2011 10 20_senai_cetiqt_english

Organizational Knowledge Management
as a precursor of Innovation

Original
Presentation in
Portuguese Jackson Pollock

Rio de Janeiro -20 de outubro de 2011 Apresentação
SEPRO SENAI/CETIQT Fernando Goldman

Disclaimer: The ideas presented here are those of
the author and do not necessarily represent those
of SENAI / CETIQT nor Eletrobras Furnas, the SBGC,
the PPED / UFRJ or any institution with which he is
or has been bound by ties of affiliation, services or
hiring.

Rio de Janeiro -20 de outubro de 2011 Apresentação 2

Who is the speaker?

Fernando L. Goldman – researcher of the Dynamics of
Organizational Knowledge, Innovation and Competitiveness, a
doctoral candidate in Public Policy, Strategies and Development at
PPED / IE / UFRJ, Master in Production Engineering, UFF, MBA in
Business Management from FGV and electrical engineer at UFRJ.
Former Regional Director (Rio de Janeiro) of SBGC - Brazilian
Society of Knowledge Management (2007-2011). Eletrobras
Furnas Engineer


Our goal:
To arouse the discussion
Let's talk about:
the linear model of innovation;
innovation in business models;
a new vision of innovation;
the theory of organizational knowledge
creation;
social tools and networks;
Leadership in Innovative Firms.

The Linear Model of Innovation

Science, the Endless Frontier and Vannevar
Bush – 1945;
paradigm of science and technology
policies, the end of 1950´s;

the dynamics of innovation model adopted
by most developed countries



This model dominated thinking about the
S&T until recently;

The problem is that this model is used up to
today by many companies and some public
policymakers.



In this model, innovation comes from
scientific research and the strategic
positioning of firm defines investments in
R&D* for the creation of Organizational
Knowledge.

* Applied Research and Experimental Development .


The Linear Model of Innovation…

…neglects activities outside the R&D;
…considers technological innovation as an
act of production, instead of a continuous
social process;

The relationship between enterprise and
innovation is complex, dynamic and multi-
level .*
*LAM, A. Organizational Inovation. In: FAGERBERG, J.; MOWERY, D. C.; NELSON, R. Oxford
Handbook of Innovation. Oxford University Press, 2005.


Innovation in business models

People are realizing the need for firms to
create innovative business models.

It is not enough to create products and
processes *

*TEECE, D. J. Business Models, Business Strategy and Innovation. Long Range Planning 43, 2010.


A new vision of Innovation

The water analogy for knowledge simply does not
work;

the simple information processing - or its
accumulation - does not lead to innovation;

All processes of innovation come from exactly the
subjective beliefs of people or of their images of
the world;

objectivity X subjectivity (Polanyi)


A New Vision of Innovation

Knowledge is inherently paradoxical: it is an
individual construction and, at the same time, is the
result of a social product (the product of a
community) and can not be managed in the usual
sense of the word 'management' .


The KM * as multidisciplinary area:

Increasingly, modern society perceives the
current revolution around the use of knowledge
and has sought ways to deal with this new
reality.
The traditional disciplines (engineering,
administration, economics, etc..) have been
consolidated in the use of classical factors of
production;

* KM – Organizational Knowledge Management


The Organizational Knowledge
After all, what knowledge are we talking about?

To deal with Organizational Knowledge, capabilities
are required to coordinate the creation
(specialization) and use (integration) of different
knowledge*

Which is the relationship between Innovation and
Knowledge Management?
*DEMSETZ, H. The Theory of the Firm Revisited, v. 4 n. 1 Journal of Law, Economics, and
Organization, p. 141-161, 1988.


Contextualization

Corporate Education Organizational
Knowledge Management

Factor of Production Factor of Production
Work Organizational
Knowledge

Intellectual Capabilities of Dynamic Capabilities of
individuals firm



The Knowledge-Creating Company - Ikujiro
Nonaka and Hirotaka Takeuchi
How Japanese Companies Create the
Dynamics of Innovation (1995)


A new vision of innovation

The most quoted book on Knowledge
Management is not about Knowledge
Management.

