Innovation & Knowledge Management

Dr. SiddhanClariant - Colour-Chem Ltd.Thane

Why this topic when we talk of Challenges to Indian MNCs ?

If we don’t manage creativity and innovation in the areas of Intellectual property, technology & distribution, India will be challenged in the market place

A great wind is blowing and that gives you either imagination or a headache.

Catherine II (the Great)

Empress of Russia

Knowledge Management definitions

A multi-disciplined approach to achieving organisational objectives by making the best use of knowledge

The systematic processes by which knowledge needed for an organisation to succeed is created, captured, shared and leveraged

The art of creating commercial value from intangible assets

Innovation

I am convinced that if the rate of change inside the institution is less that the rate of change outside, the end is in sight. The only question is timing of the end.

Jack Welch, GE.

What is Innovation?

Innovation means renewal or alter

Prerequisite for innovation is the dissatisfaction with the current status and an inquisitive mind

Defining Innovation, Creativity & Intelligence

Innovation is using an existing idea for a laterally different purpose or application

Creativity is doing things that has not been done before

Intelligence is the ability to learn and think

Demonstrated creativity examples

George de Mestral's observation of how cockleburs attach to clothing leading toinvent the hook-and-loop fastener known as Velcro®

Art Fry's development of Post-It® removable notes at 3M Corporation in 1974 Dr. Spencer Silver, another 3M scientist, had developed a polymer adhesive that formed microscopic spheres instead of a uniform coating, and thus was a poor adhesive that took years to set

Managing Creativity

"If you do not know where you are going, you will not know when you arrive." – conventional view

"If I knew what I was doing, it would not be research." – unorthodox view

Managing Creativity

Instead of asking for one solution, require the A students to give two different methods of solving one problem. Encourage students to find creative solutions instead of prosaic solutions.

Give problems that are unreasonably difficult to answer correctly, and have the students find a rough approximation.

Give students problems without adequate information; let them go to the library and find the information that they need.

Give more problems that ask the student to design a circuit, interpret data, design a method of doing an experiment, ...

Managing Creativity

Assign term papers that require reading from multiple sources, making a creative synthesis of the information, and finding contradictions or inconsistencies in authoritative, published works.

Occasionally assign exercises that show an incorrect solution to a problem (e.g., computer program that contains at least one bug, electronic circuit that will not function properly) and have the students find the defect and suggest a correction.

Assign laboratory experiments that allow students freedom to choose techniques) and topics.

Arrange or compose music, not merely playing music.

Intelligence

Synthetic intelligence. The ability to combine existing information in a new way.

Analytic intelligence. The ability to distinguish between new ideas that have potential, and new ideas that are not worth further work. This ability is essential to an effective allocation of resources, by evaluating the quality of new ideas.

What are innovation drivers?

Innovations

Market Pull

TechnologyPush

Societydemand

Main focus: Innovationsbased on own technologies and on market knowledge

Main focus: Innovation trends backed by governmental fundsand regulations

What innovation model to be used?

– New business opportunities– Multidisciplinary R&D projects– Start up projects

– IP Strategy– IP Tactics

Innovation &R&D Strategy

R&D Knowledge Management

New Business Development

Intellectual Property

– Technology teams– Cooperations (Universities, Institutes)– Innovation Forum – People exchange – IT Systems R&D

– Innovation and R&D strategy– Strategic areas and technologies– Innovation pipeline– New technologies

Thinking provides knowledge, Knowledge makes you great.Dr. APJ Abdul KalamHonorable President of India

from annual address at Saurashtra University, Rajkot, Gujarat

What is Knowledge?

Explicit – can be codified: books, reports, journals, memos, documents

Tacit – “know-how” typically unwritten– Experiences and expertise gained over time– Insights and observations resulting from

discussion and collaboration– Often most valuable because difficult for

competition to replicate

Knowledge is more than knowingKnowledge develops like a pyramid:

DataData

InformationInformation

KnowledgeKnowledge

WisdomWisdom

Raw & isolated facts

Organized facts, simple rules

Concepts, algorithm

Strategy, heurisitics

Knowledge is more than knowingOverload = Noise:

Business workers are flooded with data and drowning in informationVolume of technical literature is overwhelmingTo read one year of chemistry publication will take 700 yrs.Biomedical literature will take 2200 yrs.

Knowledge is more than knowingWhere is the wisdom we have lost in knowledge?

Where is the knowledge we have lost in information?

Where is the information lost in data?

