Session4

Question 1

Exploitation vs. Exploration

Answer 1

Exploitation:
- Focus on efficiency, refinement, implementation
- Generates reliable, immediate returns

Exploration:
- Focus on variation, experimentation, flexibility
- Generates uncertain, distant returns

Examples:
- R&D Lab for exploration
- Manufacturing Unit for exploitation

Question 2

Ambidextrous Organizations

Answer 2

Definition:
- Ability to simultaneously pursue incremental and radical innovation

Challenges:
- Aligning exploitative and explorative goals
- Balancing efficiency with flexibility

Question 3

Rules and Their Functions

Answer 3

• Codify organisational knowledge
• Guide behaviour based on past solutions
• Define roles and control mechanisms

Question 4

From Exploitation to Inertia

Answer 4

Risks of over-focus on exploitation:

• Structural inertia: Resistance to change
• Communication channels lock into existing tech
• Cultural inertia: Stories and norms become entrenched

Question 5

Structural vs. Contextual Ambidexterity

Answer 5

Structural Ambidexterity:
- Separate units for exploration and exploitation
- Decisions made at top level

Contextual Ambidexterity:
- Employees split time between activities
- Decisions made on front line

Question 6

IDEO’s Approach to Ambidexterity

Answer 6

• Enlightened trial and error
• Prototype-driven, small teams
• Encourage frequent brainstorming and sharing ideas