The Discipline of Innovationby Peter F.Drucker

Group Members:

Lajbar Khan

Muhammad Taimoor

Sajjad Ullah

Yasir Sehti

Fawad Gul

Introduction

How much of innovation is inspiration, and how much is hard work?

Inspiration: Hire the right people, and get out of their way

Hard Work: Establish the right roles and processes, set clear goals and relevant

measures, and review progress at every step

“Innovation is the work of knowing rather than doing “ (Peter Drucker)

Cont…

The entrepreneur either creates new wealth-producing resources or endows

existing resources with enhanced potential for creating wealth

Entrepreneurship refers to a certain kind of activity

Innovation: the effort to create purposeful, focused change in an enterprise’s

economic or social potential

Sources of Innovation

Internal Sources External Sources

Unexpected Occurrences Demographics

Incongruities Changes in Perceptions

Process Needs New Knowledge

Industry & Market Changes

Internal Sources

Unexpected Occurrences

The richest source of Innovation

Most of the time Neglected

Alfred Einhorn’s Novocain

It may be;

1. Exploitation of Unexpected Success

The case of IBM

Marriott and Airline Catering

Unexpected Failures:

The case of Ford Edsel

“Failure is our most important product.”R. W. Johnson, Jr., Former CEO, Johnson & Johnson (1954)

“You can learn from success, but you have to work at it; It’s a lot easier to

learn from failure.”Lewis Lehr, Former CEO – 3M Corporation

Incongruities

The state of not fitting in its location or situation

Incongruity within the logic of a process

Alcon Laboratory & Incongruity in Medical technology

Incongruity b/w Economic realities

The Mini Mills

Incongruity b/w expectations & results

The Roll-on and Roll-off ships

Process Needs

Innovations created to support other processes and products

It is looking for “the missing link” in the existing process

Japan: No modern Highway system

Process Need: Smooth traffic & less accidents

Innovative Response: Reflectors

Media in 1890

Ottmar Mergenthaler’s Linotype

Social Innovations: Modern Advertising

Industry & Market Changes

Industry & market structures may change overnight.

Structure changes due to growth in an Industry.

Established companies are more defensive and less attacking

Thus, Innovators have a chance to gain success

Donaldson, Lufkin and Jenrette (DL&J)brokerage firm

American Health care Industry

Demographic Changes

Out sources of innovation opportunities;

demographics are the most reliable

changes occur in populations, income levels, Education, age ranges etc.

The Japanese are ahead in robotics because they paid attention to

demographics

• In 1970 the baby bust and an education explosion going on

More then half of the people were staying in school beyond high school

Consequently, the number of people for blue collar was to decrease and become inadequate

by 1990.

Changes in Perception

“The glass is half full”

“The glass is half empty”

Example: Health

markets for new healthcare magazines,

for exercise classes

jogging equipment,

health foods.

The fastest growing new U.S. business in 1983 was a

company that makes indoor exercise equipment

NEW KNOWLEDGE•Change is a continuous Process.

•The discovery of wheel revolutionized the human lifestyle.

•New Knowledge has produces opportunities for new products.

•Information age requires to have up-to-date business knowledge.

NEW KNOWLEDGE

Principles Of Innovation

New opportunities

Innovation is both conceptual and perceptual

To be effective innovation has to be simple and it has to be focus

Effective innovation start small. They are not grandiose (Swedes)

Big business vs modest achievement

Modesty reach set the grounds for new technology

What Innovation needs

Innovation is working rather than genius

It required knowledge

It required ingenuity

It required focus

Innovator rarely work in more tan one area.( Thomas Edison)

If diligence, persistence, and commitment are lacking, talent, ingenuity, and

knowledge are of no avail.

entrepreneurship and innovation

entrepreneurship is the practice of systematic innovation

Thank You