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2017 | Buch

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Reinventing Innovation

Designing the Dual Organization

verfasst von: Aaron C. T. Smith, Fiona Sutherland, David H. Gilbert

Verlag: Springer International Publishing

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Based on research findings and detailed, original cases, this book charts the new innovation imperative, where organizations must deliver on dual goals: an efficient return on current operations, and a burgeoning pipeline of new products. It argues that the two pursuits cannot be achieved through a bland compromise, or by switching priorities back and forth. Only a ‘dual’ organization capable of amplifying the tension can optimize efficiency while seeding innovation. Reinventing Innovation examines the nature of dual organizing, presents a series of in-depth cases to reveal its principles, and explains how to fortify organizations with ‘ambidexterity’ capabilities. Ideal for tertiary students, academics, and practitioners, Reinventing Innovation contains a rich balance of theoretical principles, case insights, and practical guidance.

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Inhaltsverzeichnis

Frontmatter

Chapter 1. The Innovation Imperative

Abstract

This chapter establishes the context, background, and aims for the book noting that organizations must manage ostensibly opposing forms, such as stability and change, and freedom and accountability. Organizations therefore need to manage simultaneously for both efficiency (exploitation) and flexibility (exploration). The chapter foreshadows the book’s key premise that the exploration—exploitation tension represents a ‘duality’ that must be embraced rather than resolved. It foreshadows the results of several longitudinal research cases demonstrating that innovation works best when in concert with efficiency, rather than as a stand-alone or as an alternating on and off priority. Finally, the chapter introduces how innovation capacity can be developed through ambidexterity capability.

Aaron C. T. Smith, Fiona Sutherland, David H. Gilbert

Chapter 2. Changing Forms of Organizing

Abstract

This chapter charts the evolution of organizing forms, in particular the nature and scope of exploration and exploitation as complementary forces stimulating change and continuity. The chapter contextualizes the emergence of ambidexterity as the capacity to both use and refine existing knowledge while also creating new knowledge. Further, ambidexterity capability may be leveraged through a duality-based organizing forms architecture, providing the means for enabling organizations to explore and exploit with equal success. Finally, the chapter highlights how ambidexterity capability introduces a unique process view of the explore—exploit tension that draws on duality theory as an explanatory framework.

Aaron C. T. Smith, Fiona Sutherland, David H. Gilbert

Chapter 3. Duality Theory

Abstract

This chapter argues that duality theory offers the greatest scope as a conceptual framework for connecting ambidexterity capabilities and simultaneous explore—exploit outcomes. Duality theory provides direction by emphasizing characteristics such as dynamism, minimal thresholds, and improvisation. Collectively, these elements engender responsive, adaptive thinking across interconnected explorative and exploitative ventures. The chapter includes a comprehensive review of duality theory and its evolution. Drawing on this review and ensuing critique of duality characteristics, it maintains that ambidexterity capability underpinned by five duality characteristics reinforces the organizing tension that delivers both explore and exploit outcomes. The chapter concludes by proposing developmental measures for enhancing ambidexterity capabilities.

Aaron C. T. Smith, Fiona Sutherland, David H. Gilbert

Chapter 4. Embracing the Tension

Abstract

This chapter furthers the book’s proposition that at the heart of duality theory resides the explore—exploit problem, which is concerned with how firms can stimulate innovation for the future while maintaining a high return upon existing opportunities. It also addresses how to build ambidexterity capability. Based on longitudinal case study data, the chapter suggests that one productive method for developing ambidexterity capability involves pursuing a dual organizational identity embracing innovation and efficiency as mutually inclusive pursuits. The chapter draws on the case evidence to show that a leader sensegiving/sensemaking communications strategy needs to shift from one formulated around constancy, efficiency, and control to one imbued with duality thinking. The chapter also connects the case evidence with theory.

Aaron C. T. Smith, Fiona Sutherland, David H. Gilbert

Chapter 5. Structuring Innovation

Abstract

This chapter introduces a second case study exposing a complex network of simultaneous explore and exploit activities undertaken by a large firm over a decade. It depicts a response to the explore—exploit paradox where switching emphasis and resources between the two priorities failed, leading to a novel combination of heavy exploitation-driven actions alongside deep exploration projects. The chapter examines how the firm’s success emanated from its fluid organizing forms approach to dealing with the explore—exploit tension. Instead of seeking to constrain the tension, the firm escalated it into a productive and dynamic source of innovation. Fluidity, the chapter concludes, commands a central place in fostering an ambidexterity-friendly environment

Aaron C. T. Smith, Fiona Sutherland, David H. Gilbert

Chapter 6. Breaking Out

Abstract

This chapter examines a case study focusing on ambidexterity capabilities. The leadership in this chapter’s case firm made a bold commitment to positioning innovation as a core feature of its culture. An experimental approach was adopted that heightened the explore—exploit tension, propelling the firm’s innovation objectives. They iteratively developed an innovation mindset designed to stimulate new, ‘ahead of the curve,’ services in order to secure a sustainable turnover of new revenue. The chapter emphasizes the case firm’s formation of an agile, technology-focused, product-oriented business unit that turned the traditional services firm business model upside-down by using low touch services, remote connections, self-service clients, and a high volume of transactions and clients, all within more modest margins. The chapter presents the firm’s response as a form of ambidexterity capability.

Aaron C. T. Smith, Fiona Sutherland, David H. Gilbert

Chapter 7. Designing Business Innovation

Abstract

This chapter examines a case study focusing on the practical transition of innovation ‘wow’ to practical ‘how.’ It establishes some concrete recommendations for developing ambidexterity capability based on a combination of case lessons, results from salient research, and experience in melding the two. The chapter connects design and innovation, identifies some of the most useful tools and techniques, and prescribes a series of actions stimulating ambidexterity capability. The case data reinforces the nonlinear nature of innovation. In addition, the chapter witnesses the failure of reductionistic attempts to commoditize design thinking, which tend to produce mechanistic outcomes. However, it also demonstrates how powerful design thinking and its associated methodologies and tools can be in democratizing innovation in a conservative, declining firm.

Aaron C. T. Smith, Fiona Sutherland, David H. Gilbert

Chapter 8. The Efficient Innovator

Abstract

This chapter reviews the contents of the book and its central arguments. It acknowledges that external change operates as a consistent presence rather than as an exception, but that a productive organizational response incorporates both instability and stability. This culminates in a paradox of sorts, wherein sustainable success demands a commitment to simultaneously high levels of both innovation and control. It is at this energetic intersection of both where ambidexterity capability receives its impetus. The chapter highlights the book’s proposition that success requires simultaneous exploration and exploitation in high doses, encouraging tension and discontinuity. Finally, the chapter summarizes the argument for a duality ecosystem fostering ambidexterity because it augments the conversion of ideas into commercial implementation without compromising speed.

Aaron C. T. Smith, Fiona Sutherland, David H. Gilbert

Backmatter

Titel: Reinventing Innovation
verfasst von: Aaron C. T. Smith
Fiona Sutherland
David H. Gilbert
Copyright-Jahr: 2017
Verlag: Springer International Publishing
Electronic ISBN: 978-3-319-57213-0
Print ISBN: 978-3-319-57212-3
DOI: https://doi.org/10.1007/978-3-319-57213-0

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