Tech mgnt final ppt

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  • {"110":"Think - think knowledge\n","100":"Extensive = externally (in product or service); internally is in processes etc.\nKnowledge (in) products (the ‘knowledgeburger’) - consumer information, applications, internal awareness e.g. cars about to break-down. Some fastest growing sectors - education, health, software etc. are knowledge businesses.\nIn processes - that which is NOT in the procedure manual! (e.g. emergency procedures in practice). What procedures fall down when a someone crucial is away? Microsoft is a good example of a company worth much more than its physical assets. It has knowledge capital, encapsulated in its software.\n","29":"Product – iPod, PVR, digital cameras, etc. \nProcess – FedEx, online retail, Starbucks\nOrganizational – Toyota (kaizen – continuous improvement), creative industries (Google, Amazon, Apple)\nMarketing – Southwest Airlines, Apple \nTo continuously improve your competitive advantage, you have to focus on all types of innovation – happily, many of them overlap\n","90":"A presentation looking at knowledge management in practice. Knowledge Management is a term that is gaining increasing exposure. This presentation attempts to sort out the business reality from the consultants’ hype. It is based on the analysis of this topic over 10 years (before the term was widely used) and recent assignments, by David Skyrme and his colleague Debra Rogers of ENTOVATION International (for contact details see last slide). \n","107":"IT plays a key enabling role. Some projects are led by IT people, but in general the business wants good information flow, sometimes point solutions. “Technology is not the issue” is often cited (though sometimes there are silly annoying incompatibility problems). The main focus should be on the I in IT, with help from information professionals. In fact IT professionals should be active on multi-disciplinary teams, which through the technology can be virtual (sharing best practice and knowledge over the network).\n","102":"These are a selection from over 30 cases known to me. They illustrate particularly good practice at some aspect of knowledge management. However, most of them cover several aspects of knowledge management, while a few, such as Dow and Monsanto claim to have in place a comprehensive Knowledge Management Architecture. However, like the early days of BPR, at the moment Knowledge Management is usually deployed in pilots or pockets of organisations and is not widespread. \n","108":"Works at three levels\n- corporate: setting the culture and structures (informal fluid networking)\n- processes: adding the soft dimension; facilitation, sharing etc.\n- individuals: developing suitable skills e.g. information management, mapping\n","97":"Definitions are many and varied. Four main elements\n- explicit: knowledge is explicitly recognised (language, documents etc.)\n- systematic: it is too important to be left to chance\n- selective: there’s lots of knowledge; focus on that which is important\n- content and process perspective (nouns and verbs)\nBy adopting a systematic vs. an ad-hoc approach, management consultancies believe they can offer better global solutions, and reduced competitive price pressures (e.g. see Booz Hamilton Allen)\n","103":"A real company, but illustrative of 2-3 others in the sector. Drug companies have high investment in knowledge assets, and they also have high intellectual value they need to protect. The challenge is to convert this R&D investment into marketable drugs quickly. Therefore much emphasis goes into organising knowledge (hence the need for a good library function), sharing it widely (hence the need for a good IT infrastructure). Most important is to get scientists to share their hard gained knowledge with colleagues. HR in the form of OD work provide an important plank in this programme.\n","92":"We now accept BPR and TQM as ‘fundamental’, but at one time they were fads. As products and services carry more information and knowledge content e.g. ICI says it sells ‘effects’ not chemicals, this core resource needs to be systematically managed. Also standard products and services lend themselves to a high degree of automation in their production. Knowledge based services are less pre-programmable, requiring intellect to respond to different customer situations.\nThe ultimate knowledge based business is the consultancy whose only assets are their people, their process and intellectual capital. Not surprisingly many of them are focusing a lot of attention on managing their crucial asset - knowledge.\n","109":"Not a lot new to those familiar with innovative change. Some of the highest benefits from knowledge managemetn have been in organisations where the chief executive has just believed in it and got on with it, worrying about return on investment later (e.g. Analog, Buckman)\n"}

Transcript

  • 1. Innovation: Evaluation and Control © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 2. FIGURE 5.2 Questions for Each Strategic Phase of Innovation © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–2
