Chapter 24 On the Epistemology of Breakthrough Innovation: The Orthogonal and Non-linear Natures of Discovery

 

Abstract

In the abstract you provided, the authors highlight the crucial role of researchers in technology-based companies, which involves developing innovative products and processes to increase revenue or decrease costs. The focus of this work is on exploring the nature of knowledge in the context of breakthrough innovation. Here's a concise explanation:

Role of Researchers in Technology Companies:

Researchers play a key role in driving innovation within technology companies. Their primary task is to create new products and processes that can either boost the company's income or reduce its expenses.

Understanding How Engineers and Scientists Know:

While there has been some consideration of how engineers and scientists acquire and use knowledge, most practitioners and researchers in the field of corporate innovation have not fully developed or articulated their assumptions about this topic.

Epistemology of Breakthrough Innovation:

The work aims to delve into the epistemology, or the nature of knowledge, in the context of breakthrough innovation. It involves understanding both what innovators know ("know what") and how they apply this knowledge ("know-how").

Orthogonal and Non-linear Knowledge:

The authors suggest that the knowledge required for breakthrough innovation is both orthogonal, meaning it involves different and potentially unrelated aspects, and non-linear, indicating that it does not follow a straightforward, predictable path.

Characteristics of Innovators and Innovation Process:

Insight into the epistemology of breakthrough innovation is gained by examining both the characteristics of individuals who are successful at innovating and the nature of how breakthrough innovation occurs in practice.

In summary, this abstract discusses the importance of understanding the complex and multifaceted nature of knowledge in the field of breakthrough innovation, both in terms of what is known and how it is applied in the real world by innovators.

24.1 Background

The "Background" section of the text explores how financially successful companies engage in epistemology, the study of knowledge, in different ways across tactical operations and strategic research:

Tactical Operations and Epistemology: In tactical, operational aspects, companies focus on what is known and predictable. They aim to create a certain and rigid environment by reducing variation, understanding failure modes, and eliminating defects. This process leads to cost reduction and efficiency, establishing a known, controlled setting.

Strategic Research and Epistemology: On the strategic side, companies delve into the unknown and unpredictable. They innovate by creating new products and processes to either increase revenue or decrease costs. This approach leads to a more open, skeptical, and fluid mode of operation, encouraging new ways of thinking and discovering new opportunities.

Innovation Spectrum: Innovation in companies ranges from incremental (minor improvements like adding a new feature to an existing product) to breakthrough innovations (radical changes, such as introducing a completely new product concept). Both ends of this spectrum are crucial for company sustainability, with incremental innovation offering low-risk, low-return opportunities, and breakthrough innovation offering high-risk, high-return opportunities, often leading to new business domains.

Focus on Breakthrough Innovation: The text focuses on breakthrough innovation, which is essential for long-term financial impact and sustainability, as it moves a company from the known through the unknown to the newly known.

Understanding Engineers and Scientists' Knowledge: While some researchers have started to explore how engineers and scientists "know" from a philosophical perspective, many practitioners in corporate innovation lack a developed understanding of this aspect. The insights discussed are derived from a study of Serial Innovators (SIs) - individuals who have consistently developed and commercialized new breakthrough products in large, mature technology firms. This research is based on extensive interviews and surveys, offering a deeper understanding of how breakthrough innovation occurs in practice.

24.2 Approach

In the "Approach" section of the text, the authors discuss their method for understanding the epistemology of breakthrough innovation using a conceptual framework. This framework involves three key epistemological elements:

Initial "Know What" Input: This refers to the factual information that Serial Innovators (SIs) bring to the innovation process. SIs possess a wealth of facts and are characterized by intense curiosity, constantly adding to their broad and deep knowledge base.

"Know How" of Innovation: This element represents the tacit skill of systems thinking that SIs possess. They are adept at synthesizing and connecting information from various, often unrelated fields. This skill enables them to see patterns and relationships that are not immediately obvious.

New "Know What" Innovative Output: The combination of the initial "know what" (factual information) and the "know-how" (systems thinking) results in innovative outputs. These outputs are new forms of "know what," representing fresh and groundbreaking ideas or products.

The authors' goal is to gain deeper insights into each of these elements and how they interact to drive breakthrough innovation. They aim to identify common themes and trends that illuminate the process of innovation, from the accumulation of knowledge to the generation of new, innovative ideas.

24.3 Some Salient Characteristics of the Three Epistemological Elements

24.3.1 Characteristics of the Initial “Know What” Input to Innovation

In the text discussing the characteristics of the initial "Know What" input to innovation, several key observations are made about the knowledge base of breakthrough innovators:

Depth and Breadth of Knowledge: Breakthrough innovators are noted for having both a deep understanding of their primary discipline and a broad knowledge of many other disciplines. This combination is crucial for innovation.

