Innovation Models and the Map Metaphor STC-383: KNOWLEDGE

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Innovation Models and the Map Metaphor
STC-383 KNOWLEDGE TECHNOLOGY TRANSFER AND
ADOPTION KTT Session 2 B

• Darius Mahdjoubi
• IC2 Institute, The University of Texas at Austin
• June 2002

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Innovation Models and the World Maps
Innovation models have many commonalities with
the old maps

• Old world maps are incomplete, as it suggests the
  existence of vast unexplored blank areas in the
  land and in the sea.
• It may take a very long time that a world map
  becomes complete.
• Parts of the old maps are inaccurate!

An Innovation model should explain your views.
But it should also articulate what you do NOT
know like the blank areas of the old maps.
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How is this related to Innovation?

• Similar to the old maps, this presentation is an
  yet incomplete report out of an exploratory study
  on the innovation models.
• There are still uncharted areas related to
  innovation.
• Even parts of the report may not be well
  consistent with each other!
• However, I think this view on innovation contains
  fresh ideas.

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What is a Model?
A model is an abstract of reality, which
represents a simplified, incomplete version of
something Source Stevenson, William. 1990.
Production/Operations Management Every model is
applicable to specific domains. There is no
universal model, but there are generalized
concepts.
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Black Box vs. Gray Box Model
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Black Box Model
Black Box model consists of three
sectionsInput, Output and Process (Fixed
Structure).
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Black Box Model

• Black Box model assumes that the process is
  fixed and its role is confined to transforming
  the inputs into outputs.
• Measurement method, in Black Box model, is
  merely the difference between output and
  input.Black Box model has extensively been used
  in a wide range of disciplines, for instance,
  economics, management, computer science,
  engineering, ... .
• Black Box model has limited applications in the
  generative phenomena like human creativity and
  innovation - where an output is not always due to
  input and fixed processes.

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Gray Box Model

• Gray Box model consists of four sections
  Inward, Outward, Inside, and Overall.

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Gray Box Model

• Gray Box model is more suitable for generative
  phenomena like knowledge and innovation.
• Navigation (rather than just measurement) in the
  Gray Box model, is more consistent with
  interactive procedures such as intellectual
  capital.

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Measurement and Evaluation in the Context of
Black Box Model
Classify the inputs and the the outputs.
Quantify 1) Quantify the inputs, 2) Quantify
the outputs.

• Common Denominator
• Develop a common denominator for the inputs
• Develop a common denominator for the outputs

• Measurement and Evaluation
• Interconnect (subtract) the output and inputs
  according to the common denominator.

AS SIMPLE AS THIS!!
Do you recall other applications for the Black
Box model?
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Knowledge Navigation Model
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Metaphor and Analogy of Navigation

• Metaphor of Navigation has often been used to
  explain management concepts.

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Metaphor of Navigation and Management

• This diagram appeared in Fortune of July
  26, 1993. It uses the elements of navigation
  (map, compass and scale) as a metaphor for
  management and strategy. This diagram, however,
  does not elaborate the relationships between the
  two systems navigation vs. management.

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Corporate Longitude Navigating the Knowledge
Economy
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Metaphor of Navigation and Complexity
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Metaphor of Navigation (Safari) and Strategy
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Metaphor of Navigation (Roadmap) and Export
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Metaphor of Navigation and Internet

• Netscape Navigator
• Internet Explorer
• Navigating (Surfing) the Web
• Navigation Buttons
• Navigation Bars

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Metaphor of Navigation (Voyage)and Mind
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Analogy of Navigation Let Us to Explicate New
Management Concepts!
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Navigation Model

• A navigation system consists of four elements
• Destination
• Compass
• Map
• Scale

Future
Present
Past
Navigation model includes a time platform between
Past, Present and Future.
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Enterprising Model

• An enterprise, as a goal-seeking and proactive
  entity, requires four elements
• Goals
• Valuation
• Internal structure
• Appraisal

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Knowledge NavigationEnterprising Model Versus
Navigation Model
Destination
Compass
Future
Map
Present
Scale
Past
Knowledge Navigation is also a time platform
between Past, Present and Future
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Knowledge Navigation Model

• Knowledge Navigation model, similar to the
  Periodical Table, demonstrates the existing as
  well as potential missing elements of a knowledge
  system.

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Appraisal Versus Valuation

• Past-oriented appraisal and future-oriented
  valuation systems have very distinct features.
• For past-oriented appraisal system (scale) we
  need rigorous (digital-like) measurement
  procedures to let us communicate to the external
  bodies the achievements.

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Appraisal Versus Valuation

• For future-oriented valuation system (compass)
  we need spectrum-like valuation procedures, which
  are based on pattern recognition, trend
  evaluation, and anomaly detection, to assist us
  in making decisions.
• Valuation, similar to a compass, is essential for
  decision making.

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Gut and Intuition As Valuation Tools

• Business executives rely on their keen
  intuitive skills, otherwise known as their gut,
  to make crucial decisions.
• Over the years, various management studies have
  found that executives routinely rely on their
  intuitions to solve complex problems when
  analytic methods simply wont do
• Hayashi. 2001. When to Trust Your Gut.

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Appraisal Versus Valuation

• Mainstream studies on business measures and
  intellectual capital concentrate on the
  past-oriented appraisals.
• The main challenge is to explicate
  future-oriented valuations.

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Appraisal Versus Valuation

• Appraisal and valuation can be compared based on
  the classification of knowledge into explicit and
  tacit.
• - Appraisal (scale) is mostly based on explicit
  knowledge.
• - Valuation (compass) is mostly based on tacit
  knowledge.

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Innovation and Intuition

• The decision on innovation is often intuitive,
  resting primarily on a managers knowledge and
  familiarity with the processes. Anyone who
  thinks he can quantify this decision is either a
  liar or a fool. There are too many unknowables,
  variables, Ultimately, one must use intuition,
  a complex feeling, calibrated by experience.
  James Brian Quin, 1985.

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Corporate Longitude