Session 4 - Exploration and Exploitation Flashcards
Define
Incremental innovations
Small improvements in their existing products and operations that let them operate more efficiently and deliver even greater value to costumers.
Define
Architectural innovations
It’s when companies apply technological or process advances to fundamentally change some component or element of their business.
Define
Discontinuous innovations
Radical advances like digital photography that profoundly alter the basis for competition in an industry, often rendering old products or ways of working obsolete.
How do companies tend to structure their breakthrough projects?
- Functional designs: Completely integrated into the regular organizational and management structure.
- Cross-functional teams: Groups operating within the established organization but outside the existing management hierarchy.
- Unsupported teams: Independent units set up outside the established organization and management hierarchy.
- Ambidextrous organizations: Structurally independent units, each having its own processes, structures, and cultures but integrated into the existing senior management hierarchy.
Define
Functional designs
Integrate project teams into the regular organizational and management structure.
Define
Cross-functional teams
Groups operating within the established organization but outside the existing management hierarchy.
Define
Unsupported teams
Independent units set up outside the established organization and management hierarchy.
Define
Ambidextrous organizations
Structurally independent units, each having its own processes, structures, and cultures but integrated into the existing senior management hierarchy.
What are the two types of ambidexterity?
Structural and Contextual.
Define
Structural Ambidexterity
Creating separate organizational structures for different types of activities, such as core business units focusing on existing markets, and R&D and business development focusing on new opportunities.
Define
Organizational Ambidexterity
The ability of an organization to balance alignment with existing markets and products with the need to adapt to emerging trends and opportunities.
Why is Structural Separation Necessary?
Because the activities related to existing products and emerging opportunities are so different that they cannot effectively coexist.
What is the Downside of Structural Ambidexterity?
Separation can lead to isolation, making it difficult for R&D and business development groups to get their ideas accepted by core business units.
What are some variants of Structural Ambidexterity?
- Pulling individuals out of their current roles to work in dedicated cross-functional teams temporarily.
- Creating small business-development teams attached to existing business units.
Define
Contextual Ambidexterity
Allowing individual employees to decide how to balance alignment-oriented and adaptation-oriented activities in the context of their day-to-day work.
It’s the collective orientation of the employees toward the simultaneous pursuit of alignment and adaptability.
How does Contextual Ambidexterity differ from Structural Ambidexterity?
Contextual Ambidexterity is more flexible and relies on individual judgment, whereas Structural Ambidexterity is more top-down and relies on pre-defined organizational structures.
What companies successfully use both Structural and Contextual Ambidexterity?
Hewlett-Packard, 3M, and Intel are examples of companies that use both approaches to balance the needs for alignment and adaptability.
How do employees function in Contextually Ambidextrous Units?
They have the flexibility to use their judgment to divide their time between alignment-oriented and adaptation-oriented activities.
What are the four ambidextrous behaviours in individuals?
- They take the initiative and are alert to opportunities beyond the confines of their own jobs.
- They are cooperative and seek out opportunities to combine their efforts with others.
- They are brokers, always looking to build internal linkages.
- They are multitaskers who are comfortable wearing more than one hat.
How is ambidexterity achieved?
In both Structural and Contextual Ambidexterities.
Structural: Alignment-focused and adaptability focused activities are done in separate units or teams.
Contextual: Individual employees divide their time between alignment-focused and adapt-ability-focused activities.
Where are decisions made about the split between alignment and adaptability?
In both Structural and Contextual Ambidexterities.
Structural: At the top of the organization
Contextual: Ont he front line - by salespeople, plan supervisors, office workers
What is the role of top management?
In both Structural and Contextual Ambidexterities.
Structural: To define the structure, to make trade-offs between alignment and adaptability.
Contextual: To develop the organizational context in which individuals act.
What are the skills of the employees?
In both Structural and Contextual Ambidexterities.
Structural: More specialists
Contextual: More generalists
What is context and how can managers shape it?
Context is the often invisible set of stimuli and pressures that motivate people to act in a certain way. Managers shape organizational context through the systems, incentives and controls they put in place, and through the actions they take on a day-to-day basis.
