Achieving Innovations Capability Coherence

Coherence 1Innovation often fails to align to the strategic needs. This is often not the fault of the innovator, happily working away with no specific guidelines, apart from the general remit of “we need to be more innovative”, it lies in the boardroom that is not communicating the board’s needs clearly enough down the organization.

Building up our capacity to innovation does need to understand and reflect the organization’s business activities, as innovators need to grasp the value creation aspects that will deliver the necessary capital-efficient and profitable growth, and then ‘go in pursuit’ to achieve their contribution into these goals.

Even the basic questions often remain unclear, those of how are we looking to grow revenue, save costs, reduce working capital or improve our fixed capital? Managing our innovation activities can help in all of these. Actually if you ask I expect the CFO would say “all of them” but each does have implications on understanding of the fit and eventual role of innovation’s contribution.

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Asset Orchestration is Required for more Dynamic Innovation

to orchestrate 5We 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.

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Approaching innovation through fitness dynamics needs a structured approach.

This post follows on from my recent one of “the Innovation Journeyman.”  We do have a real journey still to travel to understand the dynamics within innovation. Here, I want to lay out a possible path that might advance us towards achieving this. This includes a fairly ‘intensive’ nine step approach outlined below.

The innovation fitness dynamics

The innovation fitness dynamics

What we do need to do is constantly evolve our innovation capabilities to perform in more dynamic and flexible ways. We need to acquire that consistent aim of achieving a more adaptable and adjusting approach to innovation in all its parts. We need to meet the changing circumstances and challenges  we are all facing to regain the real growth needed from our economies and organizations, making what we do at the same time, more sustainable. Delivering better innovation outcomes is central to this task.

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The Innovation Journeyman

Continuing the innovation journey

Continuing the innovation journey searching for the framework to deliver the dynamics of innovation by focusing upon achieving a certain innovation fitness.

My  personal innovation journey started way back in 2001 when I got ‘hooked’ on innovation and what it could deliver in it’s impact into a business; for greater engagement within the organization and increased identification through their people, with the potential for learning and improving their capabilities.

Progressively I learnt about innovation, studied it as part of my Master’s degree and began to practice the parts others were prepared to pay me for, either to listen too, or offer advice.

This innovation journey took on a shape that eventually became 100% of my focus within my advisory practices at Agility Innovation Specialists and Hoca Consulting by systematically building my understanding of innovation and providing this knowledge to others through advisory, coaching, writing and mentoring services.

It still is a long continuous journey twelve plus years later.

I’m constantly learning, reading, absorbing and interpreting what I understand and then attempting to provide my thoughts to others, those willing to listen!

I’m comfortable in much, totally restless in so much more out there to explore and work through, so as to achieve potential solutions, through experimentation and prototyping until they become recognized as relevant and applicable.

Investigating, researching and reading all required a significant amount of time, all alongside needing to practice innovation, working to clients’ needs or pushing for their attention to changes taking place within the field of innovation management and what they needed to do about it.

Dynamic capability applied to innovation gained my increased attention

One area that caught my attention, many years back was the notion of “dynamic capability”, the organizations capacity to change its operation and adapt them to the environmental requirements in systematic and fruitful ways. Academic papers by Teece, Pisano and Shuen, by Eisenhardt and Martin and finally for me, Zollo and Winter, all fuelled my thinking at that time.

Winter suggested that organization change happens in two ways; the first is ad-hoc problem driven in our searches or the second is through the action of “stable patterns of activity aimed at creating or changing operating routines in pursuit of enhanced organizational effectiveness” offering the initial definition of dynamic capabilities. I’m up for the second, most organizations still often practice and treat innovation in ad-hoc ways.

What are dynamic capabilities?

These are the skills, processes, routines, organizational structure and disciplines that enable firms to build, employ and orchestrate intangible assets relevant to satisfying customer needs and which cannot be replicated by competitors. Enterprises with strong dynamic capabilities are intensely entrepreneurial, they adapt around business ecosystems, and they shape them through innovation, collaboration, learning and deep involvement.

I was really hooked. This started me on my hardest journey that began in 2008 around my pursuit of building a way to understand what makes up innovation capability and capacities within organizations. I needed to find a way to build, to integrate and configure internal and external competencies to address rapidly changing environments.

Much as Teece, et all, had outlined some years early the notion of this, there continues to lack decent, coherent solutions. Any suggestions I researched were often a little thin on the ground, in practical application but some of the concepts had a richness about them to sustain real interest in my continued pursuit to find a practical, enduring commercial solution to managing the dynamics within innovation. So this became part of my challenge and growing interest.

