This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Dual Innovation Ecosystem Strategy) is a 25-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
When new technologies and competitors disrupt markets, numerous existing organizations struggle to carry on. Most likely reason is that they are inadequately prepared to cultivate new products and services amidst uncertainty.
Creating the appropriate type of Innovation Ecosystem is crucial for guaranteeing success, as well as identifying and managing sources of conflict.
To frame and understand how to develop a suitable Innovation Ecosystem Strategy, this framework introduces the concept of 3 Strategic Horizons of Innovation. These Strategic Horizons for Innovation are based on the proximity of the Innovation to the core business; and are defined as follows:
Horizon 1 – This strategic horizon relates to optimization of existing business, i.e., optimization of current Business Models and technologies, catering to prevailing markets.
Horizon 2 – This horizon pertains to both the existing business as well as new Business Model. Horizon 2 pertains to growth; i.e., speeding up and enhancing of fresh Business Models and technologies as well as adjustment of prevailing Business Models.
Horizon 3 – This horizon relates to generating new Business Models. The third horizon has to do with the future; i.e., unearthing and proving of novel Business Models and technologies, and determining of future markets.
These 3 "Fields of Innovation" that constitute the fundamental building blocks of the Dual Innovation Ecosystem Strategy framework, which presents us 3 strategic options:
Playing Field 1 – Optimize the Core
Playing Field 2 – Reshape the Core
Playing Field 3 – Create the New
Each field has its own unique conditions, which include Business Model, technology capabilities, time scale, accounting, metrics, methods, tools, as well as organizational and personal needs. Each Playing Field requires dedicated Leadership and Management for it to be successful.
Selection of the field to play in depends on the strategic direction our organization decides to take, whether it be:
1. Adapt – Modification of current core business or Operating Models; or
2. Scale – Ramping-up of authenticated, sweeping or even disruptive Innovation ideas, to convert them into substantial business impact.
This PowerPoint presentation on Dual Innovation Ecosystem Strategy also includes some slide templates for you to use in your own business presentations, which convey the concepts of the 3 Horizons of Innovation, the 3 Fields of Innovation, and Dual Innovation Ecosystem Strategy.
The framework also delves into the distinctions between Centralized and Adaptive Innovation Ecosystems, providing insights on their respective advantages. It highlights the importance of aligning innovation strategies with industry life cycles to ensure optimal outcomes.
This PPT slide presents the "3 Strategic Horizons of Innovation" framework, which categorizes innovation efforts based on their relationship to a company's core business. It divides innovation into 3 distinct horizons, each representing a different level of technological capability and business model evolution.
Horizon 1, labeled as "70%," focuses on existing technologies and business models. This horizon is primarily about optimizing current operations and maximizing efficiency. It emphasizes adaptation and scaling of existing solutions to enhance performance and profitability.
Horizon 2, marked as "20%," represents a transitional phase where ideas are partially new, but still connected to the existing business. This horizon involves exploring new opportunities while leveraging existing capabilities. It serves as a bridge between the core business and more innovative ventures, allowing for both exploitative and exploratory activities.
Horizon 3, identified as "10%," is dedicated to entirely new innovations that are exploratory in nature. This horizon is crucial for long-term growth, as it involves venturing into uncharted territories and developing new technologies or business models that may not yet be aligned with the core business.
The accompanying text clarifies that the framework helps organizations assign ideas to the appropriate horizon, facilitating a structured approach to innovation strategy. It highlights the importance of balancing exploitation of existing capabilities with exploration of new opportunities, ensuring that businesses can optimize their core while also preparing for future growth. Understanding this framework can be instrumental for executives looking to strategically manage their innovation portfolios.
This PPT slide presents a framework for understanding the Dual Innovation Ecosystem Strategy through 3 distinct models: balanced, centralized, and decentralized. Each model is characterized by its approach to innovation, organizational structure, and focus areas, which are crucial for decision-making in innovation strategy.
Model 1 is labeled as balanced, indicating a dual focus on both business units (BUs) and corporate-level initiatives. This model emphasizes the importance of creating new opportunities while reshaping and optimizing existing core operations. The playing fields are clearly defined, with "Create the New," "Reshape the Core," and "Optimize the Core" as key areas of focus. The arrows suggesting "Adapt" and "Scale" imply a dynamic approach to innovation that allows for flexibility and growth.
Model 2 is centralized, concentrating solely on corporate initiatives while limiting the role of business units to a specific focus area. This model may facilitate streamlined decision-making and resource allocation at the corporate level, but risks stifling innovation at the BU level. The same playing fields are present,, but the emphasis shifts, potentially leading to a more rigid structure.