"T-Shaped" Knowledge Profile: Often, industrial innovators are described as having a "T-shaped" knowledge profile. This means they have extensive knowledge in their main field (represented by the vertical stem of the "T") and a general understanding of many other areas (the horizontal bar at the top of the "T").

"π-Shaped" or "M-Shaped" Profiles: In some cases, innovators are observed to have even more complex knowledge structures, being "π-shaped" or "M-shaped." This implies significant depth in multiple fields, not just their primary area of expertise.

Impact of Seemingly Insignificant Insights: It's noted that often small, seemingly insignificant insights can lead to major breakthroughs. These minor details or understandings can set the stage for significant innovations.

Slight Differences Leading to Significant Outcomes: The text also points out that small differences between competitors can lead to substantial differences in their overall success and financial performance, especially in the context of breakthrough innovation.

These characteristics underscore the importance of a rich and varied knowledge base for innovators, emphasizing that both depth in a specific area and breadth across multiple domains are valuable for the process of innovation.

24.3.2 Characteristics of the “Know How” of Innovation

The text discusses the characteristics of the "Know How" of innovation, emphasizing its complex and unpredictable nature:

Non-Linear and Messy Process: Breakthrough innovation is described as a messy and complex process that defies neatly defined pathways. It does not follow a linear, step-by-step progression but is characterized by a certain level of disorder and unpredictability.

Finite Set of States with Iterative Visits: While there are specific states or stages that must be navigated during the innovation process (like identifying the best problem to address, deeply understanding the problem, synthesizing information into a product concept, and navigating internal politics), these stages are often revisited multiple times and in a generally fluid order.

Iterative and Feedback-Driven: The innovation process is iterative, involving continual refinement and revisiting of ideas. It's a feedback-laden process where ideas are constantly evaluated, re-evaluated, and modified.

Chewing on Ideas: The description includes a metaphor of “chewing on” ideas, indicating a process of mulling over and thoroughly digesting concepts as they emerge into consciousness.

Use of Brainstorming: The text mentions the use of brainstorming sessions to stimulate creative and innovative outputs. Brainstorming is characterized as an open, unrestricted exploration of ideas, often used to spark innovation.

In summary, the "Know How" of innovation is characterized by its non-linear, iterative, and complex nature, requiring a flexible and open approach to dealing with the uncertainty and messiness inherent in the innovation process.

24.3.3 Characteristics of the New “Know What” Innovative Output

The text describes the characteristics of the innovative output resulting from breakthrough innovation:

Disruptive Nature: Truly innovative outputs are disruptive, meaning they significantly alter or transform existing markets, behaviors, or technologies. They create a major impact that changes the status quo.

Unpredictable and Unexpected: The appearance of innovative output is unpredictable and unexpected. It is not easily foreseen based on existing trends or knowledge.

Rapid Transition: The term "breakthrough" suggests a sudden and rapid transition from non-existence to existence. It implies a quick emergence of an innovative idea or product, akin to something suddenly breaking through a barrier.

In essence, the new "Know What" of innovative output is characterized by its capacity to disrupt, its unexpected nature, and the speed with which it emerges and impacts its environment or market.

24.4 How These Characteristics Work Together to Yield New Insight

While each of these individual observations about the salient characteristics of the three epistemological elements is of interest for its own ability to describe break-through innovation, when considered together, a richness of insight emerges.

24.4.1 The Orthogonal Nature of Discovery

The text discusses the orthogonal nature of discovery in the context of innovation, using the metaphor of "T-shaped," "π-shaped," or "M-shaped" individuals to represent the breadth and depth of their knowledge across various disciplines. This concept is likened to the electromagnetic spectrum, where different wavelengths are orthogonal (independent and mathematically perpendicular) to each other.

Key Points:

Electromagnetic Spectrum Analogy: The electromagnetic spectrum is used as a metaphor, where each wavelength represents a sinusoidal wave orthogonal to others. This characteristic allows the construction of any possible wave by combining different sinusoidal waves.

Multidisciplinary Knowledge: Just like the electromagnetic spectrum, an individual's expertise across multiple disciplines can be represented as a set of orthogonal, independent functions. Each distinct discipline contributes a unique and independent piece of knowledge.

Representation of Expertise: In figures like the "π-shaped" person, the horizontal axis symbolizes the range of a person's disciplinary knowledge, and the vertical axis represents the depth or magnitude of this knowledge.

Orthogonality in Knowledge: Although disciplines are not as purely orthogonal as the metaphor suggests, there is a significant degree of independence between certain disciplines (like physics and literature), while others may overlap more (like physics and music).