Moving from intent to cognizance and then application

So I was looking for designing something that gave a sustaining competitive in innovation advantage, that was shaped by the individual organizations specific asset position and where it needed to go and develop to get it to that stated strategic goal they required. This hinged on identifying the value points where resource configurations needed advancing once the gaps could be identified.

This journey has taken me all over the place. I have studied increasingly dynamic capabilities, innovation landscapes, absorptive capacity, where open innovation fits and then increasingly in this more open environment the need for collaboration, for networking, for orchestrating innovation to deliver what is needed, into the markets advancing on existing offerings.

My often interrupted journey was partly by design but also by lacking essential parts.

Since  the 2008 and 2009 period, where I had an incredible burst of energy into this whole area, I found I had to leave it, put it to one side for eighteen months or so. Sometimes you have to stop your searches and reflect a little. Any journey you do need decent resting and reflecting periods.

In 2011 I took up this quest again, yes quest is the right word, as it has both been long and a difficult search. I designed a framework, the innovation fitness landscape model and set up a dedicated web site for managing this at innovation fitness dynamics. This has bubbled along but was not the platform I expected or able to launch in the ways I’d ideally like. Something was still missing.

In this time I’d concluded that to identify the “dynamics” needed for innovation I’d need at least two levels of evaluation – the internal one where it seemed nine descriptors gave the necessary ‘thrusts’ to find the critical internal related aspects and the external one – more as the level of ‘degree’s’ of engagement for evolving the external related need. I was happier with the internal part, not so much with the external one.

I’ve completed some limited testing but by no means feeling I’m yet ready to really push out on this so a short period of digestion and thinking led to another hiatus until a few weeks ago.

So in mid 2013 I have taken up my innovation journey again, relating to innovation dynamics and fitness landscapes. There was a realization I was missing something. The innovation system I had been focusing upon was simply made up for the single organization and although I was consciously working on the external environment and recognizing their degree of importance, I was not  actually reflecting the really big changes going on in innovation today and in the near future, as I should have been. The changes taking place through more open, collaborative innovation. I was writing about it but not taking it fully into this dynamic framework of mine.

My recent ‘trigger’ has been the one word of “Orchestration”

I had not recognized the incredible power of “orchestration” needed in innovation. Of course it was there but it was not as ‘loud and clear’ in my thinking as it should have been. The blind spot had been my focus on pursuing this continual need to organize around innovation within an organization. Although this is as essential today there has been continued and rapid shifts taking place outside the walls and I was not capturing the dynamics of this well enough .

When we begin to want to orchestrate across external innovation networks we not only need to know ourselves extremely well, we also need to know what others can bring and what is missing. Networks are dynamic, the flow of knowledge, of capabilities and competencies all need somehow capturing. Recognizing this shift in my thinking, allowed me to pick up the baton again and begin to conduct all the different fragments and pull them together, into a different result.

I learnt also that innovation needs this growing orchestration, due to this increasing move from firm-centric to network-centric innovation. In my understanding of a orchestrator, he needs to manage the tempo, knowing where and when to cue in the different players (learning) and to inject the intensity into the performance. I was back on my journey recognizing the different passages and movements I’d been on, where all contributing into a final result. “Something” was coming together and I need to work through the new ‘score’ being played out.

We need to learn to identify, assimilate and exploit far more than ever, the value of knowing your innovation fitness, your dynamics and the terrain you wish to traverse in new innovation activity becomes even more critical. To create and to extract does clearly need to understand the what, why, where, when and how it needs to go about this.

The orchestrator needs to orchestrate.

To do this you must orchestrate the capabilities, to purposefully build what is needed to deliver the final result. I have reconfigured my thinking around what will influence the evolution leading from internal innovation capabilities to a whole ‘network’ of these. It still lies in how you purposefully build these capabilities and competencies up. Orchestration is fundamentally dynamic, full of uncertainties but the need is still to connect the parts.

The four dimensions for building capability to innovate are at the individual level, within teams, within the organization and within the dynamic set of networks needed at given times to solve innovation challenges. These capabilities need to possess mobility, appropriability, certain stability and the willingness to learn and build on the existing dynamics. Internal capabilities still need building but we also must work to identify those complementary capabilities across a fluid set of stakeholders to deliver a more complex innovation challenge.

Orchestration has for me become very important to my ongoing work on the dynamic innovation capabilities for recognizing your innovation fitness landscape and the gaps. These become even more of a challenge when different perspectives and competencies enter the mix.

We urgently need to understand the ‘dynamics of innovation’ even more. What is the local maximum, what can we work upon in transition, what we need to bring in for any future co-creation and what needs working upon within specific networks within the innovation capabilities and capacities needed to be applied.

