The Interconnected Business Ecosystem driving impact and increased value.

I am working to validate and expand on the value proposition of the Interconnected Business Ecosystem Framework and have tried to create, hopefully, a compelling pitch that will bring others on board to advance this initiative. I have published this pitch on both of my primary sites, discussing innovation, business, and ecosystems, as they both provide a combination effect for understanding this framework.

I initially called this “the hierarchy of business ecosystem needs,” which built out an interconnected framework of business ecosystems that give organizations a real alternative to how they operate today and in the future.

I provided a comprehensive series of outline papers as the introduction phase earlier this year, which provided the concepts forming a cohesive outline structure of how organizations should think through the future. Also, I provided an earlier view on my paul4innovating.com posting site of “pitching business ecosystems opens up the possibility of real change.”

We need to really open our thinking towards collaborative ecosystems. This is one of openly collaborating and co-creating in different Ecosystem structures and designs to provide a greater diversity of opinions, knowledge, and resources.

This “pooling or network effect” forms around more complex challenges to tackle, thus giving a more sustaining and hopefully greater value in solutions to the needs of their customers, markets, or areas of need.

I have recognized this needed rebranding- hierarchy has some negative connotations.

I have now entitled this The Interconnected Business Ecosystem Framework as it reflects the essence of what I believe this framework provides

The Interconnected Business Ecosystem Framework is a pioneering and holistic approach that redefines how organizations create value, drive innovation, and achieve long-term success in an increasingly complex and dynamic business environment.

By seamlessly integrating four interdependent ecosystem layers – Innovation Ecosystems, Business Ecosystems, Dynamic Ecosystems, and Enterprise Ecosystems – this framework unlocks a transformative paradigm that transcends traditional boundaries and siloes, creating a virtuous cycle of value creation, resilience, and adaptability to secure an enduring competitive advantage in today’s dynamic business landscape.

1. Innovation Ecosystems lay the groundwork, fostering an environment conducive to the cross-pollination of ideas, exploration of new frontiers, and the convergence of diverse perspectives and expertise. The foundational layer focused on fostering open collaboration, co-creation and shared challenges to drive continuous innovation and creativity.
2. Business Ecosystems enable collaborative value co-creation by orchestrating interconnected networks of partners, suppliers, customers, and stakeholders, leveraging their collective capabilities to deliver superior customer experiences. This layer emphasizes strategic cooperation, interconnected solutions and cooperative strategies between businesses to achieve sustainable growth and competitive advantage.
3. Dynamic Ecosystems provide the agility to reconfigure partnerships, leverage emerging technologies, and pivot swiftly to changing market conditions, ensuring lasting competitiveness and relevance. Centered on adaptability, resilience, continuous learning and building dynamic capabilities to navigate complexity and sustain excellence amidst change.
4. Enterprise Ecosystems foster internal alignment, break down siloes, and cultivate a culture of cross-functional collaboration and innovation, optimizing operational efficiencies. The apex layer focused on achieving collective prosperity and sustained excellence through collaborative efforts across enterprises and integrative leadership.

Each layer is interconnected and contributes to the collaborative ecosystem’s overall success. The progression reflects a journey from establishing an innovative, collaborative foundation to reaching a dynamic collaboration that unlocks collective prosperity.

In an era where traditional business models are being disrupted unprecedentedly, the Interconnected Business Ecosystem Framework provides a strategic advantage by enabling organizations to adapt and evolve with agility. It recognizes that value is no longer confined within the boundaries of a single enterprise but rather emerges from the synergistic interactions and contributions of diverse stakeholders within an ecosystem.

This transformative and future-ready framework empowers organizations to thrive in an increasingly complex and dynamic business landscape. By embracing the principles of interconnectedness, collaboration, and shared value creation, this framework offers a comprehensive roadmap for businesses to unlock new growth opportunities, foster innovation, and achieve sustainable competitive advantage.

The true power and novelty of the Interconnected Business Ecosystem Framework lie in its ability to harmonize and interconnect various ecosystem layers, fostering resilience, sustainability, and adaptability.

The critical aspects:

Adopting this framework will enable your organization to:

1. Unlock New Value Streams: By interconnecting with complementary partners, suppliers, customers, and industry players, you gain access to novel resources, capabilities, and opportunities for co-creating innovative solutions that transcend the limits of your organization’s internal resources, tapping into the collective intelligence across ecosystems through ecosystem-driven co-creation and cooperation.
2. Accelerate Innovation: The framework facilitates the cross-pollination of ideas, expertise, and technologies across diverse domains, fostering an environment conducive to continuous innovation and exploring new frontiers. By tapping into the ecosystem’s collective intelligence, you can stay ahead of the curve and respond rapidly to market shifts.
3. Enhance Resilience and Adaptability: Ecosystems inherently promote resilience by distributing risks, sharing resources, and enabling collective adaptation to disruptions. The framework equips your organization with the flexibility to pivot, reconfigure partnerships, and leverage the ecosystem’s strengths to navigate turbulent market conditions. to navigate disruptions and market shifts
4. Deliver Superior Customer Experiences: By aligning the ecosystem around customer needs and leveraging the collective capabilities of partners, you can offer seamless, integrated, and holistic solutions that exceed customer expectations, fostering loyalty and long-term relationships and delivering unparalleled customer value by aligning ecosystems around evolving needs.
5. Optimize Resource Utilization: The framework facilitates shared access to resources, infrastructure, and expertise, enabling more efficient utilization and reducing redundancies. Leveraging interconnected capabilities and shared access leads to cost optimization, improved asset utilization, and a more sustainable approach to resource management.

The Interconnected Business Ecosystem Framework is not merely a concept but a comprehensive and actionable methodology backed by a robust implementation toolkit. I am in the middle of crafting a detailed roadmap that guides organizations through every step of the ecosystem journey, from readiness assessment and partner selection to governance models, performance management, and organizational change.

Embrace the Interconnected Business Ecosystem Framework, and position your organization as an agile, innovative leader driving sustainable competitive advantage through the power of interconnectedness. The framework emphasizes interconnected dynamics across layers, strategic integration, continuous improvement through iterative processes and fostering a culture of ongoing learning and economic advancement.

This is a construct in the making, it needs YOUR help.

Join me in redefining the rules and ways to create value creation, where innovation, collaboration, adaptability, and shared purpose converge to propel your enterprise toward unprecedented heights of success in our ever-evolving business reality.

Together, we can unlock the boundless potential of interconnected ecosystems and shape a future defined by continuous innovation, customer-centricity, and lasting market leadership.

By embracing this framework, your organization will be at the forefront of a paradigm shift in value creation, positioning itself as an agile, innovative, and future-ready enterprise. We invite you to join us in this transformative journey, where the boundaries of traditional business models are transcended, and interconnectedness becomes the catalyst for sustainable growth and competitive advantage.

Together, we can navigate the complexities of the modern business landscape and unlock the full potential of collaborative ecosystems. Let us embark on this exciting path and redefine the game’s collaborative rules, ensuring your organization’s long-term success in an ever-evolving world.

**** Published on both of my primary sites, paul4innovating.com (this site) and ecosystems4innovating.com, due to different audiences.

**Supported in this pitch by Claude.ai

The post Pitching of the Interconnected Business Ecosystem Framework first appeared on Building Your Innovation & Ecosystem Intelligence.

I have been asking Google’s Gemini a series of questions about innovation, how it has evolved in the past twenty-five years, and where it seems to be heading.

This is the third and final part of my questioning on looking towards the future and how innovation will evolve, starting from the original thread of looking over the evolution of innovation in the past twenty-five years, since 1999.

This post is about what has evolved and then what will evolve. There is a very different innovation pathway ahead of us, and then I touch upon a vastly different future at the end of this post.

Innovation will evolve very differently, linked tightly to the organization’s future design, no more cutting it loose, housed separately or outside the core.

Then, my question here is asking Gemini to go deeper into what has changed since 1999, more specifically, looking at the impact of Ecosystems, technology, and platforms.

I have shifted my thinking about innovation to Innovation and Business Ecosystem applications. I wanted to understand how this has evolved.

