Supporting Innovation:Supporting Innovation: creating, transforming, creating, transforming,

using knowledgeusing knowledge

KM Trip Report:KM Trip Report:September, 2006September, 2006

KM ReturnsKM Returns

• Federal gov’t network: 20 plus peopleFederal gov’t network: 20 plus people• Conference Board of Canada: The Big Four Conference Board of Canada: The Big Four

Accounting Firms are back. Accounting Firms are back. • Bank of Canada starts a KM initiative after Bank of Canada starts a KM initiative after

stalling with 2001 consultant’s report (27 projects stalling with 2001 consultant’s report (27 projects recommended)recommended)

• Hydro Quebec’s audit recommends a full KM Hydro Quebec’s audit recommends a full KM initiativeinitiative

• Knowledge Services: new name for KM unitKnowledge Services: new name for KM unit

Niall Sinclair, Stealth KMNiall Sinclair, Stealth KM

• Let’sLet’s notnot define Knowledge Management define Knowledge Management• Defining Knowledge is problematic tooDefining Knowledge is problematic too• DefineDefine

– “ “Why KM @ my org”Why KM @ my org”– What’s the planWhat’s the plan– What’s in it for me (speak to line managers What’s in it for me (speak to line managers

and staff).and staff).

• KM is too broad and deep to fit in KM is too broad and deep to fit in hierarchical controls (It’s HR, IT, PM & IM)hierarchical controls (It’s HR, IT, PM & IM)

Niall Sinclair, Stealth KMNiall Sinclair, Stealth KM

• In government, KM is a program. In government, KM is a program. • But few people ……… KM (add your words)But few people ……… KM (add your words)• Fix pieces not the whole puzzleFix pieces not the whole puzzle• KM is horizontalKM is horizontal• The new tools encourage communication not The new tools encourage communication not

organizing information (instant messaging, organizing information (instant messaging, blogs)blogs)

• Communities are the Killer App of KM (wikis)Communities are the Killer App of KM (wikis)

STEALTH KM means “BE OPPORTUNISTIC” STEALTH KM means “BE OPPORTUNISTIC”

Lt. Col. Chris Blodgett, DNDLt. Col. Chris Blodgett, DND

• Knowledge Mobilization (or transfer) from lessons Knowledge Mobilization (or transfer) from lessons learned to best practiceslearned to best practices

• Need a KM Strategy Map to the Business Plan Need a KM Strategy Map to the Business Plan • Provides the “line of sight” from the organization’s Provides the “line of sight” from the organization’s

strategic initiatives to how KM supports.strategic initiatives to how KM supports.• Gestion de la Connaissance (know about – sense Gestion de la Connaissance (know about – sense

making)making)• Savoir Faire (know-how)Savoir Faire (know-how)• Too important to leave to chance so need “rules” Too important to leave to chance so need “rules”

for sharing knowledge and managing information. for sharing knowledge and managing information.

Brian Guthrie, Conf Bd of CanadaBrian Guthrie, Conf Bd of Canada

Innovation, KM and StrategyInnovation, KM and Strategy

• Innovation involves implementation.Innovation involves implementation.• Innovative firms are more successful.Innovative firms are more successful.• Firms that collaborate are more innovative. Firms that collaborate are more innovative.

The Canadian ChallengeThe Canadian Challenge““Unless all sectors of Canadian economy become Unless all sectors of Canadian economy become

more committed to innovation and strive to more committed to innovation and strive to become world-first innovators, it is unlikely that we become world-first innovators, it is unlikely that we can sustain if not improve our standard of living …”can sustain if not improve our standard of living …”

The Innovation Character of The Innovation Character of CanadaCanada

• 17 Benchmarks against 10 OECD 17 Benchmarks against 10 OECD countries countries

• Australia, Finland, France, Germany, Italy, Australia, Finland, France, Germany, Italy, Japan, Spain, Sweden, UK, USAJapan, Spain, Sweden, UK, USA

