Luminspino’s Post

⚡ Incompatible Innovation: Undesirable vs. Infeasible ⚡ Dual Innovation (see https://lnkd.in/eftjcS3f) distinguishes between two generic types of innovation that are relevant to an established company: 👉 Exploit-oriented innovation that boosts the existing core business and is compatible with its underlying business or operating models. 👉 Explore-oriented (or exploratory) innovation that stretches beyond the present core business and is (largely) incompatible with its underlying business or operating models - at least at the outset. So what does "incompatible" actually mean in practical terms? It means that an innovation can either be undesirable (yet feasible), infeasible (yet desirable) or both for a company's core business. Let's take a look at each of the three cases: ⛔ Undesirable (yet feasible): Initially unattractive, yet potentially rewarding or disruptive niche business, incompatible with existing profit, margin or growth expectations (business model). 📷 Example: Kodak invented digital photography in the 1970s but considered it undesirable because it threatened its core film business, which was highly profitable. It delayed investing in digital innovation, and competitors like Canon and Sony took the lead in the market, eventually leading to Kodak’s decline. ⛔ Infeasible (yet desirable): Conflicting to exiiting identity and the way „business is used to be done“, incompatible with existing structures and processes (operating model). 🎥 Example: Streaming services introduced a desirable innovation for consumers by offering online, on-demand video content. Blockbuster recognized the shift in consumer behavior but struggled to adapt and was eventually outcompeted by Netflix. ⛔ Undesirable and infeasible: Combination of the former two cases. 📱 Example: In the early 2000s, Nokia dominated the mobile phone market but dismissed the shift toward smartphones with touchscreen interfaces. Nokia’s failure to embrace the smartphone revolution, compounded by the dominance of Apple and Android ecosystems, led to its rapid decline. Bottom line: A critical question for companies - for the sake of their furure - is how they can properly deal with incompatible innovation? One thing seems clear: they are extremely difficult to drive forward in a core business environment and require dedicate fit-for-purpose environments and approaches (one of which being Dual Innovation) to pursue them seriously, effectively but also efficiently in a corporate setting. 🎯 How should companies go about incompatible innovation in your view? Curious to hear your your thoughts! Do you like my content? Please follow me for more insights on modern, future-proof corporate innovation! Do you want to discuss Dual Innovation for your company? Please drop me a message! 👍 (This post was inspired by work from Christian Vogt) #innovation #corporateinnovation #strategy #ambidexterity #DualInnovation