Innovation: why the distinction between exploration and exploitation is problematic

In the field of innovation, the distinction between exploration and exploitation is universal. It is clear, it seems obvious, and it has become gospel in the world of innovation. Yet it is counter-productive, as it rests on questionable assumptions. It illustrates how the way we formulate a problem, i.e. our mental model, determines our ability to solve it. The wrong mental model locks us in, while the right one opens up possibilities. It’s time to let go the exploration/exploitation distinction.

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Why asking a innovation unit to be more disruptive is not a good idea

That innovation units created within large organizations have a difficult life is not new. Most of them disappear after three years on average, because after the euphoric start, they fail to become part of the life of the organization. But those that survive are not out of the woods yet, because they are caught between a top management that demands “more disruption” and an organization that, through its budgetary and control processes, removes any chance for a disruptive project to see the light of day. Getting out of this difficult situation requires being very clear about what “disruptive” means, and understanding the real nature of innovation.

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Immunity to change: When rational commitments prevent innovation

There is a paradox in the field of innovation: everyone is in favor of it, I never meet a manager who explains to me that he does not want to innovate, quite the contrary; They all want to innovate. And yet in most companies, innovation is blocked. An important cause of this paradox lies in a conflict of commitment between the present and the future. Let’s look at it in more detail.

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When their “talents” prevent firms from innovating

This is unfortunately a common experience: during an executive seminar on innovation I ran for a large group, we outlined an innovation strategy based in particular on the development of intrapreneurship. We designed programs that would allow employees to develop their ideas, and defined appropriate structures and devices to make it work. Then finally came the crucial moment, when one of the participants asked the fateful question: “But do we have the people to do this?” Everyone looked appalled. The HR manager – fortunately she was present – answered, embarrassed, “Well actually, no we don’t.” Game over.

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Nespresso: when the simplicity of the product hides the complexity of the innovation process

One of my favorite questions when I teach innovation is to ask participants how long it took for Nestlé to succeed with their Nespresso coffee machine. So what’s your answer? One year? Five year? Well no. The answer is 21 years! Based on a technology licensed from the Battelle Institute by Nestlé in… 1974, Nespresso only became profitable in 1995 after much ups and downs. 21 years were needed to make a success of the Nespresso innovation.

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