APPM2MARKETINGINNOVA - Knowledge

Marketing & Innovation

Session 03:
Managing the
Innovative Organization
Marcos LIMA, PhD
Skema Business School

What is a management system?
 What

is
management?

What is a management process?

Human Resources

Informational
Resources
Material Resources

Financial Resources

What is a management system?
 What

is a System?

INPUT

External Environment

PROCESS

Internal Environment

OUTPUT

FEEDBACK

What is a management system?
 Management

INPUT

System in Action
PROCESS

External Environment
Products /
Services
OUTPUT

Market
FEEDBACK
Internal Environment

What is an Organization?

What is an Organization?

 McKinsey’s

7S

What is an Organization?
McKinsey Model: 3Ps
PROCESS
POSITION

Implement
Processes

Search
Environment
Select
Strategy

Search
ENVIRONMENT

Select
STRATEGY
Implement
PROCESS

Capture-Value

PEOPLE

Create
Value-Capture
Culture

CULTURE

 Simplified

Fragmented Synthesis

y’s Interactive Exploration of the 7S

http://www.mckinsey.com/insights/strategy/enduring_ideas_the_7-s_framework

Knowledge Management &
Innovation
 The

7 Dimensions of Knowledge Management
1

7
External
Learning

Senior Management VISION & STRATEGY

Universities

2
HR

Policies

Suppliers
Partners

External
Learning

a. STRATEGIC
4

3
Organizational
CULTURE

Organizational
STRUCTURE

Clients
Competitors

b. TACTIC
5

6

Information
SYSTEMS

Performance
Measurement
SYSTEMS

c. OPERATIONAL

7

Government

Knowledge Management &

Innovation

Knowledge Management &
Innovation: D1 – Strategy
 Video

Case:
Pirates of the Silicon Valley Part 1
 Apple’s Core Competence (0:00:00 + 0:18:50)

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 !!!
X 2X 4X

8X

16X

32X !!!

Brian Pitman

Knowledge Management &
Innovation: D2 - Culture

(Exploring)

Ideas
With
Innovation
Potential

Organizational Forgetting
Creative Forgetting

Innovative
Projects

Market
Barriers / Incentives

Learning by
R&D /
Searching

Organizational

Knowledge
Stock

INNOVATION

(Exploiting)

Learning
Institutional / Organizational
Barriers / Incentives

Learning by
Doing

Institutional / Organizational
Barriers / Incentives

 Organizational

Deep Dive at IDEO
 Designing

Shopping
Cart

a

KM & Innovation:
D2/D3/D4: Culture / Structure
 Video

Case:
Pirates of the Silicon Valley Part 2
 Barriers at Apple (0:40:25)

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

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

Knowledge Management &
Innovation: D4 - People
 Video

Insight :
Diversity is key to learning
http://vimeo.com/3475327

Knowledge Management &
Innovation: D5 - Systems
 Information

Data
“structured
registries”

Systems

Information
“message with meaning
and purpose”

Explicit Domain

Knowledge

“mental evaluation”

Tacit / Implicit Domain

Knowledge Management &
Innovation: D6- Measures

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

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

Knowledge Management &
Innovation: A Synthesis

Conclusions

Marcos Lima
limamarcos@gmail.com

Knowledge Management,
Innovation and New Products
are these concepts related?

Do we
have an
innovatio
n
strategy?
Business Model
Positioning
Process
Marketing Mix

Do we have an
innovative
Organization?

Market
Results

Innovation

Knowledge
Management

Technology

New Products
& Services

 How

Targeted
Segments

A Visual Definition

These two variables
explain the critical
role of
MARKETING in the
innovation process:
understanding
UNMET
NEEDS

Strategic Marketing
 Physical

Process x Value Creation Process

Source: Lannings & Michaels 1988 apud Kotler, 2009

Marketing Planning Process
Technological
Forces
Economic
Forces

Choosing
the Value
Marketing
Environement

Product

Social
Forces

Marketing
Positioning
Marketing
Mix
Customer
Needs

Market / Product
Positioning

Promotion
Promotion

Cultural
Forces
Place/
Segmentation
Distribution
/Targeting

Price

Competitive
Advantage

Providing
the Value

Competitive
Forces

Communicating the Value

Legal/Political
Forces

What is a Business Model
 Your

Definition?
 Alex Osterwalder’s
Definition
 A business model
describes the
rationale of how an
organization creates,
delivers and captures
value.

Types of Innovation
 Tidd’s

4Ps

Disruptive Innovations

Decision Making in the
Innovation Process
 Stage-Gate

Decision Process

Preliminary
Investigation
Business
Opportunities
Product/Process
Development

Pilot Testing

Launch

BMC Overview

What is an Organization?
 McKinsey’s

7S

Knowledge Management &
Innovation
 The

7 Dimensions of Knowledge Management
1

7
External
Learning

Senior Management VISION & STRATEGY

Universities

2
HR
Policies

Suppliers
Partners

External
Learning

a. STRATEGIC
4

3
Organizational
CULTURE

Organizational
STRUCTURE

Clients
Competitors

b. TACTIC
5

6

Information
SYSTEMS

Performance
Measurement
SYSTEMS

c. OPERATIONAL

7

Government

Innovation Project Proposal


https://docs.google.com/forms/d/1zy0KP1vVCuW3AaNV_aKO7FZWYY0fOjtpOJvI8iAECOI/viewform