V04 Exploration vs. Exploitation
Core Concepts: - Expliotation vs. Exploration - Ambidexterity Methods: - Discussion, analysis of realistic situations to identify an innovation model Abilities: - Interpret, simplify, seperate to critically asess a given organizational set up
Core Concepts: - Expliotation vs. Exploration - Ambidexterity Methods: - Discussion, analysis of realistic situations to identify an innovation model Abilities: - Interpret, simplify, seperate to critically asess a given organizational set up
Set of flashcards Details
| Flashcards | 14 |
|---|---|
| Language | Deutsch |
| Category | Micro-Economics |
| Level | University |
| Created / Updated | 03.01.2020 / 13.01.2020 |
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Explain in one sentence the definition of expliotation and exploration.
Exploitation: Focus on applied research for improving existing products, services or processes.
Exploration: Forcus on creating breakthroughs and commercializing new technology
Most CEO's know that constant ideas and innovation are the most precious currency in the new economy. What strategy is explained in this paper to push innovations?
Knowledge-brokering cycle: Systematically use old ideas as raw materials for one new idea after other and do it again and again.
Example: Development of steam-boats out of steam engines.
Define (structural) ambidextrous organisazion and name the two main advances.
(ORely, Tushman (2004) - The ambidextrous Organization)
An ambidextrous organization is an organizational form of a firm, which clearly seperates the traditional working units (exploitation) form the innovation units (exploration) in order to alow them to develop their own structures and cultures. The senior executive level (tight link) has to maintain the link between those two units.
- Ambidextrous organizations allow cross-fertilization, by sharing important sources
- Ambidextrous organizations prevent corss-contamination
Name the 4 processes of the knowledge-brokering cycle.
1. Capturing Good Ideas: Carefully observe old processes and technologies to get some new ideas of improvement.
2. Keeping Ideas Alive: Embedding the ideas in objects where designers can look at to prevent knowledge loss.
3. Imaging new uses for old Ideas: Recognize new uses for the ideas. (Brainstorming sesssion, hallway conversations and use of physical office layout that "forces" to interactions)
4. Putting promising concepts to Test: Test ideas, Fail, learn, test again.
Define the Map of Innovation with all its rows and column and name its purpose.
(ORely, Tushman (2004) - The ambidextrous Organization)
Purpose: Plotting a company's innovation efforts in the matrix will reveal any areas they have overlooked.
Name 3 different ways of introducing knowledge broker to a company.
- Internal Consulting group: Well integrated.
- Hiring people who have faced problems that are similar: Bringing fresh solutions.
- Renting an outside broker: Bringing ideas from an unfamiliar field for the company.
Name some key-characters of a knowledge broker.
- skills & background not very important
- passionate interest and curiosity is important
- not arrogant but good self-confidence
Name two examples of firms, where the implementation of ambidextrous organizations led to sucess.
(ORely, Tushman (2004) - The ambidextrous Organization)
USA Today ("Friends of the Network"): Include USAToday.com unit in ambidextrous organisazion, so they can access the ressources of the traditional units. Catch up with other medias, such as TV industry.
Ciba Vision ("Healthy eyes for life"): Include 6 innovation project teams in ambidextrous organisazion. Catch up with market leader of contact lenses.
Describe the returns of exploration and exploitation.
- Retruns of Exploration
- uncertain
- more remote in time
- organizationally distant from the locus of action
- Returns of Explotiation
- more certain
- reliably linked to time
- reliably linked to organization and action
Define Ambidexterity.
The ability to simultaneously pursue both incremental and discontinuous innovation and change results from hosting multiple contradictory structures, processes, and cultures within the same firm.
"Exploration and exploitation is a central innovation dilemma for organizations and managers."
Show with the example of the Video-content of "a bugs life" the key factors in a organisation which leads to this dilemma. And name an Example of Expliotation and Exploration from the video.
1. Expliotation leads to Defined Rules, Hirarchy, Control (who tells what to whom).
2. Explorations needs structural changes. But People like stability, they are scared of changes.
Example from Video to Exploitation:
Rules - "follow the line"
Hirarchy - leaf as an obstacle, controller (higher hirarchy) has to intervene
Control - "there is a gap in the production line": SSenior has to intervene
Example from Video to Exploration:
Failure in the harvesting machine - hit the princess.
Compare structural and conceptual ambidextrous organizations in terms of the following.
- How is ambidexterity achieved
- Where are decisions made about the split between exploration and exploitation
- Role of top management
- Nature of roles
- Skills of employees
(Birkinshaw Gibson 2004 - Building ambidexterity into an organisation)
Name some examples of explorative and expliotative machanism in the organisation of IDEO
Describe the correlation between ambidexterity, performance and organisational context.
(Birkinshaw Gibson 2004 - Building ambidexterity into an organisation)
- Ambidexterity is correlated with performance
- Organizational context (performance management x social support) is correlated with ambidexterity
- Organizational context (performance management x social support) is correlated with performance
- When ambidexterity and organizational context together are analyzed as predictors of performance, only ambidexterity has a significant influence. This is known as full mediation, and it demonstrates that the influence of organizational context on performance only occurs through the creation of ambidexterity.
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