Comprehensive intellectual capital management step by step phần 5 potx

1. Business value replaces financial perspective—“How do we look at management?” 2. User orientation replaces customer perspective—“Are we satisfying our user needs?” 3. Internal perspective is focused on “Are we working efficiently?” 4. Future readiness replaces renewal and growth perspective—“What technologies and opportunities/challenges are emerging?” 18 Interestingly, the Navy’s model also encourages the use of what have come to be known as “soft measures.” These are success stories or “lessons learned” that communicate financial or other returns (e.g., success of an operation) that have been realized from a KM program. 19 The differentiating characteristic of the Navy’s performance measurement system is its focus on what should be measured rather than how. This is clarified through a number of guiding prin- ciples that determine the variables that should measured, the types of KM initiatives, and the var- ious types of measures that can be used. The First Guiding Principle: What to Measure. The Navy’s CIO clarified from the outset that it is not how you measure, but what you measure that is important. The Toolkit explains that when it comes to knowledge assets or IC, there is a lot of confusion as to whether performance meas- ures should calculate the value of the asset/capital or the effectiveness of the initiatives designed to leverage them. 20 Without delving into theoretical discourse, the Navy’s model stresses the lat- ter, that is, effectiveness of the KM initiatives is what should be measured. But the question remains, what type of KM initiatives should be measured? The Navy clas- sifies initiatives into three groups. The first is program and process initiatives that relate to organization-wide activities. These are usually designed to streamline business practices and transfer the best practices across the organization. 21 The goal of these initiatives is to prevent “reinvention of the wheel” and duplication of error. An example of such initiatives is the man- agement of customer relationships. The second type of initiatives are those related to program execution and operation, including transferring expertise and getting the right knowledge to support the effective execution of oper- ations. These initiatives should aim at facilitating collaboration and knowledge sharing to increase productivity, effectiveness, and quality. They apply to operations like R&D, manufac- turing, and computer and software systems. 22 The third type of initiatives deals with personnel and training, or the development of the orga- nization’s human capital. The goal of this initiative is to foster employee satisfaction through improving the quality of life and enhancing employees’ learning experience (e.g., fringe benefits management and distance education). The Navy’s model proceeds to identify the measures that can be used. The Second Guiding Principle: Not All Measures Are the Same. Like the Intangible Asset Monitor model, the Navy’s model provides standards that point to the results that should be tar- geted in a KM initiative. These standards identify the final outcomes, outputs, and the effective- ness of the initiative as a whole. Again, to measure the effectiveness of any of the three types of KM initiatives (program/process, execution/operation, and personnel/training), a mix of the three types of measures should be used. Outcome indicators measure the impact of a KM initiative on the effectiveness of the organi- zation as a whole. They attempt to measure things like increased productivity and the ability to meet strategic goals more effectively. Typical indicators include time, money, or personnel saved by implementing a practice, rates of change in operating costs, and improvement in quality. 112 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT Output indicators measure the direct process outputs for users, the lessons learned in captur- ing new business, and doing old business better. These measures attempt to monitor, in quantita- tive terms, how the initiative contributed to meeting the organization’s objectives. Typical indicators include time to solve problems, usefulness survey, time to find experts, and user rat- ings of value added from the initiative. System indicators measure whether the individual systems are fully operational and deliver the highest level of service to the users. They monitor the usefulness and responsiveness of identified practices and tools. Typical indicators for an IT system, for example, include number of hits, fre- quency of use, viability of the posted information, usability survey, and contribution rate over time. The indicators mentioned are specific to the initiative introduced but mainly aim at monitor- ing the effectiveness of initiatives in achieving identified goals. What makes the Navy model’s measures and indicators outstanding is the assertion that measurement is only a step in a contin- uous process of a number of steps. These steps include designing, building, and implementing a program; designing performance measures; assessing these measures; then returning to the design phase, as illustrated in Exhibit 6.4. 