TS Eliot in his poem “The Rock”

Knowledge is more than knowingOverloaded knowledge workers suffer:

Half of managers can’t cope with data they receiveTwo thirds said they needed high levels of information but believed info was underutilizedCa. 50% felt that acquiring information detracted from their main job responsibilitiesInformation overload lessened job satisfaction

Knowledge is more than knowingExplicit and tacit knowledge:

Physics student can write equation of a ball propelled in space and its trajectory - this is explicit knowledge

Basket ball player knows how to propel into the hoop - this is tacit knowledge - experience, skill & muscle memory

Knowledge is more than knowingEffective knowledge management:

Deals with both explicit and tacit knowledgeWhile explicit knowledge is copied, tacit knowledge is not

Prefer tacit knowledge based projects for sustained success

Knowledge is more than knowingWho do you hire?

Worker who knows how to operate a machine but does pick up new skills?

One who knows how to learn independently but not familiar with the machine?

Your brand of machine will change !!!Skills are easier to acquire than attitude !!!

Knowledge is more than knowingAnother way to look at KM

How group of people make themselves collectively smarter

While training educates individuals, KM educates the entire organization

Knowledge is more than knowingEarly knowledge management system

Beehive - every spring day, hundreds of bees sortie forth in quest of honey. One of the emissaries locates a promising patc, he flies back and does a jig – unique 8 figure dance. This angle of figure 8 tells rest where the patch of flowers are

The Role of Knowledge

The creation, diffusion and use of knowledge have become the vital

ingredient in economic growth and

change. The innovation-driven economy builds upon these

processes. (OECD, 2002)

1. Connectivity is the issue - sharing of info & knowledge will follow

2. It’s a “solution” - must be good for our problems

3. Ubiquity, access, any time, any place is always needed

4. It’s available, I need it

5. We can talk KM with no reference to organizational issues

knowledge management knowledge management mythologymythology

6. If we ask people what they want, they will tell us and we will know what to do

7. KM is corporate information services + an expensive portal + a new VP or CKO

8. We can talk and understand & fully realise KM with no reference to traditional knowledge disciplines

9. KM is now an old, mature concept; there are sophisticated packages available

10. Amazon.com is a bookseller

knowledge management knowledge management mythologymythology

Organizational conditions for KMOrganizational conditions for KM

Trust Confidence Credibility Direct connection knowledge

acquisition/sharing - reward professionals = ambassadors or bosses Systems support

Why manage knowledge

Enables effective and timely decision-making

Fosters creativity & innovation Enhances communication Supports culture of learning, customer-

focus, and moving from “good” to “best”

The Tacit Knowledge Problem

Unique properties of Knowledge Access to people and their ideas,

and expertise Not all knowledge easily codified Trust Community context Peer rating feedback also

important

Managing knowledge

‘Knowledge has become the key to success, it is simply to valuable a resource to be left to chance’ (Wenger)

Knowledge management (KM) is :

‘A trans-disciplinary approach to improving organisational outcomes and learning, through maximising the use of knowledge’

Critical Concepts for KMWhat’s to Manage?

Organisational information

Organisational knowledge

Individual knowledge

A KM interpretation

– Recognizing the value of knowledge in decision making and innovation

– Developing a culture of challenge existing beliefs and ‘ways of doing’

– Embracing new knowledge -use the specialized knowledge of experts

– Looking for patterns and trends in information and processes

Paradoxes of Knowledge

Using knowledge does not consume it but it does get obsolete.

Transferring knowledge does not lose it but market mechanisms allow ownership.

Knowledge is abundant, but the ability to use it is scarce.

Producing knowledge resists organisation.

Much of it walks out the door at the end of the day.

The Challenge of Knowledge Management

Not only of how to develop new knowledge, BUT

how to locate and acquire others’ knowledge how to diffuse knowledge in your organisation how to recognize knowledge interconnections how to embody knowledge in products how to get access to the learning experiences of

customers

looking at key elements

• people• processes• technology

Establish effective information capture and management systems & processes

The KM Journey - the Fivefold Way

Identify/map organisational & individual knowledge capabilities – your knowledge asset register

Codify knowledge where possible, but don’t discard non-codifiable (tacit) components

Nourish a culture that supports and rewards knowledge sharing

Promote individual knowledge development

AND THEY ALL INTERACT!

Intellectual PropertySteady Growth in patents and trademarksLicensing IP as part of smart Intellectual Asset ManagementCase Example: Yet2.com ( recently acquired by Scipher)

http://www.european-patent-office.org/tws/tsr_2000/31demand.htm

What are the challenges?

