MANAGEMENT OF KNOWLEDGE IN INNOVATION - A case study of SKF Nova

Abstract

Executive Summary SKF Nova is a fully owned subsidiary of the SKF Group. The company has provided the ability to develop ideas slightly outside the scope of the SKF strategy into products and services. The output of SKF Nova have eventually been spun-in the SKF divisions. The study was initiated to improve the transfer of the output of SKF Nova to recipients within the SKF group. By merging theories of innovation and technology management, Organisational learning and Knowledge Management, this Master thesis aims at exploring the knowledge frontiers within three important and rapidly developing fields of management - Knowledge Management, Technology and Innovation Management and Organisational Learning. The report is mainly intended for the management and the employees working at SKF Nova. Regardless of the type of industry, companies and their innovation process are becoming increasingly knowledge-based for each day that passes by, and intellectual assets take the predominant role in defining market value.1 Accordingly, the shifting sources of global competitive advantage call for new strategies and approaches to manage both knowledge and innovation.2 In response to this, a know-who based approach to Knowledge and Innovation management has been recently developed by linking leading-edge theories to practice oriented cases. The study reveals seven main problems of the general innovation process of the SKF group, perceived by representatives of the Automotive, Service and the Industrial division. Based on the needs perceived by representatives of the SKF group, the study concludes that the know-who approach can potentially provide an important opportunity for SKF Nova to support the SKF group in the future. In addition to the concrete needs, several potential future offerings of SKF Nova demanded by the respondents have been presented. The conclusion is that there is a large divisional demand for the services of SKF Nova within the SKF group. To represent a valuable resource to the SKF group in the future, SKF Nova must to adapt to the problems and opportunities perceived by the potential customers within the SKF group. The study reveals that some major areas where the divisions ask for the services of SKF Nova concern the successful implementation of change, to participate in the development processes of the SKF divisions and the ability to avoid re-invention of the wheel through participation in different innovation projects all over the firm. The study provides two potential future business scenarios of SKF Nova intended to ensure the future value adding of SKF Nova. Each business scenario includes a process and a recommendation of relevant skills required to support the scenario. The study concludes that networking with external firms, social competence, global cross-functional experience and the ability to perform both incremental and radical innovation become increasingly important for SKF Nova to win the race. These findings indicate that the demand for the services of SKF Nova considers unique, i.e. complementary competency not elsewhere found within the SKF group. The study concludes that the use of a cross-functional team during the weakest link of the innovation process, i.e. the knowledge transfer, provides one means to manage the knowledge transfer. A new activity of the innovation process called `Design of new business' is suggested to improve the exits. To further improve the management of the knowledge transfer process and effectively screen ideas, the study suggests the use of a tool called the ITT- 1 Harryson, S. J. (2000).p.xiii. 2 Harryson, S. J. (2000).p.xiii.