Summary of Benchmarks (1)Summary of Benchmarks (1)BenchmarkBenchmark Canada’s Canada’s

RankRank Leading Leading

nationnation

Knowledge PerformanceKnowledge Performance

Expenditure on R&DExpenditure on R&D 77 SwedenSweden

Business $ on R&DBusiness $ on R&D 88 SwedenSweden

Pub. of science papersPub. of science papers 55 SwedenSweden

Triadic patent familiesTriadic patent families 88 SwedenSweden

Univ-industry collab (R&D)Univ-industry collab (R&D) 22 GermanyGermany

Technology balance of Technology balance of paymentspayments

55 GermanyGermany

Summary of Benchmarks (2)Summary of Benchmarks (2)

BenchmarkBenchmark Canada’s Canada’s RankRank

Leading Leading nationnation

Innovation EnvironmentInnovation Environment

Regulatory EnvironmentRegulatory Environment 66 UKUK

Corp. Tax as % of GDPCorp. Tax as % of GDP 33 AustraliaAustralia

R&D Tax TreatmentR&D Tax Treatment 33 SpainSpain

Venture capital investmentVenture capital investment 22 USAUSA

World CompetitivenessWorld Competitiveness 44 USAUSA

Foreign Invest confidenceForeign Invest confidence 77 USAUSA

Threat of R&D Relocation Threat of R&D Relocation 77 FinlandFinland

Summary of Benchmarks (3)Summary of Benchmarks (3)

BenchmarkBenchmark Canada’s Canada’s RankRank

Leading Leading nationnation

Skills PerformanceSkills Performance

Education in work forceEducation in work force 11 CanadaCanada

HR in science & tech jobsHR in science & tech jobs 77 SwedenSweden

Adults in Adult EducationAdults in Adult Education 66 FinlandFinland

Community Based Community Based InnovationInnovation

Broadband subscribersBroadband subscribers 11 CanadaCanada

Canada’s Innovation CharacterCanada’s Innovation Character

• Collaboration and knowledge sharing: Collaboration and knowledge sharing: trading in “the global ideas market”; trading in “the global ideas market”; ConnectednessConnectedness

• Foreign investsment in R&DForeign investsment in R&D

• Venture capital base. (Japan uses other Venture capital base. (Japan uses other forms of risk capital)forms of risk capital)

• R&D Tax credits (Sweden has none).R&D Tax credits (Sweden has none).

Canada’s strengthsCanada’s strengths

• Global best goods & services in selected Global best goods & services in selected sectors (e.g. natural resources, sectors (e.g. natural resources, telecommunications, software telecommunications, software development, transportation equipment, development, transportation equipment, pharmaceuticals, engineering services)pharmaceuticals, engineering services)

• Strong skills foundation (literacy, basic Strong skills foundation (literacy, basic science and math skills)science and math skills)

• Highly qualified workforceHighly qualified workforce

Opportunities for CanadaOpportunities for Canada

• Improve commercialization performanceImprove commercialization performance• Balance gov’t resources between R&D and Balance gov’t resources between R&D and

commercializationcommercialization• Increase business investments in R&D, training, Increase business investments in R&D, training,

equipment.equipment.• Improve understanding of “innovation skills”, Improve understanding of “innovation skills”,

integrate in training, immigration integrate in training, immigration • Professional immigrants better integratedProfessional immigrants better integrated• Locally-led community-based innovation.Locally-led community-based innovation.

