Why Innovation Feels Like Walking a Tightrope (And How Platforms Nail It)?

Innovation is tricky. Yeah, really tricky.

Ever feel like you’re being pulled in two opposite directions? On one hand, you’ve got your core business to take care of - tweaking, refining and making those ever-important incremental improvements. Because, that is what fetching you the bread and butter. But on the other hand, there’s this nagging need to explore something new, to build for the future. It's a classic "exploit vs. explore" dilemma. So, why is it so hard for us, innovators, to balance the two?

Honestly, it’s because both activities need a different mindset and there is a constant tension of resource expense. When you’re exploiting, you’re in "optimize" mode - it's all about efficiency, perfecting what's already there. But when you’re exploring, you're stepping into the unknown. That’s messy, uncertain and usually a bit chaotic. And here's where the tension comes from - how do you do both at the same time without one sabotaging the other?

Now, here’s a question I ask myself: how do digital platform companies (think Zomato, Swiggy, or even Flipkart) manage to do both without constantly tripping over themselves? They not only keep their core humming along smoothly, but they’re also great at diving into new markets and new products all the time. What’s their secret?

I mean c'mon, look at Zomato. Look at how they used their existing platform and the agility to get into Zomato Money. It's no more delivery of dinners, isn't it? My guess: it’s platform's architectural agility.

Unlike many traditional companies that get stuck in their core business, digital platforms have this unique ability to flex their internal architecture in ways that let them try new things without completely overhauling what’s already working. It's like they’ve built this adaptable backbone that can keep the engine running while they add new features, test out fresh ideas and push into new markets. This makes them agile in the truest sense of the word. They can pivot faster, learn quicker and experiment with way less friction.

So, yeah, we all feel the tension between exploring and exploiting. But maybe the key is not in trying to do both perfectly - it’s in building a system that lets you do both flexibly. And hey, digital platforms seem to have cracked that code. Could it be something other companies can learn from? Absolutely, I believe so.

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