Innovation Management Chapter 7 PDF

3/18/2024 Innovation Management Outlines Knowledge Definition Creating New Knowledge Organizational Structure and Knowledge Chapter 7 Types of Knowledge Managing organizational knowledge Tacit Knowledge Management Arsalan Safari Knowledge and Core Competencies Associate Professor Organizational Lear...

3/18/2024 Innovation Management Outlines Knowledge Definition Creating New Knowledge Organizational Structure and Knowledge Chapter 7 Types of Knowledge Managing organizational knowledge Tacit Knowledge Management Arsalan Safari Knowledge and Core Competencies Associate Professor Organizational Learning 1 2 Introduction Knowledge! Knowledge is facts, information, and skills acquired through experience, experiment or education. All innovations and discoveries are based on the new knowledge. New (more) knowledge is important for these reasons: Knowledge is power, meaning that we have to find ways to manage knowledge and increase its impact to generate more innovations. Allow our brains to function more smoothly and effectively Increase creativity → new ideas (more innovations) At the same time, we need to protect it to prevent any replication by competitors. Enhance skills → Finding problems and effective solutions (cost) Provide faster learning process and make better decisions Create competitive advantage in the market 3 4 The Tangibility of Knowledge Creating New Knowledge Knowledge can be created through: Practice: by doing work, Research and Development (R&D) Collaboration: with other organizations, universities Interaction: with customers, competitors, global markets, etc. Experimentation: Creating new knowledge through systematic testing and analysis. Education: by reading available knowledge and improving it Others..! Practical knowledge Once we generate new knowledge (with novelty), it can be protected by a patent, so it is our intellectual property for a long time !!! Product / service knowledge → know-how 5 6 1 3/18/2024 Organizational Structure and Knowledge Knowledge from Interaction Organizational structure significantly impacts knowledge sharing → Consider flexible policies and routines that encourage interaction, communication and knowledge sharing. Interaction with the external sources can produce effective information (e.g., customers, suppliers, complementors, competitors). Large firms with many departments face big challenges, as they have strict policy for communication More interactions → More learning Smaller firms are more dynamic and able to share knowledge. Explore social media / internet The following are examples of such interaction: Examples: Google encourage interaction during launch time! Apple tries to organize its enterprise like startups! Review newsletters/articles/books/podcasts Explain a concept to experts (lead users), ask effective questions The knowledge base of an org. Attend conferences / exhibitions Social interaction 7 8 Types of Knowledge Types of Knowledge Small part Explicit Knowledge: Knowledge that can be codified, that is, expressed in numerical, textual or graphical terms and therefore is more easily communicated. Example: the design of a product. Tacit (implicit) Knowledge: Knowledge gained from personal experience that is more difficult to express (or write down), usually stored inside person’s mind. Example: how to ride a bicycle. 9 Big part 10 Tacit Knowledge This knowledge is hard to write down, because it is complicated, which makes it very critical. Most of promising innovations come from this type of knowledge, therefore, we need to find ways to enhance and manage it. Tacit knowledge is a crucial asset for firms → We need to transfer it across the organization effectively, By using any possible strategy, otherwise the development process will be slow. Effective strategies to transfer (communicate) tacit knowledge: 11 Tacit Knowledge Management 1- Collaboration (sharing culture) Working in teams is a good way to share and transfer knowledge across members and exchange experiences. 2- Interaction by social networks Online interaction provides an opportunity to learn through shared conversations among members. Especially, if they are located in different departments or countries. 12 2 3/18/2024 Tacit Knowledge Management Tacit Knowledge Management 3. Show Your Work Presenting your work is a strategy that enables transferring the tacit knowledge. Example: a surgeon using video during surgery to show operations for medical students. 4. Storytelling Telling a story can take a form of open discussion and present many important information. Example: using interviews with senior members to explain their general experience and challenges, which can be recorded for everyone as part of a knowledge management system. 13 5. Tracking Lessons Learned We can record lessons learned from specific process, so others can benefit from experiences in which they did not participate. Example: recording of interview sessions at the end of a project to define the key challenges and the best lessons learned, so others can see them anytime. 6. Guided Experience It depends on deep mentoring approach to transfer all details. Example: Expert engineer showing technicians all the steps to perform machine service and calibration (good for newcomers). 14 Challenges in Knowledge Management Tacit Knowledge Management 7. Using Special Software Some firm develop a special software that can contain most of the previous strategies, with full recording and retrieval of information. Since knowledge is important for innovation process, there are challenges in managing each step of its development: They can record all communication activities and use artificial intelligence (AI) Identifying and codifying existing knowledge Generating and acquiring new knowledge Storing and retrieving knowledge Sharing and distributing knowledge across the organization Utilizing and embedding knowledge in products / services Using previous strategy effectively can help to overcome these challenges 15 16 Knowledge and Core Competencies Core Competencies refers to the capabilities, knowledge, skills and experiences that establish a firm’s "major strength” A firm’s core competency is distinctive, and cannot be easily replicated by other firms → Typically, it resides in people not in physical assets. In industries where technological innovation is important, firms need more than a set of core capabilities in R&D. → Thus, internal knowledge should be enhanced to sustain unique core competencies. Core Competencies Examples: Skills in manufacturing a high-quality product System to fill customer orders accurately and quickly Fast development process of new products Better after-sale service capability Superior know-how in selecting good retail locations Innovativeness in developing popular product features Marketing and product display skills Expertise in an important technology Expertise in integrating multiple technologies to create whole families of new products All come from knowledge → Org. learning is crucial. 17 18 3 3/18/2024 Organizational Learning Organizational learning is the process of creating, holding, and transferring knowledge within an organization. The whole can be viewed as more than the sum of the parts Organizational Learning In most organizations, individuals are afraid to share the knowledge they’ve obtained over many years (a source of power). → The internal culture should encourage knowledge sharing and exchanging ideas, by having a good reward system Developing new knowledge (creative ideas) is an effective factor in the innovation process. In Practice, each firm can adopt various strategies to achieve this goal. 19 20 Organizational Learning Example of Organizational Learning Organizational Learning Strategies OUTCOMES PROCESS Align your organizational learning strategy with your business strategy Integrate organizational learning into your corporate culture Facilitate experimenting Work on your knowledge management Promote collaboration Consider the remote/hybrid setup Measure the progress 21 22 Summary Exercise Knowledge is the most important factor in generate new ideas. Listen and discuss: https://hbr.org/video/2226587714001/the-importance-oflearning-in-organizations Knowledge sharing across the organization facilitates defining optimal solution in short time Tacit knowledge is hard to transfer across individuals, and critical to generate innovative ideas. A solid organizational learning strategy helps a company improve its competitiveness, productivity, and profitability through learning. Making it an integral part of your organization’s overall learning strategy brings you closer to reaching your organizational goals. 23 24 4