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  1. 1. Innovation & KnowledgeManagementDr. SiddhanClariant - Colour-Chem Ltd.Thane
  2. 2. Why this topic when we talk ofChallenges to Indian MNCs ?If we don’t manage creativity andinnovation in the areas ofIntellectual property, technology& distribution, India will bechallenged in the market place
  3. 3. A great wind is blowing andthat gives you eitherimagination or a headache.Catherine II (the Great)Empress of Russia
  4. 4. Knowledge Managementdefinitions ♦ 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. 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. 6. What is Innovation?♦ Innovation means renewal or alter♦ Prerequisite for innovation is the dissatisfaction with the current status and an inquisitive mind
  7. 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. 8. Demonstrated creativity examples♦ George de Mestrals observation of how cockleburs attach to clothing leading to invent the hook-and-loop fastener known as Velcro®♦ Art Frys 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. 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. 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. 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. 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. 13. What are innovation drivers? Market Pull Inno vations Technology Society Push demandMain focus: Innovations Main focus: Innovation trendsbased on own technologies backed by governmental fundsand on market knowledge and regulations
  14. 14. What innovation model to be used? Innovation & R&D Knowledge R&D Strategy Management – Innovation and R&D strategy – Technology teams – Strategic areas and technologies – Cooperations (Universities, Institutes) – Innovation pipeline – Innovation Forum – New technologies – People exchange – IT Systems R&D New Business Intellectual Development Property – New business opportunities – IP Strategy – Multidisciplinary R&D projects – IP Tactics – Start up projects
  15. 15. Thinking providesknowledge, Knowledgemakes you great.Dr. APJ Abdul KalamHonorable President of Indiafrom annual address at Saurashtra University, Rajkot, Gujarat
  16. 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. 17. Knowledge is more thanknowingKnowledge develops like a pyramid: Wisdom Strategy, heurisitics Knowledge Concepts, algorithm Information Organized facts, simple rules Data Raw & isolated facts
  18. 18. Knowledge is more thanknowingOverload = Noise:♦Business workers are flooded with data anddrowning in information♦Volume of technical literature is overwhelming♦To read one year of chemistry publication willtake 700 yrs.♦Biomedical literature will take 2200 yrs.
  19. 19. Knowledge is more thanknowing♦Where is the wisdom we have lost inknowledge?♦Where is the knowledge we have lost ininformation?♦Where is the information lost in data?TS Eliot in his poem “The Rock”
  20. 20. Knowledge is more thanknowingOverloaded knowledge workers suffer:♦Half of managers can’t cope with data theyreceive♦Two thirds said they needed high levels ofinformation but believed info was underutilized♦Ca. 50% felt that acquiring information detractedfrom their main job responsibilities♦Information overload lessened job satisfaction
  21. 21. Knowledge is more thanknowingExplicit and tacit knowledge:♦Physics student can write equation of a ballpropelled in space and its trajectory - this isexplicit knowledge♦Basket ball player knows how to propelinto the hoop - this is tacit knowledge -experience, skill & muscle memory
  22. 22. Knowledge is more thanknowingEffective knowledge management:♦Deals with both explicit and tacitknowledge♦While explicit knowledge is copied, tacitknowledge is not♦Prefer tacit knowledge based projects forsustained success
  23. 23. Knowledge is more thanknowingWho do you hire?♦Worker who knows how to operate a machine butdoes pick up new skills?♦One who knows how to learn independently butnot familiar with the machine?Your brand of machine will change !!!Skills are easier to acquire than attitude !!!
  24. 24. Knowledge is more thanknowingAnother way to look at KM♦How group of people make themselvescollectively smarter♦While training educates individuals, KMeducates the entire organization
  25. 25. Knowledge is more thanknowingEarly knowledge management system♦Beehive - every spring day, hundreds ofbees sortie forth in quest of honey. One ofthe emissaries locates a promising patc, heflies back and does a jig – unique 8 figuredance. This angle of figure 8 tells rest wherethe patch of flowers are
  26. 26. The Role of KnowledgeThe creation, diffusion and use ofknowledge have become the vitalingredient in economic growth andchange. The innovation-driveneconomy builds upon theseprocesses. (OECD, 2002)
  27. 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. 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. is a bookseller
  29. 29. Organizational conditions for KM ♦ Trust ♦ Confidence ♦ Credibility ♦ Direct connection knowledge acquisition/sharing - reward ♦ professionals = ambassadors or bosses ♦ Systems support
  30. 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. 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. 32. Managing knowledge‘Knowledge has become the key to success,it is simply to valuable a resource to be leftto chance’ (Wenger)Knowledge management (KM) is :‘A trans-disciplinary approach toimproving organisational outcomes andlearning, through maximising the use ofknowledge’
  33. 33. Critical Concepts for KMWhat’s to Manage?♦ Organisational information ♦ Organisational knowledge♦ Individual knowledge
  34. 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. 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. 36. The Challenge of KnowledgeManagementNot 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. 37. looking at key elements• people• processes• technology
  38. 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. 39. Intellectual Property♦Steady Growth in patents and trademarks♦Licensing IP as part of smart Intellectual AssetManagement♦Case Example: ( recently acquired by Scipher)
  40. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 Back6. Just imagine7. Take one step backwards8. Keep walking backwards or catch it by the tail
  51. 51. 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 and what we should continue to do to foster innovation
  52. 52. 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
  53. 53. 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
  54. 54. If everything is under controlyou are just not drivingfast enough