Granularity of Knowledge: The truly orthogonal elements of knowledge might exist at a more granular level than broad disciplines. Overlap between disciplines is expected and necessary for communication, but orthogonality is more pronounced in specific, narrower areas of expertise.

In summary, the concept of orthogonal knowledge in innovation highlights how different areas of expertise, each unique and independent, combine to form a comprehensive and multidimensional understanding, contributing to breakthrough innovations.

24.4.2 The Non-linear Nature of Discovery

In section 24.4.2, the text discusses how the process of breakthrough innovation in technology is non-linear in nature. This means that the path to innovation is not straightforward or predictable, but rather complex and often unpredictable. The characteristics of non-linear systems, such as unpredictability, sudden changes, feedback loops, and sensitivity to minor differences, are all present in the innovation process.

To illustrate this, chaos theory is referenced, which describes how small changes in a system can lead to vastly different outcomes – known as the "Butterfly Effect." This effect suggests that tiny variations can have significant impacts on the final result, much like a butterfly’s wings potentially causing a tornado.

The concept is further visualized through fractals, such as the Mandelbrot Set. Fractals are complex patterns that are sensitive to initial conditions and demonstrate the characteristics of non-linear systems. They show how small changes can create vastly different outcomes, which is analogous to the process of innovation where minor differences or inputs can lead to significant and unexpected breakthroughs.

In summary, the section emphasizes that the discovery and process of innovation are inherently unpredictable and complex, resembling the behavior of non-linear systems in nature and mathematics.

24.4.3 The Non-linear and Orthogonal Natures of Discovery Considered Together

In section 24.4.3, the authors explore how the orthogonal and non-linear aspects of discovery work together in the context of breakthrough innovation. They describe how innovators "connect the dots," synthesizing information and insights from disparate disciplines to create a whole that is greater than the sum of its parts. This process of creatively mixing insights from different fields leads to new, groundbreaking ideas.

To illustrate this concept, the authors use the analogy of multiplying two orthogonal vectors (i.e., vectors that are perpendicular to each other). When these vectors are multiplied, they produce a new vector that is orthogonal to both original vectors and represents a new dimension of knowledge. This multiplication, unlike a simple linear combination (addition), propels one into a new realm of understanding or innovation.

The authors suggest that this mathematical interaction is analogous to the process of breakthrough innovation. Just as in patent law, where a simple combination of ideas is not considered innovative, true breakthroughs in innovation arise from non-linear and multidisciplinary approaches. They note that this principle is not only a theoretical construct but also a critical component in the operation of various systems in the real world, such as musical instruments and wireless communication systems, where non-linear mixing of elements creates new outcomes.

In summary, this section emphasizes that breakthrough innovation involves both the orthogonal (combining different fields of knowledge) and the non-linear (going beyond simple addition to create new dimensions) aspects of discovery, leading to truly novel and groundbreaking results.

24.5 Conclusions and Managerial Implications

In conclusion, the authors of this chapter on the epistemology of innovation suggest that the process of innovation involves a non-linear combination of orthogonal (independent and distinct) pieces of information ("know what") and methods ("know how"). This concept is represented in their updated schematic diagram (Fig. 24.6), which builds on the initial conceptual framework (Fig. 24.1) for understanding innovation.

The key managerial implications of this understanding of innovation are as follows:

Acknowledging Unpredictability: Innovation, while deterministic, is not reliably predictable. This requires managerial humility in recognizing the limits of forecasting innovation, similar to forecasting the weather.

Valuing Non-linear Thinking: The non-linear nature of innovation is critical. Managers should seek individuals who possess the skill of combining disparate concepts to generate new, impactful ideas.

Importance of Both "Know What" and "Know How": Both types of knowledge are necessary for innovation. Managers should not only focus on those who exhibit non-linear thinking but also value the accumulation and retention of diverse knowledge.

Seeking Passionate Curiosity and Strong Memory: Breakthrough innovators often display passionate curiosity and exceptional memory skills. These traits are important for managers to identify and foster in potential innovators.

Focusing on the Edge of Innovation: Managers should aim to operate at the forefront or “the hairy edge” of innovation. These metaphors provide direction to managers to “fish where the fish are”. This involves exploring areas where slight changes or combinations can lead to significantly new outcomes, akin to the boundary regions of the Mandelbrot set in fractal geometry.

In essence, the authors recommend a balanced approach to managing innovation, recognizing the complex, unpredictable, and often chaotic nature of the innovation process, while also valuing the deep, diverse knowledge and unique cognitive abilities that drive breakthroughs.