23 Like the Navigator model, measures under the Navy’s model are not seen as indicators that have to be monitored consistently and remain the same over time, but rather as “a valuable means to focus attention on desired behaviors and results.” 24 Dis- tinctive to the Navy’s model is the use of the life cycle principle in designing the measures. The Third Guiding Principle: The Life Cycle of an Initiative. One of the main challenges that the authors of IC measurement systems face is measuring the flow rather than the stock of IC. The Navy’s model addressed the problem of flows by allowing for change in the measures depending on the life cycle of the initiative being measured. This practice, according to the Navy’s Guide, is taken from the American Productivity and Quality Center’s (APQC) benchmark study of the best practices in measuring KM initiatives. The APQC report 25 states that a program goes through a number of stages in its life cycle, from preplanning, start-up, and pilot project to growth and expansion. Each stage determines the type of measures required. For example, the pilot project stage measures the success of the initiative to deliver real value to business objec- tives, such as efficiency rates through the transfer of best practices. By adopting this system as a guiding principle, the Navy model tries to overcome the static nature of measurement by accom- modating the dynamic nature of knowledge/value creation. THE U.S. NAVY KNOWLEDGE MANAGEMENT SYSTEM: A CASE IN POINT 113 EXHIBIT 6.4 Performance Measures Measure Assess Design, build, implement The Navy model does not attempt to take the measures out for external reporting purposes because one of the goals of measurement is to secure funding across the organization for the KM initiative and programs. As such, measures are used as transient communication tools that change according to the audience and the message intended to be delivered. CONCLUSION The Navy implemented KM by effecting a number of changes in the organizational structure, culture, and IT architecture. This chapter outlined the changes that the Navy implemented using the framework outlined in Chapter 5 as a guide. To effectively implement KM, the Navy intro- duced the CoP structure to loosen what is an otherwise rigid structure. One of the Navy’s main means of doing this was to recognize knowledge sharing as one of its strategic objectives, high- lighting how liberal—rather than on a need-to-know basis—knowledge sharing will enable the Navy to achieve its mission of mastering the art of war. The emergence of KM champions at the commander level, coupled with the Navy’s awards for successful operationalization of KM strategies, gradually transformed the Navy’s secretive culture to one amenable to knowledge sharing. The Navy’s IT infrastructure also underwent major changes to respond to the knowledge needs of decision makers at all levels, and led to the development of the knowledge base. One of the drivers of the Navy’s success in KM is that it considers KM a developing effort, and hence involves academia, industry, and other government agencies to remain on the cutting edge. Equating its final goal as becoming a learning organization, there is no limit to the Navy’s suc- cess with KM. NOTES 1 A. Bennet and Dan Porter, “The Force of Knowledge,” in A. Bennet (ed.), Handbook of Knowl- edge Management (New York: Springer-Verlag, to be published). 2 A. Bennet, “Knowledge Superiority as a Navy Way of Life,” Journal of the Institute for Knowl- edge Management, Spring/Summer 2001 (vol. 3 No. 1), pp. 46, 48. 3 Department of the Navy, Information Management and Information Technology Strategic Plan, 2000/2001. 4 “Forward presence” is a U.S. maritime strategy assuring that forces are deployed in strategic locations worldwide to enable quick response. Supra note 3, p. 1. 5 The Knowledge Management Working Group is a U.S. government–wide group, sponsored by the Federal Chief Information Officers Council, formed to address issues relating to knowledge management, and includes experts from industry and academia. 6 A. Bennet and R. Neilson, “The Leaders of Knowledge Initiatives: Qualifications, Roles and Responsibilities,” in A. Bennet (ed.), Handbook of Knowledge Management (New York: Springer-Verlag, to be published). 7 The Toolkit. 8 Id. 9 A. Bennet, “Information Literacy: A New Basic Competency.” Available online at www.chips. navy.mil/archives/01_ fall/information_literacy.htm. 114 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT 10 Pilot study reported in note 1. The study identified success factors for KM as follows: culture 29 percent, processes 21 percent, metrics 19 percent, content 17 percent, leadership 10 percent, and technology 4 percent. 11 The Toolkit. 12 Supra note 1. 13 Id. 14 The Toolkit. 15 P. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization (New York: Currency/Doubleday, 1990). Systems thinking is adapted from systems engineering, first pio- neered by Jay Forrester as “Industrial Dynamics” in the 1960s. 16 Interview on January 10, 2002. 17 Department of Navy CIO, Metrics Guide for Knowledge Management Initiatives (the Guide), August 2001, p. 9. 18 Id., p. 18. 19 The approach of managing and measuring knowledge through lessons learned or storytelling is also known as “anecdote management.” See Chapter 5 for more details. 20 Supra note 17, p. 5. 21 Id., pp. 29–30. 22 Id., pp. 43–44. 23 Id., p. 11. 24 Id., p. 5. 