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The Innovation Show

A Global weekly show interviewing authors to inspire, educate and inform the business world and the curious. Presented by the author of "Undisruptable", this Gl...

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AI Wars Echoes of Past Tech Battles in the Race for Dominance
The AI Battle Mirrors Past Format Wars “History never repeats itself, but it does often rhyme.” — Mark Twain [TLDR: This week’s Thursday Thought explores the ongoing battle for AI dominance among tech giants like OpenAI, Anthropic, X, Google, and Microsoft, drawing parallels to historic format wars that have shaped various industries. From the iconic VHS vs. Betamax struggle to the intense competition between gaming consoles like PlayStation, Xbox, and Nintendo, and the enduring rivalry between iPhone and Android, these conflicts reveal a recurring pattern. As AI companies follow similar paths, it’s clear that, while technology evolves, the strategic dynamics remain strikingly similar.] The current battle for dominance between tech giants like OpenAI, Google, Anthropic and Microsoft is not just a race to the top — it’s a modern-day format war. By examining the patterns of previous technology battles, we can gain insight into how this AI competition is likely to play out. Three key patterns emerge from past format battles that are now being mirrored in the AI space: The Power of Network Effects: Just like previous format wars, the AI battle will be heavily influenced by network effects. (A network effect occurs when a product or service becomes more valuable as more people use it, creating a positive feedback loop that can lead to rapid growth and market dominance.) The Underdog Advantage: History has shown that the winner is often not the one everyone expects — not the biggest company or even the best product. Early market leaders may fall behind as more adaptable or better-networked competitors take the lead. Ecosystem Building is Key: The final battleground is not just the technology itself, but the entire ecosystem built around it. Companies that successfully create a thriving ecosystem of developers, partners, and content will probably emerge as the ultimate winners. To understand these dynamics better, let’s revisit three strategic battles that shaped the technology landscape: the VCR format war, the console wars, and the smartphone OS wars. Each of these battles offers valuable lessons for understanding the current AI competition. The VCR War: A Template for Format Battles (The also-rans in the VCR war (that I know of) included Philips and Grundig’s Video 2000 (V2000), and RCA’s Capacitance Electronic Disc (CED). The videotape format war between VHS and Betamax in the late 20th century stands as one of the most emblematic battles over technological dominance. Introduced in the mid-1970s, Sony’s Betamax initially captivated the market with its superior video quality and compact design. However, JVC’s VHS, which entered the market shortly after, quickly emerged as a formidable competitor by addressing consumer needs more effectively with longer recording times — up to two hours initially, which was soon extended to four, six, and even eight hours as the technology developed. The success of VHS was not solely because of its technical merits. JVC employed a strategic approach by licensing its VHS technology to an array of manufacturers, including heavyweights like Panasonic, Sharp, and RCA. This move flooded the market with VHS players, making the format more accessible to the average consumer. To further tip the scale in their favour, during the mid-1970s JVC established VCR supply relationships with leading national consumer electronics companies in Europe and the United States. In supplying Thomson, Thorn, and Telefunken (all independent companies at that time) as well as U.S. partners, JVC was able to gain the cash and the diversity of market experience that ultimately enabled it to outpace Philips and Sony. Philips developed videotape competencies in parallel with JVC, but it failed to build a worldwide network of OEM relationships that would have allowed it to accelerate the refinement of its videotape competence through the sale of core products. According to an article from Legacybox, by the mid-1980s, VHS had achieved a 60% market share in the U.S., with over 30 million homes owning a VHS player. Hollywood’s role in this battle was also pivotal. Movie studios, recognising the growing popularity of VHS, began releasing their films primarily on this format. Movie studios partly influenced this decision because VHS tapes could hold entire movies without requiring multiple tapes — a common issue with the shorter Betamax tapes. Video rental stores like Blockbuster overwhelmingly supported VHS because of its broader availability and the convenience of longer playtimes. A self-perpetuating cycle emerged — a classic example of a network effect: the increased availability of content on VHS led to higher consumer demand for VHS players, which further solidified the format’s dominance. The death blow for Betamax occurred when RCA, one