How do organizations survive in the face of change? Underlying this question is a rich debate about whether organizations can adapt—and if so how. One perspective, organizational ecology, presents evidence suggesting that most organizations are largely inert and ultimately fail. A second perspective argues that some firms do learn and adapt to shifting environmental contexts. Recently, this latter view has coalesced around two themes. The first, based on research in strategy suggests that dynamic capabilities, the ability of a firm to reconfigure assets and existing capabilities, explains long-term competitive advantage. The second, based on organizational design, argues that ambidexterity, the ability of a firm to simultaneously explore and exploit, enables a firm to adapt over time. In this paper, we review and integrate these comparatively new research streams and identify a set of propositions that suggest how ambidexterity acts as a dynamic capability. We suggest that efficiency and innovation need not be strategic tradeoffs and highlight the substantive role of senior teams in building dynamic capabilities.
In the past few years, a number of well-known firms have failed - think of Blockbuster, Kodak, or RadioShack. When we read about their demise, it often seems inevitable - a natural part of creative destruction. But closer examination reveals a disturbing truth: Companies large and small are shuttering more quickly than ever. What does it take to buck this trend? The simple answer is: ambidexterity. Firms must remain competitive in their core markets, while also winning in new domains. Innovation guru Clayton M. Christensen has been pessimistic about whether established companies can prevail in the face of disruption, but Charles A. O’Reilly III and Michael L. Tushman know they can! The authors explain how shrewd organizations have used an ambidextrous approach to solve their own innovator’s dilemma. They contrast these luminaries with companies which — often trapped by their own successes — have been unable to adapt and grow. Drawing on a vast research program and over a decade of helping companies to innovate, the authors present a set of practices to guide firms as they adopt ambidexterity. Top-down and bottom-up leaders are key to this process - a fact too often overlooked in the heated debate about innovation. But not in this case. Readers will come away with a new understanding of how to improve their existing businesses through efficiency, control, and incremental change, while also seizing new markets where flexibility, autonomy, and experimentation rule the day.
Based on organizational information processing theory, this paper develops and tests a research model to deepen the understanding about the conditions under which the use of data analytics contributes to innovation performance. This paper suggests that firm innovativeness, as an organization cultural concept, should moderate the relationship between data analytics use and innovation performance. The results of a moderation analysis based on data from cross-sectional survey support this account. The findings indicate a significant inversely U-shaped effect of innovativeness on the relationship between data analytics use and innovation performance. The effect of data analytics use on innovation performance is strongest under medium levels of innovativeness but comparatively weaker when firms have a low or a high level of innovativeness. These insights contribute to the IS literature by clarifying the important role of firm cultural factors in shaping information needs and deployment of information processing capabilities.
Few academic management theories have had as much influence in the business world as Clayton M. Christensens theory of disruptive innovation. But how well does the theory describe what actually happens in business?
PhD thesis by Gustav Toppenberg. Resume: This research examines the technology-related integration challenges to acquisitions in digital industries and how these challenges can be managed. Historically, companies seeking to increase markets, products or customers have utilized the strategic growth process of mergers and acquisitions. Their motivation was primarily to utilize economies of scale and operational synergies to integrate acquisition targets that were similar in product, market, and customer demographics. The aim of these acquisitions was to scale the acquisition products to its own markets and customers while potentially gaining new markets and customers in the process. For companies in the digital-technology industry, the path to growth in these fast-paced markets is through the acquisition of innovation-based technologies from new and emerging companies to complement their current R&D strategies. The incumbent enterprises look for emerging technology companies as acquisition targets in order to stay ahead of the increasingly fast technology-development lifecycle. The acquisition and integration process for these types of companies present challenges to practitioners that are very different from what has been experienced in the past and will present new research opportunities for scholars researching the related domains.
A comprehensive playbook for applied design thinking in business and management, complete with concepts and toolkits As many companies have lost confidence in the traditional ways of running a business, design thinking has entered the mix. Design Thinking for Strategic Innovation presents a framework for design thinking that is relevant to business management, marketing, and design strategies and also provides a toolkit to apply concepts for immediate use in everyday work. It explains how design thinking can bring about creative solutions to solve complex business problems. Organized into five sections, this book provides an introduction to the values and applications of design thinking, explains design thinking approaches for eight key challenges that most businesses face, and offers an application framework for these business challenges through exercises, activities, and resources.
