Copyright Notice: This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent, charge, or profit from the educational materials contained here. Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.

1. Arianto Muditomo @2019
Copyright Notice:
This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-
commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from
Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent,
charge, or profit from the educational materials contained here.
Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.

2. arianto.muditomo@2019
1

3. arianto.muditomo@2019
§ Session #1: Introduction of Knowledge Management
§ Session #2: KM & Organizational Learning
§ Session #3: Knowledge Management Strategy & Implementation
§ Session #4: Introduction to Change Management
§ Session #5: Organizational Change Management & Cultural
Change Management
§ Session #6: Introduction of Innovation & Entrepreneurship
§ Session #7: Creativity & Innovation
§ Session #8: Entrepreneur & Innovation Leadership
2
References:
• Kimiz Dalkir, Knowledge Management In Theory and Practice 1st Edition, Butterworth-Heinemann; 1 edition (June 30,
2005), ISBN-10: 075067864X, ISBN-13: 978-0750678643
• John Bessant and Joe Tidd (2015). Innovation and Entrepreneurship 3rd Edition. John Wiley & Sons, Ltd., ISBN-13: 978-
1118993095; ISBN-10: 1118993098
• John P. Kotter, Leading Change, With a New Preface by the Author, Harvard Business Review Press; 1R edition (November
6, 2012), ISBN-10: 9781422186435, ISBN-13: 978-1422186435
• Frank Voehl, H. James Harrington, Change Management: Manage the Change or It Will Manage You, Productivity Press; 1
edition (November 13, 2017), ISBN-10: 1138463957, ISBN-13: 978-1138463950

4. arianto.muditomo@2019
§ What do you know about Innovation?
§ What do you know about Entrepreneurship?
§ What can We change through innovation (dimensions for innovation)?
3

5. arianto.muditomo@2019
§ a process of turning opportunity into new ideas and of putting these into widely used practice
§ ‘Innovation is the successful exploitation of new ideas’ – Innovation Unit, UK Department of Trade and Industry
(2004).
§ ‘Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for
a different business or service. It is capable of being presented as a discipline, capable of being learned,
capable of being practised’ – Peter Drucker (1985), Innovation and Entrepreneurship. Harper & Row, NewYork.
§ ‘Companies achieve competitive advantage through acts of innovation.They approach innovation in its
broadest sense, including both new technologies and new ways of doing things’ – Michael Porter (1990) The
Competitive Advantage of Nations. Macmillan, London.
§ ‘An innovative business is one which lives and breathes “outside the box”. It is not just good ideas, it is a
combination of good ideas, motivated staff and an instinctive understanding of what your customer wants’ –
Richard Branson (1998) DTI Innovation Lecture.
4
The term comes from the Latin – innovare – meaning ‘to make something new’.

6. arianto.muditomo@2019
5
Rethinking
services
Identifying or
creating
opportunities
Improving operations
- doing what we do
but better
New ways of
serving existing
market
Meeting social
needs
Growing a new
market
Innovation is about..
Low-cost carrier
Mobile phone, tablet à
change where, when we
communicate
eBay
Amazon in retailing, eBay in
market trading and auctions,
Google in advertising and Skype
in telephony
speed, quality and effectiveness
à cutting waiting lists for
elective surgery by 75% and
cancellations by 80%

7. arianto.muditomo@2019
§ Innovation matters – but it doesn’t happen automatically. It is driven by entrepreneurship –
a potent mixture of vision, passion, energy, enthusiasm, insight, judgement and plain hard
work which enables good ideas to become reality.
§ The power behind changing products, processes and services comes from individuals –
whether acting alone or embedded within organizations – who make innovation happen.
6
Innovation
Entrepreneurship
Creating Value
As a process which can be organized and managed,
whether in a start-up venture or in renewing a 100-
year-old business
As the motive power to drive this process through the
efforts of passionate individuals, engaged teams and
focused networks
As the purpose for innovation, whether expressed in
financial terms, employment or growth, sustainability
or improvement of social welfare.
entrepreneurship driving innovation to create value – social and commercial –
across the lifecycle of organizations

8. arianto.muditomo@2019
7

9. arianto.muditomo@2019
A. explore and understand different dimensions of innovation (ways in which we can
change things)
B. manage innovation as a process
C. create conditions to enable them to repeat the innovation trick (building capability)
D. focus this capability to move their organizations forward (innovation strategy)
E. build dynamic capability (the ability to rest and adapt their approaches in the face
of a changing environment).
8

10. arianto.muditomo@2019
9
Innovation
Product
Process
Position
Paradigm
Product Innovation
• changes in the things (products/services)
which an organization offers;
Process Innovation
• changes in the ways in which they are
created and delivered
Position Innovation
• changes in the context in which the
products/services are introduced
Paradigm Innovation
• changes in the underlying mental models
which frame what the organization does.

11. arianto.muditomo@2019
10

12. arianto.muditomo@2019
11
The Context of Success:
ü clear strategic leadership and direction, plus the commitment of resources to make this happen
ü an innovative organization in which the structure and climate enables people to deploy their
creativity and share their knowledge to bring about change
ü proactive links across boundaries inside the organization and to the many external agencies who
can play a part in the innovation process (suppliers, customers, sources of finance, skilled
resources and of knowledge, etc.).

13. arianto.muditomo@2019
12
Strategic
Analysis
WhatcouldWEdo?
Strategic
Selection
WhatareWE
goingtodo,andwhy?
Strategic
Implementation
HowWEare
goingtomakeit
happen?
Creating an Innovation Strategy
Building a capability to organize and manage innovation is a great
achievement,but we also need to consider where and how innovation can
be used to strategic advantage.

14. arianto.muditomo@2019
13
1. Doing what WE do but better
2. Doing things differently different at the level of organization
3. Changing the system, coevolving solutions with different stakeholders
to create new and sustainable alternatives

15. arianto.muditomo@2019
§ What do you know about Innovation?
the process of translating ideas into useful new products, processes
or services.
§ What do you know about Entrepreneurship?
the powerful mixture of energy, vision, passion, commitment,
judgement and risk taking which provides the motive power behind
the innovation process.
§ What can We change through innovation (dimensions for
innovation)?
ü product innovation: changes in the things (products/services) an
organization offers
ü process innovation: changes in the ways in which they are created
and delivered
ü position innovation: changes in the context in which the
products/services are introduced
ü paradigm innovation: changes in the underlying mental models
which frame what the organization does.
14

16. Arianto Muditomo @2019