approaching the story of innovation in this way, provided by Munich Re, can be such an example to so many others, a template for communicating out the digital innovation story. It strikes me that Munich Re is recognizing and embracing the changing competitive landscape, they see digitalization fostering innovation, they are learning to figure out what are agile business models that give them a growing awareness, preparedness, and resilience to try to contain and dampen down all the volatility around them. They are clearly in search for a business-enabling set of new business models, that is a work-in-progress that does, in their own words “turn uncertainty into business opportunities”.

Thank you, Munich Re, for such a great presentation and the continued message this is simply not a one-off presentation. As I have seen previously seen, they are constantly reinforcing their innovation transformation message. This has already gone into 2018 in the recent Equity Story, just released even further in qualifying innovation impact (see above). They are clearly showing a strong confirmation that the “digital ingredients” are embedded in their business strategy to search and explore, as well as exploit innovation.

Others might be well-advised take their time to reflect on their approaches to the future and how they are undertaking any digital transformation and where innovation does sit in this. “Sitting on your hands” or treating business in that past, traditional way, of doing business as usual, is not an option.  The lessons you can learn from Munich Re, who do seem to understand this well and explain how they are undergoing their transformation journey through innovation is really good. A terrific confidence builder and validation of actions.

* All visuals used came from a Munich Re investor day presentation in November 2017 “Munich Re driving digital transformation” or the last slide for an early 2018 update in Presentations 2018, on Munich Re under “Current Company Presentation” under “Shaping change in insurance, Munich Re equity story” a download PDF, 1.5MB. Both of these released into the general public domain from their publications section.

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In this post I wanted to explain my thinking through on this ability to be ‘ambidextrous’, knowing the difference of when to exploit and when to explore as essential to leveraging innovation, in all its forms and watching out for some of the traps in not managing this well.

Managing this, in all honesty, though, is hard to get the balance right but highly valuable if you do achieve it, it can transform the business. Many of our organisations struggle to manage both successfully as they tend to focus more on separation mostly in organisational structures alone as their attempt to become ambidextrous. It is far more than ‘just’ this.  Get the balance right across the organisation’s design and in its leadership management, it becomes a very powerful mechanism for accelerating performances by delivering significantly new innovation and equally sustaining and leveraging the core business you have today.

Recently I contributed a blog post over on the Hype Innovation Blog ” Balancing Exploitation & Exploration for Changing Performance” that opens up the subject but then extensively dives into three examples of Apple, GE and Google that are working in highly ambidextrous ways, pursuing exploiting and exploring in their own unique ways.

The important point is that the make-up of how, when, what and where to exploit and explore, can certainly be very different for each organisation, all dealing in their different contextual settings. You need to develop a “dual mentality” in managing and be watchful for dealing with this as it can create a real deep-lying set of tensions, yet it is within these tensions and how they are managed will determine eventual success of getting this balance right.

We often face conflicts on knowledge acquisition, absorption and translation

How do you switch from the pursuit of efficiencies, from what is often well-established, into the probing of the unknown or not easily quantifiable? We need to balance the interplay between the two.

As we pursue the alignment and adaptation of the two, this is where we get into a serious conflict by attempting to manage this in one fixed ‘state’ or the other. You start questioning, looking for synergies, searching (often by default) for the complementary, attempting definitions, drawing connotations and meaning from these far too early and this has consequences. You muddle your thinking between when to exploit and when to explore effectively. Management is often looking to close something down, to make a decision based on the present known facts, exploiting as quickly as possible what we do best, yet there are many occasions they should stay open, wait and allow time to explore more, to gain more insight. Knowing when to do one or the other is the judgement needed.

You can so easily get into further conflict as exploitation tends to be built on past knowledge, or pursuing and acquire new knowledge to build on existing knowledge. Whereas the kind of knowledge needed for exploration, is significant new knowledge acquisition and requires rapid absorption, and one might not be necessarily helpful to the other, as the purpose and need are sometimes radically different.

You struggle to find the consistency of purpose or even commonality when the type of knowledge that is required can be so starkly different, built either on the known or in pursuit of the unknown. This is why gaining an absorptive capacity understanding becomes important in the context of what you are attempting to do. Knowledge ‘feeds’ advancement and equally provides the ‘fuel’ for innovation but they mostly come at you differently to manage, absorb and translate into their meaning.

