Cover

Thumbnails

Thumbnailsjpg

The Innovative Company

Innovation between Risk and Reward Set coordinated by

Bernard Guilhon and Sandra Montchaud

Volume 1

The Innovative Company

An Ill-defined Object

Daniegravele Chauvel Stefano Borzillo

First published 2017 in Great Britain and the United States by ISTE Ltd and John Wiley amp Sons Inc

Apart from any fair dealing for the purposes of research or private study or criticism or review as permitted under the Copyright Designs and Patents Act 1988 this publication may only be reproduced stored or transmitted in any form or by any means with the prior permission in writing of the publishers or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address

ISTE Ltd John Wiley amp Sons Inc 27-37 St Georgersquos Road 111 River Street London SW19 4EU Hoboken NJ 07030 UK USA

wwwistecouk wwwwileycom

copy ISTE Ltd 2017 The rights of Daniegravele Chauvel and Stefano Borzillo to be identified as the authors of this work have been asserted by them in accordance with the Copyright Designs and Patents Act 1988

Library of Congress Control Number 2017941106 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library ISBN 978-1-78630-065-2

Contents

Foreword vii

Acknowledgements xv

Introduction xvii

Chapter 1 Evolution of the Concept of Innovation 1

11 Major steps in the evolution of the concept of innovation 2 12 Paradigm shift 6

Chapter 2 Innovation A Knowledge-based Phenomenon 11

21 A knowledge-based view of firm innovation 12 22 Knowledge management 13

Chapter 3 Pivots of Innovation in the Age of Knowledge 21

31 Creativity 21 32 Organizational ambidexterity 37

Chapter 4 The Various Approaches to Innovation Adopted by Companies 53

41 External approaches 53

vi The Innovative Company

411 Alliances subcontracting and other interindustry contractual forms 54 412 Open innovation in various forms 55

42 Internal and organizational approaches 57 421 Participative innovation 57 422 Communities of practice andor innovation 64 423 Intrapreneurship adhocracy and forms of organizational entrepreneurship 67 424 Company social networks 73 425 Other creative and agile processes 76

Chapter 5 Organizational Levers 83

51 An innovation-oriented strategic posture 83 52 A culture of innovation 90 53 Innovation management 96 54 The innovative company a concept that applies to small or large companies 104

Conclusion 111

Bibliography 119

Index 137

Foreword

I am delighted to contribute ndash even if only in a small way ndash to the study of an ill-defined object

This problem of definition seems to persist despite the fact that the practice of innovation is as ancient as the activity of business This may be explained by the fact that the concepts of ldquoinnovationrdquo and ldquobusinessrdquo are both multifaceted and rapidly changing and that preconceived ideas and simplistic erroneous but reassuring beliefs die hard

This new series sheds welcome light on the debate Notably this second book has the great merit ndash in my opinion ndash of approaching the problem of ldquoinnovationrdquo through the ldquoright doorrdquo that of knowledge

A very thorough work

Readers whatever their position ndash director manager associate facilitator or student ndash will find this book to be a source of up-to-date high-quality information

In my opinion this book has four great qualities

viii The Innovative Company

ndash it incorporates the historical dimension enabling the various approaches to innovation to be situated within their economic technological and sociological context (the managerial aspect in particular) and the links between these various elements to be better understood

ndash it is holistic and systemic incorporating and comparing the perspectives of various disciplines

ndash it is scientific uniting rigor demand and objectivity

ndash it is engaged enabling us to share the authorsrsquo conviction as to the prominence of the sociological dimension of innovation and define the role of various parties directors managers associates and facilitators (leaders of communities of practice or interest and groups on social networks trainers experts knowledge managers etc)

Finally it discusses the issue of SMEs (Small Medium Enterprises) whereas most books are restricted to large usually American corporations

Multifaceted subjects

ndash Innovation was initially an industrial approach to production and this remains true in the incremental innovation of production processes

ndash It is a strategic approach that makes it possible to anticipate changes in all kinds and adapt quickly

ndash It is also a market dimension new products new services management of inputndashoutput channels development of business models

ndash Innovation is a mindset a capacity for questioning a flexibility an openness toward associates (other than innovation experts) clients partners allies It should not be the kingdom of the solitary innovator fashion or imitation (metoism)

Foreword ix

ndash The managerial dimension of innovation is fundamental it gives associates the chance the permission the task to suggest even to decide on organizations and practices locally drawing inspiration from examples of other entities inside or outside the company This is the field of collective intelligence

ndash This also covers the processes and practices to develop create capture and implant in the company in a lasting but modifiable way We are already engaged in change management

ndash Innovation also requires means tools methods structures funding and taxation ldquotreesrdquo that can prevent us from seeing the wood and sometimes cause dramatic decision-making errors

Changing subjects

Many causes of change are sometimes brutal and often coincide

ndash the major development of the value chain for some activities (eg uberization) causing ruptures in strategies and financial negotiations

ndash the appearance of various innovation philosophies adapted to varying degrees to the specifics of a given company

ndash the emergence of new technologies with a highly variable even random power increase and lifespan

ndash the appearance of new competitors who affect a particular positioning on the value chain ndash often interposed between the incumbent supplier and his client ndash using new technologies and affecting the variety of availability and production cost factors as well as the diversity of fiscal and social regulations

