JMdeL Product / Service Innovation… An Evolutionary Approach

JMdeL Organizations? 1. Productive socially organized unit = interaction between agents 2.The firm is a consequence of the coordination of these agents trying to withstand the environment selection pressure 3.Coordination can only be achieved by means of the definition of a common set of rules and codes.

JMdeL Why even think of organizations? 4.If: (1) and (2); then, the firm = an “entity processing, storing and producing knowledge” 5.The why on the organization resides in its need to process, store and produce knowledge. (1) adaptation = an accumulation of knowledge (2) accept the organization to be in a constant attempt to fit into the environment Hence, a priori we can judge more probable to have better results having organizations as it becomes an enhanced source of variation + more effective (?) selective retention (provides different levels)

JMdeL Image taken from: Parts of the organizations

JMdeL Ability to use and create rules. Knowledge agent = ability to teach and learn from the organization. Having these agents in the organization, variety production, as a source for rule creation could be estimated as infinite. HSO

JMdeL routines Organizational routines Pattern of behavior that is followed repeatedly, but is subject to change. Capture the individually held knowledge applied in the firm. Is a source of knowledge for the individual. Routines = the way HSO interact.

JMdeL Resources The first implication is that the organization has limited resources of time, money and capacity. Resources constrained can be relaxed: inversion, cash flow generation, etc. There’s a need for managing such restrictions.

JMdeL Organization’s interactions A system “whose transformation over time through successive adaptive states is explained by a process of variation, selection and retention”. This Machine will be a result of the interactions between different organizational routines. Organization as a Darwin Machine

JMdeL Organization’s interactions IMPLICATIONS 1.An organization is able to generate its own knowledge. 2. Second, One organization is unique due to the knowledge it posses. 3.Finally, we have that what actually evolves in an organization is knowledge itself. Organization as a Darwin Machine

JMdeL

Innovation myths I’m not creative enough. Innovation is for the big ones. Innovation = inspiration. Everything is already invented.

JMdeL Product/service innovation

JMdeL Product/service innovation

JMdeL Innovation as a knowledge process INNOVATION AS A CONJECTURE

JMdeL Innovation as a knowledge process

JMdeL Product/service innovation

JMdeL Implications of efficiency

JMdeL Product/service innovation

JMdeL Implications of efficacy

JMdeL Product/service innovation

JMdeL Levels of retention KNOWLEDGE MANAGEMENT Tacit knowledge Explicit knowledge Product /service Strategy, business model, structure, etc.

JMdeL Product/service innovation

JMdeL Can be learned? Need to break some mental structures Innovation comes from the discipline of trial and errors  + trial and errors = + accumulated knowledge. By the use of tools.

JMdeL Product/service innovation

JMdeL Innovation structure Idea generation From idea to project From project to market

JMdeL Product/service innovation

JMdeL Different types. Market oriented Internal oriented

JMdeL Finding it useful. Considers change as foundational. From an evolutionary point of view, variation is not an error. It’s not just about efficiency, but also efficacy problems become relevant. It’s to be said that an evolutionary perspective is not the only (and not necessarily the best) way to approach to innovation. However, the evolutionary approach gives a broad and coherent framework to explain why innovation is important.

JMdeL Merci.