of the largest electronics companies in the United States, backed VHS. RCA’s decision, coupled with a strong marketing push, helped VHS capture an even larger share of the market. By the late 1980s, despite Betamax’s technical superiority, Sony had to concede defeat. Sony eventually began producing VHS players, marking the end of the format war. The Console Wars: The Battle for Gamers’ Hearts The console wars between Sony’s PlayStation, Microsoft’s Xbox, and Nintendo highlight how the best product doesn’t always win. Sony’s PlayStation and Microsoft’s Xbox fought fiercely over processing power and exclusive titles, but Nintendo carved out its niche with innovative gameplay and a focus on casual gamers. Each company’s success depended not only on the hardware but also on the ecosystem of games and online services they built.(Also rans, I know of included: Sega Saturn, Sega Dreamcast, Atari Jaguar, and NEC TurboGrafx-16). In the wake of the VCR format war, the gaming industry experienced its own version of a format battle, known as the console wars. This battle, primarily between Sony’s PlayStation, Microsoft’s Xbox, and Nintendo, has defined the gaming industry for decades. Each of these companies has sought to establish its console as the dominant platform, employing strategies that echo the VHS-Betamax rivalry. Sony entered the gaming market in 1994 with the PlayStation, which quickly became a dominant force because of its powerful hardware and an extensive library of exclusive games. Titles like “Final Fantasy” and “Gran Turismo” attracted millions of gamers to the PlayStation ecosystem, establishing Sony as a leader in the industry. Microsoft joined the fray in 2001 with the launch of the Xbox. The Xbox was innovative with its built-in storage and the introduction of Xbox Live, a comprehensive online gaming service that revolutionised multiplayer gaming. Microsoft also secured the exclusive rights to “Halo,” which became a defining franchise for the console and significantly boosted its popularity. Nintendo, a veteran in the gaming industry, pursued a different path. While Sony and Microsoft competed on hardware performance and exclusive titles, Nintendo focused on creating unique gaming experiences. The Nintendo 64 and GameCube had their own dedicated followings, but it was the Wii, launched in 2006, that truly set Nintendo apart. The Wii’s innovative motion controls and broad appeal to casual gamers made it a global phenomenon, outselling both the PlayStation 3 and Xbox 360 in several markets. The console wars mirror the VHS-Betamax battle in that the competition wasn’t just about selling hardware; it was about creating a compelling ecosystem. Sony and Microsoft invested heavily in securing exclusive games, building online communities, and expanding their platforms. Meanwhile, Nintendo focused on innovation in gameplay, drawing in a diverse audience that included non-traditional gamers. The Smartphone Wars: iPhone vs. Android (The smartphone OS wars, primarily between Apple’s iPhone and Google’s Android, show the power of ecosystem building. Apple’s closed, tightly integrated ecosystem appeals to a loyal base, while Android’s open platform and wide availability have made it the dominant mobile OS worldwide. This battle underscores how creating a broad and adaptable ecosystem can lead to long-term dominance.) (Also rans included: BlackBerry OS, Windows Mobile/Windows Phone, Symbian, Palm OS/Garnet OS/webOS, and Tizen). The smartphone industry has also witnessed a fierce format war, this time between Apple’s iPhone and Google’s Android (also rans included Nokia’s Symbian). Apple revolutionized the mobile phone market in 2007 with the launch of the iPhone, which combined sleek design, intuitive touch controls, and an app ecosystem that redefined what a smartphone could be. The iPhone quickly became a status symbol and set the standard for mobile devices. Google’s Android, launched shortly after, took a different approach. Rather than producing its own hardware, Google made Android an open-source operating system that could be used by any manufacturer. This strategy led to a flood of Android devices from companies like Samsung, LG, and Motorola, covering a wide range of price points and appealing to a broad audience. Much like VHS, Android’s strategy of widespread availability helped it capture significant market share. By offering a variety of devices at different price points, Android became the dominant mobile platform worldwide, despite Apple’s continued success with the iPhone in the premium segment. The iPhone vs. Android battle still rages on, with each platform boasting its own loyal following, exclusive apps, and unique features. Apple’s closed ecosystem allows for tight integration and a seamless user experience, while Android’s open platform offers more flexibility and customisation, catering to a diverse range of users. The AI Wars: Following a Familiar Pattern The key players in the AI format war include OpenAI (GPT series), Google(Bard), Microsoft (Copilot and Azure AI), Anthropic (Claude), Meta (LLaMA series), and Elon Musk’s xAI , which includes several engineers