the need of innovation and knowledge as the most valuable asset in the process
TRANSCRIPT
Give your Companya KIC Knowledge
Innovation Change boost
By giving your company a
IknowiT.by
Even though there is less game changing invention according to Robert Gordon, there is much going on about incremental innovation, improving existing product by adding features or miniaturising them. As a result product half life and cycle times are shortening as if launching new products seems to be an olympic discipline. Although every generation had the impression the times they live in were quicker paced than those of their parents we want to look at the issue and what is changing, but also what is needed to be able to react, to get our teams and organisations in gear.
Market Pressure - 3
Where innovation happens - 12Is the startup the holy grail of innovation?Why to cultivate Learning Resources - 20
Build a Corporate Learning and Innovation Capacity - 31Open up to and interact with the environment, exercise empathy and build an infrastructureHow to apply Organisation Innovation and Change needs - 50Link to corporate strategy
ki.
2
http://www.wsj.com/articles/SB10001424127887324461604578191781756437940The Rise and Fall of American Growth: The U.S. Standard of Living since the Civil War (The Princeton Economic History of the Western World). 2016, Princeton University Press.
A lot of attention is given to the need for innovation, the characteristics of innovation and the innovation process. Also, an infrastructure for innovation is to be laid out. Depending on the path taken, it impacts corporate strategy in a certain way. A multitude of elements indicate the importance of availability of knowledge. Increasing education levels signal that more jobs are intellectually based. Shorter cycle times indicate that what is learned is valuable for even a shorter time. Education on the job, intellectual versatility and multi-discipline solutions require more stress on skills and attitude. The ability to learn quickly, exchange views and generate ideas and solutions in a social context using digital platforms is a key element for adapting to the (near) future.
Market Pressure Sector view
Banks were once seen as the most stable organisations by consumers, investors and shareholders. The banking crisis of 2008 proved this stability lower than perceived. A number of established brands and financial institutions disappeared or had to reform. Others required a bail out by their respective governments or were sold out to other more stable companies.On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies. In March 2008, the Federal Reserve Bank of New York provided an emergency loan to Bear Stearns to try to avert a sudden collapse of the company. Bear Stearns was sold to JP Morgan Chase, and stopped using the brand name in January 2010. Merrill Lynch & Co. was acquired by the Bank of America on September 14, 2008, with completion in January 2009.
In Europe similar events occurred. In the Benelux, the Franco-Belgian financial institution Dexia received taxpayer bailouts in 2008. Eventually the retail banking activities were rebranded Belfius. Fortis Bank was broken up after having critical difficulty financing its part of a joint acquisition of ABN AMRO. In October 2008 Dutch government bought Fortis Bank Nederland, Fortis Verzekeringen Nederland and Fortis Corporate Insurance as well as the retail activities of ABN AMRO. The Belgian government took over Fortis Bank Belgium. Shortly there after BNP Paribas took a majority stake in Fortis.
The major international Icelandic bank Kaupthing Bank was taken over by the Icelandic government during the 2008–2011 Icelandic financial crisis. Its strong e-banking international presence and promises for high returns overstretched its capabilities.
In the UK The Royal Bank of Scotland received significant support from the UK government, which, as of August 2015, holds and manages an 73% stake through UK Financial Investments. In Germany Hypo Real Estate was bailed out by the Bundesbank and other German banks in October 2008.
Even before the crisis the standard banking channel model, connecting with customers via a well spread network of branch offices, came under pressure. Reduction of a number of branch offices sat in. Increasing importance was attached, first to in office ATM’s enhanced to self banking terminals and then to internet banking solutions. Currently pressure is on to extend to a mobile customer experience, which also applies to payment methods that will most certainly move away from currently known cash and card (credit and debit). Near field and smart phone technology will take a centre spot in payment.
Stable & Secure - Forget it … Banking - Finance
4ki.
Telecommunications as a new market is much more in tune with the speed of evolution. The sector experienced a shift from its long standing traditional services over land lines to mobile telephony. The next shift, to become a mobile data communication provider, has started.In their short existence suppliers of mobile phones experienced major change and turbulence.Nokia was the major supplier of handhelds to the market in the 1990s and first decade of the 21st century. They were considered the standard or reference in the segment. Volume as indicator of success and longevity is proving to lose it’s importance. Nokia’s mobile division — on the verge of failure — was sold to Microsoft in 2013.
Being a technology forerunner cannot guarantee a long term competitive advantage, certainly not in a fast evolving commodity market such as telecommunications. Palm and Blackberry prove this. They faded away. The Palm Treo was the first popular smartphone on the market, permitting agenda management and writing basic texts. Blackberry was in the 2000s the mobile of reference for business users, gaining market share in the mobile industry by concentrating on email. Their safe communication could not hold up to the ease of use of the newer touch screen smartphones launched by Apple. The iPhone has taken a large part of the market place, although Android phones have the widest spread.In this commodity market price pressure is fierce. Currently Chinese brands enter the market place with cheaper offerings, the majority based on the Android OS.
Stable & Secure - Forget it … Telecommunications
5ki.
92%
in 2015the Apple iPhone had
in 2007 they:
90%
Pipelines, Platforms and the New Rules of Strategy, HBR, April 2016
had
of the industry’s global profits
Others 46%
Huawei
Apple 14%
Samsung 21%
D
LenovoXiaomi
iOS 14%
Android 83%
Windows Phone 2.6% Blackberry OS 0.3%
Others 0.4%
D
Market share
idc.com
These brands were the reference in photography of my youth. When Polaroid was launched, it was revolutionary. Digital photography meant the end to a majority of these brands. The until then stable basis of their business (film), created around 1830, had become obsolete. They disappeared, repositioned on completely different businesses or had to reinvent themselves, although for some this was very difficult and took a long time.In the shadows of the big brands and companies, digitalisation of photography changed: taking photos and sharing certainly became easier. Direct in apparatus feed back, together with dropping prices and diversifying gear made it easier for the amateur or anybody with a smartphone.The professional photographer lost his livelihood: his photoshop. Developing film is something from the past. People buy their camera in a big retail store. Printing pictures is exceptional, often done via specialised website providing specialty templates for producing entire albums. Gone is the charm of picking out photos and composing your life’s album. Sharing pictures via online social media for broader or for more restricted audiences has never been easier. While we had to get together in the past, now we views our friend’s pictures from our own coach using Facebook or another social platform.Since its establishment in 1892, Kodak has become a household name and in some language a synonym for a photo camera. Due to the digitalisation of photography and its slowness in transitioning to this new technology it had to file for Chapter 11 in January 2012. In 2013 it reemerged transformed as a company providing packaging, functional printing, graphic communications and professional services for businesses around the world. Agfa, the German-Belgian counterpart, went through a similar evolution, however was earlier to pick up on the digital revolution and could bank on medical imaging that used traditional film for longer than consumers opting for the cheap potential of digital cameras.
