Building innovation ecosystems allow both the network effect and relationship building to form outside your one existing environment to build greater potential solutions to customer needs
In today’s rapidly changing business landscape, the ability to build a strong case, stay informed, and think critically is the key to unlocking success and driving innovation.
For me, this landscape is marked by its dynamism. Here, market trends evolve, new technologies emerge, and consumer preferences shift lightning-fast.
In this environment, success isn’t just about being prepared for change; it’s about actively shaping it. But how can you empower those responsible for innovation to not only navigate this terrain but thrive within it?
We need to navigate a very different terrain that requires a deeper investment in skill development in a culture of continual learning.
During this week, commencing 15th October 2023, I am discussing and explaining a framework for building innovation ecosystems on my ecosystem4innovators.composting site.
I have been exploring for some time a transformative concept to move innovation into the world of ecosystems. I outlined my proposed innovation framework in the building blocks necessary. The extended series of posts over thirteen or so, are all here on this posting site, summarized in this post of “The building out of the Composable Innovation Enterprise Framework.”
The focus was on proposing to single entities, and now I want to extend this into the future need to build innovation ecosystems that enable and connect the essential components required.
Innovation is certainly a complex and dynamic process that involves many factors and actors and I certainly feel it has been shifting in its focus. I have been thinking of where we have been placing the emphasis over the past ten years.
I decided to ask GPT-4 what major shifts have occurred in how we approached innovation ten years ago and today. It was suggested that these were the following.
Do you agree, what do you feel is missing? I like the broad shifts indicated but what has been missed?
I wrote a mini-series of three posts to introduce a radical concept that envisions the energy transition as a living, evolving entity that bridges technology and nature, sparking profound shifts in how communities generate, consume, and perceive energy.
It aims to trigger innovation engagement and activation strategies to change the energy transition dynamics within a community setting, offering decentralized community energy.
It focuses on the community in a decentralized way for its energy. It challenges established norms and prompts a complete reimagining of our relationship with energy and the environment through innovation, creativity and ecosystem thinking and design.
Imagine transforming the energy transition into a holistic ecosystem of interconnected businesses, each contributing unique value to accelerate sustainable energy adoption.
The links to take you to the sites where you can read the proposed solution are at the bottom of this post.
Introducing the Energy Transition Nexus: A Living Energy Organism” that challenges the Conventional Approach to the Energy Transition
Energy is a vital part of any country’s ability to be competitive, and we need to recognize that to innovate is the critical enabler to a clean energy future. Today half the world’s capital is invested in energy and its related infrastructure, which is the backbone of any industrial and urbanization strategy.
We need to keep pushing for discoveries, experimentation, and demonstrating. We must nurture innovation and continuously look for ways to facilitate its pathway in the Energy Transition we are presently travelling.
Our economic prosperity will be determined by transforming the energy sector, and it is through innovation we will achieve this. To avoid the predicted consequences of climate change, the global energy system must rapidly reduce its emissions.
Most global CO2 emissions come from the energy production sector, our buildings or transportation systems, and the making of “things” still from fossil fuels. They all need a purposeful design of a new, cleaner energy system.
Innovation needs to be at the top of its game, to be accelerated and scaled.
Within the Composable Innovation Enterprise Framework lies the core, the different innovation stacks, and the learning components. Here, I want to briefly talk about the importance of the learning components that support the innovation design and especially the different innovation stacks.
The elements of the innovation stack are designed to support innovation’s core tasks, including learning, absorbing, assessing knowledge management, creativity, design, experimentation, and testing. By modularizing these tasks and their interfaces, organizations can assess their innovation progress by having a complete innovation system available to them, designed on specific stack elements to address knowledge operation requirements in the stage of development to commercialization.
The Innovation Stacks are ready to support different steps in the innovation engagement process
Additionally, with the upgrade in technology and platform approach, we can support the rapidly emerging human-AI collaboration needed for each building block and component and provide a step-by-step validation.
Yet it is the sequence of how we learn that becomes vital to “feed” and build the innovation stacks.
During May and June 2023, I worked through and concluded my thinking on why we needed to change our Innovation approach from far to often a linear one, and consider a new, more up-to-date, and dynamic solution for managing innovation, one that recognises the non-linear nature of so much of our undertakings today in innovation, from discovery to commercialisation.
I have called this the Composable Innovation Enterprise Framework– here is why and what went into this proposal that I feel should be adopted for managing innovation in the future.
As the investigation, validation, and viewpoints were built up over several posts, I felt summarising the series here gives you the appetite to delve into the posts themselves.
We need to shift our innovative thinking from static to dynamic.
We have been in very static, traditional approaches to innovation, very segmented and often insular, and as so often happens in innovation, it has complexities that seemingly grow and multiple changes, partly from what we discover in the development of new solutions but partly from far more rapid changes in the business landscape and our current innovation process often breaks down and limits the ability to manage this across the whole development to delivery lifecycle.