Most new businesses fail. But most of those failures are preventable. The Lean Startup is a new approach to business that's being adopted around the world. It is changing the way companies are built and new products are launched. The Lean Startup is about learning what your customers really want. It's about testing your vision continuously, adapting and adjusting before it's too late. Now is the time to think Lean.
You always knew digital was going to change things, but you didnâ€™t realize how close to home it would hit. In every industry, digital competitors are taking advantage of new platforms, tools, and relationships to undercut competitors, get closer to customers, and disrupt the usual ways of doing business. The only way to compete is to evolve. James McQuivey of Forrester Research has been teaching people how to do this for over a decade. Heâ€™s gone into the biggest companies, even in traditional industries like insurance and consumer packaged goods, and changed the way they think about innovation. Now heâ€™s sharing his approach with you.
The Innovation Book is an excellent and unique work on innovation as a discipline. Mckeown offers practical and actionable advise about innovation, and gives a concise and comprehensive overview of the rich body of knowledge in the discipline. Perfect executive education material!
The Innovative University illustrates how higher education can respond to the forces of disruptive innovation , and offers a nuanced and hopeful analysis of where the traditional university and its traditions have come from and how it needs to change for the future. Through an examination of Harvard and BYU-Idaho as well as other stories of innovation in higher education, Clayton Christensen and Henry Eyring decipher how universities can find innovative, less costly ways of performing their uniquely valuable functions.
Most companies today have innovation envy. They yearn to come up with a game-changing innovation like Apple's iPod, or create an entirely new category like Facebook. Many make genuine efforts to be innovative-they spend on R&D, bring in creative designers, hire innovation consultants. But they get disappointing results. Why? In The Design of Business, Roger Martin offers a compelling and provocative answer: we rely far too exclusively on analytical thinking, which merely refines current knowledge, producing small improvements to the status quo. To innovate and win, companies need design thinking. This form of thinking is rooted in how knowledge advances from one stage to another-from mystery (something we can't explain) to heuristic (a rule of thumb that guides us toward solution) to algorithm (a predictable formula for producing an answer) to code (when the formula becomes so predictable it can be fully automated). As knowledge advances across the stages, productivity grows and costs drop-creating massive value for companies. Martin shows how leading companies such as Procter & Gamble, Cirque du Soleil, RIM, and others use design thinking to push knowledge through the stages in ways that produce breakthrough innovations and competitive advantage.
This title is filled with practical and insightful expert advice on how to increase productivity through creativity and innovation. Packed with intriguing and insightful case studies and practical advice, "Design Thinking" is a comprehensive guide to increasing productivity through cultivating creativity. Divided into three sections that focus on the use of design for innovation and brand-building, the emerging role of service design, and the design of meaningful customer experiences, this book provides readers with the strategies and confidence necessary to encourage the growth of creative thought within their business. Featuring 30 articles, written by industry experts, that show how to build a solid brand foundation, solve problems with simplified thinking, anticipate and capitalize on trends, figure out what consumers want before they do, and align mission, vision, and strategy with a corporate brand, this is a must-have reference for anyone wanting to increase their businesses productivity.
"Web 2.0" is the portion of the Internet that's interactively produced by many people; it includes Wikipedia, Facebook, Twitter, Delicious, and prediction markets. In just a few years, Web 2.0 communities have demonstrated astonishing levels of innovation, knowledge accumulation, collaboration, and collective intelligence. Now, leading organizations are bringing the Web's novel tools and philosophies inside, creating Enterprise 2.0. In this book, Andrew McAfee shows how they're doing this, and why it's benefiting them. Enterprise 2.0 makes clear that the new technologies are good for much more than just socializing-when properly applied, they help businesses solve pressing problems, capture dispersed and fast-changing knowledge, highlight and leverage expertise, generate and refine ideas, and harness the wisdom of crowds. Most organizations, however, don't find it easy or natural to use these new tools initially. And executives see many possible pitfalls associated with them. Enterprise 2.0 explores these concerns, and shows how business leaders can overcome them. McAfee brings together case studies and examples with key concepts from economics, sociology, computer science, consumer psychology, and management studies and presents them all in a clear, accessible, and entertaining style. Enterprise 2.0 is a must-have resource for all C-suite executives seeking to make technology decisions that are simultaneously powerful, popular, and pragmatic.
