Recognizing the different capabilities to develop and grow

IFD Complexity WebA firm’s ordinary capabilities are the ones that enable us to perform efficiently and effectively, those essential routines and practices that often require having a high level of technical need supporting these activities.

In contrast, dynamic capabilities are those higher level competences that determine a firm’s ability to integrate, build, and reconfigure both the resources and competences to possibly shape, have the power to transform and  then be deployed to meet rapidly changing business environments to take advantage of these changing conditions.

Recognizing the importance of Dynamic Capabilities

Dynamic capabilities are about selecting the right things to do and getting them done, while ordinary capabilities are about doing things right. The former implicates dynamic efficiency, the latter static efficiency.

Asset Orchestration is Required for more Dynamic Innovation

to orchestrate 5We all should recognize the incredible power of orchestration that is needed in innovation to bring the initial idea into a final successful commercial concept.

We have an ongoing need to create, extend and modify resources constantly and to achieve this we need to orchestrate and enable those resources to exploit and execute our innovations.

We need to ‘asset orchestrate’.

One of our blind spots is perhaps the focus on pursuing and organizing around innovation just within an organization and not being as aware of all that is externally going on around us.

There are continued and rapid shifts taking place outside the walls of our organizations, constantly occurring and changing, often it becomes a ‘race’ between spotting an opportunity and executing on it before your competitors do, or the market further moves on and it becomes a lost opportunity to have exploited.

Understanding Challenges Within Innovation Complexity

Complex adaptive system 1
Termite colonies are a complex adaptive system

We need to think differently about innovation and why it needs complexity and adaptive thinking as part of its design.

Complexity within systems challenge us to think differently, it pushes us to think outside often our normal experiences, to confront and understand and then restructure, often the unordered, into a new order.

Organizations are in need of understanding the complexities within their systems far more.

Complexity within innovation is always adaptive.
The challenge with managing complexity is that it is made up of many shifting and connected parts, that form much around interactions and relationships. These new ‘connections’ are shifting and challenging much of our previous understanding, built often on past practice and entrenched thinking.

The Use of the Cynefin Model for Innovation Management

Cynefin Revised 1
The Cynefin Framework is a sense-making one and is registered copyright to Cognitive Edge

Firstly a very brief explanation of the Cynefin Model and why I find it highly valuable for innovation management.

Innovation has many characteristics of a complex adaptive system as I have crudely attempted to explain here.

The three primary states within the Cynefin framework are Ordered Systems (including Obvious and Complicated), Complexity and Chaos.

Order is split into two, as this handles a key difference in human knowledge between those states, where the cause and effect relationship is obvious and those where it requires greater analysis or expertise.

Exploring a process of emergent discovery for innovation

Most innovators are working in and certainly are far more familiar with the ordered domains, for ‘obvious’ innovations that extend, enhance or evolve their existing products and services.

Equally, they understand their more specialised place and contribution to be growing in their comfort, in the part they play in the more ‘complicated’ domain, where expertise, dedicated focus and specialization are often required or called upon.

The value of fitness landscapes as part of your innovation awareness

I’d like you to work through these ‘thoughts’ to begin to evaluate the value of knowing your innovation fitness and what makes up your distinct dynamic capabilities:

Mapping out your innovation terrain
Mapping out your innovation terrain

By firstly mapping out your innovation capabilities to the task at hand enables you to understand and relate to what is needed – we call that the context for innovation.

Innovation Fitness Landscapes helps in this task by identifying the opportunity spaces on where you need to focus your efforts‐ and apply the appropriate resources to navigate the terrain.

Innovation is like a tropical rainforest constantly needing attention


Innovation is like a tropical rainforest
Innovation is like a tropical rainforest

I describe innovation as very much like a tropical rainforest, needing constant fresh attention, similar in its management,

There is my need to cut down certain trees, clear away a lot of the floor covering to allow the sunlight in and permit those ‘selected innovation trees’ to be allowed to grow stronger.

We all have those times where we need to choose, to pursue clearer pathways we believe are better for us. To be more selective in what we do, to be more focused and hopefully achieve a better, lasting result that hopefully offers a more satisfying set of outcomes, to both clients and to ourselves.

Within this comparison I am presently making of innovation being like a forest, I really began to see so much more of a connection in what is happening around innovation that it can be compared to understanding a tropical rainforest. There are many comparisons, let me outline some of these here.

The ecosystem within the rainforest is also needed for innovation to work effectively  

Do you know your innovation stock and its capital potential?

Knowing your innovation ‘stock’ and  ‘capital’ potential

IFD Stock and Capital
Knowing our stock and capital for innovation

If we really want to innovate well, we need to know our ‘innovation stock’. This is where the largest part of our wealth generating capital lies and where it’s potential can be best put to use. We are today increasingly valuing the knowledge perspective far more and with this we are increasingly recognizing the importance of the intellectual capital that makes up the organization.

I, and many others, would argue that we certainly need to re-think many of the old world value delivery systems to assess organizations and make much more of a concerted effort to make innovation that renders different, unique value outcomes, that keep pushing the boundaries of strategic advantage within any business.

Approaching innovation through fitness dynamics needs a structured approach.

This post follows on from my recent one of “the Innovation Journeyman.”  We do have a real journey still to travel to understand the dynamics within innovation. Here, I want to lay out a possible path that might advance us towards achieving this. This includes a fairly ‘intensive’ nine step approach outlined below.

The innovation fitness dynamics
The innovation fitness dynamics

What we do need to do is constantly evolve our innovation capabilities to perform in more dynamic and flexible ways. We need to acquire that consistent aim of achieving a more adaptable and adjusting approach to innovation in all its parts.

We need to meet the changing circumstances and challenges we are all facing to regain the real growth needed from our economies and organizations, making what we do at the same time, more sustainable. Delivering better innovation outcomes is central to this task.