The Innovation PipelineThe Innovation Pipeline

From 3000 ideas to 1 successFrom 3000 ideas to 1 success

30003000 Raw, unwritten ideasRaw, unwritten ideas

300300 Ideas submitted and exploredIdeas submitted and explored

125125 Small projectsSmall projects

99 Significant projects/developmentsSignificant projects/developments

44 Major developmentsMajor developments

1.71.7 Commercial launchCommercial launch

11 Commercial successCommercial success

The Innovative OrganizationThe Innovative Organization

• Leaders believe innovation is fundamental Leaders believe innovation is fundamental to survivalto survival

• Leaders rank their organizations highly Leaders rank their organizations highly with regard to innovation vision, culture with regard to innovation vision, culture and leadershipand leadership

• ButBut, , rank lower for implementing business rank lower for implementing business processes and innovation performance.processes and innovation performance.

Innovation involves implementation.Innovation involves implementation.

Determinants of InnovationDeterminants of Innovation

1.1. Having an innovative workforceHaving an innovative workforce2.2. Rewarding/recognizing individual Rewarding/recognizing individual

innovation performanceinnovation performance3.3. Investing in innovation: $ and time to Investing in innovation: $ and time to

innovation-related activities (R&D, innovation-related activities (R&D, customer feedback, competitive customer feedback, competitive intelligence, collaboration, marketing)intelligence, collaboration, marketing)

4.4. Placing innovation among the top Placing innovation among the top strategic issues of the organization.strategic issues of the organization.

Innov. Capabilites: People-RelatedInnov. Capabilites: People-Related

0 20 40 60 80 100

Time on Ideas

Innovative employees

Innovation expected

Hiring innov.

Innovation rewarded

Mistakes tolerated

Innov. goals measured

Less Innovative More Innovative

Sources of New Ideas: Sources of New Ideas: Survey SaysSurvey Says

Top 3 SourcesTop 3 Sources

1.1. Customers or Customers or clientsclients

2.2. General LiteratureGeneral Literature

3.3. Technical Technical LiteratureLiterature

Bottom 3 SourcesBottom 3 Sources

1.1. ConsortiumsConsortiums

2.2. CommunitiesCommunities

3.3. Standards GroupsStandards Groups

SummarySummary

• More innovative orgs = better performanceMore innovative orgs = better performance

• Different orgs innovate in different waysDifferent orgs innovate in different ways

• Idea “importers” are more innovativeIdea “importers” are more innovative

• Users/clients are most prevalent source Users/clients are most prevalent source for new ideasfor new ideas

• More innovative organizations likely to More innovative organizations likely to engage with customersengage with customers

• Innovation thrives on people.Innovation thrives on people.

Three Key “Actors” in the Three Key “Actors” in the Innovation ProcessInnovation Process

Creators: Thinkers, Researchers, InventorsCreators: Thinkers, Researchers, Inventors

Transformers: Engineers, Doers, Entrepreneurs, Transformers: Engineers, Doers, Entrepreneurs, Organizers, ManagersOrganizers, Managers

Users: Implementers, “Clients”Users: Implementers, “Clients”

No one individual excels in all three … No one individual excels in all three … Knowledge-sharing & teamwork are essential for Knowledge-sharing & teamwork are essential for innovation.innovation.

MythsMyths

• Innovation is a linear process.Innovation is a linear process.

• We should all spend more time creating We should all spend more time creating knowledge.knowledge.

• Scientists should go to business school.Scientists should go to business school.

• Entrepreneurs must become better Entrepreneurs must become better managers.managers.

• Managers need to become technical Managers need to become technical experts.experts.

KM’s Role in InnovationKM’s Role in Innovation

• Less emphasis on acquiring knowledge.Less emphasis on acquiring knowledge.• More emphasis on:More emphasis on:

1.1. Creating knowledge (development).Creating knowledge (development).2.2. Transforming knowledge into tangible outputs Transforming knowledge into tangible outputs

(products or processes).(products or processes).3.3. Using the outputs for corporate benefit.Using the outputs for corporate benefit.

• Then manage knowledge for org. objectives Then manage knowledge for org. objectives and benefits.and benefits.

• Organize KM around these 3 innovation Organize KM around these 3 innovation competencies. competencies.

• KM’s role: collect, filter, organizeKM’s role: collect, filter, organize