  • 3. Overview • Issues addressed in this chapter include:  Determining if the firm is achieving the desired outcomes  Doing periodic gap analysis  Ensuring appropriate controls for personnel: financial, strategic, and cultural  Designing a support structure for evaluation and control processes  Finding and sharing best practices, including the establishment of quality programs © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–3
  • 4. FIGURE 5.1 The Evaluation and Control Process © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–4
  • 5. Three Key Questions in Evaluation of a Firm’s Actions •Where are we now in comparison with where we want to be? •What lies ahead that can affect us either positively or negatively? •Where will we end up if we continue on this path? Answering these questions produces a Gap Analysis. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–5
  • 6. Where Are We Now? • Key Evaluations of the Current Status of:  The strategic environment  The external environment  Information systems  Structural analysis © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–6
  • 7. Where Are We Now? • Key Evaluations of the Current Status of:  The strategic environment:The firm should examine the strategic direction of the industry and major competitors strategic actions  The external environment:Customer satisfaction, competitors, supplier networks  Information systems: if information systems are adequate to pass the right information to right person at the right time to make a good decision  Structural analysis: the firm should evaluate if the structures and processes in the organization allow the emergence of useful innovations. Because the structure of the organization should enhance coordination and communicaiton, this approach enables individuals to explore products and processes early and often © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–7
  • 8. Where Are We Now? • The manager should periodically examine if the goal is still valid. • Sometimes a need for product is lost. There is no use to continue with it • The firm should decide how much in goal variation it allows • Variatons in some goals are acceptable while in others not • Kaplan and Norton developed balanced scorecard to measure performance in multidimension © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–8
  • 9. What Lies Ahead? Purpose—to determine what can positively and negatively impact the firm as it moves forward Measures that should be considered: • Specific outcomes (# of patents) that could produce future competitive advantage • Factors that could impact future competitiveness-- customer satisfaction, quality ratings • Factors that could impact future capabilities— corporate reputation, perceptions of value © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–9
  • 10. Where Will We End Up if We Continue on this Path? • The last question is a fundamental evaluation of whether a different direction for the firm is needed. • The firm should ask periodically, Where are we likely to end up if we continue on this path and is it where we thought when we developed the plan? • A periodic introspection most often confirms the goals and plans of the firm; however, it can open new horizons • that have not been considered (or even known) previously. • Look for emergent oppurtunities: I phone, 3M, Chrysler minivan © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–10
  • 11. control • after the evaluation, the decision to make changes or not is the beginning of the control processs. • Types of control: financial, strategic, and cultural © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–11
  • 12. FIGURE 5.3 Types of Controls: Advantages and Disadvantages © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–12
  • 13. Financial control • Financial controls focus on gaps between the desired fucntional outcomes and those actually produced by the firm. • The firm can have short and long term goals. • İf the gap is identified, then the firm employs methods to improve those financial results directly. For example if the firm is not making profit then it cuts costs. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–13
  • 14. Strategic controls • Strategic controls focus on the firm’s meeting of strategic goals. • Typical strategic goals include to be the market leader for a given product, or to be viewed as the most innovative firm in the industry • Since it is more qualitative it is more difficult to measure • İf there is a gap in strategic goals and achieved results some actions must be taken © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–14
  • 15. Cultural controls • It refers to the ability to have individuals act in a manner desired within the firm due to the culture that exist in the firm. • Innovative cultures encourages idea sharing and risk taking, • Cultural controls help ensure that the reality of value creation in an environment that nurtures creativity remains a focus for the firm’s actions • They are not easily be quantifiable © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–15
