innovation & km
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INNOVATION & KM
D o d i e T
r i ca h y o n o ( d t r i c
a h y o n o @ y a h o o . co m
Institut Manajemen Telkom 2013
d o d i e t r i
Creativity....in general, this is the production of new
ideas or combining old ideas in a new way. It is also
the main driver for innovation.
Innovation....this is the transformation of a new idea into a new product or service, or an improvement in organization
or process.
‘the spark of innovation is not in what we do, but in how we do it.’
Tom Kelly, author of The Art of Innovation (2001)
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ACCORDING TO SCHUMPETER (1934)
Innovation is the introduction of new elements or a new combination of
elements in the production or delivery of manufactured an service products.
New product/serviceNew processNew organization/managementNew delivery/distributionNew marketNew raw material
ProductProcessManagement
Principles of Innovation (Peter F. Drucker)Purposeful, systematic innovation begins with the analysis of the
sources of new opportunity. Because innovation is both conceptual and perceptual, would-be
innovators must also go out and look, ask, and listen. … They look at figures. They look at people. … Then they go out and look at
potential users to study their expectations, their values, and their needs.To be effective, an innovation has to be simple, and it has to be
focused. It should do only one thing; otherwise it confuses people. … Indeed, the greatest praise an innovation can receive is for people to say, “This is obvious! Why didn’t I think of it? It’s so simple!” Even the innovation that creates new users and new
market should be directed toward a specific, clear, and carefully designed application.
…… the successful innovation aims from the beginning to become
the standard setter, to determine the direction of a new technology or a new industry, to create the business that is--and remains--
ahead of the pack.…, innovation is work rather than genius. It requires knowledge. It often requires ingenuity. And it requires focus. There are clearly
people who are more talented as innovators than others, but their talents lie in well-defined areas.
The opportunities exist in such areas:• Unexpected occurrences• Incongruities• Process needs• Industry & market changes• Demographic changes• Changes in perception• New knowledge
S O U R C E S O F I N N O VAT I O N ( P E T E R F. D R U C K E R )M O S T I N N O VAT I O N S , H O W E V E R , E S P E C I A L LY T H E S U C C E S S F U L O N E S , R E S U LT F R O M A C O N S C I O U S , P U R P O S E F U L S E A RC H F O R I N N O VAT I O N O P P O RT U N I T I E S , W H I C H A R E F O U N D I N O N LY A F E W S I T U AT I O N S .
Within a companyor industry
In social & intellectualenvironment
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Inno-vatio
n
Paradigm (mental model)
Position
Product (service)Process
Innovation Space (Tidd, Besssant, & Pavitt, 2005)
Incremental...radical Incremental...radical
Incr
emen
tal..
.radi
cal
Incr
emen
tal..
.radi
cal
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DEGREE OF NEWNESS
RadicalIncrementalImitative Really New
Discontinuous
Market
Technology (R&D)
Incremental Radical
New Architectural Innovation
Major product innovation
Existing Incremental innovation
Major process innovation
TYPES OF INNOVATION
Product versus Process Innovation Product innovations are embodied in the outputs of an
organization – its goods or services. Process innovations are innovations in the way an
organization conducts its business, such as in techniques of producing or marketing goods or services.
Product innovations can enable process innovations and vice versa.
What is a product innovation for one organization might be a process innovation for anotherE.g., UPS creates a new distribution service (product innovation) that enables its customers to distribute their goods more widely or more easily (process innovation) 14
TYPES OF INNOVATIONRadical versus Incremental Innovation
The radicalness of an innovation is the degree to which it is new and different from previously existing products and processes.
Incremental innovations may involve only a minor change from (or adjustment to) existing practices.
The radicalness of an innovation is relative; it may change over time or with respect to different observers.E.g., digital photography a more radical innovation for Kodak than for Sony.
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TYPES OF INNOVATIONCompetence-Enhancing versus Competence-Destroying Innovation
Competence-enhancing innovations build on the firm’s existing knowledge baseE.g., Intel’s Pentium 4 built on the technology for Pentium III.
Competence-destroying innovations renders a firm’s existing competencies obsolete.E.g., electronic calculators rendered Keuffel & Esser’s slide rule expertise obsolete.
Whether an innovation is competence enhancing or competence destroying depends on the perspective of a particular firm. 16
TYPES OF INNOVATIONArchitectural versus Component Innovation
A component innovation (or modular innovation) entails changes to one or more components of a product system without significantly affecting the overall design.E.g., adding gel-filled material to a bicycle seat
An architectural innovation entails changing the overall design of the system or the way components interact.E.g., transition from high-wheel bicycle to safety bicycle.
