Trn04 projects, complexity, innovation and knowledge. A possible link

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A first look about the relationship among projects, innovation, knowledge and knowledge sourcing / management, and complexity

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Trn04 projects, complexity, innovation and knowledge. A possible link

  1. 1. Innovation projects: facing intrinsic and knowledge-related complexity Session TRN04Livio Paradiso “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only
  2. 2. Introduction•  Innovation projects are dealing with complexity by nature•  Complexity management in projects is an emerging topic: a proper understanding of complexity principles is useful•  Knowledge in innovation projects: a key success element•  Knowledge management as a means for reducing complexity and fostering innovation “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 2
  3. 3. What will we speak about?•  Innovation projects: classification and complexities•  Complexity sources and complexity management•  Knowledge management as a key factor in innovation and in complexity management•  Knowledge acquisition processes•  Knowledge integration issues “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 3
  4. 4. Innovation projects: an example of complex projects•  Complexity comes form different sources, such as –  High number of stakeholders –  Multiple relationships among stakeholders –  Highly dynamic environment•  Innovation projects often involve new knowledge and are associated with risk (opportunities and threats) and uncertainty•  Managing innovation is managing a complex project! “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 4
  5. 5. Innovation sources and path Innovation not only a matter of •  Technology push ideas, also a matter of : analysis, decision making, •  Market pull complexity evaluation, change and project management •  Design drivenSource: Accenture “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 5
  6. 6. Incremental innovation•  “The knowledge required to offer a product builds on existing knowledge – competence enhancing” (organizational view)•  “Innovation still allows existing products to stay competitive” (economic view) Source: innovaders•  Preserving existing assets by adding features and services•  Less risks than radical innovation•  Cost effective and simpler change management “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 6
  7. 7. Radical innovation•  “Results in a product that is so superior that existing products are rendered noncompetitive” (economic view)•  “Existing knowledge will be obsolete - competence destroying” (organization view) Source: innovaders•  Requires new assets and knowledge•  Requires strong change management•  High risks about benefits and success “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 7
  8. 8. Innovation impacts + effectiveness + complexity + duration + knowledge + success + assets + risksTime to start radical “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 8
  9. 9. Some examples•  Radical innovation –  SAP introduction into a company: all processes has to be revised, external experts necessary –  Redesigning the phone market by creating an open environment for developers and by creating a new revenues model for selling application (Apple) –  Introducing cloud computing services and application in a company which works with custom software•  Incremental innovation –  Centralizing a key application as a cloud service on an existing central infrastructure “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 9
  10. 10. Complexity and uncertainty•  Is measuring complexity a myth? From math and physics Entropy is the degree of disorder (uncertainty) Entropy (uncertainty) at a time T0 is a mix of casual events and structural complexity Structural complexity (excess entropy rate) can be known only at the end of a process ( after the project is completed) because unknown events are in the past and are therefore known. “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 10
  11. 11. Intrinsic & perceived complexity Intrinsic Charter & scope complexity Uncertainty Tech. Uncertainty Lack knowledge Lack information Perceived complexityPerceived complexity is the oneto be managed by the project !!! “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 11
  12. 12. Primary sources of complexity•  Relationships with other •  Processes products, •  Tech. Knowledge services, •  Relations stakeholders of external etc. Relations and internal factors Scope Environme uncertainty nt •  Lack of uncertainty •  Market requirements changes •  New tech. “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 12
  13. 13. Facing complexity•  Complexity sources will generate change occurrences•  Decision making becomes the critical process•  Correct and fast decision making is possible with –  A proper stakeholders management –  A proper project management approach –  A proper risk management methodology –  A proper knowledge management “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 13
  14. 14. Facing complexity (ex.1)•  Iterative approaches (Agile) –  Small multidisciplinary teams –  Continuous adaptation by segmenting deliverables “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 14
  15. 15. Facing complexity (ex.2)•  Systemic approach (Varanini, Ginevri, Paradiso & al.) –  Deeply understanding and monitor environment –  High level governance and continuous decision making –  Specific systemic tools “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 15
  16. 16. Influence of knowledge in complexity management•  Environment awareness and knowledge are key factors in understanding addressing and reducing overall complexity•  Innovation projects are often managed in uncertain environments and the team knowledge itself is challenged•  Knowledge enhancements help reducing perceived (to be managed) complexity “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 16
  17. 17. Which Knowledge?•  Personal know-how: inside or outside work environment•  Team knowledge: project team takes advantage of personal know-how•  Collective knowledge: the entire organization uses the results of the acquired knowledge “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 17
  18. 18. Influence of knowledge in complexity management•  New knowledge is effective –  When integrated in project Complexity mitigation processes –  When team’s people other than the owner use it Searching Acquiring Integrating knowledge knowledge knowledge “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 18
  19. 19. Acquiring knowledge: a known model•  Model suitable for planned knowledge acquisition “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 19
  20. 20. Acquiring knowledge: critical factors•  Time in complexity management –  fast decision making –  understanding environment in a finite timeframe at each decision gate•  Integration –  Externally hired experts must have time to understand project environment and team/company habits –  Internal team members know environment, don’t have the knowledge “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 20
  21. 21. Acquiring knowledge: an evolved model•  Difference between internal and external sources•  Deeply understand internal sources before externally hiring “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 21
  22. 22. Acquiring knowledge: suggestions•  Deeply understand internal sources before externally hiring•  Best practice: to have an effective curricula database in the company for fast search•  Best practice: focus on team and collective engagement before going on a knowledge management system “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 22
  23. 23. Acquiring knowledge: a recent case•  An advanced private network for an energy supplier requires an unpredicted activity The person joined the Request to have the project team person in the Knowledge From project manager project team need informal network: a issued identified collegue was found •  Time to acquisition: 5 days •  Standard external hiring: 1 month “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 23
  24. 24. Sharing knowledge: a recent case •  A web 2.0 knowledge management system was developed in a company to let users –  Share best practices for project success –  Identifying needed process which are yet unaddressed •  Many potential contributors Contributors  Users   have some new knowledge to sharePoten.al   88   110   •  They prefer use email and collective knowledge was Real   4   40   lost “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 24
  25. 25. Sharing knowledge: a recent case (cont.)•  KMS are faced by people with different attitudes Sharing  is   Sharing  is   Sharing  is   useful   dangerous   uncomfortable  •  Technologies support, don’t create the will to share•  Sharing knowledge and incrementing collective knowledge is a matter of personal relationships and attitude•  Attitudes can be modified by creating a comfortable relation environment: project managers abilities do matter! “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 25
  26. 26. Knowledge and innovation: cloud computing•  New knowledge involved –  Technical skills: cloud infrastructures requires experts in virtualization, specific software and infrastructure management –  User habits: applications are the same or similar, but reachability is different –  Management knowledge: new economical model for IT services “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 26
  27. 27. Knowledge and innovation: cloud computing•  More radical•  More complex change management•  More risks•  More advanteges SaaS PaaS •  More standardization IaaS •  User habit change •  Larger project scope •  New knowledge required “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 27
  28. 28. Conclusions•  Innovation projects: an example of complex projects•  Complexity sources: known, not exactly measurable•  Perceived and managed complexity are related to knowledge•  Innovation: strictly related to knowledge management•  Knowledge acquisition and integration: strategic processes in innovation and complexity management•  Knowledge acquisition process: internally first•  Externally acquired knowledge has to be integrated “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 28
  29. 29. Questions “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only 29
  30. 30. Contact InformationLivio Paradisol.paradiso@spazioidea.net Session TRN04 “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only

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