Similar events occurred in the sector of camera makers. All had to transition from film. The Japanese Nikon and Canon are the major players in the market with product ranges accommodating both amateurs and professionals. Even in niche markets, where the Swedish Hasselblad is active, digitalisation changed the market completely. Although it was actively researching digital in 2002 it really made the transition on 2004 by acquiring Imacon. This permitted Hasselblad to hold a major market position in the medium format camera market after 1993 founded Danish leader Phase One.
After having found a way to produce instant pictures, Polaroid had nevertheless to file for Chapter 11 in October 2001. Digital pictures are immediately available as well, making copies of digital source is even easier.
Stable & Secure - Forget it … Photography
6ki.
Stable & Secure - Forget it … Media
Publishing and media, a sector gone mainstream with mass published news papers in the 19th century feels the pressure of digital publishing. The ease of setting up a news or information outlet, using shared platforms such as blogger or Wordpress, makes everybody a potential publisher. Institutional publishers with deep pockets and optimised logistics feel the pressure of micro publications and micro channels.The limited cost related to digital publishing and the availability of tools available for anybody, result in the realisation of the long tail in publishing. Narrow casting to a small target group, with a wealth of choice has become a reality.With digital publishing, not needing a well developed logistics system, distribution is immediate. Collaborative or social copy generation sees to it that these channels provide enough volume to be a source of reference. Mechanism of evaluation and peer review increase quality and trustworthiness, as proven by Wikipedia.Global TV channels, broadcasting following a fixed planned schedule feel the pressure of on-demand channels, where consumers decide on when to watch which content. Subscription services alert the audience on availability of new copy.The multi-channel media will most probably prevail with a specific content mix, adapted to medium, rhythm of publication and target audience. This is illustrated by Newsweek, that relaunched its paper edition as up stream publication parallel to its mainstream digital issue.
7ki.
Stable & Secure - Forget it … Automobile
The automobile sector holds a number of strong brands, some with a prestigious ring to their name. They were known to create good value and margin. In the sector consolidation they were associated with larger groups as Ford or GM. The credit crisis of 2008 left large groups battling for their existence. They were on the verge of failure; chopping off the recently acquired fringe brands, changed the landscape. Chinese investors came on board in Volvo, Landrover and Jaguar. Saab has virtually disappeared and tries to find a new place as manufacturer of electric cars. On the other hand Fiat, once seen as a less valuable brand and weaker player, was able to acquire Chrysler.New niche players are able to obtain good brand value. Tesla initially focusing on luxury electric cars now extends to the mid market. Under pressure of long term durability, critique on the use of fossil fuels and their impact on the environment, they might prevail. However, Tesla’s position might not be that stable in term. Unexpected parties as Google and Apple are looking at the automobile manufacturing as a potential diversification.The self driving car, driven by software, will most probably change the mobility landscape completely. This applies to the delivery services or taxis but certainly also for general traffic and traffic management. Capacity of rush hour traffic will change using self driving cars, as well as the number of parking spots in the city.A self driving car on call using a mobile phone app will not only end the need for drivers but will also push Uber further. They are however beaten by the MIT spin-out active in Singapore nuTonomy.Rent and lease companies as they exist now will have to look for more encompassing mobility offerings. As we understand it now there is a shift from the product, the rented car, permitting the consumer to move around to a mobility service bringing him from A to B in a very customised, on demand way. In the fringe of these evolutions, what will be the impact on public transport? How will multi-modal transport facilities evolve?
8ki.
Being a top player is challenging, the importance of scale and high revenue is a strength. Nevertheless nearly half of Fortune 500 companies dropped from the list.Scale, capacity and capability to innovate in large scale products with important impact on the market is where big companies are in an advantageous position. They have a big capital backup and marketing capacity to launch new innovative products.Small startups realising new ideas or concepts have the advantage of focus, freshness, agility and motivation but they have to win a position on the market. As they continue to gain success with the product or service they have developed and launched they create room for further development of the product and enhancement of their product portfolio, covering an extending part of the market and gaining economic traction with a potential to become a new fortune 500 member. Their disruptive innovation initiatives increasingly overtake the market.
Stable & Secure - Forget it …
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16of the 100 largest companies
anno 1900 still exist
2000-2010:
46%of Fortune 500 dropped
of list
only
Stable & Secure - Forget it … Who’s still out there
In overview, in the Fortune 500 about half of the companies have disappeared. Over about nearly 120 years, only 16 of the 100 largest companies still exist. The majority of the once dominating companies were not able to adapt to new markets, new demand and related organisational requirements. Their market dominance dwindled and they were replaced by new players, more adapted to the needs of the consumer.
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20101965
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7515
Stable & Secure - Forget it … Company Life Span
Not only is the churn within the Fortune 500 list of most successful companies increasing, their average life is shorter. Fifty years ago, the life expectancy of a firm in the Fortune 500 was around 75 years. Today, it’s less than 15 years and declining all the time.https://www.aei.org/publication/fortune-500-firms-in-1955-vs-2014-89-are-gone-and-were-all-better-off-because-of-that-dynamic-creative-destruction/
http://www.forbes.com/sites/stevedenning/2011/11/19/peggy-noonan-on-steve-jobs-and-why-big-companies-die/#1f7ac5d43e57
Between 1965 and 2012, the topple rate
increased by
40%
Average return on assets (ROA) has steadily fallen to
almost
1/4 of what it was in 1965
https://hbr.org/2009/07/the-big-shift-measuring-the-forces-of-change
Where Innovation happens Innovation is changing
Although every generation has experienced its time as exciting and quicker paced than the period known by their parents and grand parents, technological and scientific evolution accelerated from the 1950s on. Developments had their focus waves and resulted in overall wellbeing and the creation of new companies that became household names.Traditional innovation came through inventors transforming an idea into a radically new product or were concentrated at corporate R&D departments. They focused on development of new products representing important investments. Ensuring their effort patents were filed, increasing in volume over time.
Innovation is clearly part of a business strategy based on turning ideas into value. It generally means improved goods, services or processes. It sustains companies’ profitability and growth. Workplaces can provide a fertile environment for interactions leading to innovation only when effective management can ensure that the talents of individuals are being tapped.
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Innovation basis for sustainabilityPatent Count per year
U.S. PATENT AND TRADEMARK OFFICEhttp://www.uspto.gov/web/offices/ac/ido/oeip/taf/cbcby.htm
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Traditionally innovation is measured by the number of patent issued but they cannot measure the full extent of innovative activities anymore.http://www.oecd.org/site/innovationstrategy/45392693.pdf
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New-to-market product innovators with and without R&D, 2004-06Measuring Innovation: A New Perspective - OECD © 2010
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Innovation, diversifying sources
Until the global mass penetration of the internet, focus was on products marketed as mass commodities. Products were launched at their initiative. Initiative was taken mainly by corporate entities having the means of funding big research units. Increasingly organisations innovate without R&D function. R&D budgets shrink, though the rhythm of new product launches is not slowing down.Social interaction on the web created new dynamics. It had an impact on interacting with customers, but recently also on the innovation sourcing and related management processes.Increasingly problem solving is crowd sourced. Solutions pop up from unexpected sources, stressing even more the need for cross-disciplinary approaches to innovation.
14ki.
