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Title: Innovation

Innovation Knowledge Management
  • Dr. Siddhan Clariant - Colour-Chem Ltd. Thane

Why this topic when we talk of Challenges to
Indian MNCs ? If we dont manage creativity and
innovation in the areas of Intellectual property,
technology distribution, India will be
challenged in the market place

A great wind is blowing and that gives you either
imagination or a headache.
  • Catherine II (the Great)
  • Empress of Russia

Knowledge Management definitions
  • 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

  • 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.

What is Innovation?
  • Innovation means renewal or alter
  • Prerequisite for innovation is the
    dissatisfaction with the current status and an
    inquisitive mind

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
  • Intelligence is the ability to learn and think

Demonstrated creativity examples
  • George de Mestral's observation of how cockleburs
    attach to clothing leading to invent the
    hook-and-loop fastener known as Velcro
  • Art Fry's 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

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

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, ...

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
  • 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

  • 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

What are innovation drivers?

What innovation model to be used?

Innovation RD Strategy
RD Knowledge Management
  • Innovation and RD strategy
  • Strategic areas and technologies
  • Innovation pipeline
  • New technologies
  • Technology teams
  • Cooperations (Universities, Institutes)
  • Innovation Forum
  • People exchange
  • IT Systems RD

New Business Development
Intellectual Property
  • New business opportunities
  • Multidisciplinary RD projects
  • Start up projects
  • IP Strategy
  • IP Tactics

Thinking provides knowledge, Knowledge makes you
  • Dr. APJ Abdul Kalam
  • Honorable President of India from annual address
    at Saurashtra University, Rajkot, Gujarat

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

Knowledge is more than knowing
  • Knowledge develops like a pyramid

Strategy, heurisitics
Concepts, algorithm
Organized facts, simple rules
Raw isolated facts
Knowledge is more than knowing
  • Overload Noise
  • Business workers are flooded with data and
    drowning in information
  • Volume of technical literature is overwhelming
  • To read one year of chemistry publication will
    take 700 yrs.
  • Biomedical literature will take 2200 yrs.

Knowledge is more than knowing
  • Where is the wisdom we have lost in knowledge?
  • Where is the knowledge we have lost in
  • Where is the information lost in data?
  • TS Eliot in his poem The Rock

Knowledge is more than knowing
  • Overloaded knowledge workers suffer
  • Half of managers cant cope with data they
  • Two thirds said they needed high levels of
    information but believed info was underutilized
  • Ca. 50 felt that acquiring information
    detracted from their main job responsibilities
  • Information overload lessened job satisfaction

Knowledge is more than knowing
  • Explicit and tacit knowledge
  • Physics student can write equation of a ball
    propelled in space and its trajectory - this is
    explicit knowledge
  • Basket ball player knows how to propel into the
    hoop - this is tacit knowledge - experience,
    skill muscle memory

Knowledge is more than knowing
  • Effective knowledge management
  • Deals with both explicit and tacit knowledge
  • While explicit knowledge is copied, tacit
    knowledge is not
  • Prefer tacit knowledge based projects for
    sustained success

Knowledge is more than knowing
  • Who do you hire?
  • Worker who knows how to operate a machine but
    does pick up new skills?
  • One who knows how to learn independently but not
    familiar with the machine?
  • Your brand of machine will change !!! Skills are
    easier to acquire than attitude !!!

Knowledge is more than knowing
  • Another way to look at KM
  • How group of people make themselves collectively
  • While training educates individuals, KM educates
    the entire organization

Knowledge is more than knowing
  • Early knowledge management system
  • Beehive - every spring day, hundreds of bees
    sortie forth in quest of honey. One of the
    emissaries locates a promising patc, he flies
    back and does a jig unique 8 figure dance. This
    angle of figure 8 tells rest where the patch of
    flowers are

The Role of Knowledge
  • The creation, diffusion and use of knowledge
    have become the vital
  • ingredient in economic growth and
  • change. The innovation-driven economy builds
    upon these
  • processes. (OECD, 2002)

knowledge management mythology
  • 1. Connectivity is the issue - sharing of info
    knowledge will follow
  • 2. Its a solution - must be good for our
  • 3. Ubiquity, access, any time, any place is
    always needed
  • 4. Its available, I need it
  • 5. We can talk KM with no reference to
    organizational issues

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
  • 9. KM is now an old, mature concept there are
    sophisticated packages available
  • 10. is a bookseller

Organizational conditions for KM
  • Trust
  • Confidence
  • Credibility
  • Direct connection knowledge acquisition/sharing -
  • professionals ambassadors or bosses
  • Systems support

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

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

Managing knowledge
  • Knowledge has become the key to success, it is
    simply to valuable a resource to be left to
    chance (Wenger)

Knowledge management (KM) is A
trans-disciplinary approach to improving
organisational outcomes and learning, through
maximising the use of knowledge
Critical Concepts for KM Whats to Manage?
  • Organisational information
  • Organisational knowledge
  • Individual knowledge

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

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

The Challenge of Knowledge Management
  • Not 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

looking at key elements
  • people
  • processes
  • technology

The KM Journey - the Fivefold Way
  • Establish effective information capture and
    management systems processes
  • Identify/map organisational individual
    knowledge capabilities your knowledge asset

  • Codify knowledge where possible, but dont
    discard non-codifiable (tacit) components
  • Nourish a culture that supports and rewards
    knowledge sharing
  • Promote individual knowledge development

Intellectual Property
  • Steady Growth in patents and trademarks
  • Licensing IP as part of smart Intellectual Asset
  • Case Example ( recently acquired by

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
  • measuring performance
  • considering regulatory requirements, best
    practices, guidelines
  • leadership
  • integrating KM across the organisation

Who is involved
  • Knowledge management is everyones
  • 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

  • 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

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

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

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 UnionInternal memo
  • Radio
  • The wireless music box has no imaginable
    commercial value. Who would pay for a message
    sent to nobody in particular
  • David Sarnoffs associates in response to his
    urgings for investments in the Radio in the
  • Talking Pictures
  • Who the hell wants to hear the actors talk?
  • HM Warner, Warner Brothers,1927

Famous Remarks
  • Beatles
  • We dont like their sound, and guitar music is
    on their way out.
  • Decca Recording Corporation, rejecting Beatles,
  • 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? Youre crazy
  • Drillers whom Edwin L Drake tried to enlist to
    his project

Getting Innovation started
  • Innovation is like juggling. The organisation
    needs to focus on purpose, commitment, ideas and
  • 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
  • People who are good at problem solving and
  • 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

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
  • One rung down How do I Make my division more
  • Third rung How do I make my team more
  • Fourth rung How can I be more innovative
  • Fifth rung How can I implement one new idea?

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

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 Back
  • Just imagine
  • Take one step backwards
  • Keep walking backwards or catch it by the tail

  • 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
  • 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

  • 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

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

If everything is under control you are just not
driving fast enough