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

The Innovative Company

Innovation between Risk and Reward Set coordinated by

Bernard Guilhon and Sandra Montchaud

Volume 1

The Innovative Company

An Ill-defined Object

Daniegravele Chauvel Stefano Borzillo

First published 2017 in Great Britain and the United States by ISTE Ltd and John Wiley amp Sons Inc

Apart from any fair dealing for the purposes of research or private study or criticism or review as permitted under the Copyright Designs and Patents Act 1988 this publication may only be reproduced stored or transmitted in any form or by any means with the prior permission in writing of the publishers or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address

ISTE Ltd John Wiley amp Sons Inc 27-37 St Georgersquos Road 111 River Street London SW19 4EU Hoboken NJ 07030 UK USA

wwwistecouk wwwwileycom

copy ISTE Ltd 2017 The rights of Daniegravele Chauvel and Stefano Borzillo to be identified as the authors of this work have been asserted by them in accordance with the Copyright Designs and Patents Act 1988

Library of Congress Control Number 2017941106 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library ISBN 978-1-78630-065-2

Contents

Foreword vii

Acknowledgements xv

Introduction xvii

Chapter 1 Evolution of the Concept of Innovation 1

11 Major steps in the evolution of the concept of innovation 2 12 Paradigm shift 6

Chapter 2 Innovation A Knowledge-based Phenomenon 11

21 A knowledge-based view of firm innovation 12 22 Knowledge management 13

Chapter 3 Pivots of Innovation in the Age of Knowledge 21

31 Creativity 21 32 Organizational ambidexterity 37

Chapter 4 The Various Approaches to Innovation Adopted by Companies 53

41 External approaches 53

vi The Innovative Company

411 Alliances subcontracting and other interindustry contractual forms 54 412 Open innovation in various forms 55

42 Internal and organizational approaches 57 421 Participative innovation 57 422 Communities of practice andor innovation 64 423 Intrapreneurship adhocracy and forms of organizational entrepreneurship 67 424 Company social networks 73 425 Other creative and agile processes 76

Chapter 5 Organizational Levers 83

51 An innovation-oriented strategic posture 83 52 A culture of innovation 90 53 Innovation management 96 54 The innovative company a concept that applies to small or large companies 104

Conclusion 111

Bibliography 119

Index 137

Foreword

I am delighted to contribute ndash even if only in a small way ndash to the study of an ill-defined object

This problem of definition seems to persist despite the fact that the practice of innovation is as ancient as the activity of business This may be explained by the fact that the concepts of ldquoinnovationrdquo and ldquobusinessrdquo are both multifaceted and rapidly changing and that preconceived ideas and simplistic erroneous but reassuring beliefs die hard

This new series sheds welcome light on the debate Notably this second book has the great merit ndash in my opinion ndash of approaching the problem of ldquoinnovationrdquo through the ldquoright doorrdquo that of knowledge

A very thorough work

Readers whatever their position ndash director manager associate facilitator or student ndash will find this book to be a source of up-to-date high-quality information

In my opinion this book has four great qualities

viii The Innovative Company

ndash it incorporates the historical dimension enabling the various approaches to innovation to be situated within their economic technological and sociological context (the managerial aspect in particular) and the links between these various elements to be better understood

ndash it is holistic and systemic incorporating and comparing the perspectives of various disciplines

ndash it is scientific uniting rigor demand and objectivity

ndash it is engaged enabling us to share the authorsrsquo conviction as to the prominence of the sociological dimension of innovation and define the role of various parties directors managers associates and facilitators (leaders of communities of practice or interest and groups on social networks trainers experts knowledge managers etc)

Finally it discusses the issue of SMEs (Small Medium Enterprises) whereas most books are restricted to large usually American corporations

Multifaceted subjects

ndash Innovation was initially an industrial approach to production and this remains true in the incremental innovation of production processes

ndash It is a strategic approach that makes it possible to anticipate changes in all kinds and adapt quickly

ndash It is also a market dimension new products new services management of inputndashoutput channels development of business models

ndash Innovation is a mindset a capacity for questioning a flexibility an openness toward associates (other than innovation experts) clients partners allies It should not be the kingdom of the solitary innovator fashion or imitation (metoism)

Foreword ix

ndash The managerial dimension of innovation is fundamental it gives associates the chance the permission the task to suggest even to decide on organizations and practices locally drawing inspiration from examples of other entities inside or outside the company This is the field of collective intelligence

ndash This also covers the processes and practices to develop create capture and implant in the company in a lasting but modifiable way We are already engaged in change management

ndash Innovation also requires means tools methods structures funding and taxation ldquotreesrdquo that can prevent us from seeing the wood and sometimes cause dramatic decision-making errors

Changing subjects

Many causes of change are sometimes brutal and often coincide

ndash the major development of the value chain for some activities (eg uberization) causing ruptures in strategies and financial negotiations

ndash the appearance of various innovation philosophies adapted to varying degrees to the specifics of a given company

ndash the emergence of new technologies with a highly variable even random power increase and lifespan

ndash the appearance of new competitors who affect a particular positioning on the value chain ndash often interposed between the incumbent supplier and his client ndash using new technologies and affecting the variety of availability and production cost factors as well as the diversity of fiscal and social regulations

