Dealing with growing complexity needs innovation ecosystem thinking and design

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Much of business today is caught up in managing short-term change that is growing in complexity and challenges across the business world globally. There is growing leadership and employee fatigue in managing rolling crises and not being able to adequately focus on the longer term, have that space to renew and in enough time as ideally liked. Disruption has been a constant at all organisational levels to adapt and adjust to worldwide events totally out of that organization’s control.

Following the pandemic, it has been hard to regain consistency due to staffing discontinuities and displacements, sourcing of raw materials, especially from China, their intermittency in availability and the general disruption of world trade. The war in Ukraine has only added more short-term crises in switching fuels, sourcing difficulties, changing supply chain dynamics, and generally readjusting the business operations in Ukraine and Russia to highly constrained operations or the loss/withdrawal need required by sanctions.

So the challenges in the past year have been highly focused on supply chain disruptions, plugging gaps in technology solutions that can provide solutions that can offer higher flexible, agile and advanced planning and production environments. The continued needs to keep moving towards securing a more sustainable future that reflects the need to become carbon neutral; net zero has needed a far more agile and adaptive approach.

As well as encourages thinking that is building a more robust circular economy to offset the immediate shortages but builds out a waste reduction mentality and recycling approach.

Yet disruption is increasing; we are in a volatile world of constant change.

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Why Innovation Ecosystems?

Reaching out for a new design built on collaborative building blocks of design

Following on from a series of posts on innovation ecosystems, especially a recent one, “Seeing innovation differently through ecosystem thinking and design” I outlined a need for a profound shift in the business landscape; well in my view, that time is rapidly approaching.

Why do we need to make a really necessary change?

Our present economic models, certainly in the West are so heavily debt-laden, from the effects of over-spending, supporting the Ukrainian war, and the Corvid crisis, and rightly supporting those in economic need and business difficulties.

One of the problems in economic distribution is that applying this in a top-down way is it can often not determine those in need from those who simply gain or are unable to deliver to those the adequate or appropriate support they require.

Our models of economic distribution are simply outdated or built on self-interest or self-promotion or simply enabling preservation for individual benefit and not for the ‘greater’ community.

The next few years are going to be very painful in further adjustments and polarization.

Our politicians continue the hackneyed phrase or idea, said or used so often that it has become boring and has no meaning, of the need for growth and prosperity.

I cannot see this way forward if we remain “locked” in the existing systems of self-interest, benefits being given to selected groups as rewards for support or simply to maintain the status quo.

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The necessary Plumbing, Pipework and Pumps for the Industrial Metaverse

The stages of building out the Industrial Metaverse
The stages of building out the Industrial Metaverse taking a three-horizon approach

I had the pleasure of attending the Nvidia GTC22 event recently. Over four days, they did a good job of scrambling my brain. Take a look at some of the sessions that apply to you- amazing stuff.

I focused on the Industrial Metaverse and where it is going. It is only at the beginning of its journey, but the feast of predictions, future forecasting and bold, clear visions on this was impressive.

Jensen Huang, the NVIDIA CEO gave the keynote where he took us into that opening understanding and a closer look at the game-changing technologies that are helping us take on the world’s greatest challenges. I really had to break this nearly two-hour keynote into “bite-sized” segments to absorb all the releases, updates and the speed of development that NVIDIA are undertaking.

Rev Lebaredian, VP within the Omniverse group, gave us a clear view of how and where the Industrial Metaverse can head. NVIDIA Omniverse is the platform for future building.

The Omniverse platform is for creating and operating metaverse applications.

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Seeing innovation differently through ecosystem thinking and design

Thinking of innovation as an innovation ecosystem in design

We need to re-think innovation and provide a new level of innovation integration and optimization.

What we see increasingly is the need to change to a different thinking, one of what “innovation ecosystems.” can provide.

In designing these innovation ecosystems, we might have the potential answer to overcoming and giving innovation that chance to be more central to the core of the business. It might offer us the ability to connect much of the rich internal knowledge with that outside one, that other organizations and individuals can provide, in diversity, or thought or contribution.

I envisage an ecosystem of working upon like-minded goals and ambitions, by collaborating for delivering a new form of innovation value. Collaborating in ecosystem thinking and design I would suggest opens up significant potential and combinations, that provide added value and significant opportunity for improvement on the existing offerings.

Approaching innovation on a common, shared technology platform can significantly enhance the discovery, experimentation, exploring and exploiting diverse skills and expertise through to commercialization.

