12. The Momentum of Knowledge Innovation

What began almost 10 years ago - Knowledge Innovation - has now reached the stage of a critical mass of insight. Dedicated expertise across all disciplines are exploring and defining new management practices fundamental to capitalizing upon the knowledge-based economy.

Although there has been a plethora of articles and books on the topic, the seminal cook-book (if there ever be such a thing) is only 'work-in-process.' In the 1950's when Alfred Sloan divisionalized General Motors, it sent a clear, consistent, concise message of the techniques necessary for large-scale business management. However, today - driven by the acceleration of computer/communications technology and the value of collaborative networks, the real the competitive differentiator - human talent - provides the enterprise advantage.

Today, there is an emerging 'community of practice' which transcends any function, sector, industry or geography. Participants include theorists and practitioners from education/learning systems, economics/finance, quality/benchmarking, human resources, information/internet technology and R&D/innovation strategy and more. The concurrent engineering, agile manufacturing and re-engineering initiatives are all coming to a common theme:

transformation of the enterprise - profit or not-for-profit - through knowledge management.

The interest generated over the past year is significant. Business schools have created interdisciplinary initiatives by necessity. Industrial investments have forged connections which were not likely to occur otherwise. Government agencies are also, by necessity, forced to produce significantly more results to the consumer than can be provided with incremental improvements. Re-engineering and quality efforts - along with massive restructuring - have produced what financial results are possible. Considerable alignments are now needed in order to fulfill expectations of stakeholders.

The paradigm must shift. It is inevitable. This new focus upon knowledge as the foundation for a successful future has been embraced. Creativity is being reborn in ways to contribute to the bottom-line of an enterprise. As impure as this new science may be, it provides insights not easily discerned with traditional management methodologies. Experimentation is rampant and people seek to learn from their mistakes as well as the successes and failures of others.

13. What is Knowledge Innovation?

Knowledge management has become a well known term. But the real challenge facing most companies is that of faster innovation. Creating the system within which ideas are created and applied is more than management. It is a matter of strategy and leadership. That's where Knowledge Innovation comes to the fore.

The creation, evolution, exchange and application of new ideas into marketable goods and services for:

• the success of an enterprise

• the vitality of a nation's economy

• the advancement of society

Knowledge Innovation embodies the concept that innovation is the one competence needed for the future. It addresses the all the fundamental management dimensions in the process of innovation - the creation and conversion of ideas into viable commercial products in addition to building a foundation for future sustainable growth. It recognizes that knowledge is the core component of innovation - not technology or finances per se. Nurturing and managing the flow of knowledge may be the most distinctive competence of the decade.

Debra M. Amidon explains the principles of knowledge innovation. Assessment is a way of assessing your innovation capabilities and developing improved innovation strategies.