1. Knowledge Creation for Breakthrough Innovation: 2013 UPDATE Karen A. Kreutz, Retired P&G 2012 Karen.iluminov@gmail.com ILUMINOV LLC Phoenix Chapter February 26, 2013

2. Karen Kreutz Technical Marketing Product Design Innovation Capability ILUMINOV LLC www.iluminov.com June 2012

3. Table Talk Discover something NEW that YOU have in common with 2 of your table neighbors …… then Find one thing in common for a group of 4 or more!

4. The Challenge: Innovate Productively = P Effectiveness of Output to Create Value Efficient Use of Input Resources ( People, Money, Time)

5. PDMA Toolbook 2 (2004)

6. Organizational Knowledge Creation Breakthrough Innovation requires Tacit Knowledge Exchange. The sharing of tacit knowledge is an ‘extremely fragile process’. The speed of tacit knowledge exchange depends on the degree to which the environment is collaborative Knowledge Creation Organizational Factors Conclusion Tools & Capabilities Competency Mapping Communities of Practice Intranet Vision Culture of Collaboration For Breakthrough Innovation (2004) Summary

7. PDMA Toolbook 3 (2007)

8. PDMA Toolbook 3: Ch. 13 Recap 2007

9. Knowledge and its Creation Tacit knowledge: lies beneath the surface of conscious thought and is derived from a lifetime of experience, practice, perception and learning. It is context-specific, personal, hard to formalize and stored semi-consciously and consciously in peoples’ heads. Aka it is ‘second nature’ to each. Explicit knowledge: can be transferred through language(speech, writing and graphics). It is codified, structured, accessible to people other than the creator of that knowledge. Knowledge is information combined with experience, context and reflections that may be used to make decisions and take actions. Its creation is a human act and for an individual it is the interpretation of the information based on their mental models. From Peter Senge, The Fifth Discipline 2 TYPES of KNOWLEDGE

10. Relevant TACIT Knowledge from the Individuals’ MENTAL MODELS EXPLICIT Representations of the Team’s Collective TACIT Knowledge 2013 Update: Boost the Robustness of Tacit Knowledge Exchange Visual Thinking Techniques Facilitated Group Process Knowledge Modeling Transformed Into

11. Facilitated Group Processes

12. Graphic History of P&G New Story for 2015 Strategic Visioning-Future Culture for Winning VALUES Smart Risk Takers Spirited Family Open-minded & agile - curious Timeless Passionately Purposeful Courageous with humility SUPPORTS CHALLENGES B O L D S T E P S ACTION FIVE BOLD STEPS May 2012 Action Planning

13. Interview Subject Matter Experts ? Relevant Tacit Knowledge + Causal Linkages + Common Language Elucidated Context Framework(s) Team’s Collective Tacit Knowledge Represented Explicitly Created Knowledge Empowering Decision Making & Aligned Action …….MODEL Map Share SM The Process Knowledge Modeling Process

14. Project Dilemma Breakthrough Technology Strategic Decisions : 1) When ready to place clinical? 2) Which formula to place to win? P&G Knowledge Modeling Case FormulaHistoricalCompetitiveTest 1Test 2 Lab Invivo Pre Clinical Clinicalknown ?? Considerations Respected Subject Matter Experts Complex Technology/ Biology Interactions Different degrees of familiarity In the product category Frequent VP run meetings Not getting nearer to answers Product Test Formulations Target Consumer Brand Context Feasibility Aspects GO Decision Sequence Q1 Data Integration Q2 Knowledge Modeling

15. Knowledge Creation for Breakthrough Innovation: 2013 Update Phoenix Chapter February 26, 2013  Breakthrough Innovation requires effective Tacit Knowledge Exchange  Organizational vision, collaborative culture and tools / team start-up techniques taught by PDMA Tool books are supportive for the knowledge creation process.  Newer-- yet vetted-- methods of proactive Visual Thinking approaches bring the potential to further augment productivity despite innovation’s complexity. Thank YOU!