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Page 1: Innovation & Knowledge Management

Nanyang Technological University

Wee Kim Wee School of Communication and Information

Academic Year 12/13

KM 6301FOUNDATIONS OF KNOWLEDGE MANAGEMENT

TERM PAPER: SEMESTER 1

Innovation and Knowledge Management

Prepared by:

Narayanan Mohan Kumar (G1200852L) Chan Zi Yao (G1200877C)

Sreekanth Krishnan (G1200844G)

Page 2: Innovation & Knowledge Management

Introduction

The world is changing, more and more organizations have started to realize the importance and

the potential of knowledge and this in turn has created an economy that is heavily reliant on

knowledge. The human capital of an organization is the deciding factor when it comes to the

amount of knowledge the organization possess – as knowledge is something that resides in the

brains of employees. Although explicit knowledge that people possess can be codified with

different tools, the feasibility of capturing tacit knowledge without any loss is considered a thing

of the future.

Defining Innovation and Knowledge

Innovation is the process of developing new solutions for changes that arise in the industry in a

way that it meets the customer demands – but in entirely new ways. According to the

management guru Peter Drucker, innovation is driven by a number of factors including changes

in the industry or market structure, technology or people’s perception. As Rudy & Ross (1997)

state in their paper, innovation is a key driver for value in organizations and is particularly

helpful when the organization is cutting on its costs or growing. For a company to grow into

something better innovation is key and this is the factor that has been driving a number of

innovation based industries like 3M and Rubbermaid. Innovation may be serendipitous or even

promoted by a conducive environment in the organization and as Anil & Raj notes it in their

paper, innovation also needs an effective knowledge management system in place.

Creativity and innovation goes hand in hand and innovation is considered to be nigh impossible

without creativity and proper application of thought. Be it a process or a product, when one

collects information about the same and articulates it with reference to the market, what we end

up with is knowledge – the knowledge of the product or the process. Innovation when combined

with this knowledge helps organizations in a lot of ways and this is essentially what our paper

would examine.

Page 3: Innovation & Knowledge Management

Innovation and Knowledge Management

Innovation is not something that would happen in a day – a lot of factors need to be studied if

you think that your organization lacks innovation. Like it has been mentioned earlier, innovation

is something that is born in the brains of your employees and the first step towards innovation

lies in the staff recruitment process whereby selecting individuals with an innovative outlook and

attitude would certainly benefit in the long run. And, if you thought that innovation would

happen automatically, you might want to think again. Would people just innovate without a

reason? Would you try to change a process in an organization where there are too many levels of

approvals? The most obvious answer for this would be a no – most people wouldn’t be willing to

innovate if the organization just doesn’t promote or encourage innovate thought.

This essentially means that organizational culture is something that needs to be clearly defined if

you are looking to create an organization teeming with innovative thoughts and ideas. The

various hindrances that come up associated with innovation in organizations also need to be

addressed when it comes to this point – a typical example would be an organization which would

prefer to avert risks and not deep dive into new things even when their business is on a downfall.

Changing the organizational outlook on issues like this and embracing the innovative approach

to resolving the issues with the already existing knowledge in the organization would ideally be

something that organizations should consider in this case. Another important aspect of this

innovative culture is the rewards system for innovative ideas – the organization needs to come up

with suitable rewarding schemes based on what the innovation was and what kind of incentive

the employee would prefer. There might be employees who would be happy with incentives like

a promotion or job security rather than just monetary benefits. Identifying such innovative people

and rewarding them appropriately is essentially important to keep the culture strong in the

organization.

Knowledge management is the effective utilization of the knowledge base in an organization and

giving it an edge over its competitors. And for knowledge management to get its edge over its

competition, innovation is what people need to properly utilize the already existing knowledge.

As Davenport & Prusak (2000) puts it in their book, knowledge is information and data with an

Page 4: Innovation & Knowledge Management

inherent meaning to it. Any data or information is useless unless it’s turned to knowledge – this

knowledge can then further be innovated in turn used to leverage the competitive advantage of

the organization.