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Governance within Ecosystems

Managing Governance within Ecosystem Designs

Governance needs to constantly “account” for change. Here is a handy reference or reflection of its capacity to deliver:

You need a living environment, one that evolves constantly

+ Here, you must establish a relational, institutional and coordination set of strategic and operational approaches. The “living” document needs to reflect on the constant reshaping of the ecosystem as it evolves and recognize that this is a constantly evolving design.

+ Governance needs to articulate the influencing and coordinating mechanisms, their different levels, and the protocols and procedures to resolve any disputes or pathway directions all would need to follow and adhere to.

+ It needs to determine the boundary conditions and if and when these change, which they are most likely to, there is a mechanism in place to recognize this and determine any new scope, direction or design to be accepted going forward.

+ A governance document must have built into it sufficient commonality and be transparent in its spirit of amiability to coordination and decision-making.

+ It needs to determine the critical driving forces but equally reflect on the different catalyzing forces in tensions and design that individual members will attempt to impose, so there needs a resolution method to be able to go back and refer to.

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A Statement of Ecosystem Intent – the CEO letter often missing

A Statement of Ecosystem Intent – the CEO letter that is often missing but highly essential to have as part of any ecosystem design thinking.

Ecosystems have become a really hot topic. The word “Ecosystem” is getting as much “air time” as the general use of the word “innovation” in business recently.

It generates buzz, it projects the impression you are looking to the future, managing your business in that progressive, outward way, that shareholders and your employees love to hear.

The shift taking place- Ecosystems are entering the lexicon of top management.

It does sound good to talk about “building our ecosystem” in every possible way. You need to ask though, has management actually sat down and defined the type of ecosystem it wants to design, participate in, or become part of? Or does this simply happen, a sort of drifting into, a grand experiment, not connecting all that is truly necessary for such a seismic move, stifling the real progressive sense?

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Making Transition through Innovation, Ecosystem and Sustainable Approaches

Today, we need to transition through ecosystem thinking and designs, as we recognize the future value and impact for businesses to grow, is through collaborations and co-creation. We need to have a new open architecture for undergoing this transformation.

Making Sustainability central to innovation capability building in a new ecosystem designed way connects the parts into the future design. Continue reading

Understanding Value Creation within Ecosystem Thinking

Value Creation is vital to know about. Where is it coming from? What is being put into place to nurture, develop and allow its creation to evolve and spread so that it can attract more understanding?

Within Ecosystem thinking, the more we open up our thinking and ideas, the more we can build from this. We attract others to work together and create new points of value that are mutually rewarding. That openness offers so much more value creation possibility, yet we don’t talk about it; we simply generalize it like a “buzz word.” We need to be explicit on our value creation capabilities.

When we begin applying our thinking to Ecosystem designs, knowing where and how your value creation is generated becomes vitally important.

So what is value creation? Continue reading

A case for change; thinking out the evolution of platforms and ecosystems

What we offer today needs a change in emphasis of thinking out the evolution of platforms, into ones that are designed for building out thriving business ecosystems for all to collaborate around and build together.

I argue today, we need to change our stories into ecosystem thinking ones.

We need to shift our platform rhetoric into a vastly different one, one based on building the Ecosystem story, well defined in its understanding that requires a very intense focus on what it means within Industry design and expected outcomes.

Over the past three or more years, I have been studying and researching platforms and ecosystems. I feel we are at an inflexion point of significant business change from embracing ecosystem principles in the business world.

The key message from my reflection was, at the time, two years ago, “we do need to change our story; it is simply not about platforms“. It is thinking for the design for ecosystems, into “ecosystem mobilization.

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Transformation Journey: Kiesslings Seven Point Plan to Prepare an Energy Company.

Structure of Keynote for Energy System Change

In twenty-odd minutes, Thomas Kiessling outlined to an audience of knowledgeable Energy experts his seven points to help prepare an energy company to make a transforming change.

By using specific examples of the needs in Electricity and the Grid Edge to underline the changes needed to be undertaken, he “fleshed out” these seven steps by recognizing all the seven do need to be embraced collectively.

Thomas Kiessling is the CTO of Siemens Smart Infrastructure, and within his keynote at the Enlit Europe event, held in Milan between 30th November to 2nd December 2021, provided seven needs for transitional change to prepare any energy company “As all of us will go through disruption and opportunity.”.

The primary point of his keynote I covered in a more extensive review here of how to prepare as an Energy Company for significant disruption.”

Kiessling said the industry “has entered a much greater degree of uncertainty. And uncertainty needs entrepreneurs; it needs trial and error, and it needs system-scale innovation.” Continue reading