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

Innovation between Risk and Reward Set coordinated by

Bernard Guilhon and Sandra Montchaud

Volume 1

The Innovative Company

An Ill-defined Object

Daniegravele Chauvel Stefano Borzillo

First published 2017 in Great Britain and the United States by ISTE Ltd and John Wiley amp Sons Inc

Apart from any fair dealing for the purposes of research or private study or criticism or review as permitted under the Copyright Designs and Patents Act 1988 this publication may only be reproduced stored or transmitted in any form or by any means with the prior permission in writing of the publishers or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address

ISTE Ltd John Wiley amp Sons Inc 27-37 St Georgersquos Road 111 River Street London SW19 4EU Hoboken NJ 07030 UK USA

wwwistecouk wwwwileycom

copy ISTE Ltd 2017 The rights of Daniegravele Chauvel and Stefano Borzillo to be identified as the authors of this work have been asserted by them in accordance with the Copyright Designs and Patents Act 1988

Library of Congress Control Number 2017941106 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library ISBN 978-1-78630-065-2

Contents

Foreword vii

Acknowledgements xv

Introduction xvii

Chapter 1 Evolution of the Concept of Innovation 1

11 Major steps in the evolution of the concept of innovation 2 12 Paradigm shift 6

Chapter 2 Innovation A Knowledge-based Phenomenon 11

21 A knowledge-based view of firm innovation 12 22 Knowledge management 13

Chapter 3 Pivots of Innovation in the Age of Knowledge 21

31 Creativity 21 32 Organizational ambidexterity 37

Chapter 4 The Various Approaches to Innovation Adopted by Companies 53

41 External approaches 53

vi The Innovative Company

411 Alliances subcontracting and other interindustry contractual forms 54 412 Open innovation in various forms 55

42 Internal and organizational approaches 57 421 Participative innovation 57 422 Communities of practice andor innovation 64 423 Intrapreneurship adhocracy and forms of organizational entrepreneurship 67 424 Company social networks 73 425 Other creative and agile processes 76

Chapter 5 Organizational Levers 83

51 An innovation-oriented strategic posture 83 52 A culture of innovation 90 53 Innovation management 96 54 The innovative company a concept that applies to small or large companies 104

Conclusion 111

Bibliography 119

Index 137

Foreword

I am delighted to contribute ndash even if only in a small way ndash to the study of an ill-defined object

This problem of definition seems to persist despite the fact that the practice of innovation is as ancient as the activity of business This may be explained by the fact that the concepts of ldquoinnovationrdquo and ldquobusinessrdquo are both multifaceted and rapidly changing and that preconceived ideas and simplistic erroneous but reassuring beliefs die hard

This new series sheds welcome light on the debate Notably this second book has the great merit ndash in my opinion ndash of approaching the problem of ldquoinnovationrdquo through the ldquoright doorrdquo that of knowledge

A very thorough work

Readers whatever their position ndash director manager associate facilitator or student ndash will find this book to be a source of up-to-date high-quality information

In my opinion this book has four great qualities

viii The Innovative Company

ndash it incorporates the historical dimension enabling the various approaches to innovation to be situated within their economic technological and sociological context (the managerial aspect in particular) and the links between these various elements to be better understood

ndash it is holistic and systemic incorporating and comparing the perspectives of various disciplines

ndash it is scientific uniting rigor demand and objectivity

ndash it is engaged enabling us to share the authorsrsquo conviction as to the prominence of the sociological dimension of innovation and define the role of various parties directors managers associates and facilitators (leaders of communities of practice or interest and groups on social networks trainers experts knowledge managers etc)

Finally it discusses the issue of SMEs (Small Medium Enterprises) whereas most books are restricted to large usually American corporations

Multifaceted subjects

ndash Innovation was initially an industrial approach to production and this remains true in the incremental innovation of production processes

ndash It is a strategic approach that makes it possible to anticipate changes in all kinds and adapt quickly

ndash It is also a market dimension new products new services management of inputndashoutput channels development of business models

ndash Innovation is a mindset a capacity for questioning a flexibility an openness toward associates (other than innovation experts) clients partners allies It should not be the kingdom of the solitary innovator fashion or imitation (metoism)

Foreword ix

ndash The managerial dimension of innovation is fundamental it gives associates the chance the permission the task to suggest even to decide on organizations and practices locally drawing inspiration from examples of other entities inside or outside the company This is the field of collective intelligence

ndash This also covers the processes and practices to develop create capture and implant in the company in a lasting but modifiable way We are already engaged in change management

ndash Innovation also requires means tools methods structures funding and taxation ldquotreesrdquo that can prevent us from seeing the wood and sometimes cause dramatic decision-making errors

Changing subjects

Many causes of change are sometimes brutal and often coincide

ndash the major development of the value chain for some activities (eg uberization) causing ruptures in strategies and financial negotiations

ndash the appearance of various innovation philosophies adapted to varying degrees to the specifics of a given company

ndash the emergence of new technologies with a highly variable even random power increase and lifespan

ndash the appearance of new competitors who affect a particular positioning on the value chain ndash often interposed between the incumbent supplier and his client ndash using new technologies and affecting the variety of availability and production cost factors as well as the diversity of fiscal and social regulations

