Drucker (2002) Flashcards
Drucker (2202) talks about seven sources of innovation, what are those and where do they come from?
INSIDE ORGANISATION
1. Unexpected Occurrences
2. Incongruities
3. Process Needs
4. Industry and Market Changes
OUTSIDE OF ORGANISATION
5. Demographic Changes
6. Changes in Perception
7. New knowledge
What does Drucker mean by “unexpected occurencies”? (source of innovation)
Inside organisation
The unexpected failure may be an equally important source of innovation opportunities. Shocks to the system.
What does Drucker mean by “Incongruitues”? (source of innovation)
Inside org
Incongruities between expectations and results can open up possibilities for innovation
Four kinds:
1. Between economic realities of an industry
2. Between expectations & assumptions of an industry
3. Between the efforts of an industry & values & expectations of its customers
4. Internal incongruity within the rhythm or logic of a process
What does Drucker mean by “Process Needs”? (source of innovation)
Inside org
Innovations are task-focused, not situation-focused → perfect an already existing process
What does Drucker mean by “Industry and market changes”? (source of innovation)
Inside org
Industry structures can change, and these changes creates opportunities for innovation
What does Drucker mean by “Demographic change”? (source of innovation)
Outside org
The most rewarding and least risky of entrepreneurial pursuits
These changes affect the markets as they determine the demand for products, who buys them & in
what quantities
What does Drucker mean by “New knowledge”?(source of innovation)
Outside org
New knowledge is more than just technology – also about finding better ways of doing things & improving processes – look at new knowledge to improve incrementally.
Has the longest lead time of all innovations.
What does Drucker mean by “Changes in perception”? (source of innovation)
Outside org
Related to mood rather than fact
Perception changes happen very rapidly → opens possibilities for firms to innovate.
What source of innovation is Drucker missing? (according to Pauline)
- Imitation/ extending what others do
- Recombinant innovation