  • 16. Examples for control • 3M had a goal of making 30% of its income from its products created in the last four years • It didnt achieve this finacial goal and had to restructure its business • The strategic goal of the company is to be a market leader in adhesives. It can be quantifiable and if it is not achieved, actions taken • 3M’s goal of being innovative with a high percentage of its revenue coming from new products should make employees believe in that and encourage each other to meet that target is an example of cultural control. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–16
  • 17. Organizational Levels and Control Factors • Adjustments must be made if a gap is identified between goals and performance: 1. Rethink business processes by trying to be more cross-functional. 2. Look for improvements by redesigning the processes the firm uses for its internal innovation. 3. Empower those involved in the innovative process to make key decisions. 4. Determine if the goals do not match the capabilities of the firm and develop new goals. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–17
  • 18. Organizational Levels and Control Factors • Making the changes necessary in any of these can be very difficult. • Organizations are inflexible and unwilling to recognize the problems at hand • Because of this evaluation and control processes of the firm should involve the entire organization. • There must be support for the control mechanisms and making the necesary changes when gaps exist. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–18
  • 19. FIGURE 5.4 Level of Organization and Control Concern © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–19
  • 20. FIGURE 5.5 Interaction of Strategic Concerns © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–20
  • 21. FIGURE 5.6 Strategic Process Questions © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–21
  • 22. Integration evaluation and control: Implementation - Critical Decisions 1. Ensure that management support and project goals are understood and in the forefront of the organizing effort. 2. Assess the skills required so that the people needed to meet project objectives are involved with the process. 3. Set up the infrastructure for the most likely scenario, but have contingencies for other strong possibilities. 4. Don’t underestimate the influence of the internal culture and the external environment. 5. Set up a monitoring system that is an integral part of implementation and addresses potential technical and market risks. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–22
  • 23. Validating the Evaluation and Control Process • To ensure the evaluation and control effort is looking at the correct issues, the firm needs to ask two questions periodically. 1. Are we measuring what we are interested in? 2. How well are we making adjustments? © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–23
  • 24. FIGURE 5.7 Key Areas of Evaluation and Control and Their Importance © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–24
  • 25. Managerial Guidelines • In conducting the evaluation and control process managers cannot forget the human element in these activities and should:  Maintain a balance among the various measurement approaches.  Seek the involvement of top management.  Develop a “learning” focus on achieving the ends.  Ensure that objectives are specific and understood.  Include feedback as an integral part of the innovation process; it is not a once a year occurrence. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–25
  • 26. S-CURVE OF TECHNOLOGY INNOVATION © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–26
  • 27. Agenda • Innovation  Definitions  Types of Innovation  Invention & Improvement  Adoption • S-Curve  4 Stages of Growth  Continual Growth  Innovation within an Industry / Company  Speed of Change © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 28. Agenda (cont) • Managing Your Innovation – Jumping the SCurve  BEMI – Big Enough Market Insight  Managing Talent  Picking the Right Time  Getting Ideas • 3 Horizon Growth • Disruptive Innovation • The Role of Culture and Leadership • Case Study – SlipStream • Innovation Assessment © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 29. Many Types of Innovation 1) Product – good or service that is entirely new or has significantly improved characteristics or uses; 2) Process – new or significantly improved method of production or delivery of a service; 3) Organizational – new method of organizing business practices, the workplace, or relations with outside organizations; and 4) Marketing – new developments in the design or packaging of products, the channels for distribution, promotion or pricing. 5) CATOGORIES OF INNOVATION A)PRODUCT AND b)PROCESS INNOVATION Oslo Manual of the OECD © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 30. Invention & Improvement Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 31. S-Curve & Innovation • S-Curve is a measure of the speed of adoption of an innovation. • First used by in 1903 by Gabriel Tarde, who first plotted the S-shaped diffusion curve. • This process has been proposed as the standard life cycle of innovations can be described using the ‘S-Curve‘. