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Lost in translation between explore and exploit: From selling products to solving problems in large manufacturing incumbents
Blekinge Institute of Technology, Faculty of Engineering, Department of Mechanical Engineering. (Product Development Research Laboratory)ORCID iD: 0000-0002-6020-9450
Blekinge Institute of Technology, Faculty of Engineering, Department of Mechanical Engineering. (Product Development Research Laboratory)ORCID iD: 0000-0003-2211-2436
Blekinge Institute of Technology, Faculty of Engineering, Department of Mechanical Engineering. (Product Development Research Laboratory)ORCID iD: 0000-0003-4875-391X
Blekinge Institute of Technology, Faculty of Engineering, Department of Mechanical Engineering. (Product Development Research Laboratory)ORCID iD: 0000-0002-9662-4576
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(English)Manuscript (preprint) (Other academic)
Abstract [en]

As large manufacturing incumbents are adopting digital technologies and shifting their business models from selling products to solving problems, through PSS (product-service-system) solutions, their development processes need to shift as well. Organizational ambidexterity, the ability to both explore new opportunities and exploit existing customer offerings, is considered to be crucial to companies’ current and future success. In this study it is observed that a gap between exploration and exploitation work streams lead to promising conceptual PSS solutions never reaching a revenue generating stage. This is because product-centricity along with exploitation-optimized processes and mindsets are not equipped to carry the integrated solutions further, from proven concept to market ready solution. This article summarizes a multiple case study, where systematic innovation engineering work has resulted in promising conceptual PSS solutions never reaching market launch. In addition to the in-depth case studies, leaders of exploration-oriented teams in manufacturing incumbents shared their insights which confirmed that the problem is common across companies and industries, and several roadblocks are general. One of the authors has been responsible for a successful shift from a product-centric to an integrated solution-oriented organization and contributed insights from that experience to this study. The authors suggest that the gap between explore and exploit, and the shift from product-centric to PSS-oriented can be managed through an approach where ambidexterity is infused into the entire organization and exploration is demystified, enabling a transparent and concerted shift.

Keywords [en]
Organizational ambidexterity, explore and exploit, innovation engineering, intentional PSS design, entrepreneurial enterprise, buffer role
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Mechanical Engineering; Industrial Economics a nd Managemen
Identifiers
URN: urn:nbn:se:bth-22871OAI: oai:DiVA.org:bth-22871DiVA, id: diva2:1654580
Part of project
Model Driven Development and Decision Support – MD3S, Knowledge Foundation
Funder
Knowledge Foundation, 20180159Available from: 2022-04-28 Created: 2022-04-28 Last updated: 2024-05-21Bibliographically approved
In thesis
1. Innovation Engineering in Practice: Bridging Exploration and Exploitation in Large Manufacturing Incumbents
Open this publication in new window or tab >>Innovation Engineering in Practice: Bridging Exploration and Exploitation in Large Manufacturing Incumbents
2023 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis discusses how large manufacturing incumbent companies potentially can ensure their longevity and future-proof themselves by infusing ambidexterity throughout their organizations. Ambidextrous companies are equipped to achieve success in both current and future business environments, providing valued solutions to customers today and in the future. While these companies often excel at making incremental improvements to existing products, business, and operational models, they lack the skill set necessary for exploring new ways of creating value for customers, and commonly fail to bring promising breakthrough innovations from proven concept to revenue generation. 

To address these challenges, this thesis proposes a methodology consisting of four foundational principles for strengthening the innovation capacity of large manufacturing incumbents. The term "innovation engineering" is introduced and described to distinctly differentiate exploration-oriented work from exploitation-oriented work and demystify the exploration process and skills. The thesis also presents the concept of "intentional PSS design" as an approach to incorporate future aspirations and current capabilities into an evolutionary design process, connecting current limitations with future anticipated possibilities.