“Going deeper since 2019, innovation has certainly become more complex, interconnected, and driven by a diverse range of factors. Organizations must embrace a continuous learning, collaboration, and experimentation culture to thrive in this dynamic landscape. Ecosystems, Technology, Platforms, Cross-collaborations- how?”

“Sure, here is a breakdown of how ecosystems, technology, platforms, and cross-collaboration have changed since 2019:

Ecosystems

• From Closed to Open Ecosystems: Historically, innovation ecosystems were often closed, with companies operating within their own silos and collaborating with a limited set of partners. However, there has been a shift towards open ecosystems, where companies collaborate more openly with a wider range of stakeholders, including startups, research institutions, and even competitors. This openness fosters innovation by bringing together diverse perspectives and expertise.
• From Hierarchical to Decentralized Ecosystems: Traditional ecosystems were often hierarchical, with a few dominant players controlling the flow of information and resources. However, there is a trend towards decentralized ecosystems, where power is distributed more evenly among participants. This decentralization creates a more agile and responsive ecosystem that can adapt quickly to changing market conditions.
• From Linear to Interlinked Ecosystems: In the past, innovation ecosystems were often linear, with ideas flowing in a single direction from research to development to commercialization. However, there is a growing trend towards interlinked ecosystems, where ideas flow in multiple directions and cross-pollinate between different industries and disciplines. This interconnectedness accelerates innovation by breaking down traditional boundaries and fostering cross-fertilization of ideas.

Technology

• From Isolated Technologies to Convergent Systems: In the past, different technologies operated in isolation, with little interaction between them. However, there is a trend towards convergent systems, where different technologies are converging to create new and more powerful capabilities. This convergence is driving innovation by enabling the development of more sophisticated and integrated solutions.
• From Programmable Technologies to Data-Driven Technologies: Traditional technologies were often programmable, with limited ability to learn and adapt. However, there is a growing trend towards data-driven technologies, which can continuously learn and improve based on the data they receive. This data-driven approach is driving innovation by enabling the development of more intelligent and personalized solutions.
• From Physical Products to Digital Experiences: Traditional innovation focused on developing physical products, but there is a growing trend towards digital experiences. These experiences are delivered through software, hardware, and data, creating immersive and interactive experiences that are transforming industries such as entertainment, retail, and healthcare.

Platforms

• From Single Platforms to Multi-Platform Ecosystems: Platforms were once standalone entities, but there is a trend towards multi-platform ecosystems. These ecosystems integrate multiple platforms, enabling seamless user experience and cross-platform collaboration. This integration is driving innovation by expanding the reach of platforms and creating new opportunities for collaboration and innovation.
• From Centralized Platforms to Decentralized Platforms: Traditionally, platforms were centralized, with ownership and control concentrated in the hands of a few companies. However, there is a growing trend towards decentralized platforms. These platforms are built on distributed ledger technology, giving users more control over their data and privacy. This decentralization is driving innovation by creating new business models and enabling more secure and transparent transactions.
• From Closed Platforms to Open Platforms: In the past, platforms were often closed, with limited access and proprietary standards. However, there is a trend towards open platforms. These platforms share their data and APIs, enabling developers to create new applications and services. This openness is driving innovation by fostering a community of developers and creating a more vibrant ecosystem of innovation.

Cross-Collaboration

• From Intra-Organizational to Inter-Organizational Collaboration: Traditionally, collaboration was limited within organizations, but there is a growing trend towards inter-organizational collaboration. This collaboration is breaking down silos and fostering innovation by bringing together different perspectives and expertise from across different organizations.
• From Hierarchical Collaboration to Horizontal Collaboration: In the past, collaboration was often hierarchical, with clear lines of authority and decision-making. However, there is a trend towards horizontal collaboration. This collaboration is more egalitarian, with participants working together as equals to solve problems and share knowledge. This egalitarianism is driving innovation by creating a more dynamic and creative environment.
• From Tacit Collaboration to Explicit Collaboration: Historically, collaboration was often tacit, with knowledge and ideas exchanged informally. However, there is a trend towards explicit collaboration. This collaboration is more structured and formalized, with knowledge and ideas shared through documentation, data sharing, and joint projects. This explicitness is driving innovation by making it easier to capture and share knowledge, accelerating the pace of innovation.

I was looking for a validation here and got this summary:

“These changes in ecosystems, technology, platforms, and cross-collaboration are shaping the future of innovation. Organizations that can adapt to these changes and embrace these new approaches will be well-positioned to succeed in an increasingly complex and interconnected world”

Of course AI, immersive technology, the Metaverse are huge in their impact

Perhaps I have guided the answer to the question I asked, but it was asking more about the changes that we are grappling with so as to thrive in innovation in the future and whether it “confirms” my focus shift in the last few years.

As we look towards the future, we need a different perspective

Much of innovation will lie in our effective use of all that technology can provide and how we deal with it in the future. AI is the elephant in the innovator’s room, and we are currently figuring out how to harness it or let it loose. Is this going to be artificial intelligence or augmented intelligence?

Gemini touched on the shifts in human and data that will potentially combine to give us a different ability to visualize, experience, connect and explore a vastly different world of immersive and interactive exploration and experiments. Will ecosystems, platforms and collaborations just fade away in the background, just accepted as what is needed and expected?

I think we are badly positioned today to open up and collaborate in sharing environments and going through the orientation and differences is essential. Open innovation, championed by Henry Chesbrough, took years to establish.

We need to leverage the Open Ecosystem Innovation establishment, more interconnected and aligned to collaborative partners all working towards a common aim or solution, using technology and combining resources but this needs more integration with all parts of the business. Innovation is an Innovation Ecosystem play for future prosperity.

We have learnt that innovation cannot stay as the island of internal experts and highly skilled people are not able to deliver the “connected” needs of customers as the solutions are often complex and require multiple players contributing to the solutions needed. It needs to be thrown open” to the diversity of opinions and knowledge and connect to many dynamic strategic and operational interactions through interactions between organizations and individuals.

We can achieve this by enabling technology and platforms to be more central to the collaborating and partnering environment. Yet, the management methods and practices will need this network-type thinking, where value co-creation fosters sustaining growth. Interactions and concurrent collaborations require a different management comprehension.

There is a very different innovation pathway ahead of us

The network effect, collaborating spaces, and how we delineate innovation are all “up for grabs” as we figure out how to solve problems, more complex and challenging ones, that will find technology managing human interactions increasingly.

I need to look forward from today, 2024, and that needs a very different thinking and recognition of the many changes that have occurred but also in earlier stages of understanding their value ( example AI). What you do recognize that we are on a journey to a radically different pathway towards innovation. Still, looking to the past to see future patterns is always good.

One big difference “What gets old is certainly pretty quickly“, and that is why we all need to be interconnected to learn, adapt and respond in a rapidly challenging and complex world to find what is valued and needed. Scale, scope and speed will dominate and we need to master these.

The post Is Innovation evolving in the way I see it going? first appeared on Building Your Innovation & Ecosystem Intelligence.

I have have been looking back at innovation and how it has changed over the last twenty-five years. In a series of three posts, I have asked Google’s Gemini to answer five questions to track and trace the progress innovation has made and where it seems to be heading.

This is the second post looking more at collaboration and idealization and how and what has helped it evolve in this period. Hopefully, this change has enabled better value creation and learning how to innovate. (First post here)

So this post, in a series of three, looks at the answers given by Google’s Gemini on how collaboration and ideation evolved the organization’s ability to adapt and what helped.

My first question here to Gemini was: “Collaboration, Ideation, Implementation and Value Creation have also changed since 2019- how and what has driven this?“

The reply: “Here are some of the ways in which collaboration, ideation, implementation, and value creation have changed since 2019:

Collaboration

• From siloed to interconnected: Collaboration is no longer confined to departments or companies. Instead, it is happening across the entire innovation ecosystem, including startups, research institutions, and even customers. This interconnectedness is driving innovation by bringing together diverse perspectives and expertise.
• From linear to iterative: Collaboration is no longer a one-way street. Ideas and feedback are flowing back and forth throughout the innovation process. This iterative approach is driving innovation by ensuring that solutions are aligned with user needs and market realities.
• From hierarchical to horizontal: Collaboration is now less hierarchical and more egalitarian. Leaders are not the only ones who have ideas. Everyone in the innovation process can contribute, regardless of their position or role. This inclusivity is driving innovation by tapping into the collective creativity of the entire organization.

