This work presents the importance of essential elements in innovation management and human management in companies. A consideration is made of the necessary incorporation of the promotion of creativity and innovation considering learning and knowledge, the journey from the idea to the definition of innovation, the conditions, phases and guidelines to implement an innovative process.
Finally, the area of strategy, architecture or administrative structure, the key elements of the culture of organizations, are presented through beliefs and values and their connection to competencies. Additionally, the definitions and behavioral indicators of the innovation competition are presented. Therefore, the congruence between strategy, structure, culture and the competition for innovation is sought.
For the purposes of this document, the Integrated Model of Innovation and Management of Human Talent is considered as a frame of reference; from there, the Innovation Management dimension is deployed. Below the model chart.
Innovation Management
In order to continue with the development of the integrated model, it is pertinent to highlight the basis of innovation from the context of learning and knowledge as a basic input to support innovation management.
1.- Learning and Knowledge
As a point of reference, the author Ardila Ruben will be considered. (1982). Psychology of Learning. Edit. XXI century. Pgs. 15-22; This author defines learning "as a relatively permanent change in behavior that occurs as a result of practice."
Said change is reflected or manifested in the realization of process, events or facts that point to Innovation; and in turn occurs as a result of using or using what has been learned in practice.
In the organizational context, the authors Nonaka Ikujisu and Takeuchi Hirotaka (1995) argued that the creation of learning in the company is an organizational capacity, based on the experience of trial and error, mental modeling and learning from others. Organizational knowledge creation is the ability of the company as a whole to create new knowledge, spread it throughout the organization, and incorporate it into products and services.
Additionally, it maintains that in organizations there is tacit knowledge (that knowledge not known by everyone, but each one generates and reserves it) and explicit knowledge (that knowledge known and shared by all: manuals, documented experiences and that documented learning).
Knowledge creation leads to continuous innovation and this in turn to the development of competitive advantages. Reason why, these authors emphasize that the ability to manage the "Knowledge-based intellect" (Intellect based on knowledge), is becoming the executive critical ability of this era.
Authors Davenport Thomas and Prusak Laurence (1998) highlight that knowledge is a fluid combination of acquired experiences, values, contextualized information and expert understanding that provides a frame of reference to evaluate and incorporate new experiences and information, originated and applied by workers. In organizations, usually knowledge is found not only in documents or repositories of information, but in work routines, standards (written and unwritten) and in management practices.
In this sense, knowledge-generating activities include:
- Comparison of information. Identification of consequences. Connections between knowledge. Conversations.
The c nowledge action then comprises the following processes:
- Experience: provides a historical perspective from which new situations are visualized. Real life truths (Ground Truth): is knowing what really works in a given work context: golden rules. Complexity Management: The importance of experience and golden rules is an indication of the ability to deal with complexity. Generation of judgments.
Davenport and Prusak propose the following principles of knowledge management based on a British Petroleum case study:
- Knowledge originates from and resides in people's minds. Sharing knowledge requires trust. Technology makes possible new behaviors. Sharing knowledge must be encouraged and rewarded. Management and resource support is essential. Initiatives should start with a pilot program. It is necessary to have qualitative and quantitative measures. Knowledge is creative and should be fostered in unexpected ways.
In a more concrete way, the author Garvin David. (2000), maintains that organizational learning requires that an inquiry and openness; a willingness on the part of managers and decision makers to challenge presumptions and attack conventional wisdom and proposes:
1.- Acquisition: information, structure and organize facts, observations and data. Key questions:
- What information should we collect? From what source? How should it be obtained and by whom?
2.- Interpretation: in order to produce precise perspectives, positions and understanding: key questions:
- What is the meaning of the information? What categories should we use? What cause-effect relationship are operating?
3.- Use or application of information: engaging in tasks, activities and new behaviors. At this point, analysis translates into action. Crucial questions:
- What new activities are appropriate? What behaviors should be modified? How do we generate a collective response from the organization?
Each of these stages brings its own tasks and challenges.
The activities through which learning takes place would be:
- Perform competitive intelligence. Conduct research. Ask (identify opportunities, looking for answers). Observe. To experience. Learn from experience. To explore.
These activities contribute to the innovation process and must be organized, managed and directed. In this sense, the contribution of the authors Probst Gilbert; Raul Steffen and Romhardt Kai. (2001), is a guideline when proposing the core processes for knowledge management:
- Identification of knowledge. Knowledge acquisition. Knowledge development. Share and develop knowledge. Use of knowledge. Knowledge retention.
