Orchestrating innovation: bundling resources for success in an interconnected world
By Dr Guy Bate
In my previous article, From silos to synergy: Embracing ecosystem thinking to innovate in a VUCA world, I explored the need for businesses to break free from traditional siloed strategies and adopt an ecosystem approach to strategic innovation. I emphasised that in a volatile, uncertain, complex, and ambiguous (VUCA) environment, companies must look beyond their immediate competitors and traditional market boundaries. Instead, they should cultivate connections across a broader ecosystem, leveraging partners, suppliers, and even competitors to co-create value.
This current piece builds directly on those ideas by introducing the concept of resource orchestration—a critical capability that enables firms to dynamically integrate and align both their internal resources and those available within their ecosystem (Sirmon et al., 2011).
Resource orchestration in the context of ecosystem thinking
During my time in the pharmaceutical industry, I saw how challenging it can be to align diverse internal resources with external opportunities. Even with cutting-edge research, we often struggled to pull together the right teams across departments and coordinate with external partners to truly capitalise on emerging opportunities. It wasn’t just about having access to the right resources—it was about orchestrating them effectively. Success lay not just in making isolated technological investments or securing partnerships but in orchestrating these various components into a cohesive innovation strategy.
Ecosystem thinking encourages organisations to view their environment not as a static market but as a dynamic system of interconnected relationships (Adner, 2021). In this context, firms that successfully navigate these interdependencies are those that can orchestrate resources—internally and across their ecosystem. This requires strategically bundling technologies, capabilities, and practices from various sources to create new value (Sirmon et al., 2011).
Illustrative case: GreenPower NZ
Consider the (completely) fictional case of GreenPower NZ, a mid-sized renewable energy company specialising in wind and solar energy solutions. Facing increasing competition from larger global energy firms, GreenPower knew that achieving success required more than just having superior renewable technologies. They needed to orchestrate both internal resources and external ecosystem partners effectively to compete and grow within New Zealand’s energy landscape.
Internally, GreenPower orchestrated its engineering, data analytics, and operations teams to create integrated renewable energy systems that could optimise energy production across various locations. Data scientists developed predictive algorithms using weather patterns and real-time data from solar and wind farms to enhance energy output, while engineers worked on improving the efficiency of these systems to meet fluctuating energy demands. The operations teams played a crucial role in coordinating maintenance schedules and monitoring equipment health, ensuring minimal downtime. By aligning these internal resources, GreenPower offered not just advanced technology but a highly reliable and resilient solution to its clients.
Externally, GreenPower leveraged New Zealand’s rich ecosystem of partnerships. They collaborated with local iwi, who provided land for new wind farms, ensuring that the projects aligned with cultural and environmental sustainability goals. This partnership secured critical resources while demonstrating GreenPower’s commitment to the environmental and community values that are integral in the New Zealand context. GreenPower also worked closely with government agencies like the Energy Efficiency and Conservation Authority (EECA), which offered grants for research and development, allowing the company to explore innovative energy storage solutions to ensure consistent power supply. Additionally, they partnered with University of Auckland’s Faculty of Engineering, working with researchers to trial advanced battery technologies, tapping into cutting-edge innovations to strengthen their energy systems.
As a result of orchestrating both internal expertise and external partnerships, GreenPower reduced energy production costs by 25% for its customers. Their collaboration with local iwi ensured that their projects met cultural and environmental standards, boosting their reputation as a leader in New Zealand’s renewable energy transition. GreenPower’s success was not just about having the right technology, but about effectively orchestrating internal teams and forming strategic partnerships within the broader ecosystem. This allowed the company to become a key player in the country’s energy landscape, demonstrating how resource orchestration can drive innovation and build long-term competitive advantage.
Questions to consider
For managers looking to apply these insights, the integration of ecosystem thinking with resource orchestration raises several strategic questions:
- Are we fully leveraging the resources available in our ecosystem, including partnerships with other firms, academic institutions, and regulatory bodies?
- How can we orchestrate both internal and external resources to drive our innovation strategy?
- What role do cross-functional teams play in ensuring that our technology investments align with organisational and ecosystem-based opportunities?
- Are we strategically positioned within our ecosystem to benefit from emerging trends and technologies?
These are critical questions for leaders aiming to navigate the complexities of modern business environments and drive sustainable innovation.
Conclusion
In a VUCA world, firms must do more than just innovate internally—they must do so within the broader context of an interconnected ecosystem. Those that succeed are not necessarily the ones with the most or “best” internal resources, but those that are able to orchestrate resources effectively, blending their own capabilities with those of their ecosystem.
Successful resource orchestration enables firms to integrate internal strengths with external opportunities, ensuring that innovations are both comprehensive and scalable. This approach positions companies to not just adapt to technological disruptions like AI but to lead in their respective industries. The key takeaway for managers is clear: Innovation is no longer an internal game—it’s about how well you can orchestrate and leverage your position within the broader interconnected world.
References/further reading
Adner, R. (2021). Winning the right game: How to disrupt, defend, and deliver in a changing world. MIT Press.
Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource orchestration to create competitive advantage: Breadth, depth, and life cycle effects. Journal of Management, 37(5), 1390-1412.
Dr Guy Bate is the Director of the Master of Business Development (MBusDev) Programme and a Lecturer (Innovation and Strategy) for the Master of Business Management (MBM).