The dynamic view of orchestrating is needed

The orchestrating of open innovation challenges is dynamic and we increasingly need to know the critical factors and their dependencies for delivering a collaborative innovation success. We need to not just know the appropriate resources, we need to work on the skills, processes, routines, organizational structure and disciplines that enable firms to build, employ and orchestrate intangible assets relevant to satisfying customer needs and which cannot be replicated by competitors, that delivers the new innovation needed through collaboration efforts.

My journey continues and I plan to outline in two separate and future posts, my journey approach for organizations to build dynamic innovation capabilities and a deeper outline of the growing importance of orchestration within managing innovation today and the future. Then I need to re-test my innovation fitness landscape framework to see if it does deliver the ‘dynamics’ in capabilities needed to extract better innovation outcomes.

At least I see an end in sight or is it a false ‘peak’ hiding the further journey I have to travel? Let’s see.

Building a Core into the Capabilities of Innovation

I think most would agree there is a continuing need is to build the management of innovation into a clear organizational capability, where innovation becomes a continuous effective innovation process. If you don’t agree, then I’d suggest you don’t bother to read on!

The struggle to date is that innovation remains hard to manage well; we strive to systematize it and then attempt to replicate any success we then have achieved. Often this does not work as the variables that make up innovation can be different for each innovation event or activity.

The make-up of innovation

I think we all recognize that innovation is made up of both tangible and intangible assets. It is the marriage of these two that makes innovation a unique capability to manage in well-structured ways. It is the people engaged in innovation activity that make it work.  Everything else, the process, structures, technologies and management systems are just the contributing enablers.

The important point though is successful innovation has core elements and processes regardless of industry, form, or type of innovation, we are pursuing.  Much of the difference though is in its varying degree’s based on these core elements.

Our search must be to find those core elements that make up the dynamic capabilities within our innovation activities to leverage and strengthen them. We need to build an organizations ability to innovation continuously, making it a sustaining competence.

We as organizations strive to achieve distinct competitive advantage, and innovation is one of those real contribution points this can do this. The need is to make the innovation capabilities and capacities a distinctive, not easy to copy, unique set. These are shaped by the context and content of innovation, the organizations position and its choice of evolutionary paths it has decided to take or needs to take.

This is an area of serious under-development at present, when you compare this with the continued focus on investing in physical assets or the consistent building of many other skills required within organizations. Yet innovation, the source of fresh growth remains significantly under-invested in, within the majority of organizations. This needs changing. Let me put forward my suggestions on why:

Shifting away from the accepted norm

Innovation understanding and building strength in competencies and capabilities takes an organization beyond the accepted norm of managing efficiency, just quality, being responsive and reacting with speed, all challenging within themselves. Innovation represents today’s competitive advantage statement that should be supported by these other requirements, they become subservient to allow new concepts to meet market needs and exceed customer expectancies.

Within any transition we must avoid dysfunctional consequences and think through why the existing systems and structures do have to ‘fold into’ new innovation based ones. We need to plan how to do this. Innovation cannot be buried in the established ways of doing things, it needs to lead and drive the engine for new growth and wealth creation. It can’t continue to take a back seat, it needs to take over the wheel.

Organizations need to shift from the one often still found today, of a higher focus on stability, efficiency and effectiveness, looking simply to maximize the short-term for profitability. This locks then into their current preoccupation with performing routines and formalised structures, as they strive to cut risk and manage the fear of the unknown.

The world is dealing with increasing complexity

The challenge though in today’s world is so different. It is so volatile, potentially disruptive and full of risk. Organizations are simply struggling to shed their clothes of the 20th century and find a way to smoothly manage into becoming more adaptable and agile in form. They are adjusting to offer consistent responses to instability in the most effective ways, to keep adapting to the consistent market challenges,and in so doing profiting from meeting that latest challenge or disruptive opportunity.  The problem is you simply can’t manage this smoothly, it will be highly disruptive as the organization re-equips itself and learns, often in the hardest way possible, through failure .

Innovation in itself is also a force of instability and we need to find ways to embrace much of its uncertainties by understanding its dynamics. We need to have a major shift in our organizational thinking, needed to find the appropriate new balance within those dual ‘tensions’ of ‘stability’ through efficiency, with its opposite, ‘change’ driven by innovation. It is these dynamic forces within the world we work that require us to respond by building that capacity for managing those ‘dynamic’ innovation capabilities, that today’s markets are requiring and organizations are needing to master.

The emphasis needs to point more to building dynamic innovation capabilities

Dynamic capabilities emphasise management capabilities and the inimitable (unique) combinations of resources that are constantly at work across all functions to make them distinctive and valuable.