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

First published 2017 in Great Britain and the United States by ISTE Ltd and John Wiley amp Sons Inc

Apart from any fair dealing for the purposes of research or private study or criticism or review as permitted under the Copyright Designs and Patents Act 1988 this publication may only be reproduced stored or transmitted in any form or by any means with the prior permission in writing of the publishers or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address

ISTE Ltd John Wiley amp Sons Inc 27-37 St Georgersquos Road 111 River Street London SW19 4EU Hoboken NJ 07030 UK USA

wwwistecouk wwwwileycom

copy ISTE Ltd 2017 The rights of Daniegravele Chauvel and Stefano Borzillo to be identified as the authors of this work have been asserted by them in accordance with the Copyright Designs and Patents Act 1988

Library of Congress Control Number 2017941106 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library ISBN 978-1-78630-065-2

Contents

Foreword vii

Acknowledgements xv

Introduction xvii

Chapter 1 Evolution of the Concept of Innovation 1

11 Major steps in the evolution of the concept of innovation 2 12 Paradigm shift 6

Chapter 2 Innovation A Knowledge-based Phenomenon 11

21 A knowledge-based view of firm innovation 12 22 Knowledge management 13

Chapter 3 Pivots of Innovation in the Age of Knowledge 21

31 Creativity 21 32 Organizational ambidexterity 37

Chapter 4 The Various Approaches to Innovation Adopted by Companies 53

41 External approaches 53

vi The Innovative Company

411 Alliances subcontracting and other interindustry contractual forms 54 412 Open innovation in various forms 55

42 Internal and organizational approaches 57 421 Participative innovation 57 422 Communities of practice andor innovation 64 423 Intrapreneurship adhocracy and forms of organizational entrepreneurship 67 424 Company social networks 73 425 Other creative and agile processes 76

Chapter 5 Organizational Levers 83

51 An innovation-oriented strategic posture 83 52 A culture of innovation 90 53 Innovation management 96 54 The innovative company a concept that applies to small or large companies 104

Conclusion 111

Bibliography 119

Index 137

Foreword

I am delighted to contribute ndash even if only in a small way ndash to the study of an ill-defined object

This problem of definition seems to persist despite the fact that the practice of innovation is as ancient as the activity of business This may be explained by the fact that the concepts of ldquoinnovationrdquo and ldquobusinessrdquo are both multifaceted and rapidly changing and that preconceived ideas and simplistic erroneous but reassuring beliefs die hard

This new series sheds welcome light on the debate Notably this second book has the great merit ndash in my opinion ndash of approaching the problem of ldquoinnovationrdquo through the ldquoright doorrdquo that of knowledge

A very thorough work

Readers whatever their position ndash director manager associate facilitator or student ndash will find this book to be a source of up-to-date high-quality information

In my opinion this book has four great qualities

viii The Innovative Company

ndash it incorporates the historical dimension enabling the various approaches to innovation to be situated within their economic technological and sociological context (the managerial aspect in particular) and the links between these various elements to be better understood

ndash it is holistic and systemic incorporating and comparing the perspectives of various disciplines

ndash it is scientific uniting rigor demand and objectivity

ndash it is engaged enabling us to share the authorsrsquo conviction as to the prominence of the sociological dimension of innovation and define the role of various parties directors managers associates and facilitators (leaders of communities of practice or interest and groups on social networks trainers experts knowledge managers etc)

Finally it discusses the issue of SMEs (Small Medium Enterprises) whereas most books are restricted to large usually American corporations

Multifaceted subjects

ndash Innovation was initially an industrial approach to production and this remains true in the incremental innovation of production processes

ndash It is a strategic approach that makes it possible to anticipate changes in all kinds and adapt quickly

ndash It is also a market dimension new products new services management of inputndashoutput channels development of business models

ndash Innovation is a mindset a capacity for questioning a flexibility an openness toward associates (other than innovation experts) clients partners allies It should not be the kingdom of the solitary innovator fashion or imitation (metoism)

Foreword ix

ndash The managerial dimension of innovation is fundamental it gives associates the chance the permission the task to suggest even to decide on organizations and practices locally drawing inspiration from examples of other entities inside or outside the company This is the field of collective intelligence

ndash This also covers the processes and practices to develop create capture and implant in the company in a lasting but modifiable way We are already engaged in change management

ndash Innovation also requires means tools methods structures funding and taxation ldquotreesrdquo that can prevent us from seeing the wood and sometimes cause dramatic decision-making errors

Changing subjects

Many causes of change are sometimes brutal and often coincide

ndash the major development of the value chain for some activities (eg uberization) causing ruptures in strategies and financial negotiations

ndash the appearance of various innovation philosophies adapted to varying degrees to the specifics of a given company

ndash the emergence of new technologies with a highly variable even random power increase and lifespan

ndash the appearance of new competitors who affect a particular positioning on the value chain ndash often interposed between the incumbent supplier and his client ndash using new technologies and affecting the variety of availability and production cost factors as well as the diversity of fiscal and social regulations