The thesis proposes tools for leaders and coaches to support innovation engineering teams in their exploration journeys and bridge the gap between exploration and exploitation. The overall aim of the research is to future-proof large manufacturing incumbents by providing understanding about common challenges and possibilities, a framework for strengthened innovation capacity, incorporating the innovation engineering skills as core competencies, and the innovation engineering process as equally important to and diametrically different from the exploitation process.

The research aims to increase awareness and knowledge about innovation engineering and enable infused ambidexterity so that large manufacturing incumbents can find their ways to adapt to a changing environment and reinvention of their ways to meet customer needs. The thesis also proposes ways to bridge between exploration and exploitation to enable a company-wide transition from a product-selling to problem-solving enterprise. By doing so, large manufacturing companies might prolong their lifespan and contribute solving 

Abstract [sv]

Denna avhandling diskuterar hur stora, marknadsledande tillverkningsföretag kan framtidsäkras genom att ”tvåhänthet”, eller ”ambidextri”, och ett både-och ledarskap genomsyrar hela organisationen. I en snabbt föränderlig värld måste företag vara skickliga på både inkrementell och radikal innovation. Trots att många stora, marknadsledande tillverkningsföretag har effektiva och sedan länge etablerade arbetssätt för kontinuerlig utveckling och inkrementell innovation, saknar de ofta förmågan att utforska och implementera nya sätt att skapa värde, vilket kan resultera i förlorade möjligheter till marknadsfördelar då lovande radikala innovationer inte når marknaden med betalande kunder. För att tackla dessa utmaningar föreslås i denna avhandling ett angreppssätt bestående av fyra grundläggande principer för att stärka företagens innovationsförmåga. Begreppet innovationsteknik nyttjas för att tydligt skilja på utforskande arbetssätt för radikal innovation och det inkrementella. Med innovationsteknik avses i detta arbete både kompetens och process och förståelsen för detta bidrar till att avmystifiera det utforskande arbetet för att skapa radikal innovation. « Intentional PSS design » presenteras som ett angreppssätt för att koppla ihop existerande kunderbjudanden med framtida ambitioner i en evolutionär designprocess som tar hänsyn till dagens och framtidens möjligheter, begränsningar och intentioner. Avhandlingen föreslår verktyg för att guida innovationsteam i deras utforskande resor; verktyg som också kan hjälpa till att överbrygga gapet mellan arbetssätt och förmågor för radikal och inkrementell innovation. I denna avhandling får du som läsare en djupare förståelse för potentialen hos innovationsteknik och en organisatorisk tvåbenthet som genomsyrar hela organisationen. Förhoppningen är att stora tillverkningsföretag kan nytttja denna förståelse för att anpassa verksamheten till en föränderlig värld och ta sig an nya, mer systemorienterade sätt att möta kunders behov och skifta organisationens förhållningssätt från produkt till produkt-tjänste-system-lösningar (PSS). Då kan dessa företag bidra till att lösa dagens och framtidens komplexa samhällsutmaningar.  

Place, publisher, year, edition, pages
Karlskrona: Blekinge Tekniska Högskola, 2023. p. 145
Series
Blekinge Institute of Technology Doctoral Dissertation Series, ISSN 1653-2090 ; 2023:08
Keywords
Innovation engineering, Innovation team, Exploration journey, Social connectedness, Organizational ambidexterity, Intentional PSS design, Futureproofing large manufacturing incumbents, Buffer role
National Category
Mechanical Engineering Other Engineering and Technologies not elsewhere specified
Research subject
Mechanical Engineering
Identifiers
urn:nbn:se:bth-22868 (URN)978-91-7295-441-0 (ISBN)
Public defence
2023-06-16, J1630 + Zoom, Karlskrona, 09:30 (English)
Opponent
Supervisors
Funder
Knowledge Foundation
Available from: 2023-04-25 Created: 2022-04-28 Last updated: 2024-05-21Bibliographically approved

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Elfsberg, JennyLarsson, AndreasJohansson Askling, ChristianLarsson, Tobias

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