2011 10 20_senai_cetiqt_english

Rio de Janeiro -20 de outubro de 2011 SEPRO SENAI/CETIQT

Apresentação Fernando Goldman

Organizational Knowledge Management

as a precursor of Innovation

Jackson Pollock

Original

Presentation in

Portuguese



Disclaimer: The ideas presented here are those of

the author and do not necessarily represent those

of SENAI / CETIQT nor Eletrobras Furnas, the SBGC,

the PPED / UFRJ or any institution with which he is

or has been bound by ties of affiliation, services or

hiring.

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Fernando L. Goldman – researcher of the Dynamics of

Organizational Knowledge, Innovation and Competitiveness, a

doctoral candidate in Public Policy, Strategies and Development at

PPED / IE / UFRJ, Master in Production Engineering, UFF, MBA in

Business Management from FGV and electrical engineer at UFRJ.

Former Regional Director (Rio de Janeiro) of SBGC - Brazilian

Society of Knowledge Management (2007-2011). Eletrobras

Furnas Engineer

Who is the speaker?

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�the linear model of innovation;

�innovation in business models;

�a new vision of innovation;

�the theory of organizational knowledge

creation;

�social tools and networks;

�Leadership in Innovative Firms.

Let's talk about:

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To arouse the discussion Our goal:



�Science, the Endless Frontier and Vannevar

Bush – 1945;

�paradigm of science and technology

policies, the end of 1950´s;

� the dynamics of innovation model adopted

by most developed countries

The Linear Model of Innovation

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�This model dominated thinking about the

S&T until recently;

�The problem is that this model is used up to

today by many companies and some public

policymakers.

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� In this model, innovation comes from

scientific research and the strategic

positioning of firm defines investments in

R&D* for the creation of Organizational

Knowledge.


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* Applied Research and Experimental Development .



�…neglects activities outside the R&D;

�…considers technological innovation as an

act of production, instead of a continuous

social process;

�The relationship between enterprise and

innovation is complex, dynamic and multi-

level .*

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*LAM, A. Organizational Inovation. In: FAGERBERG, J.; MOWERY, D. C.; NELSON, R. Oxford

Handbook of Innovation. Oxford University Press, 2005.

The Linear Model of Innovation…



� People are realizing the need for firms to

create innovative business models.

� It is not enough to create products and

processes *

Innovation in business models

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*TEECE, D. J. Business Models, Business Strategy and Innovation. Long Range Planning 43, 2010.



� The water analogy for knowledge simply does not

work;

� the simple information processing - or its

accumulation - does not lead to innovation;

� All processes of innovation come from exactly the

subjective beliefs of people or of their images of

the world;

� objectivity X subjectivity (Polanyi)

A new vision of Innovation

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� Knowledge is inherently paradoxical: it is an

individual construction and, at the same time, is the

result of a social product (the product of a

community) and can not be managed in the usual

sense of the word 'management' .

A New Vision of Innovation

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� Increasingly, modern society perceives the

current revolution around the use of knowledge

and has sought ways to deal with this new

reality.

� The traditional disciplines (engineering,

administration, economics, etc..) have been

consolidated in the use of classical factors of

production;

* KM – Organizational Knowledge Management

The KM * as multidisciplinary area:

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After all, what knowledge are we talking about?

To deal with Organizational Knowledge, capabilities

are required to coordinate the creation

(specialization) and use (integration) of different

knowledge*

Which is the relationship between Innovation and

Knowledge Management?

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*DEMSETZ, H. The Theory of the Firm Revisited, v. 4 n. 1 Journal of Law, Economics, and

Organization, p. 141-161, 1988.

The Organizational Knowledge



Organizational

Knowledge

Work

Intellectual Capabilities of

individuals

Dynamic Capabilities of

firm

Corporate Education Organizational

Knowledge Management

Contextualization

Factor of Production Factor of Production

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The Knowledge-Creating Company - Ikujiro

Nonaka and Hirotaka Takeuchi

How Japanese Companies Create the

Dynamics of Innovation (1995)

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� The most quoted book on Knowledge

Management is not about Knowledge

Management.

