Marketing & Innovation

Marcos LIMA, PhDSkema Business School

Session 02:

Managing the

Innovative Organization

What is a management system?

What is management?

What is a management process?

Informational Resources

Human Resources

Financial ResourcesMaterial Resources

Internal Environment

External Environment

What is a management system?

What is a System?

INPUT PROCESS OUTPUT

FEEDBACK

What is a management system?

Management System in Action

PROCESS

Products /Services

OUTPUTINPUT

MarketFEEDBACK

Internal Environment

External Environment

What is an Organization?

What is an Organization?

McKinsey’s 7S

Fragmented Synthesis

McKinsey’s Interactive Exploration of the 7S

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

What is an Organization?

Simplified McKinsey Model: 3Ps

POSITION

PROCESS

PEOPLE

SearchEnvironment

SelectStrategy

ImplementProcesses

CreateValue-Capture

Culture

SearchENVIRONMENT

SelectSTRATEGY

ImplementPROCESS

Capture-ValueCULTURE

Knowledge Management & Innovation

The 7 Dimensions of Knowledge Management

Senior Management VISION & STRATEGY1

HRPolicies

4

PerformanceMeasurement

SYSTEMS

6

OrganizationalSTRUCTURE

3

Suppliers

Partners

Universities

7 External Learning

Clients

Competitors

Government

7 External Learning

InformationSYSTEMS

5

OrganizationalCULTURE

2

a. STRATEGIC

c. OPERATIONAL

b. TACTIC

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 !!!

Brian Pitman

X 2X 4X 8X 16X 32X !!!

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/

Knowledge Management & Innovation: D2 - Culture

Organizational Learning

Learning byDoing

(Exploiting)

Learning byR&D /

Searching(Exploring)

Organizational Forgetting

Creative Forgetting

OrganizationalKnowledge

Stock

IdeasWith

InnovationPotential

InnovativeProjects

INN

OV

AT

ION

Inst

itu

tio

nal

/ O

rgan

izat

ion

al B

arrie

rs /

Inc

entiv

es

Inst

itu

tio

nal

/ O

rgan

izat

ion

al B

arrie

rs /

Inc

entiv

es

Mar

ket

Bar

riers

/ I

ncen

tives

Knowledge Management & Innovation: D2 - Culture

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 thebuilding

No desk is more than15 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 Systems

Data“structuredregistries”

Information“message with meaning

and purpose”

Tacit / Implicit DomainExplicit Domain

Knowledge“mental evaluation”

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

Final Comments

Where we are and where we

are going

Innovation as an Integrated Process

Search int./ext.ENVIRONMENT

Select STRATEGY

ImplementPROCESS value Capturing

CULTURE

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

Good Luck!

Marcos Limamarcos.cerqueira_lima@devinci.fr