who previously worked at OpenAI. Now, as we watch the AI giants battle it out, familiar patterns from past technology wars are emerging. OpenAI’s GPT series first captured attention with its revolutionary language models, reminiscent of how Betamax had an early advantage in the VCR wars. However, Google’s Bard and Microsoft’s AI, deeply integrated into their expansive ecosystems, are gaining significant momentum by offering broader applications and seamless integration across platforms, much like how VHS expanded its reach through strategic licensing and partnerships. Just as JVC licensed VHS to multiple manufacturers, AI companies today are aggressively expanding their reach through partnerships, developer support, and widespread accessibility. For example, Microsoft has strategically integrated its AI models across its software suite (e.g., Copilot in Microsoft 365) and through its Azure AI platform, making it easier for businesses to adopt and integrate AI into their operations. Similarly, OpenAI has partnered with major platforms like ChatGPT and various APIs, encouraging developers to build on top of its models, thereby driving adoption and entrenching their platforms as potential industry standards. These companies are not just building AI models — they are creating vast ecosystems where businesses and developers can build upon their AI technologies. For instance, Meta’s LLaMA series, though primarily research-focused, aims to foster an open AI research community that can contribute to and expand its capabilities, positioning Meta to influence AI’s future directions. As more businesses adopt these AI technologies, a feedback loop of innovation and usage is forming — just as it did with VHS. The more widespread the adoption, the more developers and companies are incentivised to build on these platforms, further solidifying their dominance. This cycle not only accelerates innovation but also entrenches these platforms in the market, making them more difficult to displace. The outcome of this battle will likely shape the future landscape of AI, much like VHS shaped the video industry, determining which platforms become the standards and which fall by the wayside. History Doesn’t Repeat, But It Rhymes As the AI battle unfolds, it’s clear that the strategies that determined past technology winners are still at play. The power of network effects, the advantage of underdogs, and the importance of building a comprehensive ecosystem are as relevant today as they were in the past. In the end, the winner of the AI wars will be the company that understands these lessons and applies them most effectively. The future of technology isn’t just about who has the best idea — it’s about who can bring that idea to the most people in the most powerful way. Interesting times awAIt. Build your own Business and Personal Network by joining us at The Reinvention Summit next April 2025. We have a vast array of networks and communities joining us in Dublin on April 29th and 30th along with a stellar lineup of previous guests and friends of The Innovation Show. Speaking of which, the latest episode of the show feature three forthcoming guests who will be speaking at The Reinvention Summit, Alexander Osterwalder, Rita McGrath and Ryan Shanks. We explore the Future of Consulting in an Age of Ai.
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Gold Crushes Ants Ill-Fitting Robes and Disruptions Power Redistribution
Gold Crushes Ants, Ill-Fitting Robes and Disruption's Power Redistribution Aidan McCullen: [00:00:00] Gold Crushes Ants, Ill-Fitting Robes and The Power Redistribution of Disruption. Just a brief reminder of what this episode is in case you have not heard it before.. Each week I write a newsletter called The Thursday Thought. For years, listeners to the Innovation Show have asked me to narrate it. I never had enough time. So today, I am using AI. I have cloned my voice. It is not perfect, but it saves me hours of effort. For those who want the short version. Here is a paragraph: Disruption redistributes organisational power, information and status. As Machiavelli noted, those in power dislike such change. However, there is a twist to this week’s Thursday Thought. Sometimes, the new-found power does not sit well with those who inherit it, to their detriment and to that of the organisation. Gold Crushes Ants! Let's begin with a quote by Plato from "The Republic." Plato wrote: "But when the cobbler or any other man [00:01:00] whom nature designed to be a trader, having his heart lifted up by wealth or strength or the number of his followers, or any like advantage, attempts to force his way into the class of warriors, or a warrior into that of legislators and guardians, for which he is unfitted, and either to take the implements or the duties of the other; or when one man is trader, legislator, and warrior all in one, then I think you will agree with me in saying that this interchange and this meddling of one with another is the ruin of the State." This passage from Plato's The Republic expresses the idea that societal roles should be distinct and specialised to ensure the stability and