Distinguishing innovation capabilities that are relevant are based on the type of knowledge they contain. Functional capabilities allow development of technical, practical knowledge. Integrative capabilities allow firms to absorb knowledge from external sources and this is where absorptive capacity and its structure comes into our required thinking. Innovation requires us to constantly learn, develop, mould and manage from multiple situations and challenges. This requires the integration of critical capabilities to successfully stimulate innovation for effective and improving performance.

Many of the identified resources in capabilities have some level of complementary, improving one triggers improvement in another. Equally ignoring one can impact negatively on others. So each component, on their own, have limited effect, it is the combination effect that generates the improving performance. Equally, the needs do change over time and you have to constantly ‘refresh, challenge and stimulate’ these, otherwise you can have core rigidly set in.

Integrating back or making anew

To this end I have produced a conceptual model of what I believe is the ‘make up’ for providing an ongoing innovation performance engine – the innovation fitness landscape and the dynamics of core capabilities. I felt it needed a dedicated website to be the ‘go to’ source of reference. It is a work-in-progress so please recognize this when you visit it here: http://bit.ly/wX5q8R

The need for all of us is recognize and embrace the need to build an organization-wide innovation capability, that should pervade all aspects of the organizations existence, forming its new core innovation value.

The Real Need Is Achieving Innovation Fitness

So how do we become innovation fit?

www.innovationfitnessdynamics.com is new and perhaps your possible innovation work-out 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 end point of your travels. The distance you have to travel towards that much needed innovation understanding, that are 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 to there you have already made a decision that you and your organization needs to become a more innovation one and 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 imperitive for, adding value, growth and improved wealth creation.

You have innovation choices

You had some vague ideas on what that might mean when you set out on that first climb to achieve this first advantage point. What you never expected once you had got to this particular mountain top was just what the vista that had so suddenly opened up in front of you, would actually mean. The sudden shock of what might be in front of you suddenly became overwhelming; it stopped you in your tracks. You felt suddenly confronted on what all this might actually mean. Do you go on or go back down?

Starting any journey always needs a first step.

While you had lived fairly comfortably down in the valley below, you simply kept looking up wondering what it would be like to become a more innovative organization. What was beyond that one mountain you constantly looked up too? You had survived, sometimes you even thrived but much of that ‘success’ was actually outside your own hands, it was often determined by some luck, often those abilities to react to something quickly enough on what went on around you. You followed others, you adapted and adjusted to changes going on and kept simply going but you felt this was not a really sustaining position. You wanted to change this, you felt you just wanted to be more in charge of your own innovation destiny. The question was how?

The big idea, a decision to walk a new path with a journey’s end in mind.

Then the big idea came to you. The way  to change was to make a critical decision, to move on by following a new path, a path towards innovation fitness. Why innovation, why the need to get fit? What was the journey end you had in mind?

To help on your journey I believe we need to raise our game and provide a greater fitness to the way we manage innovation. The dynamics of innovation need to be understood

A new web site dedicated to Making Your Organization Fit.

Innovation Fitness Dynamics is a structured approach, you might want to find out about. There is a fair amount of information already ‘posted’ but in any journey you need to get prepared, to be equipped. Jog on over:

www.innovationfitnessdynamics.com

This blog is about offering you a pathway towards achieving your own innovation fitness dynamics

The journey has many peaks and troughs, mountains and valleys to forge. Firstly you have to understand your present fitness to travel on any ‘change’  journey and in this particular case, to achieve any innovation fitness is highly dynamic and challenging. There are lots of fitness points needed to transform your innovation potential from a simple follower to a leader, recognized and respected for your ability to consistently deliver innovation in a sustaining way.

The end goal of your journey is simply “the greater fitness you can achieve in innovation capability the more it can equate to a new value creation“.  The exploring of the terrain that suddenly is opening up in front of you as you look over the mountains and valleys is in need of exploring, of travelling, of searching out those different combinations you require to get you to your own dynamics of innovation fitness understanding.

Welcome.  You will find here your guide, your companion, to be available to walk alongside you on your innovation journey.

The first step towards achieving any innovation fitness is to decide that you are are not going to stay where you are and so you become aware, the second step is a clear acceptance that you have to take a journey. The first step leads one to the second.

“One’s first step in wisdom is to question everything – and one’s last is to come to terms with everything”

–  George Christoph Lichten- physics professor and scientist 1742- 1799.

We begin our journey, a journey full of innovation fitness dynamics.Visit:

www.innovationfitnessdynamics.com

Orchestrating the new dynamics of innovation fitness

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?

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