Ideation

• From closed to open: The way ideas are generated is changing. Organizations are no longer relying solely on internal sources of innovation. Instead, they are tapping into the global pool of talent and ideas, using tools like crowdsourcing and hackathons. This openness is driving innovation by bringing in fresh perspectives and new ways of thinking.
• From linear to agile: Idea generation is now a continuous process, not a one-time event. Organizations are using agile methodologies to rapidly test and iterate on ideas, keeping up with the pace of change and market demands. This agility is driving innovation by enabling organizations to adapt to new opportunities and challenges quickly.
• From siloed to cross-functional: Ideas are now generated across different functional areas of the organization. This cross-functional collaboration is driving innovation by bringing together different perspectives and expertise to tackle complex problems.

Implementation

• From top-down to bottom-up: The way new ideas are implemented is changing. Organizations are giving more autonomy to teams to implement their own ideas. This bottom-up approach is driving innovation by empowering teams to experiment and take risks.
• From siloed to integrated: Implementation is now more integrated across different functions and teams. This integration is driving innovation by ensuring that new ideas are seamlessly integrated into the organization’s overall operations.
• From linear to iterative: Implementation is now an iterative process, not a one-time event. Organizations are using rapid prototyping and continuous testing to refine and improve new products and services as they are being implemented. This iterative approach is driving innovation by ensuring that new solutions are meeting user needs and market requirements.

Value Creation

• From product-centric to value-centric: The focus of innovation is shifting from creating products to creating value. Organizations are now creating value for customers, partners, and society as a whole. This focus on value is driving innovation by ensuring that new solutions address real-world problems and have a positive impact.
• From short-term to long-term: The time horizon for innovation is expanding. Organizations are investing in long-term innovation initiatives, recognizing that the most transformative ideas take time to develop and mature. This long-term perspective is driving innovation by enabling organizations to develop breakthrough solutions.
• From linear to ecosystem-based: The value created by innovation is now distributed across the entire ecosystem. Organizations are collaborating with partners and stakeholders to share the benefits of innovation, creating a more equitable and sustainable approach. This ecosystem-based approach is driving innovation by enabling organizations and stakeholders to work together towards shared goals.

These changes in collaboration, ideation, implementation, and value creation are fueling a new era of innovation. Organizations that can adapt to these changes and become more open, agile, and collaborative will be well-positioned to succeed in a rapidly changing world.

My second question relating to collaborating over these last 25 years was “How are Organizations adapting differently to these changes so as to become more open, agile, and collaborative? Has the methodology changed? Have the tools differed or is it the acceleration of technology connecting it all up?

Organizations are adapting to the changing landscape of innovation by adopting new methodologies, tools, and technologies. These changes are enabling them to become more open, agile, and collaborative, which is essential for success in today’s fast-paced and interconnected world.

Methodologies

• Agile methodologies: Organizations are increasingly adopting agile methodologies, such as Scrum and Kanban, to manage their innovation processes. These methodologies emphasize iterative development, continuous testing, and customer feedback, allowing organizations to adapt to changing requirements and market conditions quickly.
• Design thinking: Design thinking is another methodology that is gaining traction in innovation. This human-centred approach emphasizes understanding user needs and behaviours, rapid prototyping, and iterative refinement. It helps organizations create products and services that truly resonate with their customers.
• Lean startup: Lean startup is a methodology that helps organizations validate their ideas early and often. By focusing on rapid experimentation and learning, lean startup enables organizations to identify and eliminate waste, reduce risk, and increase the likelihood of success.

Tools

• Cloud-based collaboration tools: Cloud-based collaboration tools, such as Slack, Microsoft Teams, and Asana, are enabling organizations to collaborate more effectively across geographical boundaries and time zones. These tools provide a centralized platform for sharing documents, files, and ideas, as well as real-time communication and discussion.
• Prototyping tools: Prototyping tools, such as Sketch, Figma, and Balsamiq, are making it easier for organizations to create and iterate on prototypes of their products and services. These tools enable teams to visualize and test their ideas early in the development process, identify potential problems, and make improvements before investing significant resources in development.
• Data analytics tools: Data analytics tools are providing organizations with insights into customer behaviour, market trends, and competitor activities. These insights are helping organizations make informed decisions about their innovation strategies, such as which ideas to pursue and how to allocate resources.

Technologies

• Artificial intelligence (AI) and machine learning (ML): AI and ML are being used to automate tasks, identify patterns, and make predictions in the innovation process. For example, AI can be used to analyze customer data to identify potential new products or services, and ML can be used to optimize product development processes.
• Blockchain: Blockchain is a distributed ledger technology that is being used to create secure and transparent ecosystems for innovation. For example, blockchain can be used to track the development of open-source software, manage intellectual property, and share data securely across different organizations.
• Internet of Things (IoT): The IoT is connecting devices and systems in real time, creating a wealth of data that can be used to inform innovation. For example, IoT data can be used to track customer behaviour, optimize supply chains, and develop new products and services.

Summing up this question

“By adopting these new methodologies, tools, and technologies, organizations have been taking steps to become more open, agile, and collaborative. These changes are helping them to innovate faster, create better products and services, and build stronger relationships with their customers and partners”

Over three posts I wanted to look back at innovation and how it has evolved from 1999 to 2024, a period of twenty-five years.

I asked Google Gemini five questions. In my first post, I asked what the main aspects of innovation thinking and design changed from 1999 to 2019. This post looked at how collaboration and ideation evolved, the organization’s ability to adapt, and what helped.

The third post, coming next, looked at the emergence of ecosystems and platforms and began to gaze more into the future of innovation and from this I began to speculate how it will radically change with the fast rise of AI creating disruption and different opportunities. Are we really ready in our structure, system architecture or mindset to be so open, collaborative and willing to co-create? I personally don’t think so.

The post Have organizations become more collaborative over 25 years? What has enabled that? first appeared on Building Your Innovation & Ecosystem Intelligence.

I decided to hold a conversation with Google’s Gemini about how innovation had changed and hopefully progressed since I first became involved 25 years ago, when I lived in Singapore and was heavily involved in my MBA, which had innovation as an elective.

The MBA elective “hooked” me on innovation, and here I am 25 years later, still going on about innovation, championing, cajoling and encouraging innovation to be more central, disciplined and structured.

So I have taken the educational looking back from Gemini lense of perspective and broken this into three parts. I find it interesting and reaffirming. This is the first of these posts looking at the development, thinking and design of innovation from 1999 to today 2024, twenty-five years.

Innovation can be both highly frustrating and rewarding. It is good to gain a real sense of progress in these past 25 years; otherwise, where have I been?

I often feel innovation has not advanced in these past twenty-odd years, but having all the changes nicely summarized here makes me feel there has been a shape and purpose to be so actively involved in the evolution of innovation over these 25 years and been part of that evolution.

Firstly, this post outlines how innovation has evolved since 1999 and does a further recheck for 2019 until today. So, it covers a twenty-five-year period but recognizes that the last five years have seen a very different set of innovation accelerants.

The second post, coming next, focuses on how organizations have become more collaborative, open and agile and deal with ideation and what tools and technologies seem to have emerged as the leading ones.

The third post following, is where I see it heading: into Ecosystems and Platforms to drive innovation performance. I see this collaborative and co-creation of innovation will be in business ecosystem partnerships, and I wanted to “validate” this, with a little bias thrown in!

My question to Gemini was, “Since 1999, what main aspects of innovation in its management, design and thinking?”

So, in 1999, I switched to innovation consulting in Singapore, finding my own way.

Gemini’s reply: “Innovation has undergone significant shifts in its management, design, and thinking since 1999, driven by technological advancements, evolving business landscapes, and a growing emphasis on human-centred approaches. Here’s a breakdown of the key aspects that have shaped innovation in recent decades:

1. Embedding Design Thinking into Innovation Processes:

Design thinking has emerged as a powerful tool for innovation, emphasizing user empathy, rapid prototyping, and iterative refinement. This human-centred approach has revolutionized how organizations approach innovation, moving from top-down, linear processes to collaborative, iterative ones.

