This session deals with the organisational challenges associated with developing the culture of innovation.

1. Marketing & Innovation
Marcos LIMA, PhD
Skema Business School
Session 02:
Managing the
Innovative Organization

2. What is a management system?
What is
management?

3. What is a management process?
Informational
Resources
Human Resources
Financial ResourcesMaterial Resources

4. Internal Environment
External Environment
What is a management system?
What is a System?
INPUT PROCESS OUTPUT
FEEDBACK

5. What is a management system?
Management System in Action
PROCESS
Products /
Services
OUTPUT
INPUT
Market
FEEDBACK
Internal Environment
External Environment

6. What is an Organization?

7. What is an Organization?
McKinsey’s 7S

8. Fragmented Synthesis
McKinsey’s Interactive Exploration of the 7S
http://www.mckinsey.com/insights/strategy/enduring_ideas_the_7-s_framework

9. What is an Organization?
Simplified McKinsey Model: 3Ps
POSITION
PROCESS
PEOPLE
Search
Environment
Select
Strategy
Implement
Processes
Create
Value-Capture
Culture
Search
ENVIRONMENT
Select
STRATEGY
Implement
PROCESS
Capture-Value
CULTURE

10. Knowledge Management &
Innovation
The 7 Dimensions of Knowledge Management
Senior Management VISION & STRATEGY
1
HR
Policies
4
Performance
Measurement
SYSTEMS
6
Organizational
STRUCTURE
3
Suppliers
Partners
Universities
7
External
Learning
Clients
Competitors
Government
7
External
Learning
Information
SYSTEMS
5
Organizational
CULTURE
2
a. STRATEGIC
c. OPERATIONAL
b. TACTIC

11. Knowledge Management &
Innovation

12. Knowledge Management &
Innovation: D1 – Strategy
 Video Case:
Pirates of the Silicon Valley Part 1
 Apple’s Core Competence (0:00:00 + 0:18:50)

13. Knowledge Management &
Innovation: D1 - Strategy
Senior Management Vision
 Focus on core competency
 Create a sense of direction and “urgency”
Case in point: Lloyds Bank
 Goal: to double the company’s
value every 3 years
 Under CEO Brian Pitman, goal
was reached for 15 years !!!
Brian Pitman
X 2X 4X 8X 16X 32X !!!

14. Knowledge Management &
Innovation: D1 - Strategy
Senior Management Vision
http://9to5mac.com/2012/07/19/collapsing-nokia-may-have-had-apple-like-hardware-in-development-in-the-90s/

15. Knowledge Management &
Innovation: D2 - Culture
Organizational Learning
Learning by
Doing
(Exploiting)
Learning by
R&D /
Searching
(Exploring)
Organizational Forgetting
Creative Forgetting
Organizational
Knowledge
Stock
Ideas
With
Innovation
Potential
Innovative
Projects
INNOVATION
Institutional/Organizational
Barriers/Incentives
Institutional/Organizational
Barriers/Incentives
Market
Barriers/Incentives

16. Knowledge Management &
Innovation: D2 - Culture
 Video Case:
Pirates of the Silicon Valley Part 2
 Barriers at Apple (0:40:25)

17. Knowledge Management &
Innovation: D3 - Structure
Organizational Structure
 Flat hierarchies
 Open spaces
 Incentive to “skunk works”
Case in Point: Alcoa
 CEO’s workstation measures
3 x 3 m, like any other in the
building
 No desk is more than
15 m from a window

18. Knowledge Management &
Innovation: D4 - People
HR Policies
 Recruit (and retain) talent
 Incentivate knowledge sharing
Case in Point: McKinsey
 Diversity of sources
 Engagement of top managers
in recruitment process
 Global knowledge base
 Built-in turn-over: constant renewal

19. Knowledge Management &
Innovation: D4 - People
 Video Insight :
Diversity is key to learning
http://vimeo.com/3475327

20. Knowledge Management &
Innovation: D5 - Systems
Information Systems
Data
“structured
registries”
Information
“message with meaning
and purpose”
Tacit / Implicit DomainExplicit Domain
Knowledge
“mental evaluation”

21. Knowledge Management &
Innovation: D6- Measures

22. Knowledge Management &
Innovation: D6- Measures
Measurement Systems
 Indicators that capture not only financial performance
but also:
• Customer feedback
• Process efficiency
• Learning and renewal
Case in Point: Skandia
 Multiple indicators,
multiple perspectives

23. Knowledge Management &
Innovation: D7 - Networking
Internal / External Learning
 Networking with
• Suppliers / Partners
• Competitors
• Government / University
Video Case:
 Pirates of the Silicon Valley
Part 3: Apple x Xerox (1:01:00)
• Learning with the Environment

24. Knowledge Management &
Innovation: A Synthesis

25. Final Comments
Where we are
and where we
are going

26. Innovation as an Integrated
Process
Search int./ext.
ENVIRONMENT
Select
STRATEGY
Implement
PROCESS value Capturing
CULTURE

27. Recommended Reading
TIDD, 2009
 Chapters 9-12
TROTT, 2008
 Chapters 4-6
Articles*
 Hamel (G05 – G08)
 Porter (G09 – G12)
* One student will be randomly selected for a 5-min presentation without PPT

28. Good Luck!
Marcos Lima
marcos.cerqueira_lima@devinci.fr