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 32. Adoption and the S-Curve © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 33. Adoption and the S-Curve © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 34. Stages of the S-Curve Point of Diminishing Returns © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 35. 4 Stages of the Curve • Startup • Growth - Scale • Maturation - Compete • Decline - Transition • Innovation is different at each stage © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 36. Challenges • Startup  Survival, market validation, funding • Scale  Increasing market, expanding to new geography, increased manufacturing, hiring • Compete  Increased number of competitors, lower margins, heads down • Transition  Compromises to stay alive, staff layoffs © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 37. Double S-Curve Model •. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 38. Innovation within a Company - Apple © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 39. Technical Innovation in an Industry © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 40. Not All Innovations are Successful Zenith  Radio  TV  Zenith Data Systems  HD TV (jumped into it too early)  Bought by LG © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 41. Jumping the S-Curve According to Accenture’s research, high performers: •pursue “big-enough” market insights—ones based on changes in the marketplace that are certain to occur—and sure to shake up the competitive landscape •resolve the conflicting needs of today and tomorrow— trading some of today’s performance for tomorrow’s gain •build a hothouse of talent to nurture employees, which then attracts more people with skills and vision •change top management while business is still thriving •refuse to scale up for scale’s sake and actively manage the downsides of scale at every turn © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 42. BEMI • Big Enough Market Insight  Big enough (relative term)  Valuable enough  Certain enough Example: Nintendo understood that if they made video games fun and interactive they could attract a whole new demographic. Creating the Wii © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 43. Talent Hothouse • If you are no longer attracting or developing stars, and your proven players are expectedly leaving, It’s a sign that overall performance has peaked and stagnation is settling in. • It may also be a sign that your staff sees you have entered a mature market even if your sales have not started slowing down © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 44. Picking the Right Time • It is hard to start investing in the next major change when your company is profitable and growing rapidly • It is better to use this momentum to grow into a new area or consciously decide it is time to maximize your profits in the current area • If you are involved with trying to attract a buyer for your company that can further complicate investing in new growth © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 45. Managing It Constant high performance and innovation requires managers to break the future into manageable chunks. Apple moves smoothly from iPod to iPhone to iPad by plotting out cycles, and then working systematically within each one, using past success and resources to fuel market domination. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 46. Where Do Ideas Come From? • Great ideas do not necessarily come from techfocused research. They’re often derived by studying demographic, geo-political, societal, economic and other global dynamics • Brainstorming for ideas does not often work • Customer centric thinking is ideal, but hard to execute well © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 47. Features or Sustaining Innovations • Continuing to add features to one product is not the same as innovation • It really just slightly modifies the one single s-curve. (i.e. There are 37 different iPods) •  a sustaining innovation does not create new markets or value networks but rather only evolves existing ones with better value, allowing the firms within to compete against each other's sustaining improvements. Sustaining innovations may be either "discontinuous" or "continuous" © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 48. 3 Horizon Growth • Horizon 1 – current business • Horizon 2 – related business • Horizon 3 – completely new business • Alchemy of Growth  Simple type of portfolio management  Great starting point  Teaches about the differences of innovation © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 49. Disruptive Innovation © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 50. Examples of Disruptive Innovation Innovation Disrupted Market Details of Disruption Digital photography Chemical based photography First examples of digital cameras were very poor quality and laughed at LCD CRT LCD were first monochromatic and low resolution Wikipedia Traditional encyclopedias Encyclopedia Britannica ended print production in 2012 LED lights Light bulbs Initial LED lights were only strong enough to be indicators, now replacing most lighting © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 51. Role of Culture & Leadership • There is no innovation without leadership • Innovation is a collaborative activity • No single person can manage the