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

Contents

Foreword vii

Acknowledgements xv

Introduction xvii

Chapter 1 Evolution of the Concept of Innovation 1

11 Major steps in the evolution of the concept of innovation 2 12 Paradigm shift 6

Chapter 2 Innovation A Knowledge-based Phenomenon 11

21 A knowledge-based view of firm innovation 12 22 Knowledge management 13

Chapter 3 Pivots of Innovation in the Age of Knowledge 21

31 Creativity 21 32 Organizational ambidexterity 37

Chapter 4 The Various Approaches to Innovation Adopted by Companies 53

41 External approaches 53

vi The Innovative Company

411 Alliances subcontracting and other interindustry contractual forms 54 412 Open innovation in various forms 55

42 Internal and organizational approaches 57 421 Participative innovation 57 422 Communities of practice andor innovation 64 423 Intrapreneurship adhocracy and forms of organizational entrepreneurship 67 424 Company social networks 73 425 Other creative and agile processes 76

Chapter 5 Organizational Levers 83

51 An innovation-oriented strategic posture 83 52 A culture of innovation 90 53 Innovation management 96 54 The innovative company a concept that applies to small or large companies 104

Conclusion 111

Bibliography 119

Index 137

Foreword

I am delighted to contribute ndash even if only in a small way ndash to the study of an ill-defined object

This problem of definition seems to persist despite the fact that the practice of innovation is as ancient as the activity of business This may be explained by the fact that the concepts of ldquoinnovationrdquo and ldquobusinessrdquo are both multifaceted and rapidly changing and that preconceived ideas and simplistic erroneous but reassuring beliefs die hard

This new series sheds welcome light on the debate Notably this second book has the great merit ndash in my opinion ndash of approaching the problem of ldquoinnovationrdquo through the ldquoright doorrdquo that of knowledge

A very thorough work

Readers whatever their position ndash director manager associate facilitator or student ndash will find this book to be a source of up-to-date high-quality information

In my opinion this book has four great qualities

viii The Innovative Company

ndash it incorporates the historical dimension enabling the various approaches to innovation to be situated within their economic technological and sociological context (the managerial aspect in particular) and the links between these various elements to be better understood

ndash it is holistic and systemic incorporating and comparing the perspectives of various disciplines

ndash it is scientific uniting rigor demand and objectivity

ndash it is engaged enabling us to share the authorsrsquo conviction as to the prominence of the sociological dimension of innovation and define the role of various parties directors managers associates and facilitators (leaders of communities of practice or interest and groups on social networks trainers experts knowledge managers etc)

Finally it discusses the issue of SMEs (Small Medium Enterprises) whereas most books are restricted to large usually American corporations

Multifaceted subjects

ndash Innovation was initially an industrial approach to production and this remains true in the incremental innovation of production processes

ndash It is a strategic approach that makes it possible to anticipate changes in all kinds and adapt quickly

ndash It is also a market dimension new products new services management of inputndashoutput channels development of business models

ndash Innovation is a mindset a capacity for questioning a flexibility an openness toward associates (other than innovation experts) clients partners allies It should not be the kingdom of the solitary innovator fashion or imitation (metoism)

Foreword ix

ndash The managerial dimension of innovation is fundamental it gives associates the chance the permission the task to suggest even to decide on organizations and practices locally drawing inspiration from examples of other entities inside or outside the company This is the field of collective intelligence

ndash This also covers the processes and practices to develop create capture and implant in the company in a lasting but modifiable way We are already engaged in change management

ndash Innovation also requires means tools methods structures funding and taxation ldquotreesrdquo that can prevent us from seeing the wood and sometimes cause dramatic decision-making errors

Changing subjects

Many causes of change are sometimes brutal and often coincide

ndash the major development of the value chain for some activities (eg uberization) causing ruptures in strategies and financial negotiations

ndash the appearance of various innovation philosophies adapted to varying degrees to the specifics of a given company

ndash the emergence of new technologies with a highly variable even random power increase and lifespan

ndash the appearance of new competitors who affect a particular positioning on the value chain ndash often interposed between the incumbent supplier and his client ndash using new technologies and affecting the variety of availability and production cost factors as well as the diversity of fiscal and social regulations

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

vi The Innovative Company

411 Alliances subcontracting and other interindustry contractual forms 54 412 Open innovation in various forms 55

42 Internal and organizational approaches 57 421 Participative innovation 57 422 Communities of practice andor innovation 64 423 Intrapreneurship adhocracy and forms of organizational entrepreneurship 67 424 Company social networks 73 425 Other creative and agile processes 76

Chapter 5 Organizational Levers 83

51 An innovation-oriented strategic posture 83 52 A culture of innovation 90 53 Innovation management 96 54 The innovative company a concept that applies to small or large companies 104

Conclusion 111

Bibliography 119

Index 137

Foreword

I am delighted to contribute ndash even if only in a small way ndash to the study of an ill-defined object

This problem of definition seems to persist despite the fact that the practice of innovation is as ancient as the activity of business This may be explained by the fact that the concepts of ldquoinnovationrdquo and ldquobusinessrdquo are both multifaceted and rapidly changing and that preconceived ideas and simplistic erroneous but reassuring beliefs die hard

This new series sheds welcome light on the debate Notably this second book has the great merit ndash in my opinion ndash of approaching the problem of ldquoinnovationrdquo through the ldquoright doorrdquo that of knowledge

A very thorough work

Readers whatever their position ndash director manager associate facilitator or student ndash will find this book to be a source of up-to-date high-quality information

