Dual Innovation: Principles and Organizational Implementation at Bosch

Innovation experts discuss the challenges of building ambidextrous organizations that balance exploitation and exploration, and how Dual Innovation can help implement this effectively. The approach requires a shared vision, diversified competencies, systems, processes, incentives, and culture to manage exploration and exploitation simultaneously. Leaders must create a compelling vision and shared identity among employees, and be responsible for legitimate explorative innovation to ensure implementation throughout the organization. Moreover, creating an explore environment with ad-hoc metrics, processes, cultures, and governance mechanisms, as well as dedicated resources and earmarked funding, also helps. The combination of playing fields - exploiting and optimizing the current business model, exploring new opportunities and building new business, and reshaping both fields via connecting and integrating the two –balances separation and integration and reconciles sustaining existing business while building new business. The article shares key measures that Bosch has introduced while using the Dual Innovation approach successfully.