Date post: | 13-Jul-2015 |
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Leadership & Management |
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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