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Product / Service Innovation…An Evolutionary Approach

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Organizations?1. Productive socially

organized unit = interaction between agents

2. The firm is a consequence of the coordination of these agents trying to withstand the environment selection pressure

3. Coordination can only be achieved by means of the definition of a common set of rules and codes.

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Why even think of organizations?4. If: (1) and (2); then, the firm =

an “entity processing, storing and producing knowledge”

5. The why on the organization resides in its need to process, store and produce knowledge.

(1) adaptation = an accumulation of knowledge

(2) accept the organization to be in a constant attempt to fit into the environment

Hence, a priori we can judge more probable to have better results having organizations as it becomes an enhanced source of variation + more effective (?) selective

retention (provides different levels)

JMdeLImage taken from: http://www.bettercartoon.com/gallery2/d/9196-6/Cartoon+1743

Parts of the organizations

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Ability to use and create rules.

Knowledge agent = ability to teach and learn from the organization.

Having these agents in the organization, variety production, as a source for rule creation could be estimated as infinite.

HSO

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routines

Organizational routines

Pattern of behavior that is followed repeatedly, but is subject to change.

Capture the individually held knowledge applied in the firm.

Is a source of knowledge for the individual.Routines = the way HSO interact.

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Resources

The first implication is that the organization has limited resources of time, money and capacity.

Resources constrained can be relaxed: inversion, cash flow generation, etc.

There’s a need for managing such restrictions.

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Organization’s interactions

A system “whose transformation over time through successive adaptive states is explained by a process of variation, selection and retention”.

This Machine will be a result of the interactions between different organizational routines.

Organization as a Darwin Machine

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Organization’s interactionsIMPLICATIONS

1. An organization is able to generate its own knowledge.

2. Second, One organization is unique due to the knowledge it posses.

3. Finally, we have that what actually evolves in an organization is knowledge itself.

Organization as a Darwin Machine

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Innovation myths I’m not creative enough.

Innovation is for the big ones.

Innovation = inspiration.

Everything is already invented.

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Product/service innovation

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Product/service innovation

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Innovation as a knowledge process

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Product/service innovation

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Implications of efficiency

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Product/service innovation

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Implications of efficacy

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Product/service innovation

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Levels of retention

KNOWLEDGE MANAGEMENT

Tacit knowledge

Explicit knowledge

Product /service

Strategy, business model, structure, etc.

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Product/service innovation

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Can be learned?Need to break some mental structures

Innovation comes from the discipline of trial and errors+ trial and errors = + accumulated knowledge.

By the use of tools.

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Product/service innovation

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Innovation structure

Idea generation

From idea to project

From project to market

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Product/service innovation

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Different types.Market oriented

Internal oriented

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Finding it useful.Considers change as foundational. From an evolutionary point of view, variation is not an error.

It’s not just about efficiency, but also efficacy problems become relevant.

It’s to be said that an evolutionary perspective is not the only (and not necessarily the best) way to approach to innovation. However, the evolutionary approach gives a broad and coherent framework to explain why innovation is important.

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Merci.