Research and development expenditure(% of GDP)
World Development Indicators
http://www.oecd.org/site/innovationstrategy/measuringinnovationanewperspective-onlineversion.htm#reaping
Innovation, cross fertilising creativity
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Regional average of PCT patents with co-inventor(s) by location, 2005-07Measuring Innovation: A New Perspective - OECD © 2010
15ki.
http://www.oecd.org/site/innovationstrategy/measuringinnovationanewperspective-onlineversion.htm#reaping
Innovation is a group effort and does not necessarily happen in dedicated departments. It can also come from operational processes where people get together, exchange ideas and work at a common goal. Collaboration outside a specific innovation structure can amount to half, or even more, of the patent output. Imagine all not patent producing innovative initiatives going on in organisation.
of organisations have initiatives to grow via new products/services
http://www.boardofinnovation.com/2015/12/21/actnow/
of new products introduced each year fail
95%
49%of organisations have initiatives to grow via reducing costs
29%
success rates forintrapraneurship projects aiming at innovation:w 10 to 30%https://hbr.org/2013/11/a-new-model-for-innovation-in-big-companies/
Even though innovation initiatives may result out of serendipity a lot of effort is invested in innovation.A large amount of innovation is still organised in dedicated innovation department, however the amount of successful products they produce is astonishingly low. Only 5% make it. Taking into account that only less than a third of companies focus on new products or services for realising growth, innovation is not as fundamental as we would like. To improve the impact of profoundly new introductions in the market place more focus should be placed on achieving success in new product and service launches.
Innovation, really hard work!
16ki.
Getting access to and diversify ideas is key to profound innovation. Extending your reach and scaling the resource pool of skilled people not
caught in the corporate logic is important. Collecting fresh ideas for new or enhanced products or for new methods permits your company to diversify and to grow longer extending the feared one product success. It is in this
place that innovation intermediaries were created. They created platforms for contest or request for proposals, solving a key problem or the creation of an expected potentially successful product. This way they can mobilise
skills, knowledge and competencies beyond the borders of the organisation. Alternatively, companies are installing or investing in
innovations platforms as Spigit or Cognistreamer. They also permit to extend their reach beyond the corporate confines and let them interact
with external parties bringing in ideas from outside the organisation.
the Money & the Ideas
Opening up to Innovation
The creation of idea markets attracting new skilled resources works well for established companies. The individual with a good idea looking to make an idea work and transform it as a marketable product will be looking for funding to produce and launch an idea. Within tight money markets finding money can be difficult. Traditional banks requiring sufficient securities prove to be a problem for the creative individual. Investment models leveraging scale and belief in your idea or product can also be provided through not institutional channels based on a peer to peer model: crowd funding has proven to be successful and accessible for many people. They may extend to micro funding models for innovation.
ki.17
90%
of startups failhttp://www.forbes.com/sites/neilpatel/
2015/01/16/90-of-startups-will-fail-heres-what-you-need-to-know-about-the-10/#f9986db55e19
92%
of startups fail within 3 years
https://www.quora.com/What-percentage-of-startups-fail
Founders that learn are more successful: startups that have helpful mentors, track metrics effectively, and learn from startup thought leaders raise 7x more money and have 3.5x better user growth.74%
of startups fail due to pre-mature scaling
https://www.quora.com/What-percentage-of-startups-fail
Solo founders take 3.6x longer to reach scale stage compared to a founding team of 2
Technical-heavy founding teams are 3.3x more likely to successfully scale with product-centric startups with no network effects than with product-centric startups that have network effects.Balanced teams with one technical founder and one business founder raise 30% more money, have 2.9x more user growth and are 19% less likely to scale prematurely than technical or business-heavy founding teams.https://www.quora.com/What-percentage-of-startups-fail
Innovation, a startup story …
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Innovation, the role of the big corporation
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Firms introducing products new to the market, by firm size, 2010-12OECD, based on Eurostat Community Innovation Survey (CIS-2012) and national data sources, June 2015.
http://www.oecd.org/site/innovationstrategy/measuringinnovationanewperspective-onlineversion.htm#reaping
In general perception small businesses and startups are the breeding grounds for innovation. Big companies are too bureaucratic and risk averse to generate important innovation. When it comes to disruptive innovation, new comers are needed as incumbents focus on existing markets. Still, large organisation have more means and can support larger initiatives, requiring more important investment, complicated processes and follow up with production. They also have the possibility to go for large scale broad targeted change appealing to a large audience.In the current environment large companies introduce remarkably more product to the market even though it may be incrementally innovative.Big companies have proven to be able to innovate, setting up innovation islands, providing time for employees to work on innovative ideas (3M, Google, …) or opening up to innovation input from other sources through collaboration with external parties such as universities, specialised laboratories or welcoming ideas from individuals through innovation portal or by crowd sourcing problems or issues.
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In most OECD countries, between
w50 to 80%http://yourstory.com/2014/08/oecd-entrepreneurship-report/
of large enterprises cooperate with others for product and/or process innovation.
for companies with less than 250 employees
only 20 to 40%cooperate with others for product and/or process innovation.
http://www.oecd.org/site/innovationstrategy/45392693.pdf
According to BTm
Sustained Innovation
results in
9%performance advantage
over its peers
btmcorporation.com
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Innovation, keep your eyes on the ball
Continuous innovation will guarantee a company’s position, sustaining innovation comes from listening to the needs of customers in the existing market and creating products that satisfy their predicted needs for the future in this way they remain connected with their existing customer base, building on existing strengths. It may concern both incremental as major innovation. Evolving products answering demand changes with commitment and at a high pace will guarantee a market position, adapted products and maintain an increasingly precarious and shorter market advantage.As a continuous effort all channels for receiving signals in changing demand should be heard as well as sources and indications proposing improvements or changes to existing products or spin-offs of base products or services. Every actor should be valued. It gives a 9% Performance advantage to your peers.
Go with your learning Resources Learning, Education & Demographics
Changing professions require chances in education
Jobsin-demandTOP 10
2004 2010
Not only are the life and existence of companies unstable, professions are under constant change as well. As new technology appears, new skills are required that result in new job types.The top ten in-demand jobs in 2010 did not exist in 2004. What happens when comparing 2015 with 2004?In the last 10 years a number of new jobs appeared, witnessing changes in society.In terms of education, this means that we are currently preparing students for jobs that don’t yet exist.For people this means that we need to re-skill in order to adapt to a new job for which we were not schooled initially. Permanent learning is both a must and a challenge. Can training programs keep up or do we fall back on our learning skills to keep up with job requirements? Do we need to adopt different learning strategies focusing on skills and competences rather than on knowledge? It is sure that people need to be more self starting and that companies must give room to initiative.