Managing exploit and explore depends on your situation

Unless you have a “guiding star” that comes partly from a vision market understanding and mission, that can help you decide the emphasis between these two, it makes managing these dual activities as simply difficult. Is it one that is focused on productivity, cutting costs, ensuring ongoing quality and building reputation, or one pushing out by experimenting, adapting constantly and searching for viability and its validation, how can you determine where you put your emphasis?

I would argue it really does depend on your orientation and what you want to achieve. It is where the organisational focus lies and the necessary defining conditions  and the market dynamics will mostly decide that? How volatile or challenging is the market, is it growing steadily or rapidly undergoing dynamic growth? Do we have to pursue a more radical agenda of innovation or can we evolve on a more incremental path? Do we place our emphasis on consolidating our core or searching for concepts that radically alter our position?

Are you in pursuit of a logical and hopefully, coherent business model, leveraging all the efficiencies which need to work in an orderly, functioning, well planned and managed ways, one where you are making sure your innovation activity is built into its well-established structures and processes? Or are you wanting to encourage a greater freedom for individuals to make personal decisions and encourage the taking of initiatives to be more radical and distinctive in their innovation approaches, deliberately introducing this into their work design, offering high levels of flexibility and self-organizing, allowing for an emerging model to emerge as against fitting into a well-established and often rigid model.

The case for clear separation

There is a number of highly respected people who suggest clear separation must occur. They pose the questions: “Are exploiting and exploring at two ends of a spectrum?” Are they not so different that they need clear separation? We need to separate out the present day-to-day work, with the innovation future work. This has merit.

I think if you foresee a radically different business emerging then this clear separation makes greater sense but how do you reconcile some of the underlying values? How important is the culture, the history, the brand or image, how do you rotate or attract the necessary talent. How do you fund the ’emerging’ business, does this existing business finance this and if so, will it constrain the new business in open or hidden ways? if you create distinct entities, giving them completely different operating environment, will they be capable of being merged back later?

In my examples I used on the Hype post, the one that is a real test of management is the Google decision to separate out its moonshot’s from its core, by creating a new holding company, Alphabet, to treat them distinctly differently. As the founders, their view has been: “the whole point is that Alphabet companies should have independence and develop their own brands”, then separation becomes a clear decision. Yet it does seems there are some initial tensions occurring that will need well-managing and different management thinking to manage this transition, it will be an interesting one to watch how this evolves.

A dual management approach

The argument goes and it might surprise you, by supporting core businesses and new emerging innovation units actually requires leadership to be constantly inconsistent. They must totally live the dual agenda otherwise, it fails. It needs significant management attention to managing the tensions this duality brings. When leaders do take this ambidextrous approach, they are forcing change but it can be very demanding to get this exploit and explore balance right.

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The post So how do you manage exploiting and exploring for Innovation? first appeared on Building Your Innovation & Ecosystem Intelligence.

Adapting always seems a work-in-progress, or it is often something where we are simply making little or no progress!

We often stay ‘stuck’ in the way we do ‘things’ around here, never seemed able to break out into something new or different.

To adapt we need to open ourselves up to learning and adjusting our organizational ‘form’ in new ways.

In business, there should be a constant battle to reconfigure the assets and extend the existing capabilities. Yet often these stay ‘static’ not learning or improving.

In our innovation activities, there is an even greater pressing need to build into our thinking the ability to find more dynamic capabilities. It is a constant innovator’s dilemma to think through and get right.

What might help?
Recognizing our need to think differently
Here I am wanting to outline some opening thoughts for you to consider in becoming a more adaptive organization.

There has been a lot of discussion about finding new organizational forms that need to somehow reflect on pushing out and developing around unique combinations building into our existing structures these four distinct ‘classification’ states: a) collaborative, b) learning, c) emergent and finally d) ambidextrous.

These ‘states’ are viewed to be really helpful in accelerating an organization’s growth potential and improving greatly on the innovation cycles.

Partly this is being driven by a recognition that we are becoming more dependent on a growing set of challenges that include: a) gathering and synthesizing far more knowledge than ever before, b) the fact we are increasingly becoming dependent on the performance of others, c) the assets that we simply own and have in place are just not good enough today and d) our abilities to “read, react and respond” to changes occurring that just seem to be constantly accelerating away are becoming more difficult to keep adjusting too in our present organizational structures.

Somehow we need to respond in more agile, fluid and adaptive ways. Roger Martin suggested some time back “that modern leaders need integrative thinking to embrace complexity, tolerate uncertainty and manage tension in searching for creating solutions to problems“. It is learning to make different choices in a far more creative process, often more disruptive to our established norms.