Most architectural innovations require changes in the underlying components also. 17
A FRAMEWORK FOR INNOVATIONCORE CONCEPTS AND COMPETENCIES
HO
W L
INK
ED
INCREMENTAL MODULAR INNOVATION
ARCHITECTURAL INNOVATION
RECONFIGURATIONOF COMPONENTS
NEW INTERACTIONSAND LINKAGES
RADICAL INNOVATION
Reinforced Overturned
Unc
hang
edC
hang
ed
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THREE DIMENSION OF INNOVATIVENESS
Innovation ManagementEncourage Implementati
onProfitCompetitiv
e Advantage
Creativity
Human/talentWikicapita
lCulture
Incentives Financ
e System
R&DNetworks
Value added
LearningLearning Learning
From Ideas to Profit
Beware of the bounded mentality! “While innovation can occur by serendipity, sustainable innovation from which
collaborative and competitive advantage emerges, needs a systematic and effective management approach based on knowledge and learning” (De
Sousa, 2006: 398)
There are core rigidities to consider........
So,...we are learning and at the same time ....unlearning.
Knowledge Management is an Organizational Capability that allows an
individual (knowledge worker) within a firm to add value by creating, capturing, and
leveraging knowledge objects.
VC (individual w KM) > VC (individual w/o KM)
Unlike other resources that get depleted with use and
follow
the law of diminishing returns, the knowledge bank gets
constantly renewed and enriched with use by
knowledge worker.
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THE D, I, K, W QUARTETData as everyone knows is discrete content and does not make much sense by itself.
Information is processed and collated data.
Knowledge is highly contextualized information enriched with individual interpretation and expertise. Knowledge lives in its context.
Wisdom is in different realm altogether with profundity born out of intuition and deep insight being the key pre-requisites.
DATA INFORMATION KNOWLEDGE
Add Value by: Transformed by:AnalysisCorrelatingSummarizing
ContextualisationExperienceInterpretationDiscussion
KEY PROCESSES OF KNOWLEDGE MANAGEMENT
Knowledge Generation includes:
Knowledge acquisitionKnowledge synthesisKnowledge creation
Knowledge Storage (or K-codification) includes:
Determining the knowledge typology
Knowledge captureMaintaining the knowledge
basesCreating knowledge maps
Knowledge Utilisation includes:
Knowledge dissemination and sharing
Knowledge Store Knowledge UtilisationKnowledge Generation
Knowledge Spiral
Knowledge Typology
Tacit Knowledge Explicit Knowledge experiental & localized available in some in people heads documented formThe other classification are: • General or Context Specific Knowledge • Individual or collective knowledge • declarative (knowledge about), procedural (know
how), causal (know why), conditional (know when), & relational (know with)
• process, factual, catalog, & cultural
Database Info-base Knowledge-bases
K-Bases: Information + Inter-relationship + Context Infobase + Advanced search capabilities
Knowledge Transfer
Tacit/Individual
Tacit/Group
Explicit/Individual
Explicit/Group
Articulation
Combination
Internalization
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THE JANUSIAN ORGANIZATION
Finds way to satisfy existing customers
Actively explores unmet or unknown consumer needs
Hires the best and brightest people it can find
Finds new ways to motivate, retain, and
develop peopleContinuously improves its processes, products and
services
Invents fundamentally new processes, products and
servicesFocuses on day-to-day operational excellence
Focusses on long-term future strategies
Creates a climate in which innitiatives can be taken to
do things better
Creates a climate in which things can be done
differently
A MODEL FOR CREATIVE LEADERSHIP
Focu
s on
Ta
sks
Focus on People
CHANGE
Leading on the edge of chaos
Leadership practices and
strategies
Management
competencies
Management Concerns.....Concerns of the new business
Concerns of the mainstream business
Innovation ControlRisk taking PredictabilityMarket acceptance
Operating efficiency
Sustainability Profit margins
Integrated view of organizational innovation
Creativity in OrganizationIndividual Team
Organizational Innovativeness
Capacity to
innovate
Competitive advantage and performance
Structural and process characteristics
Organizational Innovation
Feedback & Reinforcement
Organizational Learning Capability
Emotional Dynamics
Other cultural aspects
Cultural/climate characteristics
Creative Environment
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Q & A
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