Scaling Innovation And Embracing Disruption

Yvonne Chua, Co-Founder
31 May 2021 • 3 min read

Scaling innovation is key to sustaining growth, as organizations continually to pursue different types of innvovation aimed at existing and new customers. What's the secret to getting to it?

Organizational Structures

Organizations innovate by leveraging on its resources and human capital. Yet, its success is also dependent on having a common strategic alignment, support from the management leadership and most importantly creating an organization structure to balance innovation with execution. How can we create an organizational structure to achieve innovation outcomes? What is the best way to go about creating it?

“When it came to launching breakthrough products or services, ambidextrous organizations were significantly more successful. More than 90% of the ambidextrous organizations achieved their goals, according to a study.

The Ambidextrous Organization from Harvard Business Review

Ambidextrous Organization

Companies that protect their existing businesses and simultaneously develop radical innovations are known as ambidextrous organizations. They can dynamically strategize their innovation aspirations to match today’s highly volatile and rapidly changing market as well as prepare for tomorrow’s cutting edge technology.

Explore Exploit Continuum

Ambidextrous organizations embrace the Explore Exploit Continuum, which has completely opposite dimensions with different levels of uncertainty. On the left, the Explore dimension focuses on fast and creative innovation projects in search of new growth opportunities. On the right, the Exploit dimension emphasizes on efficiency and scalability to generate more revenue by exploiting existing capabilities.

Image from Strategyzer

Most organizations are pretty good at exploiting what they have, managing existing business models and improving the business through detailed planning and execution. For example, incorporating existing market data and customer behaviors into decision-making, or making accurate forecasts about sales growth. On the other hand, exploring the future presents a challenge. Partly, due to higher uncertainty searching for new value propositions to customers and allocating resources from its core business operation to fund unproven, uncertain ventures, not knowing whether it will yield any returns.

Without a systematic manner to manage innovation, most organizations usually invest in predictable innovation ventures, allocating more resources to safer innovation projects than unknown projects that might bring about disruptive innovations. To manage both kinds of innovation ventures, organizations can adopt an innovation management platform to specifically address to their business context, plan new innovation strategies and launch innovation challenges to flourish opportunities into valuable innovation projects.

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