well-being of the state. Plato argues that each individual has a natural aptitude and should perform the role suited to their abilities. The cobbler (a metaphor for any tradesperson), the warrior, and the legislator/guardian represent different classes in society. Plato believes that problems arise when individuals try to take on roles for which they are [00:02:00] not naturally suited or when they attempt to accumulate power by combining multiple roles. For example, if a cobbler tries to become a warrior or a warrior tries to become a legislator, it disrupts the social order and leads to chaos and ruin. This concept is part of Plato's broader vision of a just society, where everyone contributes according to their strengths and society functions smoothly as a result. The Power Shift. Let's take for example, the significant shift in power that occurred in many organisations due to the advent of digital technology. The rise of roles such as heads of digital, data, AI and E.S.G. transformed traditional industries, from media companies to physical retailers. These new roles require a different set of skills, mindsets and perspectives, often leading to friction within long-held hierarchies. In many traditional organisations, digital leaders face resistance similar to what Plato described. Established professionals, [00:03:00] akin to the warriors and legislators in The Republic, often see these newcomers as threats to their traditional roles and authority. This resistance can be rooted in a fear of obsolescence or a reluctance to adapt to new methods and technologies. For instance, the introduction of digital journalism revealed how technology can challenge the conventional roles within a newsroom. It changes the "speed to market", it raises concerns about traditional journalists and the changing nature of editorial control. This works both ways, where new power dynamics can lead to tensions when digital leaders overstep their bounds or when their innovations disrupt the status quo too abruptly. All of a sudden, their importance leads to ego problems. Gold Crushes Ants: The Gradual Path to Power and Responsibility. “If you give a ton of gold to an ant, it will only crush the ant.” — Sadguru There’s a profound parable shared by Sadguru about a lion with the heart of a mouse, [00:04:00] it went something like this… There was once a compassionate sage. One day while searching his home, the sage uncovered a mother and five baby mice. Terrified, the mother ran away, leaving the baby mice. The kind sage fed the babies with some grain. One day a cat came and devoured four of the mice, but one escaped. The old man continued to feed and care for the last baby mouse. The cat came back to finish the job and eat the last mouse, but the sage chased her away. Every time the sage closed his eyes to meditate, the wily cat came back. Eventually, the sage reasoned that this was not sustainable and he could not always protect the cat, so he had an idea. He used his magical powers to turn the baby mouse into a fierce cat. The idea worked and the cat never came back. However, a wild dog soon discovered there was a tasty cat living with the sage and hung around waiting for an opportunity for a tasty meal. Once again, the [00:05:00] sage thought to himself, this is so inconvenient. Once again the sage used his powers and changed the cat, who was once a mouse, into a dog. Again, it worked, but only for a while. One day, the dog ran home with his tail between his legs. The sage looked out to see that a large panther had been hunting the dog. After chasing the panther away, the sage sat down and thought. This was becoming too troublesome. He had an idea and used his powers one last time. He turned the dog into a lion — after all — a lion is the king of the jungle. Now, when the lion — who was a mouse, then a cat, and then a dog — roamed through the jungle, all the other animals ran away in fear. However, the lion went through a constant internal struggle. Knowing he was a lion with the heart of a mouse, he thought to himself. “What if the other animals find out that deep down I am just a mouse? What will they do to me?” The lion realised. The only other person in the world [00:06:00] who knows he is a mouse is the sage, so he had an idea. The lion returned home to the sage, intending to kill him. The savvy sage realised what the lion was about to do and apologised to the mouse inside the lion, saying it was wrong of him to change him. And so, the sage turned him back into a mouse. So what is the moral of the story? It is natural for a cat to chase a mouse, for a dog to chase a cat, for a panther to chase a dog. If you give them a position far beyond their capabilities for that position, it will bring misery to them and to the person who gave them the position. Whenever we place someone in a position beyond their abilities, it can rack them with insecurity, fear and doubt. In an organisation, power can poison talented people. They may suspect that others will doubt their abilities, they will fear that others will find them out. It happens with Innovation roles all the time. The organisation feels it should reward