Short answer

Implement distinct teams or departments for radical innovation (exploration) and for refining existing products/processes (exploitation) within a supportive organizational culture.

Field
Innovation & Design
Source
BIBSYS Brage (BIBSYS (Norway)) (2015)
Method
Case Study
Evidence
Strong effect

Structuring an organization with distinct units for exploration and exploitation allows for the concurrent pursuit of innovation and efficiency. This innovation & design research insight is drawn from a 2015 study published in BIBSYS Brage (BIBSYS (Norway)). Using Case study, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Implement distinct teams or departments for radical innovation (exploration) and for refining existing products/processes (exploitation) within a supportive organizational culture.

Study
Innovation & DesignHigh ImpactStrong effect

Hierarchical Separation Enables Simultaneous Exploration and Exploitation

Structuring an organization with distinct units for exploration and exploitation allows for the concurrent pursuit of innovation and efficiency.

BIBSYS Brage (BIBSYS (Norway)) · 2015

01

Key Findings

  • 01Hierarchical separation of exploration and exploitation activities is a key enabler.
  • 02A supportive organizational context moderates the tension between exploration and exploitation.
  • 03Environmental dynamism influences both exploration and exploitation.
02

Application

Design takeaway

Implement distinct teams or departments for radical innovation (exploration) and for refining existing products/processes (exploitation) within a supportive organizational culture.

How to apply

When designing new product development processes or organizational structures, consider creating separate pathways for disruptive innovation and for continuous improvement of existing offerings.

Project actions

  • 01Consider how your design project could benefit from a structured approach to both novel ideation and refinement.
  • 02Analyze existing organizational structures to identify potential conflicts between innovation and efficiency.
03

Method & Evidence

AimHow can organizational structures facilitate the simultaneous pursuit of exploration and exploitation?
MethodCase Study
ProcedureThe research involved examining a successful production company, analyzing two specific innovation cases, and describing the organization's resources and contextual factors to understand how it balanced exploratory and exploitative activities.
ContextManufacturing and Production

Variables

IV["Hierarchical separation of exploration and exploitation","Supportive organizational context","Environmental dynamism"]
DV["Ability to pursue exploration and exploitation simultaneously","Innovation outcomes","Efficiency outcomes"]
CV["Organizational type (production company)","Specific innovation cases studied"]
04

Strengths & Limitations

Strengths

  • +Provides a practical model for managing innovation and efficiency.
  • +Identifies key contextual factors influencing ambidexterity.

Limitations

A single case study might not reflect the complexities of all industries or organizational types.

Reliability & validity

The case study method provides rich qualitative data but may have limited generalizability. Reliability could be enhanced by triangulating data from multiple sources within the organization.

Think critically

To what extent does environmental dynamism necessitate a more fluid or rigid separation of exploration and exploitation activities?

05

Design Principles

"Organizational ambidexterity can be achieved through structural differentiation and contextual integration."

This approach addresses the inherent tension between developing new ideas and optimizing existing processes. By creating dedicated spaces for each, organizations can foster both radical innovation and incremental improvements without one stifling the other.

06

What This Means for Your Design

To be good at both inventing new things and making current things better at the same time, companies can put the inventors in one group and the improvers in another, and make sure the company culture helps both groups.

How to use in your project

  • 1.Use this research to justify a design approach that separates ideation from refinement stages, or to analyze the organizational context of a design problem.
07

Add to My Project

08

Quick Cite

Paragraph starter

The study by Lium (2015) highlights the importance of organizational ambidexterity, suggesting that a hierarchical separation of exploration (innovation) and exploitation (efficiency) activities, supported by a positive organizational context, enables simultaneous pursuit of both. This principle can inform the structure of design processes, ensuring dedicated resources and strategies for both novel development and the optimization of existing solutions.

09

Source

BIBSYS Brage (BIBSYS (Norway))

Organizational Ambidexterity; Antecedents, Events and Outcome - Balancing exploration and exploitation, the long term sustainability imperative

journal · 2015

View source

Questions About This Research

What does the research say about hierarchical separation enables simultaneous exploration and exploitation?
Implement distinct teams or departments for radical innovation (exploration) and for refining existing products/processes (exploitation) within a supportive organizational culture. Evidence: BIBSYS Brage (BIBSYS (Norway)) (2015).
Why does "Hierarchical Separation Enables Simultaneous Exploration and Exploitation" matter for design?
This approach addresses the inherent tension between developing new ideas and optimizing existing processes. By creating dedicated spaces for each, organizations can foster both radical innovation and incremental improvements without one stifling the other.
How can designers apply this research?
Implement distinct teams or departments for radical innovation (exploration) and for refining existing products/processes (exploitation) within a supportive organizational culture.
What were the main findings?
Hierarchical separation of exploration and exploitation activities is a key enabler.. A supportive organizational context moderates the tension between exploration and exploitation.. Environmental dynamism influences both exploration and exploitation.
What research method was used?
Case Study.
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2015 journal from BIBSYS Brage (BIBSYS (Norway)).
What should I do differently in my next project?
When designing new product development processes or organizational structures, consider creating separate pathways for disruptive innovation and for continuous improvement of existing offerings.
What are the limitations?
Findings are based on a single case study, limiting generalizability.