Value creation is derived from value chain disruption. If you don’t build strategic relationships to disrupt your value chain, someone else will. As such, adaptive innovation can be characterized as a series of logical processes and critical relationships often interdependent on one another. These sequential processes are:
- Seeding – market research and conceptualizing often far-fetched ideas
- Prioritization – selective decision process
- Product Development and Product Road Map – Developing, implementing and value realization
- Commercialization – Adapting, bridging, and aligning with those dynamic customer demands
These are links in a value chain. And for adaptive innovation to work, these must be seamlessly integrated and deliver a very high level of consistent performance over time. Relationship-centric DNA focuses heavily on not just the passing of the baton between those critical stages, but being able to do so without knowledge drain. An organization’s relationship-centric DNA mitigates market risks and additionally hones an organization’s capabilities in project prioritization and subsequently commercialization. This is ideally coupled with a sharp understanding of not only what its customers want, but also what they need.
Adaptive innovation can also greatly benefit from co-opetition, where promising ideas are jointly developed and advanced through a consortium. Agility, systematic seeding, and broad-based involvement, including that of the senior leaders, in the conceptualization and further refinement of new ideas, are other critical characteristics we’ve seen in this area.