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Course :

D1332 Special Topics

TOPIC
Sustainability from viewpoint
Ambidexterity, Leadership
and Organizational Learning

Session # 12 and 13
Innovasi dan paradoks

Saat ini, inovasi adalah hal yang wajib dilakukan oleh hampir
seluruh lini bisnis karena merupakan hal yang sangat vital untuk
bersaing di pasar. Yang harus diperhatikan juga, inovasi itu sendiri
merupakan tantangan yang tidak mudah bagi managerial. Banyak
definisi mengenai arti inovasi, menurut Subramaniam dan Youndt
(2015), inovasi adalah proses (manajemen pengetahuan) dalam
mengidentifikasi dan memanfaatkan ide, penemuan (alat) dan
peluang untuk menciptakan atau memperbarui produk atau jasa.
Sayangnya perusahaan kemungkinan tidak bisa berhasil atau
bahkan survive dalam jangka waktu lama hanya dengan
memfokuskan pada inovasi saja. Sebuah perusahaan juga harus
mampu melakukan exploitative dan exploratory innovation secara
berimbang.
Innovasi dan paradoks

Untuk memahami exploitative dan exploratory innovation bisa


dari berbagai sudut pandang. Dari penjelasan Atuahene-Gima
(2005), exploitative adalah proses dalam memperluas pengetahuan
yang dimiliki saat ini seperti melakukan efisiensi ataupun perbaikan,
dengan kata lain melakukan incremental innovation. Sedangkan
exploratory innovation adalah aktivitas mengembangkan
pengetahuan baru dan melakukan eksperimen untuk dapat
menciptakan variasi baru sebuah produk atau jasa sehingga dapat
mendorong terjadinya radical innovation.
Innovasi dan paradoks

Pada tahap selanjutnya, tugas managerial tidak hanya


memastikan exploitative dan exploratory innovation dilakukan,
akan tetapi manajerial juga harus mampu mengatur tekanan
terhadap 2 hal tersebut. Kemampuan dalam melakukan hal
tersebut umumnya disebut dengan istilah ambidexterity.
Ada 2 perbedaan sudut pandang mengenai ambidexterity yaitu :
architecture ambidexterity dan contextual ambidexterity.
architecture ambidexterity lebih condong untuk membedakan fokus
antara exploitative dan exploratory.
Sebaliknya, contextual ambidexterity lebih menekankan untuk
mengintegrasikan exploitative dan exploratory.
Ambidextrous Organization
Compilation from many source

Andrew Davies_Professor Management of Projects,


The Bartlett Faculty of the Built Environment_School of
Construction and Project Management_Adjunct
Professor, Department of Leadership and
Organizational Behaviour, BI
Strategic Knowledge Management-Two enterprises Bo
Cai Min Christine R48951143
The Concepts of
Exploration &
Exploitation
A central concern of studies of adaptive processes is the
relation between the exploration of new possibilities and
the exploitation of old certainties (in organizational
learning).
Exploration includes things captured by terms such as
search, variation, risk taking, experimentation, play,
flexibility, discovery, innovation.
Exploitation includes such things as refinement,
choice, production, efficiency, selection,
implementation, execution.
March, 1991, Exploration and Exploitation in Organizational learning, Organization Science,
V2, p71.
6
The Concepts of
Exploration &

Exploitation
They are in terms of (or defined as)
Actions (Behaviors) ?
Capabilities ?
Norms (Culture, Climate) ?
Processes ?
Strategies ?
Structures (Functions) ?

7
The Concepts of
Exploration &
Exploitation
Exploration implies firm behaviors
characterized by search, discovery,
experimentation, risk taking and innovation,
while exploitation implies firm behaviors
characterized by refinement,
implementation, efficiency, production and
selection.

He & Wong, 2004, Exploration vs. Exploitation: An Empirical Test of the Ambidexterity
Hypothesis, Organization Science, V15, p481.
8
The Concepts of
Exploration &

Exploitation
Exploration and exploitation require substantially
different structures, processes, strategies,
capabilities, and cultures to pursue and may have
different impacts on firm adaptation and
performance (He & Wong, 2004).
Exploration is associated with organic
structures, loosely coupled systems, path
breaking, improvisation, autonomy and chaos,
and emerging markets and technologies.
Exploitation is associated with mechanistic
structures, tightly coupled systems, path
dependence, routinization, control and
bureaucracy, and stable markets and
technologies
9
The Concepts of
Exploration &
Exploitation
The returns associated with exploration are
more variable and distant in time, while the
returns associated with exploitation are
more certain and closer in time (He &
Wong, 2004).
In other words, explorative firms
generate larger performance variation
by experiencing substantial success as
well as failure, while exploitative firms
are likely to generate more stable
performance.
10
The Concepts of
Balance
Maintaining an appropriate balance
between exploration and exploitation is a
primary factor in system survival and
prosperity (March, 1991).
Firms need to achieve a balance between
exploration and exploitation to achieve
superior performance (Tushman and
OReilly, 1996).

