Abstract: Exploration and exploitation capabilities are both
important within Operations as means for improvement when
managed separately, and for establishing dynamic improvement
capabilities when combined in balance. However, it is unclear what
exploration and exploitation capabilities imply in improvement and
development work within an Operations context. So, in order to
better understand how to develop exploration and exploitation
capabilities within Operations, the main characteristics of these
constructs needs to be identified and further understood. Thus, the
objective of this research is to increase the understanding about
exploitation and exploration characteristics, to concretize what they
translates to within the context of improvement and development
work in an Operations unit, and to identify practical challenges. A
literature review and a case study are presented. In the literature
review, different interpretations of exploration and exploitation are
portrayed, key characteristics have been identified, and a deepened
understanding of exploration and exploitation characteristics is
described. The case in the study is an Operations unit, and the aim is
to explore to what extent and in what ways exploration and
exploitation activities are part of the improvement structures and
processes. The contribution includes an identification of key
characteristics of exploitation and exploration, as well as an
interpretation of the constructs. Further, some practical challenges are
identified. For instance, exploration activities tend to be given low
priority, both in daily work as in the manufacturing strategy. Also,
the overall understanding about the concepts of exploitation and
exploration (or any similar aspect of dynamic improvement
capabilities) is very low.
Abstract: Considering today-s increasing speed of change,
radical and innovative improvement - Kaikaku, is a necessity parallel
to continuous incremental improvement - Kaizen, especially for
SME-s in order to attain the competitive edge needed to be profitable.
During 2011, a qualitative single case study with the objective of
realizing a kaikaku in production has been conducted. The case study
was run as a one year project using a collaborative approach
including both researchers and company representatives. The case
study was conducted with the purpose of gaining further knowledge
about kaikaku realization as well as its implications. The empirical
results provide insights about the great productivity results achieved
by applying a specific kaikaku realization approach. However, it also
sheds light on the difficulty and contradiction of combining
innovation management and production system development.