In my opinion this book has four great qualities

viii The Innovative Company

ndash it incorporates the historical dimension enabling the various approaches to innovation to be situated within their economic technological and sociological context (the managerial aspect in particular) and the links between these various elements to be better understood

ndash it is holistic and systemic incorporating and comparing the perspectives of various disciplines

ndash it is scientific uniting rigor demand and objectivity

ndash it is engaged enabling us to share the authorsrsquo conviction as to the prominence of the sociological dimension of innovation and define the role of various parties directors managers associates and facilitators (leaders of communities of practice or interest and groups on social networks trainers experts knowledge managers etc)

Finally it discusses the issue of SMEs (Small Medium Enterprises) whereas most books are restricted to large usually American corporations

Multifaceted subjects

ndash Innovation was initially an industrial approach to production and this remains true in the incremental innovation of production processes

ndash It is a strategic approach that makes it possible to anticipate changes in all kinds and adapt quickly

ndash It is also a market dimension new products new services management of inputndashoutput channels development of business models

ndash Innovation is a mindset a capacity for questioning a flexibility an openness toward associates (other than innovation experts) clients partners allies It should not be the kingdom of the solitary innovator fashion or imitation (metoism)

Foreword ix

ndash The managerial dimension of innovation is fundamental it gives associates the chance the permission the task to suggest even to decide on organizations and practices locally drawing inspiration from examples of other entities inside or outside the company This is the field of collective intelligence

ndash This also covers the processes and practices to develop create capture and implant in the company in a lasting but modifiable way We are already engaged in change management

ndash Innovation also requires means tools methods structures funding and taxation ldquotreesrdquo that can prevent us from seeing the wood and sometimes cause dramatic decision-making errors

Changing subjects

Many causes of change are sometimes brutal and often coincide

ndash the major development of the value chain for some activities (eg uberization) causing ruptures in strategies and financial negotiations

ndash the appearance of various innovation philosophies adapted to varying degrees to the specifics of a given company

ndash the emergence of new technologies with a highly variable even random power increase and lifespan

ndash the appearance of new competitors who affect a particular positioning on the value chain ndash often interposed between the incumbent supplier and his client ndash using new technologies and affecting the variety of availability and production cost factors as well as the diversity of fiscal and social regulations

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

Foreword

I am delighted to contribute ndash even if only in a small way ndash to the study of an ill-defined object

This problem of definition seems to persist despite the fact that the practice of innovation is as ancient as the activity of business This may be explained by the fact that the concepts of ldquoinnovationrdquo and ldquobusinessrdquo are both multifaceted and rapidly changing and that preconceived ideas and simplistic erroneous but reassuring beliefs die hard

This new series sheds welcome light on the debate Notably this second book has the great merit ndash in my opinion ndash of approaching the problem of ldquoinnovationrdquo through the ldquoright doorrdquo that of knowledge

A very thorough work

Readers whatever their position ndash director manager associate facilitator or student ndash will find this book to be a source of up-to-date high-quality information

In my opinion this book has four great qualities

viii The Innovative Company

ndash it incorporates the historical dimension enabling the various approaches to innovation to be situated within their economic technological and sociological context (the managerial aspect in particular) and the links between these various elements to be better understood

ndash it is holistic and systemic incorporating and comparing the perspectives of various disciplines

ndash it is scientific uniting rigor demand and objectivity

ndash it is engaged enabling us to share the authorsrsquo conviction as to the prominence of the sociological dimension of innovation and define the role of various parties directors managers associates and facilitators (leaders of communities of practice or interest and groups on social networks trainers experts knowledge managers etc)

Finally it discusses the issue of SMEs (Small Medium Enterprises) whereas most books are restricted to large usually American corporations

Multifaceted subjects

ndash Innovation was initially an industrial approach to production and this remains true in the incremental innovation of production processes

ndash It is a strategic approach that makes it possible to anticipate changes in all kinds and adapt quickly

ndash It is also a market dimension new products new services management of inputndashoutput channels development of business models

ndash Innovation is a mindset a capacity for questioning a flexibility an openness toward associates (other than innovation experts) clients partners allies It should not be the kingdom of the solitary innovator fashion or imitation (metoism)

Foreword ix

ndash The managerial dimension of innovation is fundamental it gives associates the chance the permission the task to suggest even to decide on organizations and practices locally drawing inspiration from examples of other entities inside or outside the company This is the field of collective intelligence

ndash This also covers the processes and practices to develop create capture and implant in the company in a lasting but modifiable way We are already engaged in change management

ndash Innovation also requires means tools methods structures funding and taxation ldquotreesrdquo that can prevent us from seeing the wood and sometimes cause dramatic decision-making errors

Changing subjects

Many causes of change are sometimes brutal and often coincide

ndash the major development of the value chain for some activities (eg uberization) causing ruptures in strategies and financial negotiations

ndash the appearance of various innovation philosophies adapted to varying degrees to the specifics of a given company

ndash the emergence of new technologies with a highly variable even random power increase and lifespan

ndash the appearance of new competitors who affect a particular positioning on the value chain ndash often interposed between the incumbent supplier and his client ndash using new technologies and affecting the variety of availability and production cost factors as well as the diversity of fiscal and social regulations

