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Product / Service Innovation… An Evolutionary Approach. Organizations?. P roductive socially organized unit = interaction between agents The firm is a consequence of the coordination of these agents trying to withstand the environment selection pressure
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Organizations? Productive socially organized unit = interaction between agents The firm is a consequence of the coordination of these agents trying to withstand the environment selection pressure Coordination can only be achieved by means of the definition of a common set of rules and codes.
Whyeventhink of organizations? • If: (1) and (2); then, the firm = an “entity processing, storing and producing knowledge” • The whyon 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 anenhanced source of variation + moreeffective (?) selective retention (provides different levels)
Parts of the organizations Image taken from: http://www.bettercartoon.com/gallery2/d/9196-6/Cartoon+1743
HSO • 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.
Organizational routines 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.
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.
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
Organization’s interactions IMPLICATIONS • An organization is able to generate its own knowledge. • Second, One organization is unique due to the knowledge it posses. • Finally, we have that what actually evolves in an organization is knowledge itself. Organization as a Darwin Machine
Innovation myths • I’m not creative enough. • Innovation is for the big ones. • Innovation = inspiration. • Everything is already invented.
Levels of retention Strategy, business model, structure, etc. Product /service Tacit knowledge Explicit knowledge KNOWLEDGE MANAGEMENT
Can be learned? • Need to break some mental structures • Innovation comes fromthe discipline of trial and errors • + trial and errors = + accumulatedknowledge. • Bythe use of tools.
Innovationstructure From project to market Idea generation From idea to project
Different types. • Marketoriented • Internaloriented
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.