25 APQC, Measurement for Knowledge Management, February 2001. Available at www.apqc.org/ free/articles/dispArticle.cfm?ProductID=1307&CFID=154242. THE U.S. NAVY KNOWLEDGE MANAGEMENT SYSTEM: A CASE IN POINT 115 7 The Innovation Management Stage Thomas Edison created the “innovation factory” 1 in the 1890s, and so laid the foundation for the dis- cipline of innovation management (IM) and the new product development (NPD) process. The NPD process organizations use today has the same stages and steps that Edison perfected over 100 years ago. One may wonder, therefore, if IM in the knowledge economy has changed in any way other than through the use of technological solutions that speed up the process and cut both testing time and complexity. Though the NPD process has remained substantially the same, the crux of IM has been revolutionized by the IC concept. Like knowledge becoming the main raw resource in every- thing produced today, innovation has become the main organizational process that adds, and hence extracts, value. This is true whether the innovative capacity of the organization is turned inward, in search of excellence and better ways of doing business, or turned outward to make new products. Innovation management is the stage at which value created at the knowledge management (KM) stage is extracted by transforming knowledge into a product or a work process. Innovation in the knowledge economy is not a mere process for making new products, but is the main pro- duction process at a time when organizations innovate or perish. The need to manage innovation as the core production process has overbearing implications on business management as a whole. Under the IC concept, innovation expanded beyond the confines of the research and development (R&D)/NPD department to the whole organization, and beyond the organizational boundaries to external partners. The need for a high turnover of ideas drove top management to solicit ideas from a wider base of people, covering almost everyone in the organization and overflowing to networks of outside partners. Innovation thus progressed from being department based to organ- ization based and eventually to network based, where innovation is managed over a number interorganizational and external networks. Before proceeding with the concepts and methods of IM under a comprehensive intellectual capital management (CICM) approach, we will first explore Edison’s style of IM. EDISON’S STYLE OF INNOVATION MANAGEMENT Edison made innovation more of a science than an art by systemizing the innovation process into certain steps. His innovation factory transformed the image of the sole inventor working in his or her lab to a team working together to transform an idea into a product. Edison and his team con- ducted research, brainstormed new ideas, experimented with new product concepts, and devel- oped them into marketable products, laying the basis of the NPD process as we know it today. Edison’s NPD process included the following stages: • Conducting the necessary research. In Edison’s words: “First study the present con- struction. Second ask for all past experiences study and read everything you can on the subject.” 2 117 • Applying imagination to the problem and comparing alternative solutions. At this stage, brainstorming with various concepts is undertaken. In Edison’s words: “Result? Why man, I have gotten a lot of results. I know several thousand things that won’t work.” 3 • Developing new product concepts where various prototypes are created and tested for technological and design feasibility. • Scanning the environment. This practice is designed to determine the requisite and desir- able conditions required for the new product to succeed. It may involve investing in changing the environment in cases in which the change introduced by the innovation is radical. • Commercializing the product. This involves forging a number of alliances to exploit the product across related markets and multiple distribution channels. Maybe Edison was not the greatest inventor of the time, but he certainly was a great innovator. His invention of the light bulb was not the most superior in technological terms, but he knew how to innovate. First, he bought fields of bamboo, what is called in business terms vertical or back- ward integration, to ensure a constant supply of raw materials. 4 That was not enough since the existing infrastructure did not support his invention in a society accustomed to gas lamps. To solve this problem, Edison bought a small electrical company and transformed it to provide elec- tricity to domestic outlets. Thus, he adopted another strategy of vertical forward integration— buying the distribution channels. Edison also invested in educating customers as to the utility of the light bulb and created one of the best social innovations of the twentieth century. Starting in the 1960s, the NPD process has been streamlined across and within industries to a major extent, with divergence detected only between the “best” and the “rest” of organizations. 5 A survey by the Product Development Management Association (PDMA) in 1997 of the NPD stages used by 600 U.S. firms revealed that 60 percent use a formal NPD process consisting of six stages, 6 very similar to Edison’s. Even those firms that had no formal NPD process developed their new products through similar stages. These stages consist of “exploration, screening, business analysis, development, testing, and commercialization.” 