It talks about the dynamics of innovation



Like any milestone:
- most often quoted than read, and
- more read than understood


A new vision of innovation

... it's just one of the many elements
of a theory under construction

The Theory of Organizational
Knowledge Creation
(Nonaka)


What does the TOKC say?

Innovation is the result of the
dynamic creation of
Organizational Knowledge *

*NONAKA, I.; TOYAMA, R.; KONNO, N. SECI, Ba and Leadership: a unified Model of Dynamic Knowledge
Creation, Long Range Planning, v.33, p. 5-34, 2000


Knowledge Management ?

Different approaches to KM

Mainstream New Approaches
Approaches

K is seen as static Dynamics of K

unsustainables Firm's longevity


What is the nature of the firm?

Firms process information. (Simon)

Firms create knowledge. (Nonaka)


Organizational Knowledge Creation:

Capability of a firm…:

…to create knowledge,
…to disseminate it and
…to incorporate it into products,
services and systems.


Explicit and Tacit Knowledge
Explicit knowledge is Tacit knowledge is
objective, organized, subjective, being mainly
structured, and can be based on experience. It
made available in is embedded in people
documents, databases, in the form of
training videos and memories, mental
other channels, models, views, practical
traditional or not, of know-how etc.
information sharing.
www.kmgoldman.blogspot.com

They are not two kinds of knowledge, they
traditional, or not, of
are two dimensions to the same knowledge.
information sharing.


How does innovation happen in TOKC?


The paradox of Knowledge?

Although individual, knowledge is a social product

“People interacting in a certain historical and social context
share information from which they construct social
knowledge as a reality, which in turn influences their
judgment, behavior, and attitude. (Berger; Luckmann, 1966)

Organizational Knowledge is a complex and
multidisciplinary theme

25

In TOKC, an innovative firm…:

…creates knowledge continuously from the
tacit knowledge of their individuals;
…innovates by synthesis, a dialectical process,
continuous and dynamic, which nurtures the
paradoxes;
…socially converts tacit knowledge into explicit
and vice versa.


What is Knowledge?

The way you define knowledge defines how
you manage it (Verna Allee)

The correct differentiation between Data,
Information and Knowledge

DIKW is not functional for TOKC

27

The knowledge in three properties

28

The TOKC vision of Innovation

Mental models of individuals are transformed in the
informational process, setting new states of
knowledge.

Similarly, firms continually create knowledge, setting
up new states of Organizational Knowledge .


The Obsolescence of Knowledge
Obsolete Products, Fall in
Services and Processes Competitiveness

Obsolete Organization
Obsolete Groups
Decrease in
Obsolete People Consequences of operational results
obsolescence of Knowledge
for Organizations
Source: Adapted from Drucker (1995)

Inability to innovate in the face
of intra or extra information
Stakeholder
Pressures

Loss of investment in
Loss of ability to retain existing renewal (people)
talents (people)

30

Social tools and networks

knowledge creation, as a social phenomenon, is due
to the constructive interaction between people in a
community.

Social tools enable the communication of
information, accelerating the exchange and
interaction. Everything living is organized in
networks.


Leadership in Innovative Firms
Breaking with Taylorism (The Long Tail);
Progress more than TQM;
Skills to deal with intangibles;
More research skills;
But the manager is not an academic researcher;
Researcher is looking for a Theory;
Manager is looking for a method;
Most important: There is no "magic formula".
Rio de Janeiro -20 de outubro de 2011 Apresentação 32 32

Questions?

www.kmgoldman.blogspot.com
http://www.slideshare.net/goldman

Engº Fernando Goldman
Email: fernandogoldman@yahoo.com.br


2011 10 20_senai_cetiqt_english

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