Ambidextry in retail - challenge and opportunity

Interview with Manuel Linder - Digital Strategist & Lead Innovation Manager.

As part of our white paper "Ambidextry - Changing Perspectives as a Competitive Advantage", we spoke with Manuel Linder, Digital Strategist & Lead Innovation Manager of an international food retailer, about challenges on the way to an ambidextrous organisation.?

Why is ambidextry so important at the moment?

"In addition to the systematic increase in efficiency of existing business segments, the development of innovative products, services or business models, play a central role in the fight for market share.

Current market dynamics require companies to "master" two disciplines: exploitation and exploration. On the one hand, this means the ability to make the most of the present, e.g. through operational excellence, and at the same time to innovate beyond the core business by developing new technologies, products and services.“

What are the challenges??

"Key challenges I see are balancing solid business models and innovation opportunities, combining short- and long-term thinking and, most importantly above all, to develop a common vision."?

"Ambidextry can only succeed when companies rethink."

What can solution approaches look like??

"In balancing exploration and exploitation, I think three dimensions play a central role:

People, process and technology.

Exploring new business ideas and managing the existing requires different leadership skills, but also the right team. I like to use the analogy of a rowing boat, a steamship and a cruise ship. Each boat needs the right crew and the right captain. The captain for the Explore phase is usually not the right captain for the Exploit phase. Furthermore, if you look at tactics in American Football, the best possible crew is brought onto the field for each move.

Each phase requires different qualifications and thus new team building."

"The usage of the waterline principle helps to establish an ambidextrous culture.

Damages "above the waterline" does not lead to sinking. Failures due to innovation decisions can and must be accepted at this point. But decisions that massively endanger the success or survival of the company, must be decided jointly in the sense of a culture of partnership.

As far as processes are concerned, it is important to find a balance between "not too much and not too little" and to critically question processes and methods again and again. The division of tasks between established processes and methods and the simultaneous search for new possibilities is an important step towards an ambidextrous company.

Last but not least, technology is a decisive factor for the successful establishment of an ambidextrous organisation. We make use of digital building blocks to access the respective improved technology. This leads to an enormous acceleration of efficiency across all phases.

Another important aspect: If innovation lacks legitimacy and influence in the company, this is comparable to a "tied-up start-up". To counteract this, exploration should be placed at the top of the organisational chart and actively promoted.

This includes:

... encouraging knowledge networking and exchange between staff,

... creating space for experimentation and innovation,

... involving staff in decision-making,

... handing over responsibility and trust."

Manuel Linder

Digital Strategist & Lead Innovation Manager

• Strategy and Start-up development (Co-Founder)
• Cross-sectoral and open innovation development
• Corporate Venturing & Cooperation networks
• Venture Building, Impact Venture & Venture Philantrophy

As a management consultancy, with offices in Düsseldorf and Munich, we advise renowned clients on the alignment of their business models in order to actively confront disruption in the digital age. Specialising in the textile trade, food retail, automotive industry and logistics sectors, we provide support for process-related, systemic and organisational transformation processes along the value chain.?

Further information on our website www.transformationexcellence.de