Innovation & Knowledge Management

1. Innovation & Knowledge Management Dr. SiddhanClariant - Colour-Chem Ltd.Thane

2. Why this topic when we talk of Challenges to Indian MNCs ?If we don’t manage creativity and innovation in the areas of Intellectual property, technology & distribution, India will be challenged in the market place

3. A great wind is blowing and that gives you either imagination or a headache. Catherine II (the Great) Empress of Russia

4. 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

5. 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.

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

7. 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

8. 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

9. 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

10. 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, ...

11. 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.

12. 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.

13. Market Pull Innovations Technology Push Society demand Main focus: Innovations based on own technologies and on market knowledge Main focus: Innovation trends backed by governmental funds and regulations What are innovation drivers?

14. What innovation model to be used? Innovation & R&D Strategy R&D Knowledge Management • Innovation and R&D strategy • Strategic areas and technologies • Innovation pipeline • New technologies • Technology teams • Cooperations (Universities, Institutes) • Innovation Forum • People exchange • IT Systems R&D New Business Development Intellectual Property • New business opportunities • Multidisciplinary R&D projects • Start up projects • IP Strategy • IP Tactics

15. Thinking provides knowledge, Knowledge makes you great. Dr. APJ Abdul Kalam Honorable President of Indiafrom annual address at Saurashtra University, Rajkot, Gujarat

16. 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

17. 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

18. 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.

19. 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”

20. Knowledge is more than knowing Overloaded knowledge workers suffer: • Half of managers can’t 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

21. 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

22. 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

23. 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 !!!

24. 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

25. 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

26. 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)

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

28. 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

29. Organizational conditions for KM • Trust • Confidence • Credibility • Direct connection knowledge acquisition/sharing - reward • professionals = ambassadors or bosses • Systems support

30. 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”

31. 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

32. 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-disciplinaryapproach to improving organisational outcomes and learning, through maximising the use of knowledge’

33. Critical Concepts for KMWhat’s to Manage? • Organisational information • Organisational knowledge • Individual knowledge

34. 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

35. 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.

36. 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

37. looking at key elements • people • processes • technology

38. 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 don’t discard non-codifiable (tacit) components • Nourish a culture that supports and rewards knowledge sharing • Promote individual knowledge development AND THEY ALL INTERACT!

39. 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)

40. 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

41. Who is involved Knowledge management is everyone’s responsibility. • leaders need to demonstrate a vision for the organisation and actively support knowledge management initiatives • managers need to support knowledge workers and provide environments conducive to knowledge sharing and creation • knowledge workers need to share knowledge with each other and ensure that their knowledge management work is visibly linked to organisational objectives

42. 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

43. 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”

44. 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

45. Famous Remarks • Telephone: “This telephone has too many shortcomings to be seriously considered as a means of communication. This device is inherently of no value to us” Western Union—Internal memo • Radio “The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular” David Sarnoff’s associates in response to his urgings for investments in the Radio in the 1920’s • Talking Pictures “Who the hell wants to hear the actors talk?” HM Warner, Warner Brothers,1927

46. Famous Remarks • Beatles “We don’t like their sound, and guitar music is on their way out.” Decca Recording Corporation, rejecting Beatles, 1962 • Airplanes “Heavier-than-air Flying machines are impossible” Lord Kelvin, President, Royal Society , 1895 “Airplanes are interesting toys but of no military value” Marechal Ferdinand Foch, Professor of Strategy, Ecole Superieure de Guerre • Oil “Drill for Oil ? You mean drill into the ground to try and find oil? You’re crazy” Drillers whom Edwin L Drake tried to enlist to his project

47. 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

48. 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?

49. 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

50. 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