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.
Explore the Dual Innovation Ecosystem Strategy, crafted by ex-McKinsey & Big 4 consultants. Master the 3 Strategic Horizons for optimizing innovation amidst disruption. Dual Innovation Ecosystem Strategy is a 25-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download 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 Dual Innovation Ecosystem Strategy through 3 models: balanced, centralized, and decentralized. The balanced model focuses on both business units (BUs) and corporate initiatives, emphasizing "Create the New," "Reshape the Core," and "Optimize the Core," with a dynamic approach allowing for adaptation and scaling. The centralized model prioritizes corporate initiatives, streamlining decision-making, but potentially stifling BU innovation. The decentralized model empowers BUs to drive innovation, fostering autonomy, but risking misalignment with corporate goals. The framework highlights the need for organizations to assess limitations and adapt strategies for effective innovation structuring.
The "3 Strategic Horizons of Innovation" framework categorizes innovation based on its relationship to a company's core business. Horizon 1 (70%) focuses on optimizing existing technologies and business models to enhance performance and profitability. Horizon 2 (20%) represents a transitional phase, exploring new opportunities while leveraging existing capabilities, bridging the core business and innovative ventures. Horizon 3 (10%) is dedicated to entirely new innovations, crucial for long-term growth, involving exploration of uncharted territories and development of new technologies or business models. This framework helps organizations assign ideas to appropriate horizons, balancing exploitation of existing capabilities with exploration of new opportunities for future growth.
This PPT slide outlines the concept of Dual Innovation, highlighting 2 strategic directions: "Adapt" and "Scale." Adapting modifies existing business models, while scaling ramps up innovative ideas for significant impact. It identifies 3 fields of innovation, or "Playing Fields": "Optimize the Core," "Reshape the Core," and "Create the New," each with unique conditions influencing innovation approaches. The proximity of these fields to the core business is affected by the business model, technological capabilities, and implementation time scale. Each Playing Field requires dedicated leadership; adaptation ventures need corporate interventions, while scaling novel ventures demands a dedicated business unit with committed resources. Understanding these distinctions is vital for navigating innovation complexities.
The Strategic Horizons for Innovation framework categorizes innovation into 3 horizons based on proximity to core business operations.
Horizon 1 (H1) focuses on optimizing current business models and technologies through incremental improvements to enhance efficiency and competitiveness.
Horizon 2 (H2) emphasizes growth by exploring new business models while enhancing existing offerings to meet evolving market demands, encouraging a dynamic approach to innovation.
Horizon 3 (H3) is forward-looking, concentrating on generating entirely new business models and identifying novel opportunities that could redefine strategic direction through radical innovation.
This framework enables effective resource allocation and prioritization of innovation initiatives across all 3 horizons to sustain growth and relevance in a changing environment.
This PPT slide compares 2 types of innovation ecosystems: Centralized and Adaptive. Centralized ecosystems suit established industries with stable conditions, operating through a "broker" company that connects distinct partners, enabling coordinated value capture. In contrast, Adaptive ecosystems are ideal for nascent industries characterized by uncertainty, where an "orchestrator" company facilitates collaboration among diverse partners, fostering innovation through resource combination. Centralized ecosystems maintain arm's-length relationships, while Adaptive ecosystems promote cooperative ties for collective innovation. As industries mature, companies should reassess their ecosystem strategies, potentially transitioning from Adaptive to Centralized systems to stabilize value-creation processes.
Source: Best Practices in Innovation, Business Model Innovation PowerPoint Slides: Dual Innovation Ecosystem Strategy PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
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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