Creative problem solving process and Knowledge Management

Creative problem solving process was developed in the 1950’s by Dr. Sidney Parnes and Alex

Osborn and revolves around the methodology of solving problems with the input of creative

ideas and thoughts. The creative problem solving approaches the problem with the following

steps –

i) Exploring the challenge – The stage where the goal is identified and the necessary

information about the same is collected; also included in this step is the identification

of the problems that needs to be resolved using this approach.

ii) Idea Generation – The next stage is what demands for creativity and this is the stage

where ideas are generated to counter some of the problems. Ideally brainstorming is

considered to be a great way to generate ideas. Brainstorming also helps in coming up

with innovative solutions to the problem.

iii) Action phase – This phase involves moving the idea to an actionable phase and

implementing the same to overcome the problem.

It is to be noted here that the whole creative problem solving approach is used by a number

of organizations to counter issues that they encounter in their process or products. Though

creativity is used in solving the problem, the same wouldn’t be successful if the knowledge

of what was happening didn’t exist. The knowledge of the organization that is gathered in its

practices and process are first studied and only after doing this can the problem – if any be

rectified with a creative approach.

The application of innovation to the creative problem solving process not only requires and

uses the knowledge capital in the organization but also helps in continuously updating the

same as and when people come up with innovative thoughts and ideas. Innovation was

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described as ‘boundary spanning knowledge construction’ by Nonaka and Takeuchi (1995)

and this holds good as long as the organization promoted innovation at the work place.

Supporting Innovation with Knowledge Management

It becomes all the more meaningful to have a good knowledge management practice in place in

the organization which can facilitate and foster innovation at different levels. “Knowledge is the

accumulation of everything an organization knows and uses in the carrying out of its business”

Smith and Webster (2000) – this knowledge inherent in an organization is useful only as long as

it facilitates the growth of the business failing to do which the knowledge becomes “stale”.

Innovation in the organization is what would prevent this knowledge from going “stale”. The

innovation process model in an organization can be compared to the likes of a greenhouse;

Randy and Ross (1997) where the organizational environment is seen as the greenhouse itself

and the managers as the gardeners who try to reap the fruits from the plants when its ripe – the

fruits here refer to the innovative ideas generated in people’s brains and the plants refer to the

people themselves. As long as the environments and the gardeners give the plants the perfect

temperature and moisture and conditions, the plants would bear fruits which in turn translate as

profit. What needs to be noted here is that the ‘food’ and the ‘sunlight’ for the plants are

organizational resources like tools that facilitate the whole innovation process and the knowledge

that has been assimilated. With introspection and brainstorming, this knowledge sparks creative

thoughts when in the right environment and conditions.

As noted earlier, the right amount of creativity along with the knowledge resources present in the

organization can help leverage their business and the existing processes. This being said and with

the right culture, innovation would surely serve the purpose of enriching the already existing

knowledge.

Page 6: Innovation & Knowledge Management

Innovation attained through Knowledge Codification

Codified sources of knowledge play an important role in improving innovative behaviour.

Multinational organizations and medium scale enterprises use codified sources of information for

research purposes. Despite considerable interest in work on the codification of knowledge and

the changing nature of innovation due to the use of information and communication

technologies, there are relatively few empirical studies that probe the role of codified sources of

information in the innovation process. (David & Foray, 1995) Knowledge can be either in a

highly codified state or non-codifiable state depending upon the nature of knowledge.

Codified knowledge is commonly referred to as the knowledge which can be easily transmitted

and shared without being diminished unlike other commodities that executives or marketers deal

with. It contains information, experience, qualities and capabilities of the holder of knowledge.

The relationship between codified knowledge and innovative behavior can be classified into

three parts.

1. Frequency of use of codified knowledge in various organizations.

2. Assessing the bond between innovation strategies and codified knowledge.

3. Examining possible complementary relationship between modes of transferring

codified knowledge and other mediums that exchange different categories of

knowledge.

Arora and Gamberdella argued that it is becoming highly important that codified knowledge

must be used in the innovation process. Codification process involves converting the information

which enables it to be stored and reproduced at a much reduced cost. They suggested that

increasing knowledge codification would improve organizations innovative performance in two

ways. First, it brings science and technology together so that it allows them to be benefitted from

each other’s developments. Second, it increases the speed of product innovation by decreasing

the reliance on predefined experimental conditions. In order to corroborate their previous

statements, they added that a distribution system is required to analyze the problems posed by

information and knowledge.