The 10 fastest growing occupations, 2000-2010 (percent change)
http://data.bls.gov
New since 2005http://www.forbes.com/sites/meghancasserly/2012/05/11/10-jobs-that-didnt-exist-10-years-ago/
App DeveloperMarket Research Data Miner
Educational or Admissions ConsultantsMillennial Generational Expert
Social Media ManagerChief Listening Officer
Cloud Computing ServicesElder Care
Sustainability ExpertUser Experience Design
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Medical assistantsComputer systems analysts
Personal and home care aidesDatabase administrators
Desktop publishersNetwork systems and data communications analysts
Network and computer systems administratorsComputer software engineers, systems software
Computer support specialistsComputer software engineers, applications
0 25 50 75 100
Computing capacity and capability are changing employment profiles, not only that they have created new jobs, they will also erase a large number of jobs that were up until recently considered as stable and had a future. In addition to delocalisation and outsourcing, automation will in the near future intervene in services jobs. Implementing advanced algorithms based on big data volumes capable to learn by extracting patterns (AI and intelligent robots) will proof to be the most profitable approach when getting the work done. Creativity, interpersonal skills and high-precision dexterity remain mainly human characteristics that a computer or robot is still not able to substitute. It is estimated that 47 percent of total US employment is under high risk for automation, hitting also the middle classes.According to a McKinsey study, major upskilling will be required for around 50 percent of jobs along the entire insurance value chain.Automation will progressively impact jobs. Whether a job is to be impacted by intelligent machines is a question of time. Legal and social barriers will only delay the impact, not prevent it.The potential to break down activities in small actions and to detect patterns in them is key to the new automation wave. These skills analysing work, data and processes together with individual customisation producing exceptional items outside the commodity offerings will continue to flourish.
47 %
up to
of total US employment is in the
high risk of automation
Enhanced automation impacts on jobs and profiles
http://www.futuretech.ox.ac.uk/sites/futuretech.ox.ac.uk/files/
The_Future_of_Employment_OMS_Working_Paper_1.pdf
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Carl Frey and Michael Osborne of Oxford University
Sylvain Johansson & Ulrike Vogelgesang Insurance on the threshold of digitization Implications for the Life and P&C workforce, European Insurance, December 2015
The share of the population aged 30-34 years who have successfully completed university
is an increase of 10% in 10 years
Eurostat - June 29, 2015
30%of all new jobs in the next10 yearswill require a college degree
The world at work: Jobs, pay, and skills for 3.5 billion people, McKinsey & Company / Richard Dobbs, Anu Madgavkar, Dominic Barton, Eric Labaye, James Manyika, Charles Roxburgh, Susan Lund and Siddarth Madhav, June 2012, http://www.mckinsey.com/insights/employment_and_growth/the_world_at_work.
There are quite some expectations toward education. Not only is the world evolving more quickly than ever, with new professions and skill sets required, we expect people coming from school to be ready to participate immediately in the economic and professional environment.Business processes, concepts and economic environment require increasingly higher levels of education. This is reflected in the output of higher education levels. This expectation for higher educated people is expected to be increasing in the future. Automation and digitalisation of the world shifts volume of work away from physical production to creative and technical professions, requiring higher levels of education.
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Employment rate related to education levelAs a percentage of population in that age group
! Up!to!Secon
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ry!edu
catio
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EU!(27!countries) 52,2 69,7 81,9 30Belgium 47,1 68,5 81,8 35Germany 57,7 76,7 87,6 30United!Kingdom 56,5 75,3 83,2 27Sweden 62,9 80,4 87 24Denmark 60,2 77 86 26Norway 64,8 79,4 89,3 25France 54,7 69,7 81,4 27
Changing education levels support economic evolutions
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In-company training initiatives for competitiveness
Employersare for
38.3%providers of non-formal
education andtraining activities
http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Lifelong_learning_statistics
of the EU28 population aged 25 to 64 participate in
education and trainingfor 2014
http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Lifelong_learning_statistics
10.7%
An evolving market space requires specific skills, often new skills and knowledge. New products and services need to be churned out at continuing faster pace. Technology evolution increases its pace and requires new knowledge, skills and competences from users side but certainly from designers and developers perspective. Assembling of products from existing components increases diversity. Applied knowledge is directly valuable for an organisation. Knowledge acquired in the past and certainly knowledge of the company has not suddenly become useless when navigating the decision ladder in the organisation or leveraging knowledge, skills and experience of other groups and teams. Therefor pulling in or replacing resources having the required skills is not necessarily the easy road to knowledge acquisition. When you want to be a forerunner the necessary resources may not even be available.Employers who want to remain on the main road in the competition game invest in training. Employees who want to be employable over time participate in education and training. It should become a reflex and part of the daily life of both employer and employee to stimulate learning.
7.1
6.8
18.6
5.7
31.7
31.2
28.9
22.2
17.8
17.0
Denmark SwedenFranceBelgium UK GermanyNetherlands
15.8
20.1
7.9
7.8 20142009
38
2007
http://www.abs.gov.au/ausstats/[email protected]/mediareleasesbytitle/BB588D19B45C6E76CA2573B70016EFE2?OpenDocument
Australia
36
30 20082002
http://www.statcan.gc.ca/pub/81-595-m/2009079/participation-eng.htm
Canada
25ki.
as much as
18%of all training is now
delivered through mobile devices
http://www.statista.com/statistics/334266/us-mooc-penetration-by-income/
Presents the share of U.S. online population who have taken or heard of a massive open online course (MOOC) as of January 2014, sorted by income. During the survey period it was found that only 4 percent of the respondents in the income group of 100,000 + U.S. dollars had taken a MOOC whereas 15 percent had heard of it.
http://www.forbes.com/sites/joshbersin/2014/02/04/the-recovery-arrives-corporate-
training-spend-skyrockets/
Training delivery methods evolve
Based on April 2014 World Economic Outlook
https://www.td.org/Publications/Magazines/TD/TD-Archive/2014/11/2014-State-of-the-Industry-Report-Spending-on-Employee-Training-Remains-a-Priority
The whole business environment is changing, resulting in new professions requiring new skills. New content needs to be presented and new materials need to be trained.Pedagogical research has proven that merely presenting or telling the content is not the most efficient way of transferring knowledge. More interactive methods profoundly involving students result in better mastering of skills and remembering of knowledge. The pressure of technology speeds up the product cycle. This also applies for training delivery. Mobile, gamification, MOOCs are recent items on the list of new and emerging eLearning trends. Combining delivery options and more interactive training techniques opens a new world.
The market for learning games is $3.9 billion (2013), and expected to grow to $8.9 billion by 2017
The simulation-based learning market, which includes corporate training games, is expected to grow even more from $2.3 billion in 2012 to $6.6 billion in 2017
The Serious Games market, which Ambient calls game-based learning, will grow from $1.5 billion in 2012 to $2.3 billion in 2017
http://venturebeat.com/2013/08/16/with-a-mobile-boom-learning-games-are-a-1-5b-market-headed-toward-2-3b-by-2017-exclusive/
26ki.
other 15%
self-paced online program 16%
led remotely by instructor 5%
online by instructor 9%
Instructor led in classroom55%
Quick and continuous changes require new learning strategies
Organisational learning can be defined as the process through which organisations change or modify their mental models, rules, processes or knowledge, maintaining or improving their performance. It is the individual and collective learning process that aims to seek new ways of solving problems Learning alters the way in which firms see and understand the world Firms active in international markets generate more knowledge than their counterparts that sell only in the national market. Volume counts, cross-pollination is a factor.
