Understanding Absorptive Capacity

February 20, 2012Posted inAbsorptive Capacity, System Solution models6 Comments

IFD AC only

Understanding Absorptive Capacity and how it works

“Absorptive capacity” is a term introduced through some academic research by Cohen & Levinthal, back in 1990 to describe an organizations “ability to recognize the value of new, external information (knowledge), assimilate it, and apply it to commercial ends”. Since then there has been significant academic contributions for exploring and validating this, in order to improve innovation performance and competitive advantage, yet it is still not well integrated into our innovation process. Why is that?

What we do need is to do is improve our HR management and network systems to build a more efficient transfer of knowledge throughout the organization so as to acquire and leverage new knowledge . This is part of applying the principles of absorptive capacity as we increasingly use more networks, external partners and collaborate with others we are accessing wider skills, inputs and competencies. We need to invest and learn what this does provide, to aid the innovation process. The theory goes that the more we understand, the more the innovative behavior and capability does goes up in potential and the more we have available a richer innovation choice .

The Model of Absorptive Capacity explores potential and realized knowledge.

Cultivating Absorptive Capacity

February 20, 2012Posted inAbsorptive Capacity, Impact & Scale, System Solution models
The flow of knowledge as our alternative currents
The flow of knowledge as our alternative currents

We need to cultivate Absorptive behaviour and allow it to flow.

We need a system to capture and allow knowledge to flow. For me the adoption model seems to be one worth investigating. If we want to achieve the goal of distributed innovation we need to have in place this possible framework around absorptive capacity to encourage different learning behaviours.. Nesta (www.nesta.org.uk) produced a useful report some time back called “Innovation by Adoption” and I feel this has a good framework that support distributed innovation.

The report argues in a place with a strong absorptive capacity three main outputs subsequently result from the flow of external or distributed knowledge: (1) the creation of new innovation; (2) the creation of new knowledge; and (3) that it does lead to new economic and social value.

The Moving Space Required for Innovation

February 16, 2012Posted inDynamic capabilities, Motley & Sundries, System Solution models

The moving space for innovation is to allow everyone to participate in being involved and wanting to get ‘fit.’  To do this you have to be opened up to a number of “possible paths” to allow it to flow and take hold. There is the need to explore multiple ways to learn and find the right pathway. This needs a dynamic social fabric to allow it to flow, it needs organizational engagement through active experimentation.

Previously I had discussed the difficulty of setting rules for innovation. What is required is a looser approach to mutual adaption and mutual adjustment. This arises from working through the same rules and resources to access, integrate, expand and recombine knowledge as part of everyday daily jobs. The understanding of absorptive capacity helps

Possible a starting point is through three simple rules and resources I came across but can’t find the reference to at present, regretfully but these are powerful in their intent and engagement:

Mapping out a rugged innovation terrain

February 16, 2012Posted inFitness Landscaping Regimes, Mapping & Rugged Terrains

When you climb mountains, the fitter you are the better you climb. Equally the higher one wants to climb (innovation ambition), the harder it becomes to climb to those new levels. Our ability to climb required two clear points of understanding.

Firstly what we are trying to achieve so we get a rough idea of what we want to achieve, in strategic objective, in our innovation goals and in aligning them. Secondly we require knowledge, a clear working knowledge of how innovation can work for us.

We learn by exploring, the more peaks we cover we improve our knowledge and experience. We build our knowledge landscape. The more we understand each other, the more we can collectively climb and scale our innovation fitness. The more we learn and scale the more we can explore sub peaks on smaller, experimental levels, all contributing to our growing knowledge and fitness to innovate.

Exploring the rugged terrain early helps.

Finding time for dynamics within the capacity to innovate

February 15, 2012Posted inCapabilities and Capacities, Dynamic capabilities

IFD Massive Dynamic

Do we know what  the dependencies and complementaries for building and sustaining innovation success are? How do you sustain innovation, is it more through the structuring of everyday work, by creating a particular set of social rules and resources that foster specific routines? Really, that does seem to me as sounding a little too easy, or we all would have got to this point but we haven’t,when it comes to managing innovation. Innovation seems to conflict with everyday work.

The reality is we can’t ‘create’ rules or specific routines when it comes to our need to constantly innovate, there is a host of constantly changing variables, risks and conflicts that need constant adaptation to those specific circumstances, yet we can learn more on the underlying principles and approaches.  So how do we manage this in everyday work, inside organizations hell bent on managing efficiently. Certainly I buy the argument that Innovation should become part of everyone’s job on a daily basis so they have the space and potential to work on it constantly but what does this require? This is part of our journey within seeking innovation fitness through its dynamics.

Here we begin….

The Real Need Is Achieving Innovation Fitness

February 14, 2012Posted inAchieving innovation engagement, Advancing innovation, amplifying the innovation signal, Building Innovation Capability, gaining innovation momentum, innovation execution delivery, Integrated Innovation Thinking, Leading innovation, Shifting dynamics in innovation, Tackling innovation

So how do we achieve a greater innovation fitness?

This begins to show you the way www.innovationfitnessdynamics.com is new and perhaps your possible innovative workout gym.

Firstly stop and survey our world from a new advantage point

Can you imagine standing on top of a mountain, looking out across a vast expanse of nothing but mountains and valleys stretching out before you? If you squint hard enough you can just make out that somewhere in the hazy distance, the endpoint of your travels.

The distance you have to travel towards that much-needed innovation understanding, that is made up of so many different dynamics that make you and your organization that much fitter to compete in today’s challenging world seems really far off, or actually is it?

Exhilaration can quickly turn to reality.

Clearly, while you are on top of this mountain you feel exhilarated to have even got up to this point. To even get there you have already made a decision that you and your organization need to become more innovative.

One that needs to look beyond what you have, to what is possible, you are curious to explore this further, you have to, innovation is a strategic imperative for, adding value, growth and improved wealth creation.

You have innovative choices

Working through some of the theory

February 14, 2012Posted inNatural & Unnatural tensions, Outcomes & Expectancies

IFD Theory

Let’s mix the theory of fitness landscapes with your innovation objectives

  • 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. The greater understanding of the ‘fitness points needed’ can transform your innovation landscape potential, or in business parlance, achieve your goal.
  • Achieving this fitness accelerates your opportunities into final tangible outcomes. Here is a little bit of the theory:  you look for those critical factors that will give higher value potential or ‘peaks’ that are more valuable to your needs. The more ‘rugged’ the landscape, the tougher the innovation challenge, can also determine the greater fitness for the rate of innovation. The height of the peaks in these landscapes, the greater value placed upon them, illustrates how intense the innovation challenge is, and the number of critical peaks shows how diverse its potentially is to provide the appropriate resources.
  • The ability to identifying the emerging patterns provides the need to act and invest, making adaptive even exploratory walks to provide the appropriate resources needed so as to move you to the higher fitness points where innovation viability is enhanced and needed to be so as to resolve the challenges faced. You need to experiment, to take these exploratory ‘walk’s to realize the potential and learn how to scale accordingly.