• attaining understanding & commitment• developing trust across the organisation• addressing the people and cultural issues• not allowing technology to dictate KM• have a specific business goal for KM• quantify the up-front and in-service costs and benefits• measuring performance• considering regulatory requirements, best practices,

guidelines• leadership• integrating KM across the organisation

Who is involved Knowledge management is everyone’s responsibility.• leaders need to demonstrate a vision for the organisation

and actively support knowledge management initiatives• managers need to support knowledge workers and provide

environments conducive to knowledge sharing and creation• knowledge workers need to share knowledge with each

other and ensure that their knowledge management work is visibly linked to organisational objectives

Introduction Innovation is more than a good idea It is the process that takes a good idea,

improves it and implements it.– Purpose – Commitment– Ability– Support

Are we open to new ideas?Is your company open and receptive to new ideas?What happens when someone comes up with an

idea?What sort of reaction do new ideas get form the

rest of the organisation?We tried all that before, It is too expensive,……

Let us see some famous “impulsive remarks”

Famous Remarks On the Microchip:

“But what is it good for?”

Engineer at Advanced Computing Systems Division of IBM 1968

Home PC:

“There is no reason anyone would want a computer in their home”

Ken Olsen, President, Chairman and Founder of Digital Equipment Corp, 1977

Memory

“ 640K is ought to be enough for anybody”

Bill Gates, 1981

Famous Remarks Telephone:

“This telephone has too many shortcomings to be seriously considered as a means of communication. This device is inherently of no value to us”Western Union—Internal memo

Radio“The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular”David Sarnoff’s associates in response to his urgings for investments in the Radio in the 1920’s

Talking Pictures“Who the hell wants to hear the actors talk?”HM Warner, Warner Brothers,1927

Famous Remarks Beatles

“We don’t like their sound, and guitar music is on their way out.”Decca Recording Corporation, rejecting Beatles, 1962

Airplanes“Heavier-than-air Flying machines are impossible”Lord Kelvin, President, Royal Society , 1895“Airplanes are interesting toys but of no military value”Marechal Ferdinand Foch, Professor of Strategy, Ecole

Superieure de Guerre Oil

“Drill for Oil ? You mean drill into the ground to try and find oil? You’re crazy”

Drillers whom Edwin L Drake tried to enlist to his project

Getting Innovation started Innovation is like juggling. The organisation needs to

focus on purpose, commitment, ideas and support Most companies are not short of ideas. What they lack

is the commitment of others, the weight required to overcome the obstacles

Innovation needs people who think in different ways People who are good at problem solving and analysis People who are capable of following hunches and

convert them into ideas People who are capable of implementing them

Innovation will fail if it is left to a creative few

Create thinking space:– What is the best surrounding one likes to think. Try to

bring it into the office ( provided they fit the professional culture)

– Bring in Colour in the meeting rooms

Climb the ladder:Top Rung How do I make the organization more innovative

One rung down How do I Make my division more innovative

Third rung How do I make my team more innovative

Fourth rung How can I be more innovative

Fifth rung How can I implement one new idea?

The idea process

Tools of the Trade-Exploring Brainstorming

– Best in groups– Get the maximum number– Do not evaluate ideas before the session finishes– Clearly stated problem– One person to jot the ideas

Mixing Metaphors– Have something in mind that you want ideas about– Pick an object to use as a metaphor– List all characteristics of the object– Stop and think about each characteristic– If they give any ideas, list them– Use another object if you want more ideas

Acting the Idea process

Selecting the ideas with the greatest potential Developing them further and modifying them Being very clear about the final shape and what it will

look like Well-thought-through Plan for turning the idea into

reality

Walking Back

1. Just imagine

2. Take one step backwards

3. Keep walking backwards or catch it by the tail

Support

Is the key to success of innovation Example: standing in a an election

– Ticket, media campaigns, promotional material, fundraising schemes, volunteers from the party

It is only people you know who will support your ideas

In Politics, the best candidate does not always win, but the best supported candidate

What we should we stop, what we should start andwhat we should continue to do to foster innovation

Support Improve company memory

– Too many good ideas are lost before they see the light of the day

– We should keep a record of the ideas. They may be full of stuff with little value but some gems may be hidden!!!

Give people time Risk taking ability to be fostered People should enjoy the innovation process Networking ability

– Be good at remembering faces and names

– Make yourself available to others

– Ask for help from coworkers and not managers

– Become aware of the informal communication channels

Celebration and Rewards Publicity and celebration of success are key to promote

the innovation process Recognition is the key to motivate the people. Apart from tangible rewards, recognition is also a very

nice way of recognition

If everything is under controlyou are just not driving fast enough