All these are challenging our existing organization’s systems, structures and processes and it is a growing process of understanding that will emerge to form these new ways of operating, far more reliant on technology, rapidly available and adaptive systems and flexible thinking and design.

The need to become bolder in our thinking

We need to encourage fresh and bolder investments in knowledge, in infrastructure, systems and in managing these. Ones that focus on activities that pursue new approaches that lead to exciting innovation, that really does spurs growth. These are about learning, searching and delivering the winning value on the new innovation value scale of ‘new generation activity’ from recognizing how we balance out exploitation (extending the life) and exploration (new understanding). We need to appreciate the separation effect for innovation.

Most of our organizations today struggle with applying the ‘appropriate’ resources into these two ‘dual’ approaches. Many try to separate them, often hiving off the more radical innovation development part to protect it from being overwhelmed by the often overbearing focus on the short-term and exploitation. Yet this is a real mistake, as they are necessary to be combined to improve what we have, as well as add in a significant change to keep the business healthy (efficient and effective) and equally growing (through innovation)

We are living in a world of apparent contradictions

We need to manage with one eye on austerity, the other on emphasizing the need for innovation. The popular ‘answer’ to this is simultaneously exploring and exploiting, yet these two organizing and managing styles are hard to find the right balance we need. We want to have a stable environment but we need to equally be dynamic, constantly improving and introducing new innovations.

These are a significant range of questions we have to consider before we decide to establish the ‘appropriate’ position of how much we need to emphasise on the exploit and explore, both needed to be balancing the stability and delivering the dynamic. Much is dependent on the diversity and dynamism of the business environment we are operating under, the resources we have available or can call upon, the market conditions we are facing, as well as predicting where all of it is heading. Easy huh!

Equally, it is dependent on what we are attempting to do.

Exploitation is the “refinement and extension of existing competencies, technologies and existing knowledge” whereas exploration is “our ability to experiment with new alternatives” and each is certainly built on our learning and accumulating experiences. Exploitation on its own, or if heavily emphasized to the exclusion of exploration, can eventually lead to failure, whereas too much exploring and experimentation can limit exploitation. Each can become a “failure trap”.

The “success trap” is when exploration leads to exploitation and exploitation to more exploration, a reinforcing cycle through clarity of mindset and managing between routines and experimentation. These can have very different activities to manage and are the cause of many of the tensions within the balance needed in organizations to innovate the new and manage the existing. Each is often competing for scarce resources, a constant interplay.

The argument for establishing an ambidextrous organization has proffered different opinions for pushing for variations based on: a) clear separation, b) developing the abilities to switch, c) become self-organizing or d) using an external ecosystem thinking to establish the right mix between exploit and explore. Each is determined by a unique mix of considerations.

The answer for each of us is that it really does depend. It has a paradox only you can solve in your unique situation. It comes down to trade-offs. So what do we need to consider? Do you tightly couple these or seek degrees of separation?

We need to seek balance, strive for dynamism and accelerate innovations
With this ever-increasing set of tensions, we are in real need to shape capabilities. It has been suggested * that we have to resolve four closely interrelated ‘tensions’ to help us in leading to understand what, where and how we design ambidexterity into our management within organizations.

We need to consider how we would balance these four tensions:

1. Differentiation and Integration. How do we separate our exploitative and exploratory activities into distinct organizational activities or units? Integration is deciding the mechanisms that can address these. This deciding point between these two will often boil down to the degree of importance placed on the need for exploitation and exploration; these should not become mutually exclusive positions.

We must balance in constantly adaptive ways this duality. It is the specific task or activity that can largely determine this but it needs a conscious designing in.

2. Individual or at the Organizational level. The ability to ‘fuse’ any approach across multiple levels of need at organizational design and the individual’s ability to explore and exploit together, or at separate times, needs resolving. Having different teams, one exploring, one exploiting or having individuals who have a higher propensity for one or the other, to be blended into a diverse team solving a complex challenge that needs this dual thinking purpose are some suggested approaches.

Again it comes back to the challenges that need to be addressed, as the management of contradictions and conflicts needs different alternatives, in our creative thinking. The orientation between the short-term and longer-term need equally to be well thought through. We need to fit innovation into its appropriate context, contributions and characteristics of the people working on this.

Finally, here, it is the diversity in knowledge coupled with experiences. that give us richer linkages for innovation. It is the working consciously on the alignment and adaptability within the mix and at these different levels required. There is a fluid need to move between these levels of design and need.