7 While the goods manufacturing industry often uses more than six stages, companies in the service industry tend to use fewer stages, discounting the manufacturing and testing stages. 8 Furthermore, the six stages have also been found to be con- sistent regardless of the level of innovation (i.e., whether it is incremental/evolutionary or radi- cal/revolutionary). This confirms that the generic NPD stages used today, illustrated in Exhibit 7.1, have been substantially the same since the dawn of the twentieth century. Though the structure of the NPD process and the main stages remain substantially the same, that does not at all mean that IM has not been transformed by the IC concept. The shift in the knowledge economy to IC as a source and means for value extraction transformed innovation 118 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT EXHIBIT 7.1 Generic NPD Stages Idea Generation Market Testing Concept Development Commercialization Prototype/Pilot Demo Feasibility Assessment management in many ways taking it away from the Edison model in substance, if not in form. The most prominent change is the emergence of a new business model for IM that is used by the most innovative organizations regardless of industry—the network-based innovation model. THE INTELLECTUAL CAPITAL CONCEPT AND NETWORK-BASED INNOVATION The high demand for new ideas and new product concepts in the knowledge economy posed a major challenge to the organizational innovative ability—a challenge that can be tackled only by liberating innovation from being the function of one department (R&D or NPD) to an activity to which everyone in the organization contributes. Increasingly, IM progressed into managing an innovation portfolio across a set of dispersed internal and external networks. Internally, IM entails knowing the competencies and skills of employees across the whole organization (human capital) to form the right team according to the needs of the innovation project. It also involves knowing the skills of existing or potential partners (customer capital), to forge the alliances that facilitate the innovation process. In addition to spreading inside, the innovative activity overflowed to encompass networks of suppliers, distributors, customers, and sometimes competitors. In addition to the move from the department-based (Model A in Exhibit 7.2) to network-based (Model B) innovation, the innovative activity spread out through the various levels of the organization as well. Hence, innovation did not only spread sideways and outside the organization but also downward to the frontline levels. With all this activity, organizations found they had to use cross-functional teams to manage what is other- wise a chaotic activity over widely dispersed networks. Cross-functional teams are formed by bringing people together from across the organization with multi-disciplinary skills, experience, and qualifications that best fit the needs of the innovation project at hand. Cross-functional teams THE INNOVATION MANAGEMENT STAGE 119 EXHIBIT 7.2 Innovation from Department-Based to Organization-Based to Network-Based R&D/NPD Marketing Legal CEO R&D/NPD Marketing Legal CEO Model A Model B Innovative activity Customer Supplier, distributor, serve the innovation process under the network-based model in two ways. First, by bringing people from all the concerned departments together (R&D, legal, marketing, manufacturing, etc.), time to market is reduced. Second, the cross-pollination of ideas and experiences of people from different business units, and sometimes from outside the organization, increases the market orientation of the product and hence increases market success rates. Effective IM amidst the prolific innovative activity, and hence intellectual process, is impossi- ble without ICM. The IC concept redefined IM in the knowledge economy by stressing the role of IC in the innovation process. To yield successful results, an IM model should enable the organ- ization to tap into the employee brainpower (human capital) and that of external parties (customer capital), while at the same time effectively utilizing the business processes of the organization (structural capital). Under the Comprehensive Intellectual Capital Management (CICM) approach a number of changes on the strategic and operational levels are needed to make IM the job of everyone. On the strategic level, it became much more important than ever to decide on innovation strategies to lead the pulsating innovative activity spreading in the whole organization. The role of top management in IM shifted, with idea generation being pushed down to the operational level and out to partners, to deciding on innovation strategies for competitive positioning. In addi- tion, network-based innovation meant that top management needed to manage innovation proj- ects as a portfolio over the dispersed networks and across the whole organization. The innovation portfolio serves two crucial IM needs. First, it enables the management of risks associated with innovation by diversifying the portfolio mix to include projects of varying levels of innovative- ness. Second, it facilitates cultivation of the ability