2. Embracing Open Innovation:

The traditional model of innovation, relying solely on internal R&D, has given way to open innovation, which actively seeks knowledge and collaboration beyond organizational boundaries. This collaborative approach taps into external expertise, reduces development costs, and accelerates innovation cycles.

3. Harnessing the Power of Data and Analytics:

The rise of big data and analytics has transformed innovation by providing unprecedented insights into customer behaviour, market trends, and competitive landscapes. Data-driven innovation enables organizations to make informed decisions, identify new opportunities, and optimize product development.

4. Accelerating Innovation Speed:

The pace of innovation has accelerated dramatically in recent years, driven by technological advancements and the shortening of product lifecycles. Organizations are embracing agile methodologies and continuous improvement processes to shorten innovation cycles and bring new products and services to market faster.

5. Embracing Human-Centered Innovation:

Traditional innovation often focused on product features and technical specifications, overlooking the human experience. Human-centred innovation emphasizes understanding user needs, emotions, and behaviours to create products and services that are truly valuable and usable.

6. Embracing Failure as a Learning Opportunity:

In the past, mistakes and failures were often seen as setbacks, but a shift is underway towards embracing failure as a learning opportunity. Organizations are fostering a culture of experimentation and learning from failures to drive continuous innovation.

7. Democratizing Innovation:

Innovation is no longer confined to experts or large organizations. The rise of digital tools, online communities, and makerspaces has democratized innovation, enabling individuals and small teams to contribute to groundbreaking ideas.

8. Embracing Collaboration and Ecosystems:

Innovation increasingly occurs within ecosystems of interconnected organizations, including startups, universities, research institutions, and industry partners. These collaborative ecosystems facilitate knowledge sharing, cross-pollination of ideas, and accelerated innovation.

9. Embracing Sustainability as an Innovation Driver:

Environmental and social considerations are now integral to innovation, driving the creation of sustainable products, services, and business models. This shift is not only driven by ethical considerations but also by the recognition that sustainability is a key factor in long-term success.

10. Embracing Ethical Innovation:

As innovation continues to accelerate, there is a growing emphasis on ethical considerations to ensure that new technologies and advancements are used responsibly and for the benefit of society. Organizations are adopting ethical guidelines and frameworks to ensure that their innovation efforts are aligned with societal values.

These innovation shifts have transformed how organizations approach new ideas, products, and services. By embracing design thinking, open innovation, data-driven insights, accelerated innovation cycles, human-centred approaches, and a willingness to learn from failures, organizations can navigate the complex and ever-changing innovation landscape and drive sustainable growth.

My 2nd question to Gemini was, “Since 2019, what main aspects of innovation in its management, design and thinking have changed?

“Innovation has continued to evolve since 1999, driven by technological advancements, shifting business landscapes, and a growing emphasis on human-centred approaches. Here are some of the key aspects that have shaped innovation in recent years:

1. The emergence of Artificial Intelligence (AI) and Machine Learning (ML): AI and ML are playing an increasingly prominent role in innovation processes, from ideation and prototyping to testing and deployment. These technologies are enabling organizations to analyze vast amounts of data, identify patterns and trends, and automate tasks, leading to faster and more efficient innovation cycles.
2. The ubiquity of Digital Technologies: The pervasiveness of digital technologies, including smartphones, cloud computing, and the Internet of Things (IoT), has democratized access to information and tools, enabling individuals and organizations to innovate at unprecedented scales. This has created a more distributed and collaborative innovation ecosystem.
3. Rise of Startups and Venture Capital: Startups have become a driving force for innovation, disrupting traditional industries and introducing groundbreaking products and services. Venture capital has fueled this growth, providing funding and support to innovative startups that may not have access to resources within established organizations.
4. Emphasis on Customer Experience and User-Centric Design: The focus on customer experience has become paramount in innovation, with organizations striving to create products and services that truly resonate with users. User-centred design principles are widely adopted, emphasizing empathy, understanding user needs and behaviours, and iterative testing to refine and improve user experiences.
5. Accelerated Innovation Pace and Continuous Improvement: The pace of innovation continues to accelerate, driven by technological advancements, market dynamics, and the need for organizations to stay ahead of the curve. Agile methodologies and continuous improvement processes are essential for organizations to adapt and innovate quickly in response to changing market conditions and customer demands.
6. Cross-Functional Collaboration and Silo-Busting: Innovation often requires collaboration across different departments and functions within an organization, breaking down silos and fostering a culture of shared learning and knowledge exchange. This collaboration is crucial for bringing together diverse perspectives and expertise to address complex challenges and develop innovative solutions.
7. Embrace of Diversity and Inclusion: A diverse and inclusive innovation team brings a wider range of experiences, perspectives, and ideas, leading to more innovative and creative solutions. Organizations recognise the importance of fostering an inclusive culture that encourages participation from all team members, regardless of background or identity.
8. Focus on Societal Impact and Social Innovation: Innovation is increasingly expected to positively impact society, address social issues and contribute to sustainable development. Social innovation initiatives are gaining traction, addressing challenges such as poverty, education, healthcare, and sustainability, leveraging innovation to create positive change.
9. Responsible Innovation and Ethical Considerations: As innovation continues to impact society, organizations are facing increasing scrutiny regarding the ethical implications of their technologies and practices. Responsible innovation emphasizes ethical considerations throughout the innovation process, from ideation to deployment, to ensure that new technologies are used responsibly and aligned with societal values.
10. Embrace of Data-Driven Decision Making: Data analytics plays a critical role in informing innovation decisions, providing insights into market trends, customer preferences, and competitor activities. Organizations are leveraging data to identify opportunities, refine product development, and optimize their innovation processes.

These trends indicate that innovation is becoming more complex, interconnected, and driven by a diverse range of factors. To thrive in this dynamic landscape, organizations need to embrace a culture of continuous learning, collaboration, and experimentation, while staying mindful of ethical considerations and their broader societal impact.

The next post on the evolution of collaboration might be helpful recognizing the roots of today might be holding us back.

My next post will include the answers from Gemini on the focus shifts on how organizations have become more collaborative, open, and agile, how they deal with ideation, and what tools and technologies seem to have emerged as the leading ones. Perhaps we are still far too internally driven.

Once you have working through the second post on the collaborative evolution you might recognize some of these changes or simply shrug your innovative shoulders and say “this does not really matter where it has come from, I’m up to date and well into the future.” Really?

Then perhaps the third post recognizing the changes we are undertaking for more open, collaborative partnering holds more of the need to think about your future innovation structure and approaches.

A Question for YOU

So does this reflect a fair evolution of innovation over the past 25 years? Does it matter? Perhaps you are still stuck in innovation thinking, which has been established over the past ten to twenty years, and need to take a more radical look at what and how you undertake innovation.

Whatever your thinking, innovation must evolve. Do we make it harder for ourselves or open up to new designs and thinking?

The post 25 years of Innovation- how has it evolved? Has it been successful? first appeared on Building Your Innovation & Ecosystem Intelligence.

Innovation remains separate for the clear majority of our companies even today as it is full of unknowns and question marks. Top executives just do not like the sound of this, so they seek to ring-fence innovation. One where they want to contain it, to try to tame it, so it can mirror their (mistaken) believe that our world is one of order, control, and stability.

Instead of embracing that the real world is actually an innovating world, full of opportunity, for those prepared to take a greater risk, will have much to gain. Regretfully we still see many companies operating with a 20th-century mindset. Thankfully the pressure upon companies to innovate, to get their growth back, is getting a very tough place to operate in today without tangible demonstration of innovation being realized. There is this need to “embrace” innovation. If not, rapid extinction is occurring for many that choose to ignore the sweeping changes we are witnessing in the business world, where more open and technology-driven innovators are connecting and collaborating. Those companies that only halve-heartedly attempting change are fearful and still want to “box” innovation in. A transformation where innovation and technology go hand-in-hand does have to be utterly full on to succeed!