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Relevance of Knowledge tacitness in epistemic communities:

For example consider an example of an epistemic community, US steel mini mills engineers as

described in Von Hippel’s (1987) analysis of informal know how analysis. A group of people

have a common understanding of certain procedural agreements that are required to conduct a

research or project and norms on what type of knowledge should be shared with whom.

Epistemic communities have an upper hand than researches and technicians when it comes to

developing new models or languages because they can easily reap information from codification.

Knowledge can be codified in order to store and transmit information technology tools and it

becomes even more attractive when innovative activities (Lissoni, 2001) are involved:

Work is carried out by team described as an “epistemic communities”.

Carried out in a stable technological environment.

Detailed knowledge about previous innovation attempts, both success and failures.

Relied mostly on combining and re-use of parts, modules, techniques etc.

Steinmueller (2000) emphasizes that several investments have to be made for codification to be

successful namely strengthening appropriability means, or improving the freedom of access to

members of the epistemic community. The former has to be implemented to avoid the diversion

of innovative rents. The latter involves in gathering resources for developing software, buying

hardware equipments to provide logistic services.

Knowledge Codification in R&D activities:

Experts and researches use tacit knowledge to effectively implement codified knowledge or to

create new forms of codified knowledge. Innovative activity creates both tacit and codified

knowledge through which the former is embodied in innovators (Tetsugen, 2009). An important

characteristic of codified knowledge is that it is non-rivalry. R&D workers are more prone to

generate innovative activity as new codified knowledge is created. However tacit knowledge has

a degree of excludability because a person ability to convert existing codified knowledge to

create new codified knowledge is not transferrable to other researches directly but it involves a

costly learning process. Innovators therefore must calculate the return on investment from

creating codified by jointly producing tacit knowledge. Based on this inference it is easy to

conclude that a R&D based growth model can be motivated by increase in returns over and

Page 8: Innovation & Knowledge Management

above returns earned before innovation. In an economy where there is no monopoly rent, returns

from tacit knowledge inside innovators is sufficient enough to handle any R&D activity or

technical progress.

Creativity, Innovation and Business practices in Knowledge Management

Creativity is measured with a question in mind, How product and process innovation created by

one organization or jointly created by a number of organizations together. We’ll hereby discuss

how creativity and knowledge became variables of innovation.

An innovation survey was conducted in several manufacturing firms in Canada. The data used in

his survey were used to measure creativity by using it as a dependent variable. Dependant

variable was classified into three categories: Individual innovation, joint innovation or no

innovation. Knowledge Management is defined as process to foster knowledge for developing

innovation (John & Dominique, 2001). It focuses on:

1. Creating Knowledge.

2. Knowledge obtained through uncodified business practices.

3. Converting codified knowledge into innovation.

Several research studies stress upon knowledge and innovation, but most of them undergo two

deficiencies: One, testing the impact of knowledge management on innovation is scanty. Other,

models eliminate the need for degree of novelty of innovation. Knowledge is assumed to be one

of most powerful drivers of innovation. In order to pressurize firms to innovate, it is important to

know the business practices of knowledge management.

According to the Oslo Manual (1996) innovation was measured indirectly in terms of patent and

R&D indicators. But later after organizations faced questions like “Do your organization

introduce new or significantly improved products”. The results were conclusive and it was found

that innovations did not require any R&D investments or patents. Landry, Lamari and Amara

(2000) indicated the proportions of firms introducing has been rapidly increasing from region to

region. Firms using knowledge to develop innovation does not solely lie on possession of

knowledge but also how they are structured to manage knowledge. For the purpose of firms to be

more creative and innovative, they have to create and import knowledge through codified and

uncodified business practices of knowledge management.

