Ever wondered why some organisations have the ability to re-invent entire industries, time and time again? Where does this source of continuous innovation and foresight come from? Ever considered that these organisations have two separate innovation cycles in motion? Good organisations are able to innovate and improve what they know. What the great organisations are able to achieve is the continuous ability to regenerate its own core strategies, based on what they don’t yet know, re-inventing entire industries along the way.

1. DUAL CYCLE MODEL
OF INNOVATION AND
STRATEGIC
FORESIGHT
Ben Flavel

2. = Good Luck!
(Attention + Intention) x Purpose
Opportunity

3. “To be a challenger once, it is enough to
challenge the orthodoxies of the
incumbents; to be a challenger twice, a
firm must be capable of challenging its
own orthodoxies.
To reinvent its industry a second time, a
challenger must regenerate its core
strategies.”
Gary Hamel – Competing for the future

4. THE DUAL CYCLE MODEL

5. 6 THINGS GOOD
ORGANISATIONS DO

6. 1. CONDUCT SWOT ANALYSES

7. 2. FOCUS ON CUSTOMER NEEDS
3. INNOVATE AND IMPROVE BASED ON WHAT THEY
KNOW

8. 4. CHALLENGE THE WAY IT DOES THINGS
5. IMPROVE INTERNAL PROCESSES AND SYSTEMS

9. 6. INJECT THESE 5 BEHAVIORS INTO ITS
CULTURE

10. If I had asked my customers
what they wanted, they would
have said a faster horse.
Henry Ford

11. QUICK QUIZ:
WHICH OF THESE
THREE COMPANIES
APPLIES A DUAL
CYCLE MENTALITY?
a. DELL
b. HP
c. APPLE

13. DOING NOTHING IS
NOT AN OPTION!

16. WHAT GREAT
ORGANISATIONS
DO…

17. Great organisations…
• Develop a continuous ability to
regenerate its own core strategies
• Re-invent entire industries
• Are able to train the culture to
challenge internal and external
assumptions
• Create a culture of foresight by
challenging the competencies that
made the organisation successful
in the first place

18. 2 CYCLES IN MOTION

19. 3M BRAND ESSENCE
Official:
Harnessing the chain reaction of new
ideas
Unofficial:
“habitually habitate the inhabitable”

20. TRANSFORMATIONAL
OPPORTUNITIES CREATE NEW
INDUSTRIES
E x is ting produc ts /
T e c hnolog y
N e w produc ts /
T e c hnolog y
E x is ting
Ma rke ts
N e w
Ma rke ts
Adjacent
Opportunities
Exploit current assets
and capabilities
Transformational
Opportunities
Create new markets
and new products
Status Quo
Grow market
share and profit
(expansion, not new
business development)
Adjacent
Opportunities
Increase primary
market demand

22. We have an amazing ability to over-estimate
what we can achieve in one year and yet
under-estimate what we can achieve in ten.
Companies find it risky to think too far ahead.
Ideas become “scary”.
Limiting futures thinking to what we can
prove now, based on what has been, is truly
dangerous.

24. THE PATHWAYS ARE NOT ALWAYS CLEAR

26. “Uncertainty is an
uncomfortable position. But
certainty is an absurd one."
Voltaire

27. WHEN CERTAINTY
BECOMES
MADNESS…

30. DOES THE DUAL CYCLE MODEL
EXIST IN OUR ORGANISATION?
How strong is our
vision?
Do we know “what
we do?”
“how else can we do
what we do?”
Do we encourage questions? Do we challenge our core
competencies?
Are we willing to change the
way we do things?
Do we metascan? What happens when things fail?
Can we identify the
entrepreneurs that will
drive change?

31. It’s your path, so don’t fuck it up!
…but if you do, that’s OK too.