These authors come to propose an evaluation tool for knowledge management using the processes mentioned above, suggesting the indicators for each one. The product of this technique is to obtain the knowledge profile of a certain organization.
It should be noted that the management and direction of knowledge necessarily merits an alignment or congruence between the dimensions of the model proposed in this document. Probst, Steffen and Romhardt. (2001) suggest that profiling should be consistent with culture, technology, the measurement system, and leadership.
An additional edge on knowledge management and direction is proposed by the authors Yeung Arthur; Ulrich Dave, et all. (2000), with its model of learning organizations, the phases of these perspectives are:
- Generate ideas with impact: How has the company created an environment for learning that leads to continuous product innovation? Generalize ideas with impact: How do you share and apply the knowledge used throughout the organization? Identify learning disabilities: What are the obstacles and how to overcome them?
The model itself takes into account the following dimensions and is described in Chapter III. Pg.66:
- The business context. The ability to learn. Business performance: Innovation and Competitiveness. From idea to definition
As an idea, innovation is the art of creating something new, novel and original. A story quotes "I searched for the ideal car, but I did not find it: So I decided to build it myself" Prof. Dr. HC Ferdinand Porshe. (Quoted by Valdés Luigi. 2003)
As a concept, innovation is considered as the ability to visualize an opportunity before others and have the courage to translate it into a real, tangible and salable product or service. (Gene Landrum. 1990. Taken from Luigi Valdés. 2003), states that "The success of any innovative drive must be acceptance of the market, not of the invention itself".
From a perspective closer to the definition, Luigi Valdes (2003) argues that "Innovation is a systematic process to improve a product, service or the business model of a company so that it is favorably perceived by the customer."
Professor Viana Horacio. (2004), maintains that “Innovation, understood in a general way with a new product, service, process or system for a company, not necessarily novel at the national or international level. It includes not only major advances but also gradual or incremental improvements. ”
For other authors like Michael Tushman. (1998), innovation implies a change, but a continuous radical change. John Jordan, Director of Cap. Gemini Ernest and young says "innovation is the pirate ship sailing into the yacht club". (Innovation is like a pirate ship sailing in the yacht club ”).
In short: creativity is the ability to generate new ideas and connections. Innovation is the ability to implement and execute these ideas in the market and in the organization as such.
The author Kao John (1997: XV), defines creativity as “The total of the process by which ideas are generated, developed and transformed into value. She understands what is generally understood by innovation and entrepreneurship… it means both the art of bringing new ideas to life and developing them to the stage of realized value ”.
From the focus of this document, innovation is a process that can be understood from the following perspectives:
a.- As a set of systematic and integrative activities based on the analysis, synthesis, rearrangements and reconnections of ideas for their development, creation, testing and production of services or novelty products that are useful and of value to a market, clients or consumers.
By systematic it is meant that they are intentional activities and that they follow the order of common sense (in which logic usually prevails); but that non-common sense is welcome (creativity, intuition).
By integrator, it is intended that the results of the analysis, synthesis, development, creation, testing, application and evaluation, increase knowledge and learning that sustainably leverage the addition of value for the participating team or generator of innovation, the workers of the organization., customers, shareholders (private sector), for the citizen (public sector) and for the nation.
b.- As a process that emerges from the experience of those in the organization that make the process of creativity and innovation possible and additionally, as linked to the company's strategy. That is why it is argued that innovation does not come by chance, they do!
3.- Conditions for innovation
According to Professor Viana (2003), the management of the innovation process must meet the following conditions:
- Strategic approach Effective implementation mechanisms Favorable organizational climate Effective external links.
The conditions suggested by the author Adair Jhon. (1992), for the innovation process to flourish in an organization are:
1.- Management commitment.
2.- Strategic thinking.
3.- A long-term perspective.
4.- Sensitivity to change.
5.- Acceptance of risk.
6.- Enabling internal environment. (Organizational climate)
4.- Phases of innovation
Additionally, Adair Jhon. (1992), maintains that innovation-oriented organizations have to handle the following phases:
1.- Surveillance and search in the environment (internal and external) for signs of
potential innovations.
2.- Strategic selection of the signals to which the organization will dedicate its
resources.
3.- Allocation of the necessary resources to turn an opportunity into reality.
4.- Implementation of innovation.
5.- Reflection on the previous phases.
Finally, propose the method of gates and stages for the development of innovations: adopted from Cooper and Edgett (1999), referenced by Viana:
Stage 1.- Identification of need / problem. Generation of ideas.