innovation for an organization • Innovation often happens outside of normal process • Essential roles for managers  Promoting an attitude and expectation of innovation  instituting policies and strategies that makes innovation real  enabling innovation while engaging in dedicated obstacle obliteration   Remove obstacles for staff © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 52. Degree of novelty • Diffusion • New to the firm • New to the market • New to the world • Disruptive innovations © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 53. Degree of novelty • Diffusion is the way in which innovations spread, through market or non-market channels, from their first worldwide implementation to different consumers, countries, regions, sectors, markets, and firms. Without diffusion, an innovation will have no economic impact. The minimum entry for a change in a firm’s products or functions to be considered as an innovation is that it must be new (or significantly improved) to the firm. • New to the firm: A product, process, marketing method, or organisational method can already have been implemented by other firms, but if it is new to the firm (or in case of products and processes: significantly improved), then it is an innovation for that firm. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 54. Degree of novelty (continued) • New to the market:  the firm is the first to introduce the innovation onto its market.  The market is defined as the firm and its competitors.  The geographical scope is subject to the firm’s own view of its operating market and thus can include both domestic and international firms. • New to the world:  the firm is the first to introduce the innovation for all markets and industries, domestic and international.  implies a qualitatively greater degree of novelty than new to the market. • Disruptive innovations:  an innovation that has a significant impact on a market and on the economic activity of firms in that market.  focuses on the impact of innovations as opposed to their novelty.  These impacts can, for example, change the structure of the market, create new markets, or render existing products obsolete. However, it might not be apparent whether an innovation is disruptive until long after the innovation has been introduced. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 55. Innovation Management © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 56. Managing Innovation Innovation Strategy Creativity / Ideas Management Portfolio Management • Goals • Communication • Technology • Measures Implementation (NPD, etc) Human Resource Management • Culture • Motivation • Appraisal © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market -Products -Processes -Services
  • 57. Innovation Strategy  Has innovation been introduced as a fundamental part of your company       philosophy and values? What is the role of technology in innovation? Does top management spend sufficient time supporting all stages of innovation? Are competitors’ innovation rates known/monitored? Are innovation goals / measures defined - for new products, services and processes? Is there a good balance of truly innovative projects as well as product improvements? Does your innovation strategy integrate all five areas of innovation management? © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 58. Creativity & Knowledge Management  Are creative ideas collected on a regular basis from all     employees? How many ideas for new products, services and processes were developed in the last 12 months? Do ideas originate from all departments, often from contacts with customers? Are ideas quickly developed into new product / service concepts? Are creativity techniques and workshops used? © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 59. Portfolio Management  Is there a good balance of ideas for new products, services and     processes? Are concept reviews held regularly? Are choices made quickly? Is there a good feedback mechanism from actual product performance to ensure screening decisions Does the responsibility for screening decisions lie too high in the company hierarchy? © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 60. Implementation  Is this a bottleneck stage, because too many projects are      attempted? Are best practice techniques such as simultaneous engineering applied, where appropriate? Is your time-to-market comparable to your competitors? Are manufacturing ramp-ups fast and efficient? Does manufacturing regularly develop new processes? Are project reviews effective and used to improve performance? © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 61. HRM - People Management  Is the broad meaning and importance of innovation-new products, services and processes- understood by all employees?  Are clear innovation targets set and known by all employees?  Do human resource policies support a culture of innovation through stimulating a creative, problem-solving working environment? Are organizational structures flexible and effective?  