innovation and entrepreneurship, peter drucker on innovation and entrepreneurship

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Innovation and Entrepreneurship Agsb entrepreneurship elective lecture

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This is a lecture for students of entrepreneurship elective at the Ateneo Graduate School of Business. It has been uploaded slideshare for the convenience and access of present and former students for the said elective.This will update the former students on the latest in entrepreneurship. The ppt also talks about a new revolution - the entrepreneurial revolution. This perhaps is in consonance with quote from Jefferson that every age needs a revolution. The presentation is essentially Drucker, the management guru for the 20th century

TRANSCRIPT

Page 1: Innovation and entrepreneurship, Peter Drucker on innovation  and Entrepreneurship

Innovation and Entrepreneurship

Agsb entrepreneurship elective lecture

Page 2: Innovation and entrepreneurship, Peter Drucker on innovation  and Entrepreneurship

Book by Peter Drucker, management guru

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Peter Drucker

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Definitions

• Entrepreneurship – “shift of economic resources out of an area of lower to higher productivity of greater yield.” J. B. Say 1800

• Innovation – “creating value out of existing

resources.” A specific tool of entrepreneurship.

They go hand in hand!

Page 5: Innovation and entrepreneurship, Peter Drucker on innovation  and Entrepreneurship

Innovation & Entrepreneurship

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Entrepreneurship

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NEW VALUE FROM EXISTING

• Entrepreneurship – “destroying old order and creating something new.” Schumpeter

• Innovation – innovare to make new

- creating value from existing things

processes

- not just new things; they have to be

NEW VALUE

Page 8: Innovation and entrepreneurship, Peter Drucker on innovation  and Entrepreneurship

Types of innovation

• Technical

• Social

• Economic

Most innovations are social and economic. THEY HAVE THE MOST IMPACT!

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Social innovations

• Textbooks• Hospitals• Management• Organizations• Universities• Night/adult schools

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Technological Innovations

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Review

• Creativity

• Innovation

• Inventor

• Entrepreneur

Who was Edison?

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Is innovation only for small businesses?

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Characteristics of innovation

• It is hard work

• It is systematic

• It focuses on opportunities; not problems

• It is focussed

• It is customer-centric

• Its effect is felt in the economy and society

Page 14: Innovation and entrepreneurship, Peter Drucker on innovation  and Entrepreneurship

Practices of innovative companies

1. Responsibility for innovation

2. Rewarding innovators

3. “Hiving off” – divisionalisation

4. Changing corporate rules to nurture

innovation

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Skunk works at Lockheed

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3M

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3m products

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R & D

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Johnson & Johnson

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R & D

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R & D

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Innovation Strategies

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1.“The Fustest with the Mostest”

Original innovations

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At the Lead Pack..

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Example companies

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Original innovators

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2. Creative imitators

“Not the orig..”

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“Wheel suckers?”

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Examples

• IBM

• J &J

• Seiko

• National

• Swatch

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Battle of the watches

Page 31: Innovation and entrepreneurship, Peter Drucker on innovation  and Entrepreneurship

3. Creating main value propositions

Business model

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How does a company earn? – business model

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MVP

1. Utility to the customer

2. Price

3. Customer’s reality

4. True value

Page 34: Innovation and entrepreneurship, Peter Drucker on innovation  and Entrepreneurship

Innovation policies in nations

WHAT WILL NOT WORK:

• CENTRAL PLANNING

• RELYING ON TECHNOLOGICAL INNOVATION ONLY

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Communist Party approving a central dev’t plan

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What will work?

CREATIVE DESTRUCTION OF THE OBSOLETE:

• New tax laws that will favor sale of non – performing assets.

• Sunset laws for obsolete gov’t agencies.

Page 37: Innovation and entrepreneurship, Peter Drucker on innovation  and Entrepreneurship

“Every generation needs a revolution”

-Thomas Jefferson

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French Revolution

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Entrepreneurial Revolution?

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Another revolution in Egypt –entrepreneurial revolution

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Vernuft wind Unsinn,Wohltat Plage“Reason becomes nonsense, Boons

afflictions”

Goethe

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Obsolescence

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Old Manila

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The new gets old

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Thank you!

[email protected]

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acknowledgement

• The picture and photographs are from Google images;

• The bulk of the presentation are interpretation of the work of Peter Drucker’s book on innovation and entrepreneurship. (creative innovation?)