Page 9: Innovation & Knowledge Management

Import of knowledge through codified business practices:

Extensive use of advanced technologies can be perceived as an indicator for knowledge inside

equipment because such imports of knowledge are explicitly made in investment plans and abide

by tax incentives. A mechanism used by organizations to capture knowledge to develop new or

improved products is yet another indicator for importing knowledge through codified business

practices. However, acquisition of a new core competency is only possible through a joint

venture to transfer technology to maximum potential.

Import of knowledge through uncodified business practices:

Social capital is used by firms to acquire knowledge to developed improved products or process.

It contributes in the reduction of research, analysis and transfer of knowledge. It also enhances

the reliability of knowledge exchanged (Maskel, 1999). It can take three different forms: Trust,

Norms, and Networks. Trust is developed over a course of time by social interactions and

diligent performance. Norm is organizational behavior monitored by knowledge exchange.

Networks are to create an image for reliability and ability to effectively communicate

information over different departments in an organization.

Capacity of knowledge management in firms: A total workforce including workers, engineers,

directors etc. can be used as indicator of their capacity to create knowledge for developing

innovative products or processes.

Barriers for knowledge exchange: Knowledge sharing in developing new products or generating

ideas can be affected by lack of mutual co operation with other organization, educational

institutions as well as lack of technologies required to develop innovative products or processes.

Innovative Policy in Knowledge and Learning Process

Page 10: Innovation & Knowledge Management

Innovative policy refers to monitoring Knowledge management activities with an organization or

a region. Due to wider variation of knowledge, knowledge management in an innovative policy

is the area where there is too much ambiguity, complexity and creativity. Meeting the challenges

of innovation policy in a knowledge economy requires a better perspective on how our policy

and technological systems are intact (John & Dominique, 2001).

During the early stages of work on innovative policy, not much attention was attributed to

analyze the policy learning process or how policy organization created, measured or transformed

information into policies. Experts believe that their organizations are bad at probing because of

knowledge acquisition and learning by policy organizations. Organizations are being portrayed

as not good knowledge managers. Knowledge management and culture of learning are not made

as a mandatory requirement. This results in poor decision making and indirectly affects the

policy maker. Enormous number of groups formed inside an organization will compete with each

other on knowledge based agendas with their biased views and objectives which can be

detrimental for policy development.

Chris Argyris states that policy organizations find great difficulty in questioning their own policy

problems within groups. In today’s world, there is an increasing demand to be more flexible and

responsive. New strategies have to be identified to value and store knowledge. Self evaluation is

an important tool to correct organizational errors. Policy learning is a process through which

organizations attempt to take actions from what they learn and focus primarily to manage

knowledge to address and negotiate innovation policy issues.

Learning in innovation policy making:

Organization learning is a method of collective learning which is most relevant to study of

innovation policy making and change. With increase in policy studies in recent years researchers

and scientists emphasize on knowledge is promoted and even political leaders realized there is a

need for outside advice in policy decision making. In an ambiguous and messy environment

where are multiple policy goals, decision makes sometimes do not know what questions should

be put forward and what are the consequences of their decision that they make (Jervis, 1997).

Adopting a language in policy making does not actually relate to learning in a policy. Even

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though a certain number of studies are done in policy change, most of them focus only on top

individual policy makers. Three characteristics that restrict organizational learning are

“uncommitted thinking”, “grooved thinking” and theoretical thinking (Steinbruner, 1974). The

approach to organizational learning focuses on top decision maker and does not reiterate about

the integration and coordination of policy streams which rewards good culture and behavior.

Such innovation policies are being addressed in organization setting, are therefore very

promising and will be pursued.

Innovation in IS as a knowledge management process

In order for the design of an Information Systems platform to support innovation, it is very

important to understand innovation as a core business process. The holding view of the structure

and functions of this business process with respect to the organizational structure has already

evolved over the years as the whole will never stop evolving, from the purely sequential linear

models of “technology push” and “market pull” to a coupling and matching process where

interaction are identify as the critical element refer to (figure 1) (Emmanuel D.Adamides, 2010,

p. 4). Current models see innovation as a continuous multi-actor process that is requires having

high levels of integration at both the inter- and intra-firm levels. In such a perspective,

information technology in the form of collaboration-supporting systems can enhance systemic

integration, support flexible and also can customized response to internal and external

signals(Emmanuel D.Adamides, 2010, p. 5).

