In a recent post over on a dedicated website for discussing ecosystems and platforms, I was discussing the differences between Amazon and Alibaba. I quote “I’d say Amazon are “asset heavy” whereas Alibaba remains “asset light”.
They might be operating at the two ends of the current internet trading spectrum and are coming from different market maturity positions but it is the asset management that is becoming critical for delivering the profit or dragging performance.
Now Amazon is far from “asset heavy” when you compare them to the Industrial companies like GE but asset orchestration is seemingly getting far greater management time for all companies it seems. The lighter you are, the more likely you are to be more flexible and adaptive to respond to more disruptive challenges being faced by industries that are undergoing the shift to being more “digitally enabled”. Alibaba is very much a good asset orchestrator.
We all should recognize the incredible power of “orchestration” that is needed in innovation to bring the initial idea into a final successful commercial concept.
We have an ongoing need to create, extend and modify resources constantly and to achieve this we need to orchestrate and enable those resources to exploit and execute on our innovations.
We need to ‘asset orchestrate’.
One of our blind spots is perhaps the focus on pursuing and organizing around innovation just within an organization and not to be as aware of all that is externally going on around us.
There are continued and rapid shifts taking place outside the walls of our organizations, constantly occurring and changing, often it becomes a ‘race’ between spotting an opportunity and executing on it, before your competitors do, or the market further moves on and it becomes a lost opportunity to have exploited.
In my work investigating different aspects of innovation activity one thought tends to dominate my thinking: “How do we achieve a better understanding of the dynamics of innovation within our capabilities to be more successful?”
I’ve already written in previous blogs about the need of “constantly checking for the pulse of innovation” ( http://bit.ly/c3G0Ta) and suggesting the way to “open up your thinking to dynamic capabilities for innovation success” ( http://bit.ly/bxTeYO).
I’d like to take this one step further in this blog and outline my thinking on innovation fitness landscapes and why they are essential to understand .
Each organization needs to know its Innovation Fitness Landscape- why
There is a pressing need for a firm is to consistently build and reconfigure internal and external competencies and capabilities to address rapidly changing environments. It is the mastering of this ability to achieve new, more innovative forms in rapid changing market conditions that will enable certain organizations to emerge as the winners of the innovation race.
This view requires a more ‘dynamic’ set of capabilities. Often the question becomes one of “which are the critical ones to focus upon to improve the chance of greater success?