120619 cul knowledge based bus inno v03


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120619 cul knowledge based bus inno v03

  1. 1. London, City University, 19 June 2012Methods and Tools for Enterprise Innovation inthe Networked Economy: a Knowledge-centric Approach. Michele Missikoff LEKS, CNR-IASI Polytechnic University of Marche, Ancona 1
  2. 2. Creditis• Large part of the content of this talk has been elaborated within the European Project BIVEE: Business Innovation in Virtual Enterprise Environments.• BIVEE is a 3 years project (ends Aug 2014) with 4.3 M€ budget and 10 partners : Engineering (It) UnivPM (It) BIBA (De) TAL (UK) BOC (At) SRDC (Tr) ATOS (Es) AIDIMA (Es) CNR (It) Loccioni - GI (It) Proceedings: http://ceur-ws.org/Vol-864/
  3. 3. Innovation in the ContextCurrent Scenario – The world, and Western economies in particular, are traversing a critical phase that requires to enter an era of deep changesThe changes will take place along three main dimensions:• The technology dimension• The socio-economic dimension• The political dimension (... but I’ll skip this ;-) 3
  4. 4. Technology dimensionAmong the key technological innovations of the last period, we may cite:• Cloud Computing,• Service Oriented Architectures (SOA) and SaaS (Software as a Service),• Internet of Things and Smart Objects,• Semantic Web, ontologies, and Linked Data• Social Media, entering in the enterprise world 4
  5. 5. Socio-economic dimension• Western countries cannot continue to grow at the rate of the previous decades• The current development model has reached an end• Continuous growth of production and consumption (and waste disposal) is unbearable• New value systems are emerging (ref. Stiglitz, Sen, Fitoussi report; S.Latouche and the ‘graceful degrowth’)• Towards a development model where the quality of life is loosely connected to the possession of goods• Innovation need to be re-considered in light of the above concerns 5
  6. 6. Vision• To overcome the crisis, EU enterprises need a deep change• Introducing continuous improvement and innovation to remain competitive in the globalised economy• Sustainable Innovation rather than expansive innovation• Focusing on Enterprise Software – Vital infrastructure for businesses and socio- economic systems, but … – ‘hindering factor’, wrt the speed and flexibility required by markets and business innovation• We need to put Knowledge in the center, to guarantee• Continuous alignment of Business needs and Enterprise Software Applications in ever changing enterprises
  7. 7. 1. What is Business Innovation?Business Innovation is a designed, managed transformation of some aspects of the enterprise (or the society, the city, etc.) aimed at a substantial improvement of:• the quality of delivery products (goods, services) and the customer satisfaction,• production processes and workers satisfaction• cost reduction and/or revenue raise• In a sustainable way (respectful of working conditions, social context, environment, ...) 7
  8. 8. Business Innovation: Where?• Products (goods / services)• Production / Admin processes• HR competencies, skills, capabilities• Organization models, with new delegation patterns• Enterprise information organization and flow• Markets and marketing styles• Customer relationships• Suppliers and partners strategies and management• Technology adoption, deployment, renewal strategies and practice• Financial and control styles, methods, and tools• Quality of working life and ambient• Relationships with the territories, the people, the environment, local cultures 8
  9. 9. Business Innovation: How?ScopeBusiness Innovation: Goods, Services, Processes with ICTApproachespush-mode and technology driven, when generated on the supply side;pull-mode and demand driven, when requested by the market/demand side;co-creation, when all the stakeholders cooperate together to generate product or process innovation.Endogenous, when ideas come from within the EcosystemsExogenous, when ideas come from the rest of the World
  10. 10. Enabling Business Innovation• Create the right environment, working conditions• Grassroots innovation (beyond Toyotism ...)• Open innovation (but controlled), with systematic and ad-hoc relationships with – universities , research centres, partners, suppliers and customers• Facilitate info / knowledge / ideas circulation within and outside the enterprise• Culture of cooperation (rewarding system)• Scouting – Technology – Market – Excellence centres• Observatories on opportunities, problems, threats, ... 10