Fig.1. Interactive model of innovation (Emmanuel D.Adamides, 2010)

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Individuals from diverse functions are usually involved in different innovation activities which

can be categorized into four phases, which are not necessarily executed in a linear fashion and

are usually iterated. During the scanning phase, ideas on exploiting internal or external

opportunities are placed for consideration. Discussion, filtering and structuring for decision

making takes place through organizational routines and procedures. During the strategy

development phase is focus on what the organization is concerned on and what to do with the

innovation concepts developed in the previous phase. Once the strategy for the qualified concept

has been decided, during the next phase, we must consider the resources required for its

implementation. Dilemmas issues such as make or buy have to be resolved during this phase.

Finally once all dilemmas issues and resources have been resolved, we will be in the

implementation phase, the actual development activities such as design, prototyping, testing are

examined for their feasibility(Emmanuel D.Adamides, 2010, p. 5).

From the knowledge management point of view, information and communication technologies

basically act as a medium which different organizational structures are formed to combine

efficiently unconnected bodies of knowledge. The outcome we achieved from these

combinations is organizational learning and the ability of the form is to develop innovative

products and processes making and responding to its own technological and organizational

capabilities, it also dealt with existing and emerging market needs.

The involvement of diverse knowledge sources in innovative product and process development

has been greatly emphasized because they formed as an importance element in knowledge

management. It has been proven that with the use of cross-functional teams with diverse

occupational and intellectual backgrounds wills likely to increases the likelihood of combining

knowledge in novel ways (Emmanuel D.Adamides, 2010, p. 6). In such teams, the amount and

variety of information available to members has been increasing, it can enable the proposal and

evaluation of different design alternatives by looking from a number of different perspectives

(Emmanuel D.Adamides, 2010, p. 6). Furthermore, in the modern multisite enterprise, these

teams not only functionally diverse, but are also spatially. Thus, further emphasizes the role of IT

as the enabler for the formation of virtual teams so as to execute the innovation process

(Emmanuel D.Adamides, 2010, p. 6).

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Essential Knowledge Management (KM) Methods and Tools

Knowledge Management (KM) Methods and Tools was compiled and was agreed by the Asian

Productivity Organization (APO) KM methods and the tools expert team from Singapore in

August 2009. It represents methods and tools implemented by the most successful organizations

around the world. There are two types of KM methods and they are Non-Information

Technology (IT) Methods and Tools and IT Methods and Tools(Ronald.Young, 2010, p. 14).

Non–IT Methods and Tools

Brainstorming

What is Brainstorming?

Brainstorming basically is a simple way of helping a group of people to generate new ideas. The

process is actually split into two phrases: divergence and convergence phrase. During the

divergent phase, everyone in a group agrees to delay their judgment. Therefore, all ideas will be

treated as valid. During the convergent phrase, all the participants will use their judgment but

they will do so in a 'positive' manner, they will first look for what they like about the ideas before

they start finding flaws from the ideas (Ronald.Young, 2010, p. 16).

Why Use This Tool?

Brainstorming is appropriate whenever you need to generate a range of options.

Examples might include

• All the places where people could gain customer insights from,

• Using different ways to learn from the competitors,

• Different ways to reward employees for knowledge capture.

How to Brainstorm

1. Agree who will facilitate on the activity.

2. Make sure everyone is aware of the basic guidelines of brainstorming.

3. Give everyone writing material so that they can write down their ideas.

4. Write the problem on a flip chart so that everyone can see it all the time.

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5. Ask everyone if they can understand the problems and whether there is anything that needs to

be clarify. Deal with any information needs, if required.

6. Potentially, have a group discussion about the criteria that will be used for idea selection.

7. Ask everyone to start writing down their ideas on a sticky note, ideally use one sticky note per

idea and hand them to the facilitator, who then sticks them on the flip chart. If there are no sticky

notes, alternatively ask people to shout out their ideas, one idea at a time so that the facilitator

can write them down.