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

viii The Innovative Company

ndash it incorporates the historical dimension enabling the various approaches to innovation to be situated within their economic technological and sociological context (the managerial aspect in particular) and the links between these various elements to be better understood

ndash it is holistic and systemic incorporating and comparing the perspectives of various disciplines

ndash it is scientific uniting rigor demand and objectivity

ndash it is engaged enabling us to share the authorsrsquo conviction as to the prominence of the sociological dimension of innovation and define the role of various parties directors managers associates and facilitators (leaders of communities of practice or interest and groups on social networks trainers experts knowledge managers etc)

Finally it discusses the issue of SMEs (Small Medium Enterprises) whereas most books are restricted to large usually American corporations

Multifaceted subjects

ndash Innovation was initially an industrial approach to production and this remains true in the incremental innovation of production processes

ndash It is a strategic approach that makes it possible to anticipate changes in all kinds and adapt quickly

ndash It is also a market dimension new products new services management of inputndashoutput channels development of business models

ndash Innovation is a mindset a capacity for questioning a flexibility an openness toward associates (other than innovation experts) clients partners allies It should not be the kingdom of the solitary innovator fashion or imitation (metoism)

Foreword ix

ndash The managerial dimension of innovation is fundamental it gives associates the chance the permission the task to suggest even to decide on organizations and practices locally drawing inspiration from examples of other entities inside or outside the company This is the field of collective intelligence

ndash This also covers the processes and practices to develop create capture and implant in the company in a lasting but modifiable way We are already engaged in change management

ndash Innovation also requires means tools methods structures funding and taxation ldquotreesrdquo that can prevent us from seeing the wood and sometimes cause dramatic decision-making errors

Changing subjects

Many causes of change are sometimes brutal and often coincide

ndash the major development of the value chain for some activities (eg uberization) causing ruptures in strategies and financial negotiations

ndash the appearance of various innovation philosophies adapted to varying degrees to the specifics of a given company

ndash the emergence of new technologies with a highly variable even random power increase and lifespan

ndash the appearance of new competitors who affect a particular positioning on the value chain ndash often interposed between the incumbent supplier and his client ndash using new technologies and affecting the variety of availability and production cost factors as well as the diversity of fiscal and social regulations

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

Foreword ix

ndash The managerial dimension of innovation is fundamental it gives associates the chance the permission the task to suggest even to decide on organizations and practices locally drawing inspiration from examples of other entities inside or outside the company This is the field of collective intelligence

ndash This also covers the processes and practices to develop create capture and implant in the company in a lasting but modifiable way We are already engaged in change management

ndash Innovation also requires means tools methods structures funding and taxation ldquotreesrdquo that can prevent us from seeing the wood and sometimes cause dramatic decision-making errors

Changing subjects

Many causes of change are sometimes brutal and often coincide

ndash the major development of the value chain for some activities (eg uberization) causing ruptures in strategies and financial negotiations

ndash the appearance of various innovation philosophies adapted to varying degrees to the specifics of a given company

ndash the emergence of new technologies with a highly variable even random power increase and lifespan

ndash the appearance of new competitors who affect a particular positioning on the value chain ndash often interposed between the incumbent supplier and his client ndash using new technologies and affecting the variety of availability and production cost factors as well as the diversity of fiscal and social regulations

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

x The Innovative Company

Difficulties relating to some of our visions of innovation and management and to our business culture

ndash Successive innovation philosophies are often focused on a lever a function without taking into account the reality of needs uses etc relating to the nature of the innovation the expected benefits and the business context

ndash Invention and innovation are often confused (especially in a country with an ldquoengineeringrdquo culture) and ldquoinnovationrdquo and ldquothe capacity to obtain public aid or specific fundingrdquo conflated

ndash We are reluctant to include strategies based on ldquotrial and errorrdquo and exit (strategic pivot) in the event of non-success in the anticipated timeframes and costs We are reluctant to devote the necessary time to transformations we often increase our corrective actions and key process indicators (KPIs) in the short term and we use a financial approach of return on investment influenced by the financial markets applied to unsuitable subjects or those with standard requirements We are also reluctant to invest in constant improvement activities for our structures which require time and means that are not immediately productive and have an indirect return especially in knowledge and collective intelligence although these are determining factors in the sustainable profitability of our companies and in their economic and financial survival

ndash This is all exacerbated by ldquometoismrdquo ldquoNot Invented Hererdquo syndrome the effects of fashion archetypes (ldquoevery start-up is agilerdquo ldquoevery innovation must have strong technological supportrdquo etc) and the unsuitability of some external advice for the reality of the target company

ndash The use of frugal innovation and low tech is often deemed uninteresting for a large business based in a developed country

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

Foreword xi

ndash We find it difficult to adopt strategies that combine the global and the local in a relevant way and to give the situation the leeway to handle autonomously (with if necessary a posteriori control) changes relating to processes expertise local markets or local specificities

ndash The potential contributions of collective intelligence and the benefits of interdisciplinarity creativity confidence etc are not taken into account naturally

ndash Maintaining a ldquocommand and controlrdquo management style based on multiple objectives and KPIs imposed on staff is unsuited to the current context of the company (except ndash now and then ndash in the event of a serious and urgent crisis)