  11. 11. On the Nature of Business Innovation• Innovation ... Is it a process?• What is its relationship with Knowledge Management?• What is its relationship with Change Management?In essence, it is a Transformation, but in a rather fuzzy context:• Fuzzy starting point (we never fully know the reality)• Fuzzy ending point (is there an end ...?)• Uncertainty on how to get there ... 11
  12. 12. The Nature of Business Innovation• Whatever you innovate, firstly you change your behaviours• Knowledge Management is not sufficient• You need Knowledge at Work (pargmetics) KW• Knowledge capable of modifying your working style, your environment, your culture, ... – HR continuous training, formal and ‘on the job’• In the Enterprise, KW will modify your organization, BP, Info Flow, ... the Value Production Space 12
  13. 13. Innovation New KnowledgeKnowledge about• enterprise and its organization• competencies, skills, and capabilities• problems and improvement opportunities• products and services• Knowledge about the production processes, methods• Technologies, systems, and resources• Markets, clients, partners and competitors 13
  14. 14. Enterprise Model 4 BusInnov STRATEGY innovation MARKETING ORGANIZATIONAL innovation innovation BUSSINESS innovation PRODUCT innovation TECHNOLOGY innovation SERVICE PROCESS innovation innovation(Scource: BIVEE Deliverable D2.1 – BIMF: Business Innovation Modeling Framework) 14
  15. 15. Innovating Innovation• Towards Open Innovation• A systematic approach to Innovation, nurturing creativity and ideas generation• Innovation as intangible goods• ‘Manufacturing’ approach to Innovation• The need of new production/organization models• Virtual Innovation Factory (VIF), operating in the Innovation space 15
  16. 16. Virtual Innovation Factory Raw / Enabling Buz KR Onto Knowl Data K Value Chain New Working The learning Organization Knowl (intangible dimension ) (concrete dimension)Raw FinalMaterials, Bus Value Chain ProductSpare Parts (MountainBike,(Frame, Saddle, CityBike, ...)Wheels, Speed-Shift, ... ) Real world enterprise 16
  17. 17. Organising Open Innovation• Traditional organization models are too rigid, not suitable for creativity and innovation• Breaking the schemes, subverting the hierarchies• New approaches also for the protection of intellectual property rights (IPR)(http://opensource.com/business) 17
  18. 18. Business Innovation Space• The (often unpredictable) Innovation paths Innovation path link Innovation unit Unit ?? • Is Innovation a PROCESS? How repeatable? 18
  19. 19. Production space transformation Value Production Space with old PPxProduction Process DocSet X X Innovation Space yielding new PM Value Production Space with new PPx’ DocSet X’Production Process X’ 19
  20. 20. Innovation as a Meta-Transformation• Production process transforms the reality• Innovation transforms the production process, to achieve: – A new (or renewed) product – To produce in a new fashion – To produce for a new market ... Innovation = Designed Enterprise Transformation 20
  21. 21. Designed Enterprise TransformationDET =• Set of Enterprise Goals (EG)• Current Organization (CO)• Current Enterprise Processes (CEP)• Current Products and Services (CPS)• Current Adopted Technologies (CAT)• KPIs on the above (KPI)DET: Transformations that make EG true (or ‘sufficiently’ approximated) 21
  22. 22. TransformationProducts and services• DET(CPS)  New Org (NPS)Enterprise Processes• DET(CEP)  New Enter Processes (NEP)Adopted Technology• DET(CAT)  New Adopted Tech (NAT)Inducing therefore, organizational changes• DET(CO)  New Org (NO) det(cps, cep, cat, co)  eg(nps, nep, nat, no) = ‘true’* 22 (* or above a given fuzzy threshold)
  23. 23. What is BIVEE?• A Virtual Enterprise Environment, to be integrated with existing Enterprise Software Applications (ESA)• Distributed, collaborative, knowledge-intensive framework• A Platform for networks of networked, interoperable virtual/real enterprises• To be used directly by Business Experts, pushing for disintermediation (wrt techies) in innovation KM• Innovation Observatory to push Open Innovation: – involving the largest number of people (Crowdsourcing) – Exchanging information with the rest of the world (universities, international research labs, etc.)