tenure and “gifts” an Innovation [00:07:00] Director or other "newly minted" role to executives who do not have transformation or innovation in their DNA. It happens in family-owned organisations because of nepotism. The family member then reigns terror throughout the organisation, sometimes undoing decades of significant cultural work laid down by previous generations. When we gift opportunities to others when they have not earned those opportunities, it rarely works out well. It is not about depriving the giver or the receiver; it is about the struggle and the rite of passage. This concept is particularly relevant today, where new roles—like Head of Digital, Head of Innovation, or Head of Data—are created to meet the demands of rapidly changing organisations. While those filling these positions often possess technical expertise, they may lack the leadership skills and political acumen required to navigate complex corporate environments. This leads to a profound mismatch between the role and the person, where the weight of responsibility [00:08:00] becomes crushing. The lion’s predicament is a metaphor for many modern professionals who find themselves thrust into positions of leadership. They have the title and the technical skills, but they haven’t developed the “muscle” to manage the power and responsibility that comes with the role. Just like the lion’s external strength hides its inner fragility, these professionals can struggle to wield their new authority. The Physiology of Building Strength. Building leadership capacity is much like developing physical strength. When muscles grow too quickly—often through artificial means like anabolic steroids—tendons and ligaments don’t have time to catch up with muscle growth. This creates an imbalance, increasing the risk of injury. The tendons can rupture because they’re not strong enough to support the rapidly growing muscles. In the same way, individuals promoted too quickly may lack the "connective tissue" of leadership skills, such as emotional intelligence, political savvy, and strategic thinking. [00:09:00] These are the tendons that allow people to support the heavier loads of responsibility that come with leadership. Without developing these critical soft skills, individuals risk being crushed by the demands of their new roles, just as tendons snap under the weight of artificially strengthened muscles. Organisations are complex ecosystems with intricate power dynamics, unspoken norms, and political undercurrents. New leaders, especially those in innovative or transformative roles, often find themselves in an organisational maze of competing interests and hidden agendas. Without prior coaching or development in leadership and political navigation, they may struggle to implement their visions. The Danger of Ill-Fitting “Robes” This theme echoes Shakespeare’s Macbeth, where the protagonist says: “Why do you dress me in borrowed robes?” (*Macbeth*, Act 1, Scene 3). The quote reflects how newly bestowed titles, roles, or responsibilities can feel like ill-fitting garments, [00:10:00] overwhelming the person wearing them. These “borrowed robes” serve as a symbol of unearned power—something that feels uncomfortable and burdensome until the person grows into it. Just like gold crushing ants, power and authority, if given too soon or too suddenly, can overwhelm individuals who have not yet built the necessary inner strength to bear them. When individuals fail to develop the necessary leadership skills before stepping into senior roles, they risk being overwhelmed by the very responsibilities they seek. Like Macbeth in his ill-fitting robes, they find the weight of their new titles to be uncomfortable and burdensome. Without gradual preparation, the responsibilities of leadership can become too heavy, leading to burnout, failure, or organisational stagnation. This is especially true for roles involving innovation or transformation, where the political landscape is often more complex. These leaders need more than just technical expertise; they must develop the [00:11:00] ability to navigate power dynamics, influence others, and build coalitions. Conclusion: Empowering Leaders to Carry Gold. “Rank does not confer privilege or give power. It imposes responsibility. “ — Peter Drucker The wisdom of "gold crushes ants" serves as a powerful reminder that value and responsibility come with weight. To carry gold—or any significant power—requires strength built over time. Organisations must not only recognize the necessity of new roles like Head of Innovation or Head of Digital but also provide the pathways for individuals to develop the requisite leadership capabilities. For individuals stepping into these roles, acknowledging the need for personal growth and seeking out development opportunities and coaching is crucial. Building the internal "muscle" to handle power involves embracing challenges, learning from failures, and cultivating resilience. In a world where the pace of change is relentless, [00:12:00] organisations cannot afford to have their transformative efforts hampered by unprepared leadership. Former guest on The Innovation Show, Derek van Beaver calls this building the bench, Paul Nunes refers to it as the capability S-curve. By investing in the gradual and holistic development of their leaders, they ensure that when the time comes to carry the weight of gold, their people are not crushed but rather stand strong and capable. Empowerment is a journey, not a sudden leap. The END. Forthcoming episodes of the Innovation show include: Seth Godin. Henry Mintzberg. Jayshree Seth. Steve Kerr. Julia DiGangi. Paul Nunes and Ian Morrison. Stan Deetz Part 3. Byron Reese. And many more. Until next week. [00:13:00]