Model 3 is decentralized, placing the onus of innovation on business units while the corporate entity focuses on a different playing field. This model allows for greater autonomy and responsiveness at the BU level, which can drive innovation, but may lead to misalignment with corporate goals.
The slide concludes with a note on evolutionary innovation, suggesting that organizations must critically assess their limitations and adapt their strategies accordingly. This framework serves as a guide for executives contemplating how to structure their innovation efforts effectively.
This PPT slide presents a comparative analysis of 2 types of innovation ecosystems: Centralized and Adaptive. It emphasizes that the choice between these ecosystems should align with the lifecycle stage of the industry in question. Centralized ecosystems are depicted as suitable for established industries characterized by stable conditions. They operate through a "broker" company that connects partners while keeping them distinct. This structure is beneficial when partners are familiar with each other and the existing business model, allowing for coordinated efforts to capture value primarily for the broker.
In contrast, Adaptive ecosystems are more fitting for nascent industries where uncertainty prevails. Here, an "orchestrator" company facilitates direct collaboration among diverse partners, encouraging innovation through the combination of varied resources. This approach is particularly advantageous when industry boundaries are shifting, as it allows for flexibility and rapid adaptation to changing market conditions.
The slide outlines specific attributes for each ecosystem, including their structure, partner dynamics, strategic focus, and the impact on the focal company. For instance, while Centralized ecosystems maintain arm's-length relationships, Adaptive ecosystems foster cooperative ties, enabling partners to explore new opportunities and innovate collectively.
The concluding notes suggest that as industries mature, companies should reassess their ecosystem strategies. Over time, as value-creation processes stabilize, transitioning from an Adaptive to a Centralized system may become advantageous. This insight is crucial for executives considering the long-term implications of their innovation strategies in relation to industry maturity.
This PPT slide outlines the concept of Strategic Horizons for Innovation, which categorizes innovation efforts based on their proximity to the core business. It identifies 3 distinct horizons, each representing a different focus and relationship to existing business models and technologies.
Horizon 1 (H1) emphasizes the optimization of current business operations. This involves refining existing business models and technologies to better serve current markets. The focus here is on incremental improvements that enhance efficiency and effectiveness, ensuring that the organization remains competitive in its existing domain.
Horizon 2 (H2) shifts the focus towards growth. It encompasses both the existing business and the exploration of new business models. This horizon is about accelerating innovation efforts, enhancing current offerings, and adapting existing models to meet evolving market demands. It suggests a more dynamic approach, where organizations are encouraged to innovate not just incrementally, but also by exploring adjacent opportunities.
Horizon 3 (H3) represents a forward-looking perspective, concentrating on the generation of entirely new business models. This horizon is about envisioning the future and identifying novel opportunities that may not yet exist in the current market landscape. It involves a more radical approach to innovation, where organizations seek to unearth and validate new concepts that could redefine their strategic direction.
Understanding these horizons allows organizations to allocate resources effectively, prioritize innovation initiatives, and align them with their overall strategic goals. The framework encourages a balanced approach to innovation, ensuring that efforts are made across all 3 horizons to sustain growth and relevance in a rapidly changing environment.
This PPT slide outlines the concept of Dual Innovation, emphasizing 3 distinct fields of innovation and 2 strategic directions for action. It begins by identifying the 2 strategic directions: "Adapt" and "Scale." Adapting involves modifying existing core business models or operating practices, while scaling focuses on ramping up innovative ideas—whether they are incremental or disruptive—to achieve significant business impact.
The slide then delves into the 3 fields of innovation, referred to as "Playing Fields." These are categorized as: "Optimize the Core," "Reshape the Core," and "Create the New." Each of these fields is characterized by unique conditions that dictate how innovation should be approached. The proximity of these fields to the core business is crucial and is influenced by factors such as the business model, technological capabilities, and implicitly, the time scale required for implementation.
Further, the slide highlights that each Playing Field necessitates dedicated leadership and management to ensure success. Specifically, adaptation ventures require corporate interventions, while novel ventures that are intended to be scaled demand the establishment of a dedicated business unit with fully committed resources. This distinction is vital for organizations aiming to navigate the complexities of innovation effectively.
Overall, the slide serves as a foundational overview for executives looking to understand how to structure their innovation strategies. It emphasizes the importance of recognizing different innovation fields and the tailored management approaches required for each, which can significantly influence the outcomes of innovation efforts.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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