1. Marketing & Innovation
Session 03: Managing the Innovative Organization
Marcos LIMA, PhD
Skema Business School

2. What is a management system?
What is management?

3. What is a management process?
Human Resources
Informational Resources
Material Resources
Financial Resources

4. What is a management system?
What is a System?
External Environment
INPUT
PROCESS
OUTPUT
Internal Environment
FEEDBACK

5. What is a management system?
External Environment
Management System in Action
Products / Services
PROCESS
INPUT
OUTPUT
Market FEEDBACK
Internal Environment

6. What is an Organization?

7. What is an Organization?
McKinsey’s 7S

8. What is an Organization?
Simplified McKinsey Model: 3Ps
Search ENVIRONMENT
Select STRATEGY
Implement PROCESS
Capture-Value CULTURE
PROCESS
POSITION
Implement Processes
Search Environment
Select Strategy
Create Value-Capture Culture
PEOPLE

9. Fragmented Synthesis McKinsey’s Interactive Exploration of the 7S

10. Knowledge Management & Innovation
The 7 Dimensions of Knowledge Management
Senior Management VISION & STRATEGY 1
Suppliers
Partners
Universities
7 External Learning
Clients
Competitors
Government
7 External Learning
a. STRATEGIC
Organizational CULTURE 2
HR Policies 4
Organizational STRUCTURE 3
b. TACTIC
Information SYSTEMS 5
Performance Measurement SYSTEMS 6
c. OPERATIONAL

11. Knowledge Management & Innovation

12. Knowledge Management & Innovation: D1 – Strategy
Video Case: Pirates of the Silicon Valley Part 1
Apple’s Core Competence (0:00:00 + 0:18:50)

13. 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 !!!
X 2X 4X 8X X X !!!
Brian Pitman

14. Knowledge Management & Innovation: D2 - Culture
Organizational Learning
Institutional / Organizational Barriers / Incentives
Organizational Knowledge Stock
Ideas With Innovation Potential
INNOVATION
Learning by Doing (Exploiting)
Learning by R&D / Searching (Exploring)
Market Barriers / Incentives
Innovative Projects
Organizational Forgetting
Creative Forgetting

15. Deep Dive at IDEO
Designing a Shopping Cart

16. KM & Innovation: D2/D3/D4: Culture / Structure
Video Case: Pirates of the Silicon Valley Part 2
Barriers at Apple (0:40:25)

17. 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 the building
No desk is more than 15 m from a window

18. 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

19. Knowledge Management & Innovation: D4 - People
Video Insight : Diversity is key to learning

20. Knowledge Management & Innovation: D5 - Systems
Information Systems
Knowledge
“mental evaluation”
Information “message with meaning and purpose”
Data “structured registries”
Explicit Domain
Tacit / Implicit Domain

21. Knowledge Management & Innovation: D6- Measures

22. 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

23. 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

24. Knowledge Management & Innovation: A Synthesis

25. Marcos Lima limamarcos@gmail.com
Conclusions
Marcos Lima

26. Knowledge Management, Innovation and New Products
How are these concepts related?
Do we have an innovative Organization?
Do we have an innovation strategy?
Market Results
Innovation
Business Model Positioning Process Marketing Mix
Targeted Segments
Knowledge Management
New Products & Services
Technology

27. A Visual Definition
These two variables explain the critical role of MARKETING in the innovation process: understanding UNMET NEEDS

28. Source: Lannings & Michaels 1988 apud Kotler, 2009
Strategic Marketing
Physical Process x Value Creation Process
Source: Lannings & Michaels 1988 apud Kotler, 2009

29. Marketing Planning Process
Technological Forces
Social Forces
Competitive Forces
Legal/Political Forces
Cultural Forces
Economic Forces
Market / Product Positioning
Segmentation /Targeting
Competitive Advantage
Choosing the Value
Place/ Distribution
Product
Promotion
Promotion
Price
Marketing Environement
Marketing Positioning
Providing the Value
Marketing Mix
Customer Needs
Communicating the Value

30. What is a Business Model
Your Definition?
Alex Osterwalder’s Definition
A business model describes the rationale of how an organization creates, delivers and captures value.

31. Types of Innovation
Tidd’s 4Ps

32. Disruptive Innovations

33. Decision Making in the Innovation Process
Stage-Gate Decision Process
Preliminary Investigation
Business Opportunities
Product/Process Development
Pilot Testing
Launch

34. BMC Overview

35. What is an Organization?
McKinsey’s 7S

36. Knowledge Management & Innovation
The 7 Dimensions of Knowledge Management
Senior Management VISION & STRATEGY 1
Suppliers
Partners
Universities
7 External Learning
Clients
Competitors
Government
7 External Learning
a. STRATEGIC
Organizational CULTURE 2
HR Policies 4
Organizational STRUCTURE 3
b. TACTIC
Information SYSTEMS 5
Performance Measurement SYSTEMS 6
c. OPERATIONAL

37. Innovation Project Proposal