  24. 24. Document-centric approach• Towards a full digital enterprise, all relevant information is digital (see UDE: Unified Digital Enterprise, FInES Research Roadmap)• Everything is documented, by people for people• What is not documented does not exist ... !!!• The enterprise knowledge is captured by a wealth of document collections (Pre-KB)• Documents need to be semantically enriched• Partitioning the Knowledge Space according to – document categories – Knowledge categories (ontologies) 24
  25. 25. Enterprise Doc Categories• Business Doc: describe the business transactions (invoice, Req for Quotation, Order, ...)• Actors & Roles Doc: describe the competencies, skills, and capabilities, useful invalue production (Yellow Pg)• Domain Doc: capture the industry sector (Catalogues, BoM, ...)• Process Doc: describe the production process (plan, build, manange, ...)• Performance Doc: describe the indicators and the measuring methods, to keep performance under control (measurmenet methods, KPIs, ...)• Report Doc: all the base studies and reportes necessary for value production / innovation (technical reports, Feasibility studines, market analysis, ...) 25
  26. 26. Semantic Doc Management• Semantic Descriptors of Docs are the missing ring between humans and computers• Docs give account of entities, phenomena and manifestations that make sense for humans (tech experts, business people, customers and suppliers, etc.)• We need to make such knowledge fully available to computers ...  Let’s go semantics 26
  27. 27. Enterprise Ontologies• Enterprise Ontologies will reflect the knowledge originated within the Enterprise, gathered in the Enterprise Docs• Enterprise Doc are generally complex structure whose semantics cannot be captured by a single ontology• There will be primary ontologies and complementary ones 27
  28. 28. The DocOnto ConstellationEach ontology is used to define the structures of corresponding docs, supporting the generation of the related doc instances (KRO: Knowl Resources Onto)• DocOnto – Documents and Reports Ontology• BusOnto – Business Ontology• DomOnto – Domain Ontologies• ProcOnto – Process Ontology• PerOnto – Performance Ontology• AROnto – Actors & Roles OntologyBesides the DocOnto, that defines the structure of the documents, the other ontologies participate in ‘semanticise-ing’ the content, with different points of view. 28
  29. 29. Production Doc Annotation Buyer Info OrderNum PERMASA Group 5796 Pedro Texeira, 8 28020 – Madrid Date: 11-08-05 Ph. 913301003 Fax. 913301005 Email: info@permasa.esBusOnto Tax number: G12345678 Contact: John Smith Seller Info GREBECO – Calle Sol, 23 18003 – Granada (Spain) Ph. 958203734 Fax. 558282885 Email: info@grebeco.com Product Description Quantity ProdUnitCost(€) AROnto Code ON229 Wardrobe 49*99 2 78.00 Sheft unit panel OP328 1 59.00 60*175 OP481 Rear panel 2 20.00 OP873 Bunk bed ladder 1 21.00 Upper bed for a DocOnto OP874 1 65.00DomOnto youth bedroom Total(€) 341.00 Purchase Order 29
  30. 30. Semantic DescriptorThe ‘missing link’ between human-oriented documents and computer-oriented knowledge management.Organization of a Semantic Descriptor- Header: metadata- Domain Specs Content- Related K Resources: links to other SD (e.g., previous doc)- External Links 30
  31. 31. Innovation Doc: Feasibility StudyIs the Innovative Idea (of, e.g., a new product) viable?• Technical feasibility – Design outline: structure, functions, expected effectiveness – Material costs, Production costs – Enabling technology• Business feasibility – Potential market penetration, Production volumes – Competitors and Market leaders – Value proposition, business model, and SWOT, profitability• Organizational feasibility – Competencies and Capabilities – Partnership and Suppliers – Resources estimation: time and financial viability 31
  32. 32. Annotating a Feasibility Study Tech-F BusOnto Bus-FDomOnto Org-F AROntoDocOnto Feasibility Study and its sections 32
  33. 33. From Reality to Virtualy Sem SemanticDescriptors Annotation RW Docs ProData DB Real World 33
  34. 34. Innovation needs managed chaos• Beyond processes ... Waves Work Intensity Creativity Feasibility Prototyping Engineering T(drawing extracted from BIVEE Deliverable D2.1) 34
  35. 35. Virtual Innovation Factory DocOnto DomOnto BusOnto ProcOnto AROnto Doc Network Final Innov ! Idea W1 W2 W3 W4 Innovation DiaryWhiteboard PerOnto 35
  36. 36. A platform for open Innovation Social Semantic Knowledge Managemet PlatformSocial – open to all (up to IPR)Semantic – a rigorous bases for:Knowledge – any form of enterprise knowledge: documents, minutes, reports, videos, image, ...Management – advanced services to allow managers and innovators to keep under control the evolution of the venture Current experimentation: Semantic MediaWiki Plus 36
  37. 37. Conclusions• The main ideas on a new approach for Innovation have been presented• Future innovation needs to be addressed as a Knowledge Management venture• But traditional KM is not suited for the purpose• We need to revisiting the existing KM solutions• Ontologies and Semantic Wikis are promising tools, together with social media and cooperation tools (in Open Innovation)• But human intelligence and creativity remains the key pillar 37
  38. 38. Thank you for your attention Wake up ... Questions? 38