Talk to any executive and out they will trot that comfortable sound bite of: “well we need to strike the right risk-reward as the balance to achieve”. Probe that a little further and they start shifting uncomfortably when you focus in on innovation and their support to its activity. Just ask yourself how many people are totally dedicated to innovation compared to managing the financial risks? Innovation provides growth and future value, financial management mostly focuses on cost containment and utilization of existing assets to manage near-term value. We seem to get this risk-reward totally out of whack!

The creeping effect of Ring Fencing Innovation

I call much of what is currently going on around innovation as simply “ring fencing” so as to limit the risk that undertaking innovation can expose you too. “Ring-fencing” limits innovation impact as you continually push it back into a prescribed approach on how you view the world, one that is stable, safe and having prescribed borders and markets. Every innovation initiative is surrounded by metrics of success that are for “known” business outcomes, programs are “contained” to selected teams, labs are separated from the mainstream to ideate but fail to integrate back, business units are denied “decent” resources to pursue truly game-changing innovation. The constraining of innovation is at work, we are ring-fencing not breaking down borders.

Well, one big surprise, all of that intent on holding innovation change back are the ones drowning, or eventually being thrown out of the window on retirement packages or being sacked. If you don’t fully embrace innovation in today’s world you are the ones heading for extinction but at what price for the countless thousands being caught up in salvage attempts, arriving too little, too late.

Think about this for a moment, we are actually wanting to limit our exposure to innovation in many companies. Well if this view of mine is correct then it is no wonder it becomes hard to ‘allow’ innovation to take hold and drive a business. It is consciously being held in check as it conflicts with the present design of an entity built and designed in the 20th century. It is like the sailboats giving way to steam-driven ones or horse-drawn carriages to make way for the car. It is the (inevitable) march of progress, good or bad it happens, at speed, in disruptive force, and in gut-wrenching ways.

To break innovation into parcels of expertise, limit its resources, constrain its funding we are simply ring fencing innovation to protect the existing, to preserve the “old” order because many know of any different way of working.

Remove the Ring Fences and see what can happen – some examples of innovation being at the core

We are seeing many examples of where innovation has been totally embraced, as the core of what the company is undertaking. One good example that has ignored this 20th-century approach of managing a business is Amazon. It has been a runaway success, in taking technology innovation and exploring all the possible weaknesses in the current systems of business design. Amazon has disrupted books, supply chains,………..and so many other established industries or services that it continues to set about disrupting, and all others feel the impact. Let’s look at five:

CBInsights nicely puts it in its Amazon teardown document as “Amazon barreling into physical retail, financial services, healthcare and AI-led computing” All of these on the back of a massive e-commerce presence, transport, logistics, developing hardware devices, food delivery, open-source educational resources and advertising. It is a “colossal”  in that it prowls everywhere where it see’s inefficiency and complacency and sets about learning about the sector, disrupting it and offering the final buyer, the consumer, increased value or alternative options. Just imagine the position of AWS, the positioning of its AI assistant of Alexa, both cutting edge and learning platforms. These are real, ground-breaking innovation moves in services and imagination.

Then you have Alibaba, equally a technology-centric business built on connecting up providers of services and customers in a very technology-based approach to platform services. Alibaba is extracting out the inefficiencies of the old system by designing a new set of innovative ones built on platforms to conduct business, squeezing out margins, building scale and appeal for its customers. Alibaba is one of the most pioneering firms around, built from its firm grip on China as its core market for harvesting and experimenting. It has become known for the connecting up of the whole supply change and fulfillment consumption chain as a real leader.

Then you have the best case of taking innovation into the core and designing solutions that solve many of our previously unrecognized needs. Here I am talking about Apple, they gave us the ultimate example of good innovation, tangible products, well designed, in ways unimaginable until they are in front of us, ones that change our lives. Most of us can’t imagine being parted from our smartphone, tablet or computer today and Apple still seems laser-focused on products or usability. In CBInsights Apple teardown ” They see Apple further delve into “focusing upon Augmented Reality, Wearables, AI, Cars, And More”

Just look at Tesla and Elon Musk. What he is attempting in scope and breadth is staggering (Useful reference link). Covering off alternatives in Aerospace, AI, Automotives, Telecommunications, Transportation (space travel), Energy and Radical Manufacturing and Material Supply Chains are all so pioneering it is leaving everyone else racing to catch up. Clearly, they are at the edge of radical innovation in much of what they are pursuing.

Then we have Alphabet or Google. We all experience that omnipresence of Google in all its services under this brand. With Android Operating System, You-Tube and countless acquisitions it has spawned a business that is touching all our lives. Their approach to investing early and then exiting if it does not look to be making the “jump” into major revenue contributions is again, highly innovative, demanding on those involved and constantly experimenting to find the winning formula’s to achieve this growth acceleration.

Each of these five powerhouses of innovation has defied the traditional logic of how a business should be managed. They made innovation the core, through the use of technology, imagination, and sheer, determined visions of recognizing complacency by many of the existing incumbents. You will also recognize each of these five companies have very strong visionaries, they drive innovation from the very top.

Those left in the destructive path of companies like these visionaries and innovators

The numerous companies left in this destructive path have been struggling to survive or simply attempt to try and catch up. For so many companies they are not even embracing technology in the ways they should. They stay mired in legacy, viewing “their” established markets through very narrow prisms, distorted from today’s realities, of change transforming swaths of industries not seeing all of this coming. They refuse to see the value of connecting everything up or bulk at the cost of this. Their growth has dried up, hence why innovation is the most overused (under-worked) word that company leaders wish for but can’t come to terms fully with, it is out of their experience zone. Many simply can’t let go of their past experience, to step out of their existing models to embrace the changes underway.

They are so many laggards in the truest sense, having a self-belief of maintaining dividends, giving back to their investor’s constant returns but continuing to strip the company of its richest resources and assets; those of ingenuity and creativity, in this dominance of squeezing out all efficiency. People are creative but only when they are allowed to be  So these laggards make continuous attempts to phase innovation in, piecemeal. They shift the ‘ring-fencing’ in incremental steps. They have not realized they must “pull down the fences” they have built around innovation and unleash it, it totally different and radical ways. They are strangling the very life-blood of their future by not embracing innovation full-on.

Innovation is entering the boardroom but it still is not central to many decisions still being made- why?

We do see innovation creep increasingly enter into the boardroom but it clashes constantly with all those negative feedback loops that clash. It is a constant fight between the many forces at work. Working in innovation spaces are messy and unpredictable, companies look for predictable outcomes and drive efficiency. So much innovation progress is negated even with the positive feedback by the ‘forces’ of status quo. We keep having these countervailing forces in play. The need for maximizing efficiency, extracting constant additional value from core offerings comes up alongside venturing out of those zones of certainty into the zone of uncertainty that innovation gives.

It is a different world and ring-fencing innovation, to corral its impact is a self-defeating tragic mistake that must change.

Innovation should be the core, we have so many examples of the greater value and worth of the companies that did embrace it.

The post Ring Fencing Constrains Innovation first appeared on Building Your Innovation & Ecosystem Intelligence.

A good framework seems to grow, it becomes integrated into your thinking and application. You see increasing possibilities to apply it. One of these for me has been Dave Snowden’s Cynefin.

I also increasing apply the Three Horizons framework as well.

Both allow me to organize my thinking and provide options within any multiple evaluations to begin or shape thinking going forward. Both attempt to break down a growing complexity we all find in our word today.

One, the three horizons, attempts to sketch out our thinking about today’s world, of where we are and what we need to do to keep it going in a hopefully orderly state, and then looks to forecast out the changes we need to move towards, in a projected future and then identify the needs to get there. It passes through three horizons of today (H1), the near term (H2) and the longer term (H3).

You will find much of what I have written about on the three horizons story, within my “insights and thinking“ tab (shown above) and look for the applicable section. Equally, you can put into the search box “three horizons” and many posts will come up to explore this, if you are curious on its value, position and our need, to use this on a more consistent basis.

