Innovation

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Innovation Knowledge Management

• Dr. SiddhanClariant - Colour-Chem Ltd.Thane

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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

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

• Catherine II (the Great)
• Empress of Russia

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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

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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.

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What is Innovation?

• Innovation means renewal or alter
• Prerequisite for innovation is the
  dissatisfaction with the current status and an
  inquisitive mind

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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

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Demonstrated creativity examples

• George de Mestral's observation of how cockleburs
  attach to clothing leading toinvent the
  hook-and-loop fastener known as Velcro
• Art Fry's development of Post-It removable notes
  at 3M Corporation in 1974 Dr. Spencer Silver,
  another 3M scientist, had developed a polymer
  adhesive that formed microscopic spheres instead
  of a uniform coating, and thus was a poor
  adhesive that took years to set

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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

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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, ...

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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.

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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.

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What are innovation drivers?

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What innovation model to be used?

Innovation RD Strategy
RD Knowledge Management

• Innovation and RD strategy
• Strategic areas and technologies
• Innovation pipeline
• New technologies

• Technology teams
• Cooperations (Universities, Institutes)
• Innovation Forum
• People exchange
• IT Systems RD

New Business Development
Intellectual Property

• New business opportunities
• Multidisciplinary RD projects
• Start up projects

• IP Strategy
• IP Tactics

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Thinking provides knowledge, Knowledge makes you
great.

• Dr. APJ Abdul Kalam
• Honorable President of Indiafrom annual address
  at Saurashtra University, Rajkot, Gujarat

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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

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Knowledge is more than knowing

• Knowledge develops like a pyramid

Wisdom
Strategy, heurisitics
Knowledge
Concepts, algorithm
Information
Organized facts, simple rules
Data
Raw isolated facts
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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.

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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

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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

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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

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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

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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 !!!

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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

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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

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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)

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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

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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

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Organizational conditions for KM

• Trust
• Confidence
• Credibility
• Direct connection knowledge acquisition/sharing -
  reward
• professionals ambassadors or bosses
• Systems support

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Why manage knowledge

• Enables effective and timely decision-making
• Fosters creativity innovation
• Enhances communication
• Supports culture of learning, customer-focus, and
  moving from good to best

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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

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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
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Critical Concepts for KMWhats to Manage?

• Organisational information

• Organisational knowledge

• Individual knowledge

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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

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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.

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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

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looking at key elements

• people
• processes
• technology

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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!
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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)

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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

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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

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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

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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

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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

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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

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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

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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

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

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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

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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
• Just imagine
• Take one step backwards
• Keep walking backwards or catch it by the tail

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Support

• Is the key to success of innovation
• Example standing in a an election
• Ticket, media campaigns, promotional material,
  fundraising schemes, volunteers from the party
• It is only people you know who will support your
  ideas
• In Politics, the best candidate does not always
  win, but the best supported candidate
• What we should we stop, what we should start
  andwhat we should continue to do to foster
  innovation

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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

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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

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If everything is under controlyou are just not
driving fast enough
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Thanks