When to Use Brainstorming (and When Not)

Brainstorming is only useful when there is a need to generate a relatively large numbers of

options or ideas. It is not appropriate when a problem is known to have only a single correct

solution that is requires careful analysis to determine. For example, using brainstorming about

possible solutions solve a mathematical problem would probably be a waste of time

(Ronald.Young, 2010, p. 17).

Where to Use Brainstorming

Brainstorming can be used in almost any situation you just simply need a group (consisting at

least two or more people) can find a space to work together for example a small table with some

blank pieces of paper(Ronald.Young, 2010, p. 17).

Knowledge Cafe

What is a Knowledge Café?

A Knowledge Café is also known as world cafe is a way to have a group discussion to develop

and share any thoughts and insights that will emerge, in a non-confrontational way. Knowledge

Café suspends all judgment and normally helps to developing deeper insights and sharing than

usual (Ronald.Young, 2010, p. 38).

The knowledge café begins with the participants seated in a circle of chairs. The knowledge café

will be led by a facilitator, who will begin the event by explaining the purpose of conducting

knowledge cafés and the role of conversation in business life. The facilitator will then introduces

the café’s topic and the facilitator will poses one or two key open-ended questions. For example,

if the topic is knowledge sharing, the question for the group might be: ‘What are the barriers to

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knowledge sharing in an organisation, and how do we overcome them?’ When the introduction

session is completed, the group breaks out into smaller groups, with about five people in each

group. Each small group discusses the questions for about 45 minutes. After the 45mins of

groups’ discussion, the participants will then return to the circle, and the facilitator will continue

to leads the group through the final 45-minute session, in which people reflect on the small group

discussions and share any thoughts and ideas on the topic that may have emerged. A knowledge

café will be most effective when there are between 15 and 50 participants. Thirty will be an ideal

numbers of people. One to two hours is required for a worthwhile knowledge café. The only hard

and fast rule is that the meeting is conducted in such a way that most of the time is spent in

conversation (Ronald.Young, 2010, p. 38).

Why Use a Knowledge Café?

In an organization, people are not often given the opportunity to 'reflect' on discussions.

Therefore, much of the value that could be gained or obtained from good discussion is lost.

Periodic Knowledge Cafés provide the opportunity for people to better discuss and reflect.

Normally, after people leave Knowledge Cafés they became more motivated and inspired. Often,

people realized that they have received some valuable insights (Ronald.Young, 2010, p. 38).

IT Methods and Tools

Building Knowledge Clusters

What is a Building Knowledge Cluster?

Based on history, organizations have grouped together in various types of cluster to be able to be

more effective. For example, guilds, societies and networks will help to support and develop

their members (Ronald.Young, 2010, p. 63).

The term 'Knowledge Cluster' is a term given to a group as a result of coming together in this

new way of creating, innovate, and disseminate new knowledge. In other words, different

individuals, teams or even organizations can now come together as one, virtually, on the Internet,

so as to better communicate, collaborate, learn, and share knowledge with one another through

the cluster. The term is used, for example, to represent a group of companies that are in the same

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industry sector, e.g., high technology knowledge cluster, biotechnology knowledge cluster

(Ronald.Young, 2010, p. 63).

There are also Regional Knowledge Clusters where groups of organizations will come together,

regardless of their size. Often, there is a high incidence of innovation centers that are linked to

local universities. At the center of the cluster, usually there will be a research and development

(R&D) topic with high research potential. The system can also involve the participation of

organizations and other groups that are from both inside and outside the region. A Knowledge

Cluster may be viewed as a type of Community of Practice (COP) or rather Knowledge Cluster

can be consider as a more focused COP, normally with the aim of combining knowledge

resources so as to generate or create new innovative products and services in order to compete in

new ways so as to win larger business contracts (Ronald.Young, 2010, p. 64).

Why Use This Tool?

There are many good reasons to form and/or join a Knowledge Cluster(Ronald.Young, 2010, p.

