Fluidity – the growing need of organizations today.

fluidy 9Organizations are facing increasing a dilemma in how they organize and manage within their systems and structures.

They are being forced to deal in increasingly complexity and environmental turbulence and ‘adapting the appropriate response’  remains increasingly a difficult one to master, within the existing regime and structures.

On the one hand the value in stability is still essential, working within specific routines and practices gives a clear ‘path dependence.’

This allows for efficiencies and effectiveness to be constantly at practice, constantly building the problem-solving processes, so as to master tasks in complex environments to resolve ‘known’ problems in ‘given’ ways.

We need to become increasingly fluid but how and why?

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A new innovation perspective – change to fluidity

Fluidity 5Today most innovation is focused on creating new products or services. These new innovations frequently change or modify operating models and business models, often not by deliberate design.

We’d stipulate that most innovation should be focused on updating and changing business models constantly and with increasing focus. With this focus new products and services become by-products or outcomes that support or sustain new business models for driving greater lasting sustaining competitive advantage.

In short, most innovation should be focused on creating new business models, with new products or services serving as enablers to intentional business model innovation, rather than the other way round. This is what we mean by flipping perspectives.

Critically we have to become far more comfortable with constant, ongoing change and aligning this into new innovation and business models. This move to positive change is discussed here, recommending a movement that allows the changes we need within our organizations to become more fluid in their adaption, for leveraging and exploiting innovation in new, far more compelling ways.

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Most Innovation is Becoming Business Model Innovation

Ending BeginningAs we consider the interplay between innovation, business models and change, it becomes clear that many companies have a definition of innovation that’s far too narrow.

Increasingly we need to rethink the scope, depth and breadth of innovation possibilities, as well as the secondary implications of innovation.

Ignoring this broader definition of innovation means we can never achieve all of the possible benefits innovation has in store.

We believe ignoring the breadth and depth of innovation can also allow competitors and new entrants to disrupt your position or industry. Fortunately, some of these definitions have been created for us.  Our responsibility is to understand the definitions and their implications, not stay constrained but seek and explore the broader options this can provide.

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The Interplay in 3 Essential Change Points for Innovation

The Critical Interplay 2

There is always a certain impact that innovation brings, it should change habits, alter perceptions, improve our lives or alter the way we work and think.

Each change brought about by innovation does have different impact effects upon three important market constituents: customers, the markets and the industries themselves but also and often totally under-appreciated, internally on the innovator driving the change.

We need to understand the broader scope of our innovation

Until we understand the scope and impact of innovation we can’t fully grasp the nature and amount of change that innovation can unleash. It can alter businesses, shift markets and challenge customers to move away from their existing thinking into adopting this new product or service.

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The Interplay Surrounding Innovation

The Interplay Surrounding InnovationInnovation should be the primary source of real change. Often when exciting new innovations occur they have the power to significantly change our habits, and choice of product, preferences and ways we set about our daily lives.

Yet why is it we often ignore the power of change when we design innovation?

We often fail to fully appreciate the changes that are occurring from the innovation we produce, it often seems an afterthought, there is this lead and lag effect and needs, firstly recognition and then addressing in how we manage innovation going forward.

In a recent series introduced initially and given a feature of the week prime spot on http://www.innovationexcellence.com on June 7, 2015 we discussed the importance of the emerging interplays. This series will be re-produced here as it is a important concept to consider all the aspects within any innovation interplay.

The emerging concept of “interplays” Continue reading

The “C” change within innovation

Change and InnovationWe all want innovation but often we take a ‘selected’ focus on the changes we are bringing about, either in the external market place in new products, services and even new business models, yet we often ignore the amount of change we should be considering within our own organization.

As we ‘learn’ to innovate we ourselves change but often we are poor at recognizing these changes and the greater impact this might have on on all that is around us.

We miss opportunities to alter our processes, systems, structures or methods. We often fail to ‘advance’ in all the positive change innovation can bring.

We tend to ignore the change part of innovation

I believe we need to rethink this and evaluate the significant changes that should be taking place within our internal organizations as we expand our innovation activities.

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The ongoing challenge is making change our constant

Change is a constant 2Thinking about the managing of change has been occupying my mind in recent weeks. It will continue into the next few weeks as Jeffrey Phillips of OVO Innovation and I have co-authored a White Paper called “the critical interplay among innovation, business models and change” as it rolls out.

In this we provide a foundation document that highlights the important interplay between innovation, business models and change. To launch this, we have kicked off our thinking with a feature of the week on Innovation Excellence introducing the themes that have multiple interplays we often fail to exploit when it comes to innovation. The opening post is entitled “the interplay surrounding innovation”. Please take a read

Our opening argument resolves around the recognition of change as part of an interplay

We argue that we are failing to manage the different and multiple interplays that are constantly taking place when innovation occurs. We are often ignoring them and failing to extract the best or optimal value out of the innovation we are introducing. The change effect is often being ignored.

You can download this whitepaper on this site within my newly created “Insights and Thinking” tab on this site. Continue reading