Is innovation covered by employees’ appraisals? © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 62. Innovation Strategy • • • • • • • Has innovation been introduced as a fundamental part of your company philosophy and values? What is the role of technology in innovation? Does top management spend sufficient time supporting all stages of innovation? Are the innovation rates of competitors known and monitored? Are innovation goals - for new products, services and processes - defined? Is there a good balance of truly innovative projects as well as product improvements? Does your innovation strategy integrate all five areas of innovation management? Creativity Management • Are creative ideas collected on a regular basis from all employees? • How many ideas for new products, services and processes were developed in the last 12 months? • Do ideas originate from all departments, often from contacts with customers? • Are ideas quickly developed into new product / service concepts? • Are creativity techniques and workshops used? Portfolio Management • Is there a good balance of ideas for new products, services and processes? • Are concept reviews held regularly? • Are choices made quickly? • Is there a good feedback mechanism from actual product performance to ensure screening decisions • Does the responsibility for screening decisions lie too high in the company hierarchy? Implementation (NPD, etc) • Is this a bottleneck stage, because too many projects are attempted? • Are best practice techniques such as simultaneous engineering applied, where appropriate? • Is your time-to-market comparable to your competitors? • Are manufacturing ramp-ups fast and efficient? • Does manufacturing regularly develop new processes? • Are project reviews effective and used to improve performance? Human Resource Management • • • • Is the broad meaning and importance of innovation-new products, services and processes- understood by all employees? Are clear innovation targets set and known by all employees? Do human resource policies support a culture of innovation through stimulating a creative, problem-solving working environment? Are organizational structures flexible and effective? Is innovation covered by employees’ appraisals? © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 63. FACTORS TAHD AID INNOVATION PLANNING 1)CREATIVITY A)ADVENTURING B)CONFRONTING C)PORFOLIO OF SKILLS 2)ORGANIZATION -WIDE -ISSUES A)COMMUNICATION B)REWARD SYSTEM C)ORGANIZATIONAL ASUUMPTIONS 3)POLITICAL ISSUES © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–63
  • 64. Technology acquisition Technology Management Activities and Tools © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 65. Acquisition channels (1) BUY • Sponsoring university research • External R&D centers • Consultants • Licensing agreements • Vendors/ suppliers • Acquiring machinery or the firm © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 66. Acquisition channels (2) MAKE • R&D © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 67. Acquisition channels (3) COLLABORATE • Consortia • Joint ventures • Sub-contracting © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 68. The reasons behind technology acquisition • Limited resources • Time pressure • Complementary assets • Protecting image • Diversification • Supporting internal technologies • Avoid development risks © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 69. Expected resulting impacts of technology acquisition • productivity • quality • product development cycle • labor-management relations • accuracy of the information flows • production costs • flexibility (volume, machine, process,..) • maintenance costs • service performance • sales © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 70. Steps in technology acquisition • Goal setting  • Finding technology suppliers  • • • • Technology & Impact assessment Acquisition channel Choosing acquisition method Contract preparation and negotiation Technology transfer Managing long-term collaboration © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 71. Collaboration option © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 72. Open Innovation Research Development Commercialisation IP in-licensing Products in-sourced (e.g. Co-branding) Company Boundaries Core Market Focus Technology Spin-outs IP out-licensing Ideas & Technologies Source: Chesborough 2003 and Docherty 2006 © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 73. What are the issues when managing external suppliers and alliance partners? © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 74. Issues in network design: • Aim • Partners • Duration • Contract • Management • Investment / Re-engineering • Division of labour • Strategy © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 75. How to decide on the type of network? • The objective of the collaboration • The content of the collaboration • The typology of partners involved © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 76. The content of the collaboration (Chiesa and Manzini, 1998): 1) Definition of the content 2) Firm’s familiarity 3) Relevance for the firm’s competitive adv. 4) Technology life cycle 5) Level of risk 6) Appropriability of the innovation 7) Phase of the innovation process 8) Level of assets specialization 9) Divisibility of assets © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 