� It talks about the dynamics of innovation

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A new vision of innovation



Like any milestone:

- most often quoted than read, and

- more read than understood

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... it's just one of the many elements of a theory under construction

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The Theory of Organizational

Knowledge Creation

(Nonaka)

A new vision of innovation



� Innovation is the result of the

dynamic creation of

Organizational Knowledge *

What does the TOKC say?

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*NONAKA, I.; TOYAMA, R.; KONNO, N. SECI, Ba and Leadership: a unified Model of Dynamic Knowledge

Creation, Long Range Planning, v.33, p. 5-34, 2000



Knowledge Management ?

Different approaches to KM

New Approaches

K is seen as static Dynamics of K

unsustainables Firm's longevity

Mainstream

Approaches

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What is the nature of the firm?

� Firms process information. (Simon)

� Firms create knowledge. (Nonaka)

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Organizational Knowledge Creation:

Capability of a firm…:

� …to create knowledge,

� …to disseminate it and

� …to incorporate it into products,

services and systems.

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Explicit and Tacit Knowledge

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Explicit knowledge is

objective, organized,

structured, and can be

made available in

documents, databases,

training videos and

other channels,

traditional or not, of

information sharing.

traditional, or not, of

information sharing.

Tacit knowledge is

subjective, being mainly

based on experience. It

is embedded in people

in the form of

memories, mental

models, views, practical

know-how etc.

They are not two kinds of knowledge, they are two dimensions to the same knowledge.

www.kmgoldman.blogspot.com



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How does innovation happen in TOKC?



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The paradox of Knowledge?

Organizational Knowledge is a complex and

multidisciplinary theme

Although individual, knowledge is a social product

“People interacting in a certain historical and social context

share information from which they construct social

knowledge as a reality, which in turn influences their

judgment, behavior, and attitude. (Berger; Luckmann, 1966)

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In TOKC, an innovative firm…:

� …creates knowledge continuously from the

tacit knowledge of their individuals;

� …innovates by synthesis, a dialectical process,

continuous and dynamic, which nurtures the

paradoxes;

� …socially converts tacit knowledge into explicit

and vice versa.

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What is Knowledge?

� The way you define knowledge defines how

you manage it (Verna Allee)

� The correct differentiation between Data,

Information and Knowledge

� DIKW is not functional for TOKC

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The knowledge in three properties

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� Mental models of individuals are transformed in the

informational process, setting new states of

knowledge.

The TOKC vision of Innovation

� Similarly, firms continually create knowledge, setting

up new states of Organizational Knowledge .



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Consequences of

obsolescence of Knowledge

for Organizations

Source: Adapted from Drucker (1995)

Fall in Competitiveness

Obsolete Products, Services and Processes

Obsolete Organization Obsolete Groups Obsolete People

Loss of ability to retain existing talents (people)

Inability to innovate in the face of intra or extra information

Decrease in operational results

Stakeholder Pressures

Loss of investment in renewal (people)

The Obsolescence of Knowledge

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� knowledge creation, as a social phenomenon, is due to the constructive interaction between people in a community.

� Social tools enable the communication of information, accelerating the exchange and interaction. Everything living is organized in networks.

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Social tools and networks



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Leadership in Innovative Firms

� Breaking with Taylorism (The Long Tail);

� Progress more than TQM;

� Skills to deal with intangibles;

� More research skills;

� But the manager is not an academic researcher;

� Researcher is looking for a Theory;

� Manager is looking for a method;

� Most important: There is no "magic formula".

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www.kmgoldman.blogspot.com

Engº Fernando Goldman Email: [email protected]

http://www.slideshare.net/goldman

Questions?

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2011 10 20_senai_cetiqt_english

Education

rio de janeiro

social tools

business models

organizational knowledge

knowledge management

knowledge management

information sharing

linear model