to get to market fast by presenting a snapshot of all the innovation projects across the organization, enabling allocation and shifting of human and financial resources to meet strategic priorities. On the operational level, network-based IM entails effecting a number of changes to the orga- nization’s structure, culture, processes and tools. Not only does structure have to be flexible enough to facilitate formation of cross-functional innovation teams from people within and out- side the organization but it should also allow the formation of competence centers where compe- tencies are grouped, developed, and later accessed. The structural changes should also address the R&D function, and how it will be organized to operationalize the innovation strategies. Cer- tain changes must also take place to engrain innovation in the culture of the organization, and thus motivate employees to innovate and customers to contribute. A number of methods and tools devised for that purpose will be outlined. We will first examine the changes required at the strate- gic level. STRATEGIZING INNOVATION MANAGEMENT Innovation is a chaotic activity, particularly at the early stages of idea generation, and can be unruly if left without a clear strategy. Innovation strategy defines how top management intends to use the organization’s innovative capacity to enhance performance and attain the targeted competitive position. It may seem that the most innovative organizations don’t have an inno- vation strategy, since they give free rein to their employees’ innovative flair to take them in any direction. The fact of the matter, however, is that they do have a very defined strategy—an employee-driven innovation strategy, as will be explained in this section. Innovation strategy is crucial, particularly with innovation being pushed as far down as possible to the frontline, emphasizing the need to direct the innovative surge from the top of the organization with defined strategies. Innovation strategies play two roles. First, they form part of the competitive 120 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT strategy of the organization by defining the areas in which new products will be introduced (i.e., the markets and segments they will compete in). Second, innovation strategies shape the mix of the innovation portfolio and the way innovation is managed across the whole organiza- tion at the operational level. Following is an account of a number of innovation strategies for managing the innovation process. 9 The interaction of these strategies with the organization’s overall competitive strategies and the creation and management of the innovation portfolio will be outlined. Innovation Strategies and Competitive Positioning Trade-offs are essential to strategy. They create the need for choice and purposefully limit what a company offers. —Michael Porter 10 In 1980, Michael Porter, of Harvard Business School, identified three main generic competitive strategies that organizations use for long-term competitive positioning in the market. 11 According to Porter, the three strategies are cost leadership, differentiation, and focus. In cost leadership, a business strives to supply a more cost-effective product compared to competitors, and compete through price. Differentiation is achieved by supplying products with higher value to the cus- tomers, commanding premium prices. Differentiation can be achieved by producing superior product qualities, new features, branding, and customer service. Focus strategies narrow the focus of a business to a certain product market segment, where both cost-leadership and differ- entiation strategies can be pursued. Porter explains that usually an organization adopts one of the three as the primary competitive strategy without losing sight of cost control or operational efficiency under a differentiation strat- egy, and of quality and customer service under a primarily cost-leadership strategy. Porter further explains that while cost-leadership strategies require tight cost control and the need to meet strict targets, differentiation strategies require strong coordination among functions and the ability to attract skilled and creative people. 12 Despite the insight that Porter’s analysis provides, it remains too broad for the strategic man- agement of the innovation process. This is because whether an organization adopts a cost- leadership as opposed to differentiation competitive strategy, innovation will remain the main enabler for operationalizing both strategies. This applies in cases in which innovation is applied inwardly to finding new ways of doing things, making products with less cost, or alternatively making new differentiated products. The challenge is that innovation is a very broad activity that includes any new development under the sun, big and small, accentuating the need for an inno- vation strategy that sets some parameters to lead the innovation process, and to make the neces- sary trade-offs. Though strategic planning is a situation-specific exercise, there are a number of generic inno- vation strategies that can be used to steer the innovation surge. Four innovation strategies are identified: customer-driven, inward employee-driven, outward employee-driven, and technology- driven innovation strategies. These strategies can be combined with Porter’s differentiation and focus strategies, while cost leadership can be combined only with inward employee-driven inno- vation strategies. Choosing one of the generic innovation strategies guides top management as to steering the innovation surge of the whole organization, as well as selecting the innovation prac- tices and methods that are aligned with the innovation strategy. How to choose the strategy that suits the organizational situation and needs is dealt with in Chapter 11. But for now the four inno- vation strategies are outlined. THE INNOVATION MANAGEMENT STAGE 121 [...]