The optimal balancing of radical and incremental innovation is becoming a Key Success Factor in many industries. Organizational ambidexterity is the approach to achieve this. With a best-in-class ambidextrous set-up, firms can become innovation leader.
The challenges for innovation management are mounting: convergence of industries, shortening product life cycles, explosion and globalization of knowledge, rising importance of business model innovation, increasing impact of internet-based social networks are just a few of the megatrends that generate new realities for innovation managers.
These new realities require innovation leaders to find out how exploration and exploitation can be run simultaneously and balanced concurrently. In theory, there is also the concept of a consecutive balancing in which a firm “switches” between exploration and exploitation. From a practitioner’s perspective, however, this is not a real option since the management of the switching cycles is overly complex and the whole approach is too sluggish to adapt to swiftly changing conditions.