The Cynefin framework provides a wonderful way to sort the range of issues faced by leaders and us all, into five contexts, defined by the nature of the relationships between cause and effect. Dave Snowden has been explaining these consistently for years. Four of these five are; obvious (formerly simple), complicated, complex and chaotic states and requires us to diagnose situations and then to act in contextually appropriate ways. The fifth one is disorder, often overlooked or not fully appreciated. It is when something is unclear, it is in a disorderly, highly transitory state and needs to be rapidly stabilized into one of the other four to give it a more orderly state going forward.

So why do I see this Cynefin framework as growing in importance?

We are constantly moving from an orderly world into a more complex or chaotic one. We need to be able to recognize what we are facing when we are evaluating something, be that a problem, issue or possible solution. We need an organizing framework where we explore and then exploit, it is knowing when to do either of these becomes important.

Let’s look at different competitive environments we can face and place these into the Cynefin model.

The Obvious Environment

A relatively clear future is seen. Here the future, or the evaluation, is relatively easy to predict. Incremental innovation tends to go into this space. Adding additional features to software, in any strategic design are more predictable. We operate in this ‘state’ in repeatable and predictable ways. The relationship between cause and effect is fairly obvious to all involved so we set this up in those ‘classic’ structure and processes, having the application of regular reviews and place a clear set of measurements on them, to enable them to progress.

I often react over the use of ‘best practice’ but it is the practice we do apply to this ‘obvious’ environment if most ‘things’ are equal. Often we tag much as ‘best practice’ because we are not as thoughtful in our analysis as we should be. Much ‘best practice’ is for me, so often based on past practice, this is someone’s else’s practice, it becomes far too often just “lazy practice”. We often become “chained” to this application of best practice and totally forget to put this “practice” into its appropriate contextual setting. We get used to copying others and lose our own creativity or evaluation. The value of the Cynefin Framework is to challenge this “obvious” state and see if it is actually emerging, or moving towards a different state.

The application goes into a sequence of Sense- Categorize and Respond. That is you assess the facts of a situation or idea or concept, you categorize them and then respond, mostly on established practices or past procedures, systems or practices.

We have to watch out for a number of dangers here. Often we impose far too much micro-managing, we actually miss vital points and far too easily classify issues, as they are often presented as overly simplified. Equally the information has become condensed for higher management consumption, who do not pick up on possible growing problems or warning signals, often until it is too late. Also, we become complacent, our thinking becomes ingrained. If we miss a range of important points the obvious suddenly becomes chaotic, a crisis often born out of this poor evaluation or simplification.

The Complicated Environment

You can see distinct possible futures or projected outcomes. You have options, perhaps limited but clear and mutually exclusive to apply. You can form the future scenario’s. You can break down a construct, a proposal into short-term, frequent reviewed project landmarks. You do have options but the key is to bring everyone on to the same page. You are searching for good practice. Those ‘knowns’ need to be clarified and those felt as ‘unknowns’ need to be investigated and turned into ‘knowns’ Working in this space of complicated we need these reviews to recognize any necessary adjustments. So we need to establish some form of good investigative and application of some knowledge, usually drawn from experts or specialists.

Here we go into a sequence of Sense- Analyze and Respond. The emphasis here is Analyze and does look for this expertise to “inform” decisions to be made. We might sense what is wrong but getting to a real cause or effect needs this analysis.

Again there are numerous dangers in this complicated evaluation to look for and avoid. Engrained thinking is one, here it might be the experts more than the ones listening. Experts can dominate and highly influence conversations and one has to guard against this. Listen to alternative voices. Often expertise does come with clear opinions and those need to be questioned, to see if this opinion is missing the further opportunity, different options or can be explored in more controversial, imaginative ways. The ability is to listen out to novel thoughts and give them time to be explored. We can over-analysis, that ‘paralysis’ that needs watching out for. Here it is the chance to be more creative, to brainstorm, to allow exchanges and challenge to the surface. You often need trade-offs to arrive at a consensus or decision-making. If after a reasonable time you still have not found a solution, it might be because it is actually more in the complex rather than just this complicated environment.

The Complex Environment

Here we are getting into the area that a right answer does not exist. So many of the parts are dynamic and we are spending increasing time on breaking down ‘unknown unknowns’. We do not have the insight of retrospect but we are in a search for patterns, understanding change as best we can. Here it is constructing a solution for emergent practice. It is not possible to define distinct and/ or mutually exclusive scenarios. Cause and effect are in retrospect. You look here to focus increasingly on building guidelines, establishing rules or standards and less on applying fixed processes that do not meet this environment. Actually, there are an awful lot of decisions within organizations that are complex. If leadership imposes to early, or without the necessary thinking through is a serious error. Leaderships job here is to explore the path forward, so as to gradually reveal itself. This is the place where new business models, innovation, and creativity can emerge.

So to allow future ranges of possibilities to emerge we Probe- Sense and Respond. Sensing is where the path begins to emerge. We need to build the competencies to experiment, prototype and test increasingly in this space to allow that emerging solution to come out.

What we always need to guard against here is this falling back into past experiences, applying past practice to this situation, or ignoring major differences because it is not within our existing experiences. Often the instinct of taking control, applying command and decision-making to fit a self-imposed timeline or determined need for clear outcomes can dominate. When you are in the ‘unknown’ environment outcomes become increasingly hard to determine. The call is for more experimentation and inquiry so the probing becomes very important to make the sense. The other aspect that needs flagging here is the clarification of risk and failure tolerance. If you impose a sense of order, a call for clear outcomes, criticise failure and regard risk as unacceptable you undermind the evolutionary process. From this set of actions, you can easily fall into a chaotic state as poor decisions are based on a lack of real discovery. In the complex environment a stepping back, allow those patterns and validations to emerge and then respond to them on which, in your opinion and best judgment can succeed, is critical

The Chaotic Environment

Nothing is right in any chaotic environment. The relationship between cause and effect are impossible to clarify. The shifting is constant. It is a turbulent place to be. The most important starting point is to stabilize this “sense of chaos” as quickly as possible. They are never any recipes for success already known, you have to design it or simply build it. The key is to get reactions aligned, clarify principles to enable levels of decisions to be made, who determines what and why across all those involved. It is the nature of acting early but acting as critically important. The whole need is to transform the situation from chaos to complex. Communications and engagement are critical. Shifting ambiguity into a growing pattern of certainty through well-considered actions.

When we are faced with a chaotic environment it is Act – Sense, and Respond.  We are operating in the realm of  Novel Practice. Effectiveness comes from developing responses, build out the directives, communicating these clearly and taking constant action to restore the sense of order. It is highly turbulent, has high tension and requires a high level of pattern-based leadership. It is a place where many decisions need to be made and very little time to think.

We often hear of those legends who took control and turned something around, that saved us. One environment is completely different from another, even when you think there are similarities.  We also need to guard against placing known specialists into new environments, if they have that self-opinionated self-image. Leaders or crisis management teams do need to move the context from this chaotic to complex, and be ready to change from command and control quickly into a challenging environment where complexity needs to take hold, at the very least, to quickly stabilize this sense of chaos.

What we do know is this space is the place to impose innovation. Novelty, directive leadership all become highly valuable, people open up to experiment well. It has been suggested when you manage chaos, you manage innovation in parallel. One team focuses on the crisis, another on the innovating opportunities to do things differently. It is the time to make the real change to move through chaos, to complex, too complicated and then too obvious.

The Disorder environment

There is a fifth-domain, shown in the middle and that is the one of disorder, not knowing which domain you are in and we often struggle to recognize which domain we want to be in for innovation or to take the business forward. This disorder stays with us until we impose order, structures or clarity to the thinking and recognize the place (domains above) we should be operating in.

This is a truly random state. We need to place this disorder into its right environment and hopefully, it is only a transitory one, highly undesirable, needing to be ‘taken hold of’. Having no order needs to rapidly change. We fall into disorder when we lose attention. The most simple definition of disorder in Cynefin is the state of not knowing which domain you are in. Your immediate job is to seek out which option of the other four states will get you out of the disorder one.

Complacency can create a catastrophic failure

Finally, to complete the understanding, the Obvious domain is next to Chaos because complacency (the extreme of Obvious) can all too easily produce a catastrophic failure.  Thus that boundary is represented by a cliff, or more technically as a catastrophic fold. You can find yourself moved from an orderly, steady state, the business that is obvious to you and then thrown suddenly into chaos, by a sudden change.

