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Avoiding the success trap
Many organisations focus on the exploitation of their historically successful business activities while failing to explore new territory to improve their long-term success.
Famous examples:
- Polaroid didn't respond to the transition to digital photography. Another company that fell into this trap is Kodak.
- Blockbuster was a home-movie and video-game rental service provider that did not respond to the rise of mail-order and video-on-demand services.
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MORE IDEAS ON THIS
The difference between exploration and exploitation
- Exploration: The focus is on experimentation, risk-taking, discovery, and innovation. People who thrive here are more flexible and comfortable with uncertainty.
- Exploitation: The focus is on execution, refinement, and efficiency. Successfu...
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The exploration-exploitation dilemma
Great innovators are known for risk-taking and experimentation. But optimising needs a different skill-set that relies on refinement and efficiency. It is then rare to find people that can innovate and optimise.
A typical story is that a founder launches a startup, succes...
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How to cultivate an ambidextrous mindset
The key to success is to balance exploration and exploitation.
- Conduct an ambidexterity audit. Consider how much time, energy, and money you are dedicating to exploration relative to exploitation. Ensure that you are not dedicating100% to one or the ...
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