Innovation=Change = Learning
27ki.
Analysts found that organisations with strong learning cultures are
46% more likely to be
strong innovators in their markets
34%
more likely to get to market before their competitors
18% more likely to currently
be a market-share leader in one or more
of their markets
33% more likely to report
higher customer satisfaction than other
organisations
39% more likely to report
success implementing customer suggestions
58% more likely to be
successful at developing the skills needed for meeting
future customer demand.
http://www.bersin.com/News/Content.aspx?id=12521
Innovation is often isolated as a goal to be achieved in order to let an organisation survive. Coming up with new products, services and working methods is important. In an economic world where the competitive advantage of a new product or service is short lived or even non-existent, being quick is important. Coming up with new ideas and observations that permit differentiation depends heavily on the learning capacity of an organisation and its members. The ability to take up new ideas, to search for new concepts and new solutions for problems is a capacity crucial for differentiating and realising a competitive advantage.
Learning leads to competitiveness
28ki.
Gallup’s 2013 - State of the Global Workplace: Employee Engagement Insights for Business Leaders Worldwide
surveyed 140+ countries from 2011 through 2012
13%employees
engagedemotionally invested in and focused on creating value
Not engaged
63%
24% activelydisengaged
87% are not 42% of Companies,
In
The Best Workers AreThe Least Engaged
http://www.forbes.com/sites/susanadams/2013/04/02/in-42-of-companies-the-best-workers-are-the-least-engaged/
In a fast moving world, requiring speedy interaction with market and customers, it’s all about making a difference.In a world wherein the period of competitive advantage is shrinking, eventually coming to virtually zero, speed and clear market understanding is key.Making a difference requires an agile company that needs passionate and engaged people. Quick interaction with customer, supplier and competitors requires motivated and empowered people that are quick on their feet when unexpected events occur. Majority of the professional population in companies declare to be not engaged, don’t feel related to the company, a quarter of them are willing to go against the organisation’s needs. They tend to routine activities, to uphold current practices, according to the set standards. Creating a vibrant and creative organisation may result in the needed creative and reactive organisation. Changing corporate culture to leverage these emotions is an option with margin that requires courage.
Staff Engagement : conditional
an experiment of Oswald e.a. referred in the 2013 UN happiness report
http://unsdsn.org/happiness/
piece rate pay forhappy
+12%more output
research participants
29ki.
At the moment, many organisations make appointments based on applicants’ past performances. But we’ve found that a person’s track record is no longer the most reliable indicator of how they might perform in future.When we asked 800 senior executives in organisations around the world about this topic, 78% told us track record is not the best guide to future success and 87% said companies need to take a bolder, more creative approach.”http://www.changeboard.com/content/4627/leadership-and-management/recruitment/look-beyond-interview-with-james-martin-partner-at-egon-zehnder/
“
30ki.
Knowledge acquisition & HR
78%
past experience is not predictive for
future performance
87%
more creativity in selecting people
Nine out of 10 respondents agreed that companies need to take a more creative and daring approach to leadership development and nearly all believe that personality traits are more important differentiators than skills and knowledge. Two thirds named agility as the most important characteristic, followed by engagement and sight (ranked 52% and 41% respectively).”http://www.changeboard.com/content/4627/leadership-and-management/recruitment/look-beyond-interview-with-james-martin-partner-at-egon-zehnder/
“52%
When preparing for a changing future, it is hard to build on knowledge and experiences built in the past. Competences and attitude are a better predictor of a persons success and achievements.A capability to learn and build on past acquired skills and knowledge will be differentiators for the future.
41%engagementagility
Characteristics sought in a leader by a future oriented organisation
Characteristics sought
31ki.
00" 10" 20" 30" 40" 50" 60" 70" 80" 90" 100"
United"States"
Australia"
EU"27"
Belgium"
Germany"
United"Kingdom"
Sweden"
Denmark"
Norway"
France"
55G64" 25G54" 15G24"
15#24 25#54 55#64United States 45,5 75,1 60,0Australia 60,7 79,8 61,1EU 27 .. .. ..Belgium 26,0 79,3 38,7Germany 48,2 82,8 59,9United Kingdom 50,1 80,1 56,8Sweden 40,4 86,0 72,5Denmark 57,5 82,3 59,5Norway 51,4 84,7 69,6France 29,9 81,3 41,4
Employment rates by age groupAs a percentage of population in that age group
Western European historic Union members are challenged by an ageing population, also in the group of their less and less active older professionals. This societal challenges should reflect in product and services innovation. It is not all about addressing millennials. Baby boomers remain a big group.On the level of work force composition, letting go of senior employees, impacts the knowledge and experience pool of organisations and our economy. Now and in the years to come organisation will be confronted with big parts of their workforce streaming out. Not preparing a workforce transition and knowledge and skills continuity plan will disrupt the organisations functioning and even its existence.Experience is essentially valued with efficiency in mind. It has its value when innovating. Cultivating an atmosphere inviting initiative and creativity invites everybody. Experience should not be seen as an inhibitor of change or innovation. It is an important asset and source of ideas when engaged in lateral and associative thinking set up as a group process and certainly not only when thinking through the negative side effects of a concept. The right mix of participants is key when initiating these initiatives.
0"
10"
20"
30"
40"
50"
60"
70"
80"
90"
100"
Belgium" USA" EU725" EU715" EUROZONE" EEA728"
67+"
55767"
45754"
35744"
25734"
15724"
715"
Experience challenges & Demographics
32ki.
Building a Corporate Learning and Innovation capacity
Innovation Invention=Change
Contextual Change
≠
Urgency - SpeedScope & ContentSource & Drive
Need for survival
New ProductEfficiency
Learning
Innovation often starts as a response to a need or a specific problem. Pro-actively it should enable you to maintain a position, have a well spread offering.Evolution of customer demand, technology and competitor offering is perceived to increase its pace. Capitalising on a competitive advantage for a long term: one should not count on it. It is increasingly difficult to maintain the lead in a particular domain. Market and product advantages are shorter lived than in the known past.Innovating, changing and adapting is a necessity for survival. Contextual changes will drive change and innovation, but more importantly define the urgency, speed and impact of changes required.Organisations should adapt and innovate in such a way they respond to contextual needs and build a product/services portfolio that holds enough diversity on itself but also on the level of individual maturity. A balanced portfolio contains top performers as well as upcoming, promising products and a pipeline of new products, in occurrence requiring a complete turnaround.
Knowledge
Context as driver
34ki.
All Staff Management
TrendsTechnology
DemandCompetition
ConversationIdeation
Idea & Component Search
In some cases an organisation considers itself as a fortress bombarded by external forces or influences. Where innovation was mainly driven by our own insight and direct demand, we are now, mainly due to increasing velocity of innovation outside the own organisation, pressured by innovation and changes of more diverse nature.Being on the forefront of trends, or jumping on the bandwagon on the right moment is a balancing act.More complex products are increasingly under pressure of technological evolutions. IT is increasingly becoming a part of the majority of products or services. IT is penetrating products and markets where it was not perceived as fundamental part of the offering. Working with and integrating information, integrating more intelligence in applications for interacting with user profile data is definitely a trend.The more products are component based, the more competition will engage in a race of including a new feature first. Innovation gets scattered over different parties.Lowering borders and barriers is a pressure with which everybody is or will be confronted. Organisational edges get blurred. One needs to involve more diverse parties in product development and innovation. Working is more delocalised and nomadic. Working relations are increasingly temporary and based on need for expertise of the moment, expressed in an increase in freelancers all over.
