strategy execution and formation synergy

While strategy execution makes the future, strategy formation determines both where to explore and what to exploit in making that future. Strategy execution then carries out these explorations and exploitations. With exploration and exploitation joined synergistically together, the result is invention, innovation, and evolution.

For an organization to endure and grow, it must explore, to find technologies and produce innovations to compete, and exploit those innovations through the efficient production of offerings for the market. Exploration is needed to renew the business, to avoid it becoming a victim of business environment evolution, while exploitation seeks maximum efficiency in the current day.

Exploitation needs the innovations from exploration. Exploration needs the hypotheses test results from exploitation.