This document discusses managing innovative organizations and knowledge management. It defines key concepts like management systems, organizations, and the 7 dimensions of knowledge management. It examines McKinsey's 7S framework and provides examples of senior management vision at Apple and barriers to innovation. Different aspects of knowledge management are explored, like organizational learning, structure, human resources policies, information systems, performance measurement, and internal/external networking. The presentation emphasizes that managing innovation requires an integrated approach across these different dimensions.

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
ManagementSenior 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