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13:18
Rita McGrath, Alex Osterwalder and Ryan Shanks - The Future of Consulting in an Age of Ai
AI Transforming Consulting: Strategies, Ethics, and the Future The world of consulting is experiencing a seismic shift, largely driven by AI. In this episode, we are joined by Ryan Shanks (Head of Innovation for Accenture EMEA), Alex Osterwalder (CEO of Strategyzer), and Rita McGrath (Columbia Professor, Author and Founder of Valize). They discuss the traditional consulting model, the impact AI has on roles within consulting, and the broader implications on the industry and society. They also delve into the importance of human skills, the evolving business models, the significance of trust in digital transformation, and the shifting landscape of organizational structures and career paths. A must-watch for anyone involved in or interested in the consulting sector. 00:00 Introduction to the Changing World of Consulting 00:40 Traditional Consulting Models and Their Evolution 02:01 Impact of AI on Consulting Roles 02:28 Building and Hiring in the New Consulting Landscape 03:23 AI's Role in Transforming Business Models 05:18 Real-World Examples of AI Integration 14:09 The Need for Continuous Reinvention 18:28 Outcome-Based Consulting and Ethical Dilemmas 24:46 Future of Consulting: Marketplaces and Ecosystems 26:35 The Rise of Small AI-Driven Firms 27:23 Impact on Education and Hiring 28:35 Human Skills in the Age of AI 30:22 Trust and Ethics in AI 31:36 Adapting to Rapid Change 32:53 The Role of Human Sciences 36:09 The Future of Work and AI 43:16 Leadership and Governance Challenges 46:10 Final Thoughts and Reflections Find Rita: https://www.valize.com Find Alex: https://www.strategyzer.com Find Ryan: https://ie.linkedin.com/in/ryanmartinshanks Find The Reinvention Summit: https://www.thereinventionsummit.com Innovation, AI, Consulting, Business Strategy, Digital Transformation, Reinvention, Change Management, Future of Work, Organisational Culture, Emerging Trends, Rita McGrath, Alex Osterwalder, Ryan Shanks, Strategic Inflection Points, Ecosystem Thinking, Entrepreneurship, Human-Centric Design, Technology Disruption, Leadership, Continuous Reinvention
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51:53
Garvan Callan - Digital Business Strategy
Garvan Callan - Unlocking Digital Transformation Join us for an enlightening episode as Aidan McCullen welcomes Garvan Callan, author of 'Digital Business Strategy,' to the Innovation Show. They delve deep into the essence of digital transformation, from defining digitization and digitalization, to exploring the importance of building digital businesses with customer-centric strategies. Gain valuable knowledge on how to reimagine organizational frameworks, harness new technologies, and cultivate a culture of perpetual innovation. Learn practical frameworks, case studies, and leadership approaches essential for thriving in the digital age. Don't miss this comprehensive discussion on staying ahead in an ever-evolving technological landscape. 00:00 Promo for The Reinvention Summit 00:29 Welcoming Garvan Callan 01:11 Origins of Digital Transformation 02:35 Understanding Digitization vs. Digitalization 04:46 The Digital Business Landscape 08:54 Customer-Centric Digital Strategies 14:04 The E Plus One Experience 17:12 Digital 360 Framework 22:54 Challenges of Digital Transformation 28:47 Building Strategy: Efficiency and Simplification 29:40 The Spin Out Syndrome and Simplification Journey 32:27 The Phoenix Metaphor and Organizational Resistance 33:11 The Spider Web Analogy and Data Challenges 34:28 Adapting Strategy for Rapid Change 35:14 Scaling Up: Challenges and Recalibration 37:25 The Agile Organization and Breaking Silos 41:07 Open Business Models and Technological Integration 45:16 Risk Management in Agile and Fluid Organizations 49:05 The Waltzer Effect: Combining Technologies for Change 53:21 The Culture Iceberg: Values and Beliefs 56:49 Conclusion and Final Thoughts Find Garvan here: https://onezero1.ie The Reinvention Summit; https://www.thereinventionsummit.com digital transformation, business strategy, digital innovation, future-proofing, digital age, Reinvention Summit, innovation, workshops, digital business, media company, digitalization, digitization, digital frameworks, digital execution, customer centricity, digital definition, digital processes, competitive advantage, leadership, organizational culture
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58:08
The Harmony of Ra and Horus: Bridging Exploit and Explore