Applied Innovation - a responsive process
35ki.
Laying out the borders of organisations is important for construing identity, group feel and cohesion. Culture is definitely an important attribute of organisations. It defines ways of working, behaviour and interaction models that are generally accepted as they were developed over time. Culture contains much knowledge and organisational history. It should however not imply isolation from the global context in which the organisation is active.Resist to or abide to external pressures is often considered the only option available. An organisation goes on stubbornly or simply reacts to external pressure and leads.Building a protective shell might be good, but introduces latency when reacting to customers, needs, demands and market trends as well as evolution in technical possibilities. Insight focus on own functioning and capabilities enforces group thought and focus on internal optimisations.Simply following the market whims leads in extreme cases to a loss of focus, positioning as a laggard and loss of identity.
Trends Technology
DemandCompetition
CustomersPartners
Suppliers
Competitors
Innovation - Organisation - the role of borders
36ki.
New products and services produce revenue when responding to an existing need or when anticipating one. A specific need or demand can only be identified when involving all parties concerned and when they are sufficiently open to new ideas and willing to take the, associated risks.This demands collaboration of everybody, occasionally of external sources. Through the lenses of their position, staff and management see opportunities differently. Intense conversation about opportunities opens views. Broad participation in a diverse team or population permits cross pollination of ideas.Research on understanding the request and available products, services or components lead ideation process. Iterating through ideas, progressively solving errors speedily depends on strong decentralisation in decision making, intense dialogue and participative decision making.Availability of existing knowledge is a condition for further thinking. Continuous learning, adapting and building on existing ideas or products does require more than simple reuse and operating on the existing. Inquiring on new applications or development of new products and services requires inspiration, room for experimentation, empathy for the future user and risk taking. Developing these ideas and launching these products and services efficiently and speedily involves a level of commitment that can only be reached with motivated teams.Challenges for the innovative company are related to the flow of knowledge and information, the commitment of staff to build on the inspiration and ideas, to integrate external ideas and to take the necessary risks while being agile and quick on their feet.
All Staff Management
Conversation
Ideation
Idea & Component Search
Applied Innovation - a collaborative process
37ki.
All Staff Management
Conversation
Creativity, innovation, ideation are definitely intense processes that can yield promising solutions to existing problems. Unlike invention, I am convinced they are gradual and strongly dialectic and interactive processes. Building on proposed ideas and cross pollination are key elements.Opening up to external ideas through the integration of client conversation in the creative processes or by involving external parties like through crowd sourcing, connecting with R&D processes of partners and suppliers or by subcontracting (with strong involvement) to external research institutes call for a more permeate organisational border. Listing skills, observation and interacting with communities, while integrating into the organisation, are pre-conditions for quick evolution and market adaptation or even to anticipate them.Combining open innovation with social marketing and communication are existing concepts that when well-positioned support innovation.
Innovation initiation based on conversation
38ki.
Awareness of market evolution, requires observation, spotting of new trends and evolutions underpinning applied innovations.Observing the market by following social media, engaging in particular and topical social channels, combined with big data analysis, integrating it in a well balanced competitive intelligence process supports and directs the innovation process.The context intelligence group can enhance or nuance the overall conversation going on between internal parties in their global organisational context. They can play a privileged role in the conversation crossing the organisational border. Including upper management in the gate passing through to production guarantees realisation of the innovative ideas.
Initiating Innovation - context intelligence
39ki.
Innovation - a knowledge process
Innovation is about combining data, information, knowledge, insight and understanding of demand and potential of a market demand or application of technology or idea. It is an individual and collective learning process that aims to seek new ways of solving problems. Innovation performance is a function of organisational learning capability. Therefor we have to build on the knowledge that is available, combine it in other ways than before, exploit the knowledge we have and extend it with new sources. So it is critical to grow team member diversity, foster openness to ideas, and encourage communication. The main assets are the employees, who are motivated, flexible, enthusiastic and creative, networking in a diverse social network and creative communities. The more knowledge a firm has gained through intensive learning efforts, the more willing it will be to utilise and exploit this knowledge through subsequent activity
40ki.
Innovation is a knowledge process
Defining a knowledge infrastructure
Depending on the level of breakdown or granularity, knowledge can be reduced to data, rules or content. Contextually imbedding creates added value, letting human actors to focus on what they are good at. The implementation builds on knowledge elicited from experience available.Knowledge can be made insightful, explicit and/or embedded in processes, structures, or specific software solutions. These elements are activated. Alternatively knowledge is made explicit in documentation for reference.As APQC research shows, the human aspect of knowledge management is often forgotten. Conversation and human relationships are key to innovation and creativity, but unstructured and hard to control processes.
Peo
ple
Process
Tools
Con
tent
42ki.
Rules & Regulations
Learning systems
Rules extraction
Topical Summary Pages
Building a knowledge architecture
Methodology
Frequently Asked Questions
Selected threads
Selected best practices
Case based info
Conversation
Demographic enhancement
Analytics (BI & Big Data)
Transactional Data
Social & Knowledge network
Discussion Thread overview
Specialist Directory
In general when considering knowledge management one thinks of formally documented explicit knowledge . This traditional entitative view on knowledge management results in a countable set of knowledge assets, possible to budget. Setting targets on accrual is definitely an asset in an ongoing management setting.Extracting knowledge from data collected in the past is a valuable source of knowledge. This certainly applies to data intensive transactional environments. When enhanced with extended demographic data or even sentiment analytics on social media, you can obtain insight in opinions, demand and market structures and potential trends. When reconstructing decisions, patterns are formed that may enable us to construct rules or feed learning systems.This however ignores the huge potential of more valuable though hard to obtain and detect knowledge hidden in our social networks, communities or highly experienced people (deep smarts).Building a highly valuable knowledge architecture taps all different sources of knowledge available in the corporate ecosystem. Apart from the well known documentary sources, knowledge - and certainly inspiring creativity - is highly implicit or tacit. Only through conversations that span domains and time it can be mined.
43ki.
Building communities
Practices
Interests
Units Customers
Partners
Suppliers
Conversation Communities bring together people, foster and generate ideas. They should also bring a variety of people together. They focus on themes, on practices, or (role)groups. Really enriching ideas are obtained when getting input from outside of the in-crowd.Communities concentrate on energising participation, however do not expect everybody to interact with the community with the same intensity. Observers or lurkers may profit from ideas, bring them to practice. Active involvement is triggered when the need for it is felt, when there is something valuable to report according to your opinion.A community or social network attracts members and maintains its traction when enough is happening in the group. A rhythm structures the life of the community. Exceptional (attractive) events attract members and bring them together giving something to talk about.Most useful ideas and community dynamics start off in the safety of private interaction. Therefore, aside the public forum it should provide room for private interaction.
