Knowledge Management in Innovation Processes June 2012 Ole Kjeldal Jensen* Dept. of Management Engineering Section of Engineering Design Technical University of Denmark, Building 426, DK-2800 Lyngby, Denmark okje@man.dtu.dk Saeema Ahmed-Kristensen Dept. of Management Engineering Section of Engineering Design Technical University of Denmark, Building 426, DK-2800 Lyngby, Denmark sakr@man.dtu.dk
Our approach to creating tools Case: DONG Energy Understanding situation and challenges InnovationSTREAM & ENSIGHT
One size fits no-one Disruptive innovation seems random and impossible to foresee We don t have theoretical challenges, but practical challenges Makes sense - maybe I should try out the new management concept my consultants have tried to sell lately Correct application of good theory makes it predictable Theories are more practical than they sound: Newton s law of gravity is a theory Careful! would you let a doctor give you a pill, just because it worked on the 5 patients before you?
Understand Case Create Solution Test Solution Systematic development of customised tools We need to understand the conditions of the company in detail to effectively develop, apply and test appropriate theories and tools Collect Data Analyse Data Define problems and challenges Set requirements Design and/or select tools Implement Solutions Measure impact Improve Solution Re-validate
Our approach to creating tools Case: DONG Energy Understanding situation and challenges InnovationSTREAM & ENSIGHT
Business Units: Case: Disruptive Innovation in DONG Energy Exploration & Production Wind Power Thermal Power Energy Markets Sales & Distribution 2. Cross-cutting issues 1. Long-term growth platforms & emerging business opportunities 3. Adjacent business opportunities Today 2015
Support for knowledge integration and innovation measurement was created Dong Energy: We need to innovate across business units for a radically changed future, but speed and direction of change is unknown How might we enable integration of knowledge into radical innovations? How might we measure the value-creation from the innovation function? Model for value streams from the innovation centre forms the basis of measuring innovation performance ENSIGHT provides a tool for disseminating essential market insight and breaks down boundaries between professions
Our approach to creating tools Case: DONG Energy Understanding situation and challenges InnovationSTREAM & ENSIGHT
Life inside the fossil-fuelled bubble Steam Machine made it possible to centralise production Mechanical loom started automated production High quality Steel Production based on coke Worldwide GDP grown 3200 % since 1800 World population grown 600% since 1800 Urbanisation of 50% of the world population, compared to 3% in 1800
Indicators of the bubble being about to burst Scarcity of cheap primary energy resources coming closer Extreme weather phenomena increases in strength and frequency Business as usual is no longer a feasible option Transition to unconventional resources is imminent Global political pressure for human sustenance
Implications on the for innovation in the grid towards 2020 While our need for non-intermittent capacity remain the same, our utilisation-rate has decreased Our market for base-load capacity is under pressure Our need for peak-capacity is somewhat increased Our need for absorption capacity has increased significantly The markets for intraday-balancing has grown, unless the forecasting quality is improved Our need for transmission and distribution capacity has increased significantly
Knowledge management issues across innovation phases elicited from observing multi-disciplinary teams Selected Knowledge Management Issues: Integration between knowledge domains Common frame of understanding between professions Understanding of market complexity and changes in the value creation Communication of value creation from innovation efforts
Our approach to creating tools Case: DONG Energy Understanding situation and challenges InnovationSTREAM & ENSIGHT
Measuring knowledge in four value-streams Value stream Typical Models Metric Examples Skills and Competencies Specialist Generalist Renaissance Man Employee Profiles Fit with future needs Team compositions Networks and Relations Low Stability High Stability Stability of networks Quality of relationships Quantity of relationships Processes, Infrastructure and Organisation Efficiency of organisation Quality of processes Repeatability of success Products, Services and Integrated Systems Earnings from new products vs. old products Fit with R&D Strategy Quality of Products
Model used for analysing Horizon 2020 Innovation Activity Supported by H2020 Skills & Competencies Products Networks & Relations Services Process & Infrastructure Company Running the Activity Supported by H2020 EU sets a strong direction with H2020: It makes sense from an industrial view point to follow the lead and support the vision of Europe Considerable attention in H2020 is given to societal challenges where markets are immature: Build capacity secondary streams to develop and reform markets H2020 is only worth the hassle if you can repeat your success in the future: Focus on all value streams, not just development of new products and services
ENSIGHT Problem Statement: Develop a support to help creating a common frame of understanding in the during multidisciplinary work in the extended innovation network Example Requirements: Embed the most central knowledge domains with economy of scale The support should be easy to use in external as well as internal collaborations