77. P&G Case (3) • Internal website, 18000 innovators across R&D, Engineering, Market Research, Purchasing, and Patent Divisions. • 600 websites for Global Project Teams • Individual problem-solving and connection-making websites for 20 Communities of Practice. • Nearly 9 million documents on line, growing daily. • Automation and artificial intelligence • the latest in webcasting and satellite technology to create an internal Innovation News Network • Conducting a deal-making/technology trading expo  over 2200 ideas for new products and important new uses of P&G and external technologies © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 78. Identification Selection Business strategy Acquisition Internal acquisition: R&D External acquisition Collaborative R&D New product dev. Purchase New process dev. M&A Other projects Outputs new product / service equipment / solutions Protection Exploitation Learning © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 79. TECHNOLOGY MERGER AND ACQUITION © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–79
  • 80. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–80
  • 81. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–81
  • 82. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–82
  • 83. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–83
  • 84. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–84
  • 85. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–85
  • 86. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–86
  • 87. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–87
  • 88. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–88
  • 89. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–89
  • 90. Knowledge Management © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 91. Knowledge Map Questions/ Discussion Fad or Fundamental? Why Knowledge, Why Now? Action Plan Getting Started Knowledge Management Key Concepts A Bit of Theory The Knowledge Agenda Critical Success Factors KM Cases © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 92. Fad or Fundamental? for “In ty” cie o nS tio ma alue Added V Tim eto- ma rk e t Knowledge Goods & Services Information Ma r ke td riv en Flexibility s es en siv on sp Re Innovation in Products, Services and Processes • Global Customers • Changing Needs • Time-to-market • ‘Smart’ Products • Customization • Service • Quality • Intangibles © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 93. Roots of Knowledge Managment Learning Organization Business Transformation (BPR, TQM, culture) Innovation Knowledge Management Intellectual Assets/Capital Information Management Knowledge-based Systems © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 94. Knowledge is Different (1) Intelligence Knowledge Information Data Human, judgemental Contextual, tacit Transfer needs learning Codifiable, explicit Easily transferable © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 95. Conversion processes Source: The knowledge creating company, I. Nonaka and H. Takeuchi Tacit Socialization Externalization Internalization Combination From Explicit Tacit To Explicit © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 96. Knowledge is Different (2) Chaotic knowledge processes Human knowledge and networking Information databases and technical networking Systematic information and knowledge processes © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 97. Working Definition Knowledge Management is the explicit and systematic management of vital knowledge - and its associated processes of creation, organisation, diffusion, use and exploitation. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 98. What is ... in Practice • Knowledge Teams - multi-disciplinary, cross-functional • Knowledge (Data)bases - experts, best practice • Knowledge Centres - hubs of knowledge • Learning Organization - personal/team/org development • Communities of Practice - peers in execution of work • Technology Infrastructure - Intranets, Domino, doc mgt • Corporate Initiatives - CKOs, IAM, IC accounting © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 99. 2 Key Thrusts Sharing existing knowledge “Knowing what you know” Knowledge for Innovation “Creating and Converting” © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 100. Seven Levers • Customer Knowledge - the most vital knowledge • Knowledge in Products - ‘smarts’ add value • Knowledge in People - but people ‘walk’ • Knowledge in Processes - know-how when needed • Organizational Memory - do we know what we know? • Knowledge in Relationships - richness and depth • Knowledge Assets - intellectual capital © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 101. Knowledge Cycles Innovation Cycle KM Cycle Collect Codify Identify Embed Product/ Process Diffuse Create Classify Knowledge Repository Use/Exploit Access © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organize/ Store Share/ Disseminate