64). It is very importance to use Knowledge Clusters for small and medium-sized enterprises

(SMEs). This enables them to gain access to and even participate in, new knowledge networks

with new knowledge resources. SMEs can now be able to communicate, collaborate, learn, share,

and apply their knowledge in a much faster way and at a much higher quality. Most importantly,

SMEs will be able to create a Knowledge Cluster that can effectively compete with large

organizations. For example, small regional legal firms have formed successful national legal

Knowledge Clusters. As a result from the Internet, they will be able to maintain lower operating

overheads as compared to the higher overheads of large organizations. As a result, SMEs will

become more price competitive, more resource flexible, and SMEs can often respond and act

much faster than the larger organizations(Ronald.Young, 2010, p. 64).

How to Use Knowledge Clusters

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Step 1 Become aware of the knowledge clusters that exist in your industry sector and join them.

And contact your local university for Knowledge Cluster initiatives if any. If none exists, then

you can consider forming a new knowledge cluster. In any case, by understanding the key

knowledge areas of the organization are one of the most critical successful factors.

Step 2 Become competent in participating in Web-based collaborative knowledge working and

Consider developing the competencies for effective personal and team virtual knowledge.

Step 3 Must Understand and become active in the knowledge cluster by simply applying the

principles of working in a Community of Practice. Building trusting relationships with other

players is very important in order to achieved successful knowledge clusters.

Step 4 Must always consider knowledge clusters as a key strategic resource and competitive tool

within your business strategy.

Conclusion

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In the light of the report, innovation and knowledge management can be implementing on all

organizations regardless of the size by using various methods that have been discussed in the

report such as innovation activities can be implemented in an organization by simply followed

the four phases of methodology and also with the use of organization learning which is a method

of collective learning which can help on the study of innovation policy making and change.

Finally, by using IT methods or Non-IT methods we can generate new creative and innovative

ideas which can help the organization to form a better business strategy and it will also help

SMEs to have a better competing edge against larger organizations.

References:

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Shahedul Alam, M. (2005). Knowledge Codification helps innovation and its diffusion: A state

of codified knowledge also signals new innovation.

Carsten Sorensen, Ulrika Snis (2001). Innovation through knowledge codification. Special issue

on Knowledge Management of Journal of Information Technology, 16(2):83-9.

Francesco Lissoni (2001). Knowledge Codification and the geography of innovation: the case of

Breschia mechanical cluster.

Argyris, C. (1982). Reasoning, Learning and Action, San Francisco: Josey-Bass.

Tetsugen, H. (2009). Competitive innovation with codified and tacit knowledge.

Robert Cowan & Gert Van de Paal (2001). Innovation Policy in a Knowledge based Economy.

Landry, R., Amara, N., Lamari, M. (2000). “Does Social Capital Determine Innovation? To

What Extent?”, Technological Forecasting and Social Change.

Jervis, R. (1997). System effects: Complexity in Political and Social Life, Princeton: Princeton

University Press.

John de la Mothe and Dominique, F. (2001). Knowledge Management in the Innovation Process.

Massachusetts: Kluwer Academic Publishers.

David, P.A. and Foray, D. (1995). “Accessing and Expanding the Science and Technology

Knowledge”, STI Review, No. 16.

Maskel, P. (1999). “Social Capital, Innovation and Competitiveness”.

(Garcia, 2005; Gupta; Kuczmarski, 2003; Little, 1997; McAdam, 2000; Prusak, 2000; Smith, 2000)

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Emmanuel D.Adamides. (2010). AN INTEGRATED IS FRAMEWORK FOR MANAGING INNOVATION.

Garcia, M. L. (2005). Vulnerability Assessment of Physical Protection Systems Retrieved from

http://ECU.eblib.com.au/patron/FullRecord.aspx?p=294440

Gupta, A. S. R. K. Leveraging knowledge management for organizational innovation and creativity

Kuczmarski, T. (2003). Innovation: Leadership Strategies for the Competitive edge.

Little, R. R. R. (1997). Knowledge Management and Innovation.

McAdam, R. (2000). Knowledge Management as a Cataalyst for Innovation within Organizations. Knowledge and Process Management, 7.

Prusak, D. (2000). Working Knowledge: Harvard Business Review Press.

Ronald.Young. (2010). Knowledge Management Tools and Techniques Manual.

Smith, J. a. L. W. (2000). The knowledge economy and SMEs: a survey of skills requirements.