3. Static versus dynamic perspectives. We do need to find a way to simultaneously pursue the two activities of exploring and exploiting. We need to reduce the static and emphasis the dynamic, by constantly adopting ‘certain’ configurations to meet the innovation needs we are working towards. Achieving a sequential state or pushing for a simultaneous pursuit of the two becomes the key consideration.

The key is to repeatedly and intentionally orchestrate the firm resources; it is striving to gain interactions not separating them. Hiving exploring off into a discrete unit creates problems in any down the line handing off back to the operating unit responsible for the execution of innovation. There is this real need to think through a more comprehensive innovation life cycle here, as innovation is certainly far more dynamic (or should be)

4. Internal versus External Acquisition and Interplay. The need is to gain and utilize the knowledge and this ideally comes from both internal and external resources. The stronger we have in place alliances, outsourcing arrangements and partnerships, we are building our ‘combinative capabilities’ and how we can consciously apply a more absorptive capacity approach to synthesize, apply, acquire and absorb knowledge.

This allows us to develop a higher degree of knowledge flexibility across organizational boundaries and find different ways to integrate this into our innovation thinking. We are always in need of novel, diverse alternatives to any innovative thinking.

Knowledge diffusion becomes vital to manage the exploit and explore and this needs to flow across the organization, not stay limited within one part, reducing the opportunities to leverage this acquired knowledge. Here lies the seeding of corporate renewal.

Each of these interrelated tensions needs a high level of resolution.

The level of insights into the strategies, structures and processes that allow them to be in this ‘dynamic tension’ for innovation to occur, is one we must constantly strive towards a balance and harmonization between the two activities of exploitation and exploration. These tensions will actually require a high level of constant and often contradictory levels of requirements. How can we design this into the fabric of the organization?

This set of challenges does require this deeper thinking about the development of a more ambidextrous approach to innovation. How can the organization be designed in adaptive ways around this constantly evolving innovation need.

The real hard questions to answer will eventually lie in asking “what are the similarities, differences and interactions between the individuals, a group’s and an organization’s creative capacity, diffusion capacity, absorptive capacity for knowledge and risk-taking capacity”.

Where are the balances needed to be achieved in organizational adaptation, innovation need and learning? How can we design the type of dynamic environment that I believe can evolve by an appropriate design unique to you, one that I regard as requiring the understanding of building our innovation fitness landscapes

Building these changing landscapes to meet opportunities and situations to respond to, at you need to adapt,  manage and operate within; then determining what you need to have available, knowing the how to go about bridging the gaps, to arrive at a state of being constantly adaptable as your goals adjust and change?

It is certainly complex and we all need to learn, adapt and work through this balance in our exploitation and exploration needs. It is one critical part of future organizational design. It does need individually working through to meet your own specific needs for growth and protection.

It does mean that the level of sensing, seizing and reconfiguring is critical to work upon and that means it has to be highly dynamic, in building the dynamic capabilities required for innovating because nothing can be static for very long in today’s world.

The key reference used is drawn from the paper “Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance” written by Sebastian Rush, Julian Birkinshaw, Gilbert Probst and Michael Tushman. This paper has been at the core of the post.
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The post Striving for the innovation balance: between exploring and exploiting. first appeared on Building Your Innovation & Ecosystem Intelligence.

How do you sustain innovation, is it more through the structuring of everyday work, by creating a particular set of social rules and resources that foster specific routines? Or something different?

We work really hard at maintaining these re-occurring processes, never willing to extend and push them in different and new ways. We have actually become very static in our approaches and learning, we are not learning anew.

We often simply end up with incremental innovation that might just ‘nudge’ the growth needle but does little more than sustain us in the present and can be ‘contained’ in a tidy process that makes many, including the ‘bean counters,’ very happy until someone changes the game.

Then we need to think differently but this is usually far too late.. As demand is more volatile today we need to experiment, explore, learn and adjust. What becomes more important is the ‘work to be done, and how we go about tackling this and not the work done where we often simply ‘default too. Surprisingly Adam Smith identified this important difference in work way back in 1776.
This can be explained as the ‘work done’ is the accumulated knowledge, which has built up and been embodied in the firms results with the innovations achieved in the past and is seen as the tangible capital that we continue to leverage..

The work to be done is how well it can adapt to change or what needs to be brought in to help in this new work. In the past century we operated in mass production era, with systems with standard goods and stable market conditions the ‘work done’ was equivalent to the ‘work to be done’.