There are many examples of sudden change that might mean real threats to your very survival. A sudden disruption in the market, unforeseen competition ‘suddenly appearing and totally creating havoc. You fall off the cliff and descend into chaos. This sudden shift from the obvious can become a catastrophic fold, sudden bankruptcy due to complacency and not being alert to the dangers that are building up all around you. We often fail to stay alert to changes in the market or simply ignore them.

As more and more disruption forces occur, the state of suddenly going from a well ‘oiled’ machine into a state of chaos is this feeling you are falling off a cliff. It all begins not to make any sense to you anymore, you lose that sense of order. Your solution is to try and “impose” a ‘known’ order but that might be a serious mistake, or you recognize this becomes the opportunity to construct a new order through rapid experimentation to find a new pathway back to order. You begin to open up your thinking to evalaute new models, thinking or ways to undertakre business.

So the value of the Cynefin Model

Today we are seeing “waves of disruption” that can can be depicted as the (reverse) sequence of chaos- complex- complicated – obvious, as the necessary stages to go through to meet these changes occurring. Knowing them by applying a framework likes Cynifin places it into a contextually appropriate structure, working through this through the Cynefin framework can become valuable. Knowing the different stages of how to make sense, by using this “sense-making” model really does help. Seeking out and knowing the context is critical to any decisions made on where you are classifying your order..

I wrote this  in a post “Learning the mantra of innovation context”

“The power of context shifts everything and then gives it ‘shape’. It provides the conditions and the circumstances of time and place and why we need to find and deliver something different. It provides the innovation marching orders.

If we place innovation in a certain set of contexts, then those setting about the task are more sensitive to the needs and understanding, they can relate or can reject this. It can allow them to work more clearly and effectively, not necessarily effective as innovation is inherently messy.

Context gives us certain guard rails or borders to help gain a more united focus. Where we go after that, by pushing those borders will depend on those involved by seeing a greater value in an evolving context of mutual understanding. The ‘setting it in context’ allows for dialogue, adding more value to the thinking”

I keep going back to David’s model as he evolves it through constant practice and engagement. It can be applicable to many situations.

Cynefin, by the way, is a Welsh word, it means “the place of your multiple belongings” and just apply this to all the situations you need to assess the state you are in and the type of approach you need to undertake. This model helps put much into a contextual value.

Finally, I have drawn a lot from David Snowden’s work, in certainly writing this post but more importantly to gain so many insights and stimulus for what I do and how I want to apply it. I always enjoy his thinking, challenging and wanting to explore.

The post Cynefin: A framework that grows for me all the time, in its value and worth. first appeared on Building Your Innovation & Ecosystem Intelligence.

Working through these as essential combinations can become the real enabler.

Here is my solution that I think is worth working through, to firstly absorb and then consider for applying to your own innovation building activity. Try it!

I have worked on a formula SCA = II + OC + EE + MLC + RNE for this. I have never published the make-up of this in the public domain before, although I had briefly outlined it in a past post here.

In that post I outlined my thinking and I do not think it needs repeating, does it? So onward…….

The formula is the combination of positive relationships between the following interrelated parts:

Seeking out a working Sustainable Competitive Advantage (SCA)
What do you want to achieve from selecting the expected SCA  outcome choices? What do you need to frame as the SCA by using the parts of the formula?

• The extent of market advantage (posses distinctive advantage)
• Competitor’s difficulties to duplicate this, where the unique advantage is often found
• Strategic leadership is prevalent and nurturing and valued
• Understanding “superior” marketplace position (in revenue and cost advantage)
• Creating it, capturing it and keeping it distinctive
• Facilitating, accelerating and sustaining the diffusion process across the organization
• How do you seek relative advantage, achieve compatibility, reduce complexity, encourage trail-ability and ensure observe-ability?
• Advancing the clear “line-of-sight” new business always requires to execute upon.
• Looking to achieve better visibility, flexibility, extending collaborations and advancing concepts through technology and structured approaches.
• Other strategic objectives require distinct capabilities to be built into these 5 groups

Innovation Intensity (II) and the degree of adoption

• The extent of product, process, managerial and business innovation
• A mix of technological and non-technological innovation
• Impact of innovation expected through strategic leadership
• The magnitude of change capacity required through innovation
• The scale of innovation impact desired
• Plotting out the roadmap for innovations evolution
• Exploring the different types of innovation and their potential
• The use of Business Model innovation to change the proposition
• The essential linkage between strategy and innovation outputs and outcomes
• Investment x activity x focus x disruption = return on innovation expectations

Organizational Capabilities (OC) in developing their distinct differences

• New knowledge acquired and embedded, exploring the new contexts and ways
• The ability for value-creating activities to be accumulated, integrated and transferred
• Adaptive learning (leads more to incremental innovation)
• Generative learning (willingness to question long-held assumptions)- favours radical
• Relational learning (collaborative linkage, networking for open innovation)
• Distinctive learning of new knowledge to create added value directly.
• Experimental learning tolerance with new ways of doing things
• Learning from both internal and external knowledge focused positions
• Encouraging co-production of concepts (ideas, components, systems, R& D)
• The ability to also unlearn (long-held assumptions, group-think)
• Structural evaluations into routines, procedures, systems, culture etc
• Releasing latent capabilities- discovery and exploitation- as capital in waiting
• Linking the three capitals- human, structural and relational- for interactive leverage
• Combining complementary assets and dynamic capabilities to configure & reconfigure
• Build the technology skill sets focusing on collaboration
• Encourage techniques for formalization, exploitation and generation
• The value of Absorptive Capacity in acquisition, assimilation, transformation and exploitation.
• Seeking out the buy-in from the cross-functional business units

Entrepreneurial Energy (EE) promotes and generates

• Entrepreneurship facilitates generative-learning activities as the focus
• High tolerance of risk-taking, exploring the unproven, seeing patterns and shifts
• Pro-activeness in new directions, new capabilities, dynamics and mindsets
• Use of accumulated capabilities (coordinating, preserving and supervising)
• Key decision makers’ traits to investigate and encourage change, risk-taking propensity
• Positive outlook towards diversity & different behaviours, discovery and experimentation
• Providing a learning environment through trials and pilots that can scale quickly

Market Learning Competence (MLC) for establishing a clear awareness

• Through marketing capability and market understanding vigour
• Market focused to acquire, disseminate and use the knowledge acquired
• Exploit through sensing & scanning conditions for diverse and unrelated opportunity
• Possessing a close interaction with customers, users and suppliers
• Ability and speed to react to the variability of the environment
• Possess a high level of competitor awareness
• High levels of customer orientation and “over-served”/ “undeserved” insights.
• Always orientated towards innovation, not just new product development
• Building agility and responsiveness to constantly changing market conditions
• Getting to the “heart of the customer” in outcome-driven ways for their needs.

Relationship & Networking Effects (RNE) and its support to enhance

• Building greater exchanges of knowledge through interactions
• Encourage the constant practice of sharing
• Promote systems of relationships and the structures needed
• Strengthen alignment and appreciation of value-adding activities
• Connecting Knowledge Management with finding ongoing Business Value
• Combing Knowledge with constant practice & sharing
• Support to enhance the needs and guidance through good governance
• Resolve actively the barriers and concerns
• Build trust, connectedness and belonging
• Build a common purpose and share the vision
• Build an identity and offer difference to stop the leakage of knowledge
• Actively connect people to people, people to knowledge
• Gain alignment, be transparent, build identity and encourage networking
• Support the patterns of exchange, their impact on value,
• Assess the dynamics and new value potentials in the different exchanges
• Linking the collaborative efforts to define, align and stimulate innovation targets, strategies and initiatives to support ongoing and sustaining success
• Measure robustness, diversity and renewal
• Searching for defining and designing complementary platforms.

Brief background and some thoughts
On first take all this seems to be a long list, actually, this is offered on purpose. You add your own distinct needs within this formula but take care not to dismiss any suggestions offered here, without ‘good cause’.