44ki.
Building blocks a knowledge infrastructure
Focuses on development of Human Capital in a context of HR politics and strategy of the company.In a global context of performance improvement of human resources, retention policy and personnel development, specific knowledge management tracks are identified. They leverage and facilitate informal, implicit knowledge available in a formal or virtual organisation.
Focuses on processes, procedures and best practices for creating, publishing and managing content of any kind created in an organisation or company.Content created may be the primary focus of the process or secondary to it as where business processes produce content, mostly documents, to witness conclusions and materialised transactions conclusion to be communicated with parties involved.The knowledge managed in this track is formal, explicit and thus the product of explicit or implicit knowledge elicitation.
Focuses on formalising, imbedding and automating complex decisions part of core business processes.Quite a number of decisions taken in business are founded on participants knowledge and experience. Improving consistency and speed of execution is an argument for imbedding knowledge in business applications and processes. Resulting knowledge elicitation projects are mostly triggered by important company milestones and evolutionary pressure (mass retirement of core staff, external market pressure resulting in high staff turn-over, …).
Focuses first of all on data consolidated based on internal sources. They are summarised in business reports and models permitting to evaluate performance (process, financial, …) and consequently guide improvement and re-engineering projects.
45ki.
Compe
tence
Man
agem
ent
Network
ing Kno
wledge
Commun
ities o
f Prac
tice
Team Colla
borat
ion
Learn
ing M
anag
emen
t
Knowled
ge Obs
ervato
ry
(exter
nal so
urce)
Docum
ent M
anag
emen
t
Digital A
sset M
anag
emen
t
Record
s Man
agem
ent
Publish
ing & Com
munica
tion
Busine
ss Sem
antics
Busine
ss Proc
ess M
anag
emen
t
Busine
ss Rule
s Man
agem
ent
Artificia
l Intell
igenc
e & Dee
p Lea
rning
Big Data
Data W
areho
using
Busine
ss Int
ellige
nce
Report
ing
Trend
Analys
is & Pred
iction
1 2 3 4 5 76 8 9 10 11 12 13 14 15 16 17 18 19
DataPeople
Informal/Tacit Knowledge Formal Knowledge
Findability EnhancementAutomation & Robotisation
A B C D Performance MgmtEmbeddingContent MgmtHuman Capital Mgmt
Digitalisation
Most programs focus on institutionalising KM initiatives, laying out an organisation structure, team and management.Everybody potentially involved has to be profoundly convinced of the value of knowledge for the organisation. Support and endorsement of management and leadership is important, success depends however largely on a growing pervasiveness of the idea and on engagement and involvement of a critical mass. People have to get active in identifying knowledge artefacts, elements and triggers. Pro-actively submitting content or initiating and participating in conversation depends largely on commitment, feedback and on being valued for ideas.In addition the initiative will only be integrated in the organisation when added value is clearly generated and communicated and more importantly when knowledge generation and use are part of the daily business process, in the stream of business life. It should not be an administrative afterthought, a mere formality to be fulfilled.
Implementing a knowledge infrastructure
46ki.
Organisation Strategy Statement
Organisation Evolution mid & long term
Positioning existing and future (short & mid term)
Services Portfolio
Knowledge Overview
Inventory available Knowledge
Knowledge Fit-Gap Analysis
Inception & Familiarisation on Context faze
Knowledge Requirements Definition faze
Knowledge Strategy Definition faze
Merger/Acquisition
Acquire/buy research
Acquire consult
Buy documentation
Hire staff
Apply 3rd party knowledge
Adopt knowledge other domains
R&D
Develop methodology
Analyse own data
Share knowledge cross domain
Apply existing knowledge
Aggressiveness
Exploit
Explore
Intern ExternOrientation on the knowledge source
Orie
ntat
ion
on a
cqui
sitio
n Crowd Source
Open Innovation
Knowledge Acquisition Strategy
Knowledge Development & Acquisition Road Map
Knowledge Management Road Map
Get the organisation to learn
Workplace learning, both formal and informal, is acquiring increasing importance in the education and training of workforces. Workplace learning enables individuals, employers and organisations to respond to the changing nature of economic activity. It helps improve efficiency and productivity, and it meets the personal and career development needs of individuals. Supporting and valuing a culture of learning in the workplace is important because ongoing learning is needed to survive at a time of increasing competition, with positive consequences for workers' well-being and individual learning. Moreover, with the aim of skilling and upskilling employees for continued employability, organisations can play a vital role in promoting the quality of work life.
From a group perspective we progress more when getting an organisation to learn profoundly through questioning the trigger of the need for change, rather than adapting and accommodating. Profound or second loop learning involves questioning an organisation’s underlying norms, policies and objectives. It is more creative and reflexive.
47ki.
Transform to a knowledge driven innovative organisation
break down organisational barriers and silos as they encourage people to isolate from other groups and narrow group think in a logic of competing or opposing teams and unitsinteraction with the external environment will permit monitoring of what lives with customers, partners and suppliers. It gives direction to the innovation, enhancing internal & external learning. This brings fresh ideas to the table creates, cross pollination with existing and potential users/customers, while also having an eye on the own efficiency and effectivityteam member diversity brings ideas ands skills to the table that cannot be expected from an individual. Design practices, teams and organisations promoted by the likes of Ideo are build around interdisciplinarity to come quickly with complete prototypesopenness to ideas - even the less obvious ones - will trigger out of the box thinking and lateral problem solvingin the line, encouragement of communication make up the dialogue dimension
In order to leverage company knowledge and the potential for innovation a number of pre-conditions are to be fulfilled:overall engagement of employees to guarantee that all take a pro-active stance, profit from the conditions created in the environment and join in the conversationdecentralisation in decision making to loosen up the control based hierarchical structure and increase velocity encouraging engagementdialogue and participative decision making will assure involvement of organisational leadership and idea enhancementencourage risk taking and promote error tolerance and thus encourage taking initiatives and not to shy away from new practices and retract in established routinespush experimentation so to have quick confirmation on the validity of an ideasocial relations and reinforcement of social fabric will leverage talents available in the organisation and thus cross fertilise generating ideas through confrontation of complementary or conflicting practices and ideas
48ki.
An adaptive and generative spirit are key conditions for a learning and innovative organisations. Learning alters the way in which firms see and interpret the world.Complex adaptive systems are composed of semi-autonomous agents that seek to maximise fitness by adjusting interpretative and action-oriented schema while complex generative systems are able to self-transcend.
Organising for a knowledge driven innovative organisation
49ki.
Regardless of impact, innovation can be internal or external oriented, improving process efficiency or enhancing products and services directed to customers.Consequences of the type of innovation differ. An incremental innovation builds upon knowledge and resources already present in the company, which means it is competence-enhancing. A radical innovation, on the other hand, requires completely new knowledge and/or resources, and will therefore be competence-destroying.