Gate 1.- Stage 2.- Concept development and preliminary analysis.
Gate 2.- Stage 3.- Detailed investigation. Preparation of the business plan.
Gate 3.- Stage 4.- Product or service development.
Gate 4.- Stage 5.- Test.
Gate 5.- Stage 6.- Launch.
Tushman M. YO´reilly C. (1998) argue that innovation implies a strategic change in organizations. Analyzing her work, she proposes the following phases of the innovative process:
1.- Direct evolution and revolutionary change in companies.
2.- Definition of problems and opportunities.
3.- Solution of administrative problems (Congruence Analysis Model).
4.- Formation of the Organizational culture.
5.- Manage simultaneous innovation streams.
6.- Implementation of strategic change.
A key concept in the process proposed by these authors refers to the congruence model, which contemplates coherence and leveling between: Pg.59
- Crucial tasks (component tasks, workflow / process).
- Culture (skills, norms, values, communication networks, informal functions, informal power).
- Formal organization (strategic grouping, formal ties, remuneration, information systems, HR administration system, etc.)
- People (capacities).
Based on the analysis of these dimensions and indicators, suggests the author, the organization will be better able to direct and manage strategic change in the Organization.
On the other hand, he proposes ambidextrous organization; This is like an area that would be in charge of the improvement, optimization and operations of the company and another, that handles strategic change, innovation and development towards future horizons.
At the end of this section a window opens to incorporate the Research and Development (R&D) or (R&D) process by its commonly established acronyms.
5.- Guidelines to implement an innovative process
It is then pertinent to structure a work program that considers the following guidelines:
- Promote a culture that welcomes risks and encourages new ideas. Set specific performance goals; See: Suamson Richard; Holton III. et al (1999). Develop a balanced portfolio of different types of new products and services. Identify customer needs before developing new ideas. Assign necessary resources for the business plan of innovative ideas considering these criteria:
- Strategic adequacy Technical feasibility. Market feasibility. Opportunity.
Author Kuczmarski Thomas. (1997), proposes eight (8) blocks to build innovation:
1.- Create a vision and a preliminary outline of the innovation.
2.- Develop an innovation strategy.
3.- Design an innovation technology portfolio.
4.- Design a process of technology and innovation development:
- Exploration of consumer needs and problems. Generation of ideas and problem solutions. Concept development. Business analysis. Prototype development. Plant test for production. Market test. Commercialization. Post-launch review.
5.- Form innovation teams.
6.- Establish remuneration systems.
7.- Measure progress and returns.
8.- Infuse innovation standards and values.
6.- Competences for innovation
One of the interesting points that comes from the experience of this author refers to the competencies required by the members of the innovation teams; among which stand out:
- Possess diversity of experiences. Be optimistic. Healthy dose of self confidence. Propensity towards problem solving. Demand and transmit an internal passion to create new things. Having experienced failures and the ability to overcome them; among others.
One aspect to analyze and take into account in the study and implementation in the innovation process is teamwork. It is probably one of the contributory powers to the development of an innovative spirit and environment; since it refers to how to work towards innovation. In this sense, one of the authors who highlights the development of this competence in the innovative process is Adair Jhon. (1992), proposes organization for team creativity, suggests considering as guiding criteria:
- Order and Freedom: (organizations are arrangements between order and freedom) Integrating creativity into industry: good communication between researchers within a large group of institutions is essential; many creative developments are generated by linking technologies that others consider separate. Peter Senge considers that a new discipline arises from the synergistic combination of several technologies. Achieving the right balance: He proposes a continuum of organizations according to their relative participation in the conception and development of new ideas:
-
Leadership for Innovation: In this regard, he argues that moving from a conservative, slow, bureaucratic, and introverted institution to a young entity requires rare consideration of leadership and managerial skills.
The following is an example of the use of the competency model in which the Innovation competence is included. The model in question is framed in a program called: Excellent Performance and offers a competency assessment guide for the worker or collaborator as well as for the supervisor or integrator:
-A concrete case of competition in a company in Venezuela:
Basic competences of the employees of the Tapa Amarilla Corporation (generic name)
The scope of the basic competencies defined by TA, will include all its employees.
These competencies are described in this guide and examples are provided to facilitate observation and evaluation of behaviors that are part of the competency-based development process.
This guide is divided into two sections: definitions of competences and evaluation of competences.