Exploring the paradigm shift in business brought about by innovations in communication technology, this collaboration from three consultant-authors provides a succinct metaphor for the shift in the information economy-from "push" to "pull"-but little else. Though they provide an effective survey of the effect of more interactive, ubiquitous and on-demand communication, it already feels dated; the essential messages that Hagel, Brown, and Davison derive-networking is key, you should pursue your passions, many traditional ways of doing business are over-are old news in the business self-help section. The examples they provide focus primarily on individually-driven collaborative efforts (wikis, online gaming) and make poor analogies for someone looking to revitalize a corporation or present a compelling case for change to colleagues or an intransigent CEO. Professionals who already know that the Internet isn't just a phase will need more information than this book provides.
A wave of business innovation is driving the productivity resurgence in the U.S. economy. In Wired for Innovation, Erik Brynjolfsson and Adam Saunders describe how information technology directly or indirectly created this productivity explosion, reversing decades of slow growth. They argue that the companies with the highest level of returns to their technology investment are doing more than just buying technology; they are inventing new forms of organizational capital to become digital organizations. These innovations include a cluster of organizational and business-process changes, including broader sharing of information, decentralized decision-making, linking pay and promotions to performance, pruning of non-core products and processes, and greater investments in training and education. Brynjolfsson and Saunders go on to examine the real sources of value in the emerging information economy, including intangible inputs and outputs that have defied traditional metrics. For instance, intangible organizational capital is not directly observable on a balance sheet yet amounts to trillions of dollars of value. Similarly, such nonmarket transactions of information goods as Google searches or views of Wikipedia articles are an increasingly large share of the economy yet virtually invisible in the GDP statistics. Drawing on work done at the MIT Center for Digital Business and elsewhere, Brynjolfsson and Saunders explain how to better measure the value of technology in the economy. They treat technology as not just another type of ordinary capital investment by also focusing on complementary investments--including process redesign, training, and strategic changes--and ton he value of product quality, timeliness, variety, convenience, and new products. Innovation continues through booms and busts. This book provides an essential guide for policy makers and economists who need to understand how information technology is transforming the economy and how it will create value in the coming decade.
Gartner Says Hybrid Thinking for Enterprise Architecture Can Help Organisations Embrace Transformation, Innovation and Strategy
Most enterprise architecture (EA) initiatives remain trapped in the IT department, and a new approach â€“ hybrid thinking â€“ is required to break EA out and into the wider organisation, according to Gartner, Inc. Adopting hybrid thinking is an excellent way to meld design thinking, IT thinking and business thinking, and achieve transformative, innovative and strategic changes.
Making Innovation Work presents a formal innovation process proven to work at HP, Microsoft and Toyota, to help ordinary managers drive top and bottom line growth from innovation. The authors have drawn on their unsurpassed innovation consulting experience -- as well as the most thorough review of innovation research ever performed. They'll show what works, what doesn't, and how to use management tools to dramatically increase the payoff from innovation investments. Learn how to define the right strategy effective innovation; how to structure an organization to innovate best; how to implement management systems to assess ongoing innovation; how to incentivize teams to deliver, and much more. This book offers the first authoritative guide to using metrics at every step of the innovation process -- from idea creation and selection through prototyping and commercialization.
Knowledge Networks: Innovation Through Communities of Practice explores the inner workings of an organizational, internationally distributed Community of Practice. The book highlights the weaknesses of the 'traditional' KM approach of 'capture-codify-store' and asserts that communities of practice are recognized as groups where soft (knowledge that cannot be captured) knowledge is created and sustained. Readers will gain insight into a period the life of a distributed international community of practice by following the members as they work, meet, collaborate, interact and socialize.