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

Innovation
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 before
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 works.
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 music.

Intelligence
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 ideas.

What are innovation drivers?

Market Pull

Inno
vations

Technology
Push

Main focus: Innovations

based on own technologies
and on market knowledge

Society
demand

Main focus: Innovation trends

backed by governmental funds
and regulations

What innovation model to be used?

Innovation &
R&D Strategy

Innovation and R&D strategy

Strategic areas and technologies
Innovation pipeline
New technologies

New Business
Development
New business opportunities
Multidisciplinary R&D projects
Start up projects

R&D Knowledge
Management

Technology teams
Cooperations (Universities, Institutes)
Innovation Forum
People exchange
IT Systems R&D

Intellectual
Property
IP Strategy
IP Tactics

Thinking provides
knowledge, Knowledge
makes you great.
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:

Wisdom
Knowledge
Information
Data

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

information?

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

receive
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 smarter
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 problems
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 disciplines
9. KM is now an old, mature concept; there are
sophisticated packages available
10. Amazon.com is a bookseller

Organizational conditions for KM

Trust
Confidence
Credibility
Direct connection knowledge

acquisition/sharing - reward
professionals = ambassadors or bosses
Systems support

Why manage knowledge

Enables effective and timely decision-

making
Fosters creativity & innovation
Enhances communication
Supports culture of learning, customerfocus, 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 day.

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
customers

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 register
Codify knowledge where possible, but dont discard non-

codifiable (tacit) components

Nourish a culture that supports and rewards knowledge sharing

Promote individual knowledge development

AND THEY ALL INTERACT!

Intellectual Property
Steady Growth in patents and trademarks
Licensing IP as part of smart Intellectual Asset Management
Case Example: Yet2.com ( recently acquired by Scipher)

http://www.european-patent-office.org/tws/tsr_2000/31demand.htm

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

Who is involved
Knowledge management is everyones responsibility.
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

Introduction
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 1920s
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, 1962
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 support

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 ways
People who are good at problem solving and analysis
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 few

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 innovative

One rung down

How do I Make my division more innovative

Third rung

How do I make my team more innovative

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
1. Just imagine
2. Take one step backwards
3. Keep walking backwards or catch it by the tail

Support
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 ideas
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 innovation

Support
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 channels

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