The challenge is how you see it, how you value its ability to connect context and the content or aspects you want to focus upon. These structures or building blocks you can start individually adding your unique “flesh to the bone”.

Let this become an innovation capability formula that stays in your head and you constantly ‘walk around’ its parts to get an increasing connection and momentum to build its value from others needing to relate to what is important to building sustaining capabilities.

I got the original idea of this framework a number of years back by reading through some different thoughts that JayWeerawasdena had put together in a number of assorted papers. These assorted ideas and concepts partly fueled my idea that led to this ‘combining’ concept of mine, finally published here.

I feel we need to provide a framework that can be worked in ways that build your own unique capabilities. By focusing on these key components that do tend to make-up innovation that leads to sustaining ongoing competitive advantage you can frame and measure activity.

The other formula to measure this against

The one other formula I use with this is measuring its return on investment. This is

So a framework and a formula to measure innovation’s impact. Does this make sense to you? It has to me for years. I just thought I’d publish it a little wider than limiting it to a chosen few.

Really do think about it, experiment with it and see if it does not give you the increased intensity and focus you are needing for building greater capabilities.

I think you will find it does give you a powerful framework to build those capabilities around, needed to deliver real advantage going forward.

The post Building an innovation framework that has real capabilities as its formula as its heart. first appeared on Building Your Innovation & Ecosystem Intelligence.

Even managing the present portfolio of innovation initiatives gets caught up in these underlying tensions as it becomes another opportunity to open up the old wounds of bruising past battles and get back into those discussions again.

Suddenly the CFO becomes animated over the uncertainties; the research director grows defensive, and the marketing director more strident in why it is constructed that way.

The HR director raises their concerns on stretching the resources too thinly and suddenly a fast and furious open debate erupts. Then the Supply Chain director throws in the concerns that the system will not cope with the sudden influx of new introductions in the remaining part of the year.

Each has a valued perspective but much of these are based on past positions, attitudes built up from other pitch battles and scores to be settled.

The CEO listens and silently thinks to himself:  “what happened to the series of bonding exercises that we had all had invested in, suddenly just gone”.
Lingering Dogma
One of these ‘investments’ made within the board was to resolve the strong personalities around the table that tended to push certain views and try to make it the dominant logic.

The very nature of these ‘debates and exchanges’ was that they were not being left in the boardroom but were actually seeping down into the organization and suddenly more of the organization was becoming at odds with each other on where innovation ‘fits’ and what it requires.

Each board member has previously recognized that their own failings in holding onto their positions and acknowledged on one of these away-day sessions they were contributing to this ‘tautness’ that was found across the organization. Yet they simply were falling back into old habits or that fixed mindset. Something had to change and fast.

Fixed mindsets and biases

Holding onto these positions were actually holding the organization to ransom, as it rises up and dominates in these more open debates it freezes positions, alliance are struck that become more opportune and less to do with the right decision for the business.

These have been slowly forming more constraints on the ability of the organization to explore the best options on strategic design, let alone where innovation can support it. This was shrinking the size of the opportunity horizons that could be investigated and linked.

Conflicting needs and holding positions
Often within any debate it is difficult for many individuals to change perspectives; they can’t even change their ‘established’ opinions even when they are being confronted with overwhelming evidence.

They ‘dig in’ and become dogmatic, resort to well established and tested fear tactics. Those old chestnuts come trotted out about “complexity, fast-changing market conditions, uncertainties of key clients, the downturn effects, our limited resources” etc, etc. to hold their favoured position and deliver their ‘push back’ in exchanges like this. No one ends up the winner or loser, it just becomes a further stalemate

Mental dexterity or imposing my authority becomes the choice for the CEO

The debate has gone on well past its allotted time, the issues were getting caught up in more personal attacks and suddenly innovation becomes the ‘whipping boy’ for some of these disjointed failures occurring. Cool heads have left the room, replaced by accusation and counter accusation and rising tempers.

Suddenly the CEO springs into life, he has listened, observing and considering his options. The first idea he had was one of ‘how can I sack the lot’, but this was quickly dismissed as not sensible, because around this table was the best available talent for tackling their given areas of specialisation.

When this team combined it was ‘awesome’ was often made as comments from independent observers.   He recognized his job was to orchestrate this ‘tension’ into a more positive set of dynamics.

The choice he had to make was between the ‘carrot or the stick’. He could impose his opinion quiet strongly and had been known for this ‘stick’ approach many times, he actually had become quite legendary for ‘shredding’ both the good and the bad. This time he hesitated.

Recently he had been going through his own discovery of what made up his mindset with a personal coach. The meetings had been brutally honest, still ongoing, and were open and mind-shifting as they could be, between two people who had shared experiences, enjoyed each other’s life experiences and how they arrived at this point. So he took the option that he saw was the right one –  the one that seeks and cajoles, that shifts perspectives and given mindsets.

Learning different approaches can change perspectives
Gently he brings order around the board table. He asks a series of open-ended questions “where does innovation contribute to strategy,”  “where can it contribute more?”, “what is holding US back from delivering on this promise?”, “why can’t we realize this potential?” and finally “how can WE change this?”. Each question slowly reduces the negative tensions and replaces it with a positive, unifying set of positive tensions, the issue has moved from the ‘you or me’ into the’ us’ frame of thinking.

He begins to draw out the expertise around the table, he gets each to appreciate the proficiency of the other, and he draws out a ‘string’ of positive contributions. The individuals around that table only minutes ago clearly at each other’s throats, have united in finding plausible answers to these questions.

Applying the appropriate intervention

Suddenly the atmosphere changes with the deftness of this intervention. It has not been imposed, it has been sought out, by asking the experts within the room to tap into their areas of knowledge. The debate begins to move faster and faster, one good idea contributing to another, feeding off, building from and breaking down the issues that hold innovation back in its contribution to strategic direction.

He takes one further step, he reminds each person of the three horizon framework they had all been introduced to fairly recently. (see below for links). “What we have to remind ourselves is that each Horizon needs different mindsets for innovation”.

The third horizon, the more futuristic one, is really different to how we are managing innovation in the current system and its management. That horizon (3) is motivated by vision, value and beliefs.

Whereas the one we call the intermediate one (H2), which straddles the present and the future is more an entrepreneurial mindset, attempting to anticipate changing values and detect the shifts in the market place and as these become clearer, they can lead to the H3 world.

Suddenly the discussion has significantly shifted. The focus has become one of applying different mindsets to approaching and linking innovation to strategic direction, depending on the challenge, complexity and time and by so doing they start sharing uncertainties that contribute even more positively to the debate that needs resolution.

Respected solutions and changing context.

Dogmas can also be extremely positive, they can reinforce solutions, and they can underpin approaches that can shape and influence very different attitudes and beliefs. In introducing a framing approach that moves the discussion beyond, the current drivers of innovation, then the trending aspects that can shape what an organization works upon, and finally, those emerging aspects that remain ‘sketchy’ but do have potential strategic implications, brings a galvanizing change. They keep looping back where they can, recognizing where they need further understanding or just placing a ‘watch’ on that aspect.

Innovation is suddenly linked to a process of change and strategic direction options, that lift the debate into a series of a plausible and coherent set of activities. This focuses the energy around the table on to the defining, yet opening debate, of linking the future work to the shape and the organization’s needs, making the debate as strategic as it can be.

Find out how you can change the tone of any board debate around innovation

Take a little time and view the series on the Three Horizon Framework either on this blog by entering into the search field under “three horizons” or through the series published on the Innovation Excellence site. If you start here under the opening one of five within the series of “

Have you considered the three horizon approach”  (http://tinyurl.com/c6fed9c ) and then further releases each day during the period that follows this first one dated 31st July 2012.

I can’t promise it can stop all the unhealthy debates around innovation in the boardroom by adopting the Three Horizon framework.

What it might change is the perspective of where to focus the expertise and energy to make innovation far more the strategic bedrock, that organizations are looking to achieve, the link towards a healthier future.

It’s not personal anymore, it’s considering options in a future-orientated way for their business, to find better ways to thrive not just survive.

The post Lingering dogma, fixed mindsets, tensions and conflicting needs first appeared on Building Your Innovation & Ecosystem Intelligence.