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Winning Through Boundaries Innovation

Communities of Boundaries Generate Convergence

Mitsuro Kodama

At present, many companies consider «knowledge» the most important element and the benchmark for maintaining an enduring competitive advantage. The process of strategically acquiring both new boundaries knowledge and convergence knowledge to generate boundaries innovation becomes an important element in acquiring dynamic organizational capability. This is essential for rapidly establishing a company’s market position in new markets and technologies.
This book discusses from a micro-viewpoint different strategies for companies’ sustainable generation of boundaries innovation through the creation of both types of knowledge. It focuses on strategic management activities centered on innovation processes (incremental innovation and radical innovation) in a company.
In the future, the knowledge convergence processes practiced by individuals, groups and organizations inside and outside the company will form the basis of dynamic innovation activities. These will continually create new boundaries knowledge and convergence knowledge, as well as the organizational capability for supporting these.
The «knowledge convergence firm» this book proposes is a new corporate model that achieves sustainable boundaries knowledge by promoting creative, productive friction among people, and between and amongst communities. It does this by implementing knowledge convergence processes at diverse boundaries within and outside the company.
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4 Boundaries innovation through knowledge convergence between business processes and ICT – Case studies: Qualcomm, Yamato Transport, Li & Fung

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CHAPTER 4

Boundaries innovation through knowledge convergence between business processes and ICT – Case studies: Qualcomm, Yamato Transport, Li & Fung

4.1 The importance of systems thinking

As knowledge convergence across different business or technologies continually changes the environments surrounding businesses and industries, systems thinking is an important component of strategic innovation capability needed to bring about new products, services and business models with knowledge convergence. In the complex relationships between various factors that appear in changes in the world and the problems that arise therein, systems thinking is the ability to clarify structural relationships in the patterns that form from various elements, and the ability to grasp the overall picture of events – its the ability to clarify the condition of the whole as well as the interactions of its individual parts, and consciously design to optimize the functions of the whole from these structures, and search out optimal solutions or countermeasures to problems.

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