... and cultural changes Chapter 12 provides a step- by -step guide on how to implement IM Chapter 8 outlines the intellectual property management stage 136 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT NOTES 1 The authors use this term in their article A Hargadon and R Sutton, “Building an Innovation Factory,” Harvard Business Review, May–June 2000, p 158 2 Id 3 S Martin, “Strategic Research Partnerships:... 239 45 Id 46 Id., p 240 47 Id., p 2 45 138 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT 48 The PDMA survey reports other numbers that are substantially less, like 4 out of 100 ideas The discrepancies can be caused by not distinguishing between ideas and product concepts and the level of innovativeness introduced by the idea (i.e., incremental as compared to radical) 49 Supra note 43 50 Id 51 Product... concept IPM AND THE IC CONCEPT—THE JOB OF EVERYONE AGAIN With the increasing role of intellectual capital, and the further emergence of what we can call intellectual capitalism, it is conceivable that IC management will develop engulfing IP management —Ove Granstrand13 142 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT The IC concept brought to the forefront the challenge of managing IP as a business... program that developed was by nature business oriented Brand management goes back to very early origins In his review of the history of brand management, Dartmouth College Professor Kevin Keller notes that as early as 1890s branding was largely driven by the organization’s leadership.9 The first brand management program was developed by Procter & Gamble (P&G) in the 1940s,10 and by 19 85 most organizations... the “product.” Appreciating this is the key to viewing intellectual property management (IPM) as the stage at which the value created at the knowledge management (KM) stage, then extracted at the innovation management (IM) stage, is maximized to the optimal level That is the goal and function of IPM under the Comprehensive Intellectual Capital Management (CICM) model Though IPM is not new, the IC concept... Hippel, “Lead Users: A Source of Novel Product Concepts,” Management Science, Vol 32, no 7 July 1986, pp 791–8 05 57 “The Innovation Engine: Lead User,” 3M Stemwinder, March 20–April 9, 2001, p 3 58 Newswise, “Products Created through Lead User Process Generate Higher Sales,” Penn State Smeal College of Business, March 18, 2001 59 Id 60 Supra note 57 61 Id 62 Pierce, “The Art of Creating a Flexible R&D... line rate productivity by 23 percent.”47 130 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT The fact that IM in the knowledge economy is increasingly reliant on networks and the ability of the organization to tap into IC, gave rise to a number of methods designed to mine human and customer capital for ideas and product concepts In addition, a number of tools emerged to enable management to mine business... suppliers, and distributors around the world To tap their customer capital, Patagonia holds an annual conference where 260 suppliers from 1 75 countries are brought together The 132 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT attendees are allocated to various workshops where they are asked for their “input on specific challenges. 54 The value of involving suppliers and distributors has been repeatedly... performed concept development as a step The team will take the idea and brainstorm the product concepts that this idea can create and explore the various market segments that the different concepts can serve 52 See, for example, H St Onge, “How Knowledge Management Adds Critical Value to Distribution Channel Management, ” Journal of Systematic Knowledge Management, January 1998 53 APQC, “NPD: Gaining and Using... Portfolio Management for New Products, Working paper No 11 (PDI, 2001), p 4 THE INNOVATION MANAGEMENT STAGE 21 137 Supra note 6, p 441 22 R Englund and R Graham, “From Experience: Linking Projects to Strategy,” Journal of Product Innovation Management, Vol 16, 1999, pp 52 –64 23 Id., p 53 24 Supra note 6, p 442 25 Id 26 Id 27 C Larson, “R&D In Industry,” in American Association for the Advancement of . “anecdote management. ” See Chapter 5 for more details. 20 Supra note 17, p. 5. 21 Id., pp. 29–30. 22 Id., pp. 43–44. 23 Id., p. 11. 24 Id., p. 5. 25 APQC, Measurement for Knowledge Management, . concepts and methods of IM under a comprehensive intellectual capital management (CICM) approach, we will first explore Edison’s style of IM. EDISON’S STYLE OF INNOVATION MANAGEMENT Edison made innovation. time, money, or personnel saved by implementing a practice, rates of change in operating costs, and improvement in quality. 112 THE THREE STAGES OF INTELLECTUAL CAPITAL MANAGEMENT Output indicators