Innovation & Knowledge Management

Dr. Siddhan Clariant - Colour-Chem Ltd. Thane

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

If we dont 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 to invent 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?

Market Pull

Inno vations

Technology Push

Society demand

Main focus: Innovations based on own technologies and on market knowledge

Main focus: Innovation trends backed by governmental funds and regulations

What innovation model to be used?

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

R&D Knowledge Management

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

New Business Development

New business opportunities Multidisciplinary R&D projects Start up projects

Intellectual Property
IP Strategy IP Tactics

Thinking provides knowledge, Knowledge makes you great.

Dr. APJ Abdul Kalam Honorable 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 knowing

Knowledge develops like a pyramid:

Wisdom Knowledge Information Data

Strategy, heurisitics Concepts, algorithm Organized facts, simple rules Raw & isolated facts

Knowledge is more than knowing

Overload = Noise:
Business workers are flooded with data and

drowning in information Volume of technical literature is overwhelming To read one year of chemistry publication will take 700 yrs. Biomedical literature will take 2200 yrs.

Knowledge is more than knowing

Where 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 knowing

Overloaded knowledge workers suffer:
Half of managers cant cope with data they

receive Two thirds said they needed high levels of information but believed info was underutilized Ca. 50% felt that acquiring information detracted from their main job responsibilities Information overload lessened job satisfaction

Knowledge is more than knowing

Explicit 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 knowing

Effective knowledge management:
Deals with both explicit and tacit

knowledge While explicit knowledge is copied, tacit knowledge is not

Prefer tacit knowledge based projects for

sustained success

Knowledge is more than knowing

Who 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 knowing

Another 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 knowing

Early 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)

knowledge management mythology

1. Connectivity is the issue - sharing of info & knowledge will follow 2. Its a solution - must be good for our problems 3. Ubiquity, access, any time, any place is always needed 4. Its available, I need it 5. We can talk KM with no reference to organizational issues

knowledge management mythology

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

Organizational 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, customerfocus, 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 KM Whats 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

The KM Journey - the Fivefold Way Establish effective information capture and management systems & processes Identify/map organisational & individual knowledge capabilities your knowledge asset register
Codify knowledge where possible, but dont discard

non-codifiable (tacit) components Nourish a culture that supports and rewards knowledge sharing Promote individual knowledge development AND THEY ALL INTERACT!

Intellectual Property
Steady Growth in patents and trademarks Licensing IP as part of smart Intellectual Asset

Management Case 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 everyones 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 UnionInternal memo Radio The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular David Sarnoffs associates in response to his urgings for investments in the Radio in the 1920s Talking Pictures Who the hell wants to hear the actors talk? HM Warner, Warner Brothers,1927

Famous Remarks
Beatles

We dont 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? Youre 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

The idea process

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 One rung down Third rung Fourth rung Fifth rung How do I make the organization more innovative How do I Make my division more innovative How do I make my team more innovative How can I be more innovative How can I implement one new idea?

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 and what 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 control you are just not driving fast enough