dual cycle model of innovation and strategic foresight
DESCRIPTION
Ever wondered why some organisations have the ability to re-invent entire industries, time and time again? Where does this source of continuous innovation and foresight come from? Ever considered that these organisations have two separate innovation cycles in motion? Good organisations are able to innovate and improve what they know. What the great organisations are able to achieve is the continuous ability to regenerate its own core strategies, based on what they don’t yet know, re-inventing entire industries along the way.TRANSCRIPT
DUAL CYCLE MODEL OF INNOVATION AND STRATEGIC FORESIGHT
Ben Flavel
= Good Luck!
(Attention + Intention) x Purpose
Opportunity
“To be a challenger once, it is enough to challenge the orthodoxies of the incumbents; to be a challenger twice, a firm must be capable of challenging its own orthodoxies.
To reinvent its industry a second time, a challenger must regenerate its core strategies.”
Gary Hamel – Competing for the future
THE DUAL CYCLE MODEL
6 THINGS GOOD ORGANISATIONS DO
1. CONDUCT SWOT ANALYSES
2. FOCUS ON CUSTOMER NEEDS3. INNOVATE AND IMPROVE BASED ON WHAT THEY KNOW
4. CHALLENGE THE WAY IT DOES THINGS5. IMPROVE INTERNAL PROCESSES AND SYSTEMS
6. INJECT THESE 5 BEHAVIORS INTO ITS CULTURE
If I had asked my customers what they wanted, they would have said a faster horse.
Henry Ford
QUICK QUIZ: WHICH OF THESE THREE COMPANIES APPLIES A DUAL CYCLE MENTALITY?
a. DELLb. HPc. APPLE
DOING NOTHING IS NOT AN OPTION!
WHAT GREAT ORGANISATIONS DO…
Great organisations…
• Develop a continuous ability to regenerate its own core strategies
• Re-invent entire industries• Are able to train the culture to
challenge internal and external assumptions
• Create a culture of foresight by challenging the competencies that made the organisation successful in the first place
2 CYCLES IN MOTION
3M BRAND ESSENCE
Official: Harnessing the chain reaction of new ideas
Unofficial:“habitually habitate the inhabitable”
TRANSFORMATIONAL OPPORTUNITIES CREATE NEW INDUSTRIES
E x is ti n g p ro d u c ts / T e c h n o lo g y
N e w p ro d u c ts / T e c h n o lo g y
E x is ti n gMa r k e ts
N e wMa r k e ts
AdjacentOpportunities
Exploit current assetsand capabilities
TransformationalOpportunities
Create new marketsand new products
Status QuoGrow market
share and profit(expansion, not new
business development)
AdjacentOpportunities
Increase primarymarket demand
We have an amazing ability to over-estimate what we can achieve in one year and yet under-estimate what we can achieve in ten.
Companies find it risky to think too far ahead. Ideas become “scary”.
Limiting futures thinking to what we can prove now, based on what has been, is truly dangerous.
THE PATHWAYS ARE NOT ALWAYS CLEAR
“Uncertainty is an uncomfortable position. But certainty is an absurd one."
Voltaire
WHEN CERTAINTY BECOMES MADNESS…
DOES THE DUAL CYCLE MODEL EXIST IN OUR ORGANISATION?
How strong is our vision?
Do we know “what we do?”
“how else can we do what we do?”
Do we encourage questions? Do we challenge our core competencies?
Are we willing to change the way we do things?
Do we metascan? What happens when things fail?
Can we identify the entrepreneurs that will drive change?
It’s your path, so don’t fuck it up!
…but if you do, that’s OK too.