  • 102. Some Cases • Create/discover - 3M, Glaxo Wellcome • Codify - BHA, Standard Life, PwC • Diffuse - H-P, Thos. Miller, Rover, BP • Use - Buckman, Steelcase, PwC, Andersen etc. • Process/culture - Cigna, Analog • Conversion - Monsanto • Measure/exploit - Skandia, Dow © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 103. Glaxo Wellcome • A strategy led initiative - learning org. focus • Workshops to convert rhetoric to action plans • Using Intranets to share R&D, help approvals • Library, document management support • Reoreinted Technical Architecture • Challenge is creating ‘sharing culture’ Bottom Line - better RoIC © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 104. Glaxo Wellcome - Knowledge Net Learning History Team Skills Process Improvements - Quality etc. Communications Knowledge Network Architecture Marketing products People - manager skills - ‘Yellow pages’ - expertise New science competencies Strategy - customer dialogue © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 105. Price Waterhouse KnowledgeView SM • Knowledge is their business • Systematic processes - sharing ‘best practice’ • Knowledge centres - editors and advisers • Taxonomy - International Business Language • Common formats on information • Lotus Notes for multiple ‘views’ • Adding contextual/contact information Bottom Line: Better solutions in less time © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 106. KM Framework for Success Enablers Leadership Structures - Cultures - HR Policies - Vision Levers Processes People Measurement Information Space Foundations ‘Hard’ infrastructure - Intranet, groupware etc. ‘Soft’ - Skills, learning, + Tools and Techniques © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 107. IT Infrastructure • A key enabler • Access anytime, anywhere, anyhow • Lotus Notes, First Class, Intranets - groupware • Point solutions e.g. data mining, mapping • New generation of Knowledge Based systems • Focus on the I (Information - about Knowledge) • Hybrid, virtual teams © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 108. Soft Infrastructure • A culture of sharing - vs. information fiefdoms • Directors of Knowledge (Intellectual Capital) • Facilitating knowledge processes  change teams, development workshops etc. • Developing personal skills  info management, ‘dialogue’, online techniques • New measures of human capital, capabilities © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 109. Critical Factors • Strong link to business imperative • Compelling vision and architecture • Knowledge leadership • Knowledge creating and sharing culture • Continuous Learning • Well developed ICT infrastructure • Systematic knowledge processes © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 110. Action Planning 1. Find out where you are!  do an assessment; look for existing practice 2. Identify the knowledge champions  and top level sponsors 3. Start the learning process  attend seminars, site visits, assemble resources 4. Understand the seven knowledge levers  find how knowledge adds value to your business © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 111. Action Planning (cont.) 5. Identify Related Initiatives  an opportunity for collaboration? 6. Initiate a Pilot Project  look for quick wins, within long-term framework 7. Assess Organizational Readiness  assessment plus enablers, levers, foundations 8. Develop a road map for knowledge  vision, goals, strategies, resources, networks.” © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 112. Company/Enterprise: Gap Analysis Source: ENTOVATION Communications Technology Collaborative Process 10 Performance Measures 8 6 4 Leadership/Leverage Education/Development 2 0 Learning Network Market Image Innovation Intelligence Alliances/Joint Ventures Products/Services © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 113. OBTAINING TECHNOLOGY INTERNAL © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–113
  • 114. OBTAINING INNOVATION INTRNAL KEY IMPLIMENTATION ISSUES 1)LEADERSHIP -SKILL MIX -LEADERSHIP ACTIONS A)CREAT A SUPPORTIVE ENVIRONMENT B)CREATE MECHANISM FOR INNOVATION C)ALLOCTION OF RESOURCES 2)ENGAGEMENT -PROBLEMS IN ENGAGEMENT A)INERTIA B)FEAR C)COMPLACENCY -OVERCOMING PROBLEM A)BUILDING A KNOWLEDGE BASE CULTURE B)TRAINING AND DEVELOPMENT C)MONITORING EMPLOYEES © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–114
  • 115. 3)EXTENTION -KNOWLDE SHARING WITHIN THE ORGANIZATION -MONITIRING COMPANIES -LOOKING FOR NEW COMPANIES 4)ALIGNMENT -BUILD FIT -TIE REWARDS TO ACHIEVMENT OF GOALS -ORGANIZATIONAL STRUCTURE © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–115
  • 116. OBTAIANING TECHNOLOGY EXTERNAL © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–116
  • 117. 1)ALLIANCES -FORMAL AND INFORMAL ALLIANCES -DOMESTIC AND INTERNATIONAL ALLIANCES -CONCERNS IN ALLAIANCES 2)MERGERS AND AQUITION STRATEGIC REASONS -QUICK ENTRY -AVOIDE COST AND NEW PRODUCT DEVELEOPMENT RISK -GAIN MARKET POWER -ACQUIRE KNOWLEDGE TYPES OF M&A RELATED AND UNRELATED HORIZONTAL AND VERTICAL © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–117
  • 118. DECISION TREE FOR TECHNOLOGICAL AQUITION STRATEGIC DIGNOSIS FORMULATION OF TECHNOLOGICAL STRATEGY DETERMINE STRATEGIC NEED OF AQUITION OF STRATEGY WILL CREATE VALUE ?? IF YES – TYPES OF FUTURE NEEDS LEVEL OF COMPATABILITY GOALS CULTURE SYSTEMS DESIGN OF ALLIANCE IMPLIMENTATION STRTEGY IF NO- GO BACK TO DIAGNOSIS STAGE © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5–118