Of course the point is not to pillory companies or directors (criticism is easy but creation is hard) but to identify ndash and if possible to correct ndash factors that do not promote innovation

Advantages and difficulties of entering into innovation through knowledge

Advantages

ndash good knowledge of local markets and territories

ndash high reactivity and capacity to handle many subjects simultaneously (eg by entrusting them to groups or communities)

ndash the power of an action shared by a large number of motivated people

ndash human and social impacts that are positive for collaborator engagement and autonomy well-being at work and employer branding

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

xii The Innovative Company

ndash decrease in the number of problems rising unnecessarily up the chain of command enabling directors to focus on the most important matters

Difficulties

ndash need for strong coordination between the various parties with a validation process suited to the various subjects

ndash difficulties in measuring the effect of knowledge development activities on individuals and teams

ndash time required for development and sustainable knowledge acquisition in the various sectors of the company

ndash difficulties in quickly learningunlearning a type of knowledge individually and collectively (need for stability for people)

A tip for students

For students reading this book analyze the historical development of our innovation management philosophies carefully Each approach responds or responded to a particular context Follow the developments closely because everything changes very quickly

A nod to managers and directors

ndash Invest in a relevant way (in the right things just enough just in time) in the companyrsquos knowledge portfolio management process and in a facilitation management and coordination structure for this process

ndash Introduce an evaluation and monitoring system for return on investment adapting the rules and conditions for

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

Foreword xiii

those subjects that cannot come under the return on investment used for traditional assets

ndash Encourage managers and facilitators to create organize and assess suitable ecosystems promoting the success of subjects relating to knowledge and innovation

ndash Be enthusiastic critical and cautious in your choices and reactive in managing them Any strategy or methodology ndash as intelligent and attractive as it may be ndash needs to be tested and if necessary adapted to the needs of the company its specific features developments in the market and society etc (Pierre Dac said ldquoThe only certainty is doubt howeverrdquo) Dogmatism always costs a company a lot sometimes even its existence

Thank you to Daniegravele Chauvel and Stefano Borzillo for giving us these things to think about and providing useful pointers on this subject which influences the survival of many of our companies and jobs with corresponding added value Enjoy

Pierre PREVEL

Association CoP-1 KM et collaboration httpcop-1net

LrsquoObservatoire des reacuteseaux sociaux drsquoentreprise

httpwww obsdesrsecom

Acknowledgments

First of all we would like to thank Pierre Preacutevel Jardin des Talents secretary general of CoP-1 KM and Collaboration Association administrator and scientific director of the publications of the Enterprise Social Network Observatory (Observatoire des reacuteseaux sociaux drsquoentreprise) for his good advice and for agreeing to write the preface

We would also like to thank Bernard Guilhon Professor of knowledge and innovation-based economics who believed in us and asked us to collaborate on this series of which he and Sandra Montchaud are the editors

A big thank you also goes to Ziryeb Marouf Orange chairman of the Enterprise Social Network Observatory (Observatoire des reacuteseaux sociaux drsquoentreprise) and to Martin Roulleaux Dugage Areva chairman of CoP-1 KM and Collaboration Association (CoP-1 KM et Collaboration) for their support and recognition

We would also like to thank Ludovic Dibiaggio director of the KTO (Knowledge Technology and Organization) research laboratory at Skema Business School who has always known how to encourage and intellectually stimulate us

xvi The Innovative Company

Our thanks go also to all those who have welcomed and assisted us in our field research in particular

ndash Jean Luc Abelin Lafarge-Holcim

ndash Florence Cariou Engie

ndash Freacutedeacuterique Chauvel Amadeus

ndash Meacutelanie Ciussi Dominique Vian Skema Business School

ndash Olivier Courtade M2M Solution

ndash Gilles Garel Cnam

ndash Karine Gicquel and Guillaume Morice Alexandre Dingas SOFIA Cosmeacutetiques

ndash Jean Michel Hannetel Mane

ndash Marie Heacutelegravene Marcelli Carestia

ndash Freacutedeacuteric Philippe Air Liquide

ndash Jean-Philippe Poulnot and Bertrand de Freacutemont Groupe Up

ndash Anne Lise Raffy ETSI

ndash Bertrand Rojat Technocentre Orange

ndash Olivier Roberget Steacutephane Moracchini Collaboratif Info

xvi The Innovative Company

Our thanks go also to all those who have welcomed and assisted us in our field research in particular

ndash Jean Luc Abelin Lafarge-Holcim

ndash Florence Cariou Engie

ndash Freacutedeacuterique Chauvel Amadeus

ndash Meacutelanie Ciussi Dominique Vian Skema Business School

ndash Olivier Courtade M2M Solution

ndash Gilles Garel Cnam

ndash Karine Gicquel and Guillaume Morice Alexandre Dingas SOFIA Cosmeacutetiques

ndash Jean Michel Hannetel Mane

ndash Marie Heacutelegravene Marcelli Carestia

ndash Freacutedeacuteric Philippe Air Liquide

ndash Jean-Philippe Poulnot and Bertrand de Freacutemont Groupe Up

ndash Anne Lise Raffy ETSI

ndash Bertrand Rojat Technocentre Orange

ndash Olivier Roberget Steacutephane Moracchini Collaboratif Info