11
The innovation balancing act

Pressures to innovate confront businesses as well as


people with another demanding balancing act: keeping up
with the activities we are already committed to, to reap the
benefits of our investment in them, while at the same time
starting new activities that will be of benefit in the future.
While caught in the mainstream, we must also generate
newstreams
Rosabeth Moss Kanter When Giants Learn to Dance
(1990)

March (1990)
Exploratory learning
Exploitative learning
Types of projects

Mainstream projects Newstream projects


Transfer of capabilities across similar projects Innovation and renewal of capabilities
Support the momentum behind a companys No experience base
existing business Breakthrough initiatives in technologies,
Focused on existing customers needs and products, processes, and services
established technologies

Existing business develops a Breakout into new technologies and


reputation for doing what it does markets is led by:
best, repeats certain types of projects
by exploiting specific products, Breakthrough project (Tushman &
contingencies and programmes OReilly, 2004)
(Mintzberg 1983:27).

Rosabeth Moss Kanter (1990) When Giants Learn to Dance


Organising for breakthroughs

Most successful enterprises are adept at refining


their current offerings, but they falter when it comes
to pioneering radically new products and services
OReilly and Tushman (2004) The Ambidextrous
Organization, Harvard Business Review

Two types of organisational units:


Exploitative units: make steady improvements in
existing business incremental innovations
Exploratory units: breakthrough projects radical
innovations beyond current products or markets
Functional designs Cross-functional teams
integrate teams into the existing operate within the established organisation but
organisational and management structure outside the existing management hierarchy
General Manager General Manager

Mfg Sales R&D Mfg Sales R&D

Emerging Business
Unsupported teams
are set up outside the established organisation and
management hierarchy
General Manager

Mfg Sales R&D Emerging


Business
Ambidextrous organisation
establish project teams that are structurally independent units, each
having its own processes, structures and cultures, but are integrated
into the existing management hierarchy

General Manager

Existing Emerging
Business Business

Mfg Sales R&D Mfg Sales R&D


Scope of ambidexterity

Alignment of: Exploitative Business Exploratory Business


Strategic intent cost, profit innovation, growth
Critical tasks operations, efficiency, adaptability, new products,
incremental innovation breakthrough innovation
Competencies operational entrepreneurial
Structure formal, mechanistic adaptive loose
Controls, rewards margins, productivity milestones, growth

Culture efficiency, low risk, quality, risk taking, speed, flexibility,


customers experimentation
Leadership role authoritative, top-down visionary, bold

Ambidextrous Leadership
Different alignments held together through senior-team integration, common
vision and values, and common senior-team rewards
Topics
Reference(s) as Consideration
Yet, it is not the only Reference for this topic

Those references are listed in the next several slides.


The CHOSEN References have to be transformed as:
a. Class Discussion, and Case Presentation
b. Individual and Team Assignment
c. Paper Writing
All of those a,b,c aspects are synergized within the
INDUSTRIAL ENGINEERING Disciplines, in at least one of the
Supply Chain, Manufacturing and Services.
Yet, The Faculty Members and Students, are encourage to widen the
Scope of
Discussion within Multidisiplinary spirit, and in Indonesian Context.
Several Open Accesses ( FREE ) References, are
available in the following website, but not limited to:

a. Website of Library Bina Nusantara


b. Website of Perpustakaan Nasional Republik Indonesia
( PNRI )
NOTE: You need to read the whole Journals,
And NOT ONLY the except in this slide.
Thus, It is suggested that you search it through
Website of Library Binus and PNRI
NOTE: You need to read the whole Journals,
And NOT ONLY the except in this slide.
Thus, It is suggested that you search it through
Website of Library Binus and PNRI
Learning Outcomes
Referring to Course Description, the keywords are the
Special Topics in Supply Chain, Manufacturing and
Service Industry; then, this course covers the
application in those three Industries.

Furthermore, the other important keywords are:


THEORETICAL and EMPIRICAL Aspects.
The Mentioned THEORETICAL, can be obtained from
prior semesters that student have learned about all
those Supply Chain, Manufacturing and Service
Industry.

Meanwhile, the EMPIRICAL Aspects, can be obtained


from students exposures to any field observation and
study in Internship (Kerja Praktek), and/or Final Project
( Tugas Akhir/Skripsi )
Teaching and Learning
Strategies
Referring to Teaching and Learning Studies,
This courses emphasize all those 5 activities.

All those 5 activities, require STUDENTS to be


proactive and read several references BEFORE the
class begin, involving several PREPARATIONS in which
STUDENTS have to prepare as individual and/or as a
Team.

Those STUDENTS preparation will enrich all


activities in Teaching and Learning Studies.

The detail on the depth and the width of the preparation,


are guided by the FACULTY MEMBER that teaches this
course; and according to the FEEDBACKS from Both
Faculty and Students.
The references that need to be prepared by
STUDENTS, are the following, but not limited to:
a. INTERNATIONAL JOURNALS, ranging from 2010 until
2015.
b. Supporting classical Journals, from years before 2010.
c. Textbook(s), Handbook(s)
d. References that are provided by Faculty Member
e. References that are proposed by Students