Consequences of innovation type for the organisation
Radical innovation Feature Enhancement Process Optimisation Inductive/Emergent/ Disruptive Innovation
Incremental Innovation
Innovation can have a more or less radical impact. Some situations require a turn around. Positioning in another market is certainly a shock and requires an important change. Nokia has proven it is possible. Harsh drop in demand for a basic product may need to radically reposition a company, to reinvent itself.Majority of innovation consist of enhancements on a running product. Adding features, changing a design or implement technology enhancements are majority of innovations and product changes. It builds on existing knowledge and skills and sustains market position.
50ki.
Road Bump Oscillation Natural Growth Sustained Development
Adapt change approach …
Feature Enhancement Process Optimisation
Both process optimisation and product feature enhancement result in incremental changes in the
organisation. It gives a ring to it, asking an effort to come up with and integrate the new features or optimised processes in the daily routine. Small changes occur
regularly.
As an Inductive/Emergent/ Disruptive Innovation process it may be driven by anybody in the organisation, detecting a shift in demand and concerned with the well being of the organisation he is working in. He/she brings the opportunity or challenge to the attention and triggers an initiative of adaptation.
A crisis is detected, a shock needs to be applied. The change will be forced, imposed upon the
organisation. A strong leader shows the way. The change is planned and implemented as a project.
Once the hurdle is taken, a return to normal business occurs.
51ki.
Establish continuous change
Engagement
Conversation
Trust Vision
Once the organisation is adapted to new circumstances, staying aligned is the next challenge. Avoid the change road bumps, that will present themselves regularly in a rapid changing environment.A dynamic organisation, that is responsive to changing circumstances and agile turning will be built on engaged teams, willing to take initiative and experiment supporting competitiveness. This can only happen in a trusting environment where one is valued and ideas are taken on in conversation.The context in which to work is defined by a solid long term vision, not bound by the concrete situation of the times we are set in or by running products.
52ki.
Apply Organisation Innovation and Change Needs
Context & Vision
Overall & Product Performance
Knowledge Need
Company Culture
Innovation Approach
Process Performance
1 2 3 4 5 6
Getting Ready Assess the current situation
In the knowledge need assessment we evaluate the knowledge need and availability in context of the laid out strategy and vision
Is the company culture in line with the ambition laid out in the vision and in line with the organisational and economical context
Processes, well-structured or more liberal have to be at parr with the organisation’s context, competitors and ambition
How is the products and services portfolio composed? How does the competitive landscape look? Who are the competitors? Are strategy and tactics in line?
Evaluate the products and services portfolio on its financial performance. Overall sales volume, margin; portfolio evolution through time
Evaluates your innovation capabilities and performance looking from an idea generation, creativity, organisational and process point of view
54ki.
Corporate PerformanceProcess Performance
Market Positioning
Company, Market & Product Vision
Corporate Culture
Innovation Approach
Knowledge Need
Individual Product Performance
Breakwith the past
Disruptive Innovation & ChangeEvolve
from the pastBuilt on existing capacity and develop
Blend in new concepts
Leverage & Combine with external sources
Market Situation
Your Company
Defining your company evolution
The way into the future and the roadmap to be defined depends strongly on the market position to be acquired. Do you want to lead or to focus on commodity production? Combined with data about current and near future position measures are defined with attention on the needed knowledge, innovation and change approach to get there.This might mean:Break with the past and reinvent your company, lay out a new product portfolio, transform resource catalogue, knowledge collection and culture.When one decides on building and developing based on existing positions, updating underlying resources and product portfolio is your best optionIn other cases combining and enhancing your offerings my require to blend in knowledge and ideas from other sources, opening up to the needs of customers and ideas of partners and suppliers. A related culture is to be constructed while levering knowledge from different sources.
55ki.
Break with the past Disruptive Innovation & Change
56ki.
Occasionally an organisation is forced into transformation, a turn around. Conditions have changed, the market you’re in is coming to an end. Re-inventing yourself by looking for, or creating a new product or services portfolio or changing from a product to a services organisation requires strategic change.Define a new portfolio, go to market approach and positioning will require new competencies and a staff turn around. Can resources be retrained to fit the new business (model) or do we engage new teams? This evaluation has important impact on the company and more importantly on the people staying on board.Inspiring or imposing the turn around will be a challenge and requires forced, speedy and important change. Sharing vision and direction, intensely communicating about it, not only by sending the message but engaging into communication continuously is required.
Knowledge Sourcing Strategy
Position Assessment
Portfolio Definition
Talent Acquisition & Development plan
Go2Market
Business Model Generation Alexander Osterwalder & Yves Pigneur
Opportunity Detection
Development Capabilities Demand Evolution
Change Roadmap Definition
Transformation Execution Training
Communication
Sourcing
Partner
Embed
Permanent Sourcing
Temporary Sourcing
Platforms & Support
Processes
EssentialRepositioning ActivelyDisengage
Evolve the past Build on existing capacity, develop and adapt
57ki.
Building a capacity of sustained innovation and adaptation requires sufficient openness and absorptive capacity, resulting in a sustained competitive advantage.Engaging staff is key, they all need to participate in idea generation, creativity and market watch. Detecting opportunities and launching communication about changes and request in the global market place or (technical) opportunities to increase performance and efficiency require initiative and responsiveness from all. Picking up the idea, analysing it, experimenting with it and proposing new processes, products and services should be encouraged. It leads to the creation and mining of new markets or may affect the go to market strategy or tactics. Being ready to change the product portfolio continuously and quickly has to be part of the organisation’s cultural DNA.
Rapid ProductInnovation RadicalCommoditisation
Market Watch Trend Analysis Mood Analysis Competitive Analysis
Detect Opportunities
Research & Development plan
Listening & Conversation plan
Knowledge management & development plan
Social Network leverage
Knowledge Curation
Talent Inventory & Development plan
Culture & Innovation Attitude development
Blend in new concepts Leverage & Combine with external sources
58ki.
Rapid ProductInnovation
Market Watch Trend Analysis Mood Analysis Competitive Analysis
Detect Opportunities
Establish partnershipsfor Research & Development plan
Listening & Conversation plan
Integrate Knowledge Sourcing Strategy
Innovation focus
Mix & Match Architect value added solutions
Knowledge Curation
Knowledge Exchange
Speeding up innovation and increasing opportunity detection capacity is certainly achieved when more parties participate constructively in the conversation. Tapping creativity from different origin and perspective enriches idea generation and development processes. This will result in mixing and matching knowledge, experience and perspectives. On another level it permits the combination of solution components from different sources and origins, they may be existing or new or combining in new end products.Setting up partnerships with a high level of trust and security for all parties. This framework will assure that the information and knowledge can be exchanged and shared freely.
Social Network leverage
ki.
EssentialRepositioningActively
DisengageRapid Product
InnovationRadical
Commoditisation
Business Model Generation Alexander Osterwalder & Yves Pigneur
New Product Catalog
New Company Organisation
Establish Key Thresholds
Evaluate performance portfolio
Weed portfolio
Scout options & needs
Evaluate feasibility
Design & produce
Launch
Push standardisation & reuse
Analyse cost structure
Eliminate overhead
Update process
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Adapt from a product point of view