In today’s global market, with its rapid technology diffusion, disruptive and constant change, with an emphasis on serving the ‘work to be done’ as more important than the ‘work done’ and identifying and growing our intangible assets are fundamental to this. This is where we need a more radical, evolving innovation set of capabilities to push our business growth beyond the normal.

Work to be done is the need for our future growth and well-being to be derived through innovation activities. These are so much made up of intangible parts, the growing innovation capital, that will provide the new wealth of organizations in the knowledge sharing economy of today and the near future.

Certainly I buy the argument that Innovation should become part of everyone’s job on a daily basis so they have the space and potential to work on it constantly but what does this require? This is part of our journey within seeking innovation fitness through its dynamics.

Part of our innovation debate is what is “dynamic” or “routine” for managing future innovation success?

For me the argument points to the capacity to build “dynamic capabilities for innovation” around the critical situation we are all finding ourselves in, that we are all in an age of rapid ongoing change.

‘Rapid change’ calls for constantly developing and leveraging new understanding, building knowledge that is based on dynamic capabilities, it evolves and changes all the time. These need to be fully understood so the appropriate resource and commitment can be placed behind them.

The world of innovation is based on something that is very clear: it is consistently changing and challenging, has never-ending competition, a constant price/performance rivalry, increasing quest for improving returns and the ‘creative destruction’ of existing competencies all certainly contribute to rapid change no doubt.

This is a highly dynamic environment we are all living and operating in today. Are you building those skills and capabilities to adapt and react?

Building new capabilities or stuck in the past?

Are our organizations building the capabilities to become highly dynamic or are they stuck in the past, looking for routine and repeating established procedures expecting these to get them through this volatile world? They will find this path of repeating established practices like the one to their own demise and eventual destruction.

What are the firm-specific capabilities that can be sources of real evolving but equally lasting advantage? How can combinations of competencies and resources be developed, deployed, nurtured and protected? These need to be difficult-to-imitate combinations and integrative enough to give new sources of competitive advantage to stimulate new growth and financial return.

In my work, I have spent considerable time investigating what makes up the dynamics that accelerate our abilities to innovate in better ways, so it sustains and equally evolves to ‘battle’ the increasing volatility we will be facing on an ongoing basis. These

Strategic innovation often changes the ‘game’; what it explores and exploits to stay dynamic.

Firstly we need to go back and understand “What are dynamic capabilities?

Dynamic capabilities are those skills, processes, routines, organizational structures and disciplines to build, employ and orchestrate intangible assets that are not replicated easily by others and constantly change to meet customers’ needs.

Dynamic Innovation Capabilities need to advance knowledge creation and absorption, extend and integrate what is learnt into something more worthwhile, something new. These capabilities need to learn how to modify constantly the way we operate, reconfigure and redeploy.

This involves the dynamic of sensing, seizing and transforming (Teece et.all) at the three interdependent levels of the individual, firm and network to coordinate/ integrate, learn and transform constantly and to reflect the constant change that is taking place.

Two different academic views but does one lead to the other?

Dynamic Capabilities are defined by Teece, Pisano & Shuen in their different papers on the subject as “the firm’s ability to integrate, build and reconfigure internal and external competencies to address rapidly changing environments so as to achieve new and innovative forms of competitive advantage”.

Everyday Dynamics are where people know what is expected of them and what to expect from others and have a common ground for negotiating collective action in particular situations that create an ongoing social fabric where innovation naturally flows. Zollo & Winter suggest a dynamic capability “is a learned and stable pattern of collective activity through which the organization systematically generates and modifies its operating routines in pursuit of improved effectiveness”

Both definitions require learning through equally exploiting and exploring
Both of these ‘dynamics’ arise from learning and this within organizations more likely to come from systematic methods.  Innovation nearly always requires structure, process and being worked through in systematic ways unless you perhaps are a sole inventor/ innovator.

To work with others successfully you need a certain structure, a process and a given environment and culture to deliver innovation.

We have to realize that capabilities for innovation are complex, they are structured and multi-dimensional.

Often today organizations strive to keep these far too much in “equilibrium” (zero level) but the reality is that our markets being served are not in this ‘equilibrium’ and are constantly being disruptive, more ‘dynamic’ than ever. We cannot keep a ‘business as usual’ mindset we need to recognize we are operating in a potential set of constantly unstable circumstances. Business is a complex adaptive affair.

We need to become far more aware of the dynamics that surround us that are needed for innovation to work constantly. We need our journey to evolve.

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