1. Definitions of competences:
Definitions include key actions associated with competition and describe how competition accompanies AT's core growth strategies. The descriptions provided in this section are applicable to all TA employees and do not vary regardless of their position within the organization.
2. Assessment of competences:
This section provides behaviors that reflect a high, medium, or low level of effectiveness for each competency. Because expectations vary according to the role of the individual in AT, different forms of competency assessment are provided for each role (collaborator, integrator, and strategist).
Competency Guide:
| Competition: | Innovation |
| Definition: | Generate innovative solutions in work situations; try new ways to deal with problems and opportunities at work. |
| Key actions: | · Identifies implicit assumptions in the way problems or situations are presented and defined.
|
| Links with TA: | Innovation as a basic competence focuses TA's attention on the importance of generating creative solutions for situations or problems at work. Innovation will support TA through the following:
|
TA Basic Competency Guide
Competency Assessment - Collaborator
Innovation: Generate innovative solutions in work situations; try new ways to deal with problems and opportunities at work.
| Very effective | Effective | Needs improvement |
| -Look for information from experts in other functional areas or organizations to develop better methods to achieve work-related goals.
-Try new ways of doing activities and compare the established way of doing the activity with the method; adopt the best method and inform others of the results. -Develops creative improvements for the organization's processes and procedures that are adapted by other groups. -Identify opportunities for improvement and develop initial ideas to address those opportunities. |
-Listen carefully to the ideas of others and use them as a basis.
-See an opportunity for improvement and talk to others for their opinion. |
-Immediately discard new
solutions to permanent problems. -Never looks for opportunities to identify better methods to complete the work |
Competency Assessment - Integrator
Innovation: Generate innovative solutions in work situations; try new ways to deal with problems and opportunities at work.
| Very effective | Effective | Needs improvement |
| -Develops and promotes the use of new improvements for processes among other working groups of the organization
-Promote brainstorming within your group about areas where group goals, processes, and methods can be changed to better serve the organization and its customers. -It manages to create new combinations of existing products or services to take advantage of and satisfy new opportunities. |
-Search beyond proven methods of solving problems
Recognize and act on opportunities that require using new or unusual ideas. -Supports the ideas of improvement in team processes; It does not reject ideas without first exploring further the merits and possible costs. |
-Immediately reject new ideas without exploring the reasoning behind the suggestion.
-Discourages independent efforts of direct reports to move away from traditional methods |
7.- Methodology to drive innovation
For the author Valdes Luigi (2003), one way to drive and materialize innovation, is through the application methodology for innovation in business models and focuses on a guide of seven (7) steps to formulate and implement novel and subversive business strategies:
1.- Establish a favorable environment for creativity and innovation. (Culture).
2.- Define the current strategy and business model. (Strategy).
3.- Recognize the fundamental assumptions that underpin the business model. (values).
4.- Establish new perspectives on strategy and business models. (Change).
5.- Define different strategic options based on the new optics. (Research
and development).
6.- Evaluate and select a superior original strategy. (Decision - action).
7.- Make Innovation an open, continuous and systematic process within the Company. (Internal innovation policy).
It is in the innovation process that flows as a lubricant, learning and knowledge as a source of generating competitive advantage; since it is consolidating itself as the dominant design of a new paradigm in the survival and competitiveness of organizations. Currently, the epochal sign points to the knowledge society.
Delving into the process of managing knowledge requires immersing yourself in other conceptual currents and experiences; In this sense, it is recommended to analyze and evaluate the documentary papers of the International Forum “Knowledge Management. Empowering intellectual capital to create values ”. Edition of the Editorial Fund of the International Center for Education and Development Foncied-PDVSA of the year 2000. For the purposes of this document, the issue of organizational knowledge and learning and its impact on innovation has not been exhausted.
Bibliography Consulted
-Ardila Ruben. (1982). Psychology of Learning. Edit. XXI century. Pgs. 15-22.
-Nonaka Ikujisu and Takeuchi Hirotaka (1995). The Knowledge Creating Company. Edit. Oxford.
-Davenprot Thomas and Prusak Laurence (1998). Working Knowledge. Edit. HBS Press. Pgs. 1-19.
-Garvin David. (2000). Learning in Action. Edit. HBS Press.
-Probst Gilbert; Raul Steffen and Romhardt Kai. (2001). Manage knowledge. Edit. Prentice Hall. Pgs. 28-68.
-Yeung Arthur; Ulrich Dave. et all. (2000). The learning capacities in the organization. How to learn to generate and spread ideas with momentum. Edit. Oxford. Pgs. 29-71.
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