Daily Concept 2618 - Organisational Ambidexterity

 

Daily Concept 2618 - Organisational Ambidexterity

 

Organisational ambidexterity is the capacity to exploit the existing business efficiently while simultaneously exploring new opportunities.

 

“Exploitation” focuses on productivity, standardisation and profitability, whereas “exploration” involves innovation, experimentation and new business models.

 

Excessive exploitation can make an organisation obsolete, while excessive exploration may increase costs without producing sustainable returns.  

 

Example: A public-sector bank may improve the productivity and profitability of its branch network while separately developing digital lending, AI-based fraud detection and open-banking solutions. Both initiatives must eventually be integrated into a coherent customer strategy.