We need systems and processes that are flexible, adaptable, and can enable continuous improvements but are fully connected, transparent, and integrated across the entire business. We need to approach innovation differently through connected agility, have speed and automation more central, and provide roles for a great diverse set of participants.
A system that encourages forming strategic alliances, partnerships, and knowledge sharing to drive innovation and create shared value in open, thoughtful, and collaborative ways. This is where technology enables these connections and triggers different thinking in the quest for moving toward more extraordinary valuable solutions—the “connected” value of behaviours thinking ecosystems and operating on collaborative platforms.
There needs to be a fundamental shift in how we manage innovation, which needs the power of ecosystem thinking and design. Not only in thinking and design but in how we structure its architecture, one based on platforms, open apps, and a marketplace where like-minded people and organizations go and participate in building new impactful innovation solutions together. This needs to be in open, highly collaborative ecosystems.
We need a better conceptual framework to build, one based on knowledge-based intelligence and well-grounded, driven by dynamic and constant interactions, events, and processes, so all involved can be engaged in building solutions that have fresh impact and value within the market space identified.
My mind map of the over-arching aims of a new innovation narrative is shown below.
Innovation & Ecosystems need to be our new thinking of design and delivery
An ecosystem approach on a common, shared technology platform that can significantly enhance the discovery, experimentation, exchange, exploring, and exploiting all the diverse skills and expertise from idea to commercialization and life cycle development and maturity.
The increased pace of change requires the ability to deploy, activate and utilize resources and assets to extract the potential through the diversity of the network formed within the ecosystem and the relationships engaged in the mutual pursuit
The end result needs to show actual robustness, genuinely dynamic and holistic in its dimensions and offerings, proving among its metrics faster learning rates, leveraging all that a technology-enabled platform offers, actual collaborations and shared engagements, supporting knowledge, data, insights, and people.
Open Collaboration needs to be top of mind
Innovation needs to rely increasingly on interconnected organizations organized around a central focal point of value and impact. An ecosystem design so organizations can act differently on strategies, business models, leadership, and customer engagement to build new value and worth.
We all need to recognize that Innovation and Ecosystems go together they make the potential for more sustainable solutions, they are the new combination that enables your thinking and design of new concepts and solutions to be “worked upon” in a more open, collaborative way where a richer diversity of thinking “comes into play” and the end result has that potential to be so much better than the sum of all the parts, it magnifies the sum!
As I mentioned in a previous post, for any innovation enterprise change, I do not recommend a “big bang” solution; it should be phased to validate and grow to understand, build up validation, justify making the changes, bedding in the thinking needed and approaches to provide the level of returns and the growing understanding of cost/ benefit conversion.
The potential returns, including increased agility, improved innovation outcomes, enhanced collaboration, and long-term competitiveness, make this radical change worthwhile for organizations aspiring to thrive in today’s dynamic business environment. The ability to build the context and show its (ongoing) value makes the difference. You need a systematic approach and project staging plan.
The importance here is recognizing the shift in mindset and thinking towards a Building Block approach to build up the Innovation Stacks. Each stack “sits” on a technology platform. Thinking through what this means requires understanding, relating, and putting a clear context of innovation, what you want to achieve, and how to set about this.
How difficult would it be to embrace this Composable Innovation Enterprise Framework, as it is often argued that most people want to keep innovation management and its process simple? I wonder if that is the current incumbents, be these current innovation management software providers or individuals inside the organizations resisting change, as it brings significant uncertainty of change and disruption to the (inadequate) process, one that I feel is not fit for today’s and tomorrow’s innovation purpose.
So how to set about making this change and who should be involved as it is a more radical design of a holistic nature is what I am outlining in this post and the next one focuses more on the project organization needed.
Organizations in today’s business environment need to adapt rapidly and dynamically, the need to bring the innovation management process into a constant technological advancement, and more designed by their own specific needs and not “offered” as a rigid set of solutions. We need to embrace a significant change in the way we “set about” innovation.
It needs increased agility and looks to have innovation consistently redesigned to meet different challenges and needs. It needs a better set of flexible design elements and system thinking to gain from reuse and redesign rapidly. I like the term I saw the other day “systems of gravity” to get tasks completed faster than what is being offered today in innovating software solutions.
The need is to set about building a compelling business case to make the move to embrace this (radical) design change and its potential value in returns and flexibility. I want to begin to sketch out the pathway of change this might need. It will be hard work, but doing this in stages gives growing understanding and value, and I believe ultimately rewarding.
We cannot afford not to avoid changing our innovation processes as we deal with a far more complex and challenging world. We seem to be keeping innovation as a disappointing and often frustrating outcome for many leaders of organizations today, innovation needs to be top of mind and better equipped to deliver.