The Harmony of Ra and Horus: Bridging Exploit and Explore F Scott Fitzgerald once wrote, “The test of a first-rate intelligence is the ability to hold two opposing ideas in mind at the same time and still retain the ability to function.” In times of turbulence, leaders must balance the two opposing ideas of exploit and explore. Ra and Horus, two pivotal figures in Egyptian mythology, symbolise the dual forces of power and intuition, rationality and creativity. Together as Ra-Horakhty, they embody a unification of opposites. In organisational terms, this metaphor captures the balance between exploitation — the optimisation of current capabilities — and exploration — the pursuit of new possibilities. Inspired by my recent conversation with Mike Tushman and Charles O’Reilly and James March’s seminal work on organisational learning, this post explores how integrating these dual forces fosters ambidexterity, enabling organisations to thrive in both the present and the future. Ra: The Organisational Force of Exploitation In mythology, Ra is the sun god, embodying power, creation, and rationality. He represents the structured, predictable cycle of the sun, providing stability and light. In organisations, Ra reflects the principles of exploitation, ensuring that current strengths are refined and utilised to their fullest potential. Organisational Ra includes: Execution and Strategy: Teams that deliver results through clear processes and focused strategies. Operational Efficiency: Optimisation of resources, ensuring stability and short-term profitability. Leadership and Structure: Leaders who prioritise alignment with organisational goals and mitigate risk. Ra aligns with the conscious mind, driving focus, clarity, and execution. However, organisations overly reliant on Ra risk stagnation, becoming trapped in suboptimal routines that limit innovation. Horus: The Organisational Force of Exploration The Eye of Horus symbolises protection, health, and restoration in ancient Egypt. According to myth, Horus lost his left eye in a battle with Seth, and it was magically restored by Hathor. This restoration came to symbolise healing and the process of becoming whole. Horus, the falcon-headed god, represents creativity and vision, capturing the spirit of exploration and long-term growth. Organisational Horus includes: Innovation and Creativity: Teams that explore bold ideas, embrace uncertainty, and foster breakthroughs. Empathy and Culture: Efforts that nurture human-centred design and foster a supportive organisational culture. Long-Term Vision: Leadership that anticipates future challenges and invests in experimentation. Horus represents the subconscious mind, fostering emotional intelligence and adaptability. However, without Ra’s structure, organisations driven solely by Horus risk lacking focus and direction. Ra-Horakhty: Uniting Exploitation and Exploration In Egyptian mythology, Ra-Horakhty — “Ra, who is Horus of the Two Horizons” — represents the unification of these complementary forces. The rising sun (Horus) and the setting sun (Ra) reflect a cyclical harmony, where opposites merge to create a greater whole. In organisations, Ra-Horakhty serves as a metaphor for ambidexterity — the ability to balance exploitation (Ra) with exploration (Horus). This balance is essential for thriving in both stable and volatile environments. Organisational Ra-Horakhty includes: Unified Leadership: Leaders who can integrate operational efficiency with visionary strategy. Ambidextrous Teams: Structures that enable both incremental improvements and bold innovations. Cultural Harmony: A mindset that values both stability and adaptability, blending logic with creativity. The Balance Between Exploitation and Exploration Scholars like James March, Tushman, O’Reilly and Binns highlights the organisational challenge of balancing exploitation and exploration: Exploitation: Refining current capabilities to maximise short-term gains. Exploration: Pursuing new opportunities, which are uncertain but critical for long-term success. These opposing forces compete for resources, and organisations often lean too heavily on exploitation due to its immediate, predictable returns. However, this focus risks neglecting exploration, leading to long-term stagnation. Achieving the right balance involves recognising the distinct yet interdependent nature of these forces. Just as Ra and Horus come together as Ra-Horakhty, organisations must integrate exploitation and exploration to create a cohesive, adaptive strategy. Harmony is not the absence of opposites but the unification of their purpose. Until next week!
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A Global weekly show interviewing authors to inspire, educate and inform the business world and the curious. Presented by the author of "Undisruptable", this Global show speaks of something greater beyond innovation, disruption and technology. It speaks to the human need to learn: how to adapt to and love a changing world. It embraces the spirit of constant change, of staying receptive, of always learning.

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