Innovation and Entrepreneurship

Entrepreneurial attention is focused on customer values. This is an especially important point for us in the information industry since we, more than those in other, "low-tech" industries, tend to associate innovation with the technical features of our products. Without devaluing the importance of our advances in areas such as semiconductor technology, communications systems design, and continuous service architecture, we must recognize

that our opportunities for creating new value for our customers extend far beyond the technical features of our hardware and software products. The process, the "business system," by which we create and deliver products and services to our customers starts with technology, but then relies on the design, manufacturing, marketing, sales, distribution, and service skills of thousands of NCR people. At every stage, innovation is possible and, in many cases, "non-technical" innovation can provide the key to success in the marketplace. Drucker first opens our thinking to the many targets of innovation and he then describes a method by which we can begin to identify and to explore successful new ways of doing things. If innovation is really the tool of entrepreneurs, then, like a tool, it must be easy to use. Drucker proposes that there are seven sources of innovative opportunity:1. unexpected events,

2. incongruities between the expected and the actual,3. new process requirements,4. unanticipated changes in industry or market structure,5. demographic changes,6. changes in perception, mood, or meaning, and, lastly,7. new knowledge. Drucker asserts that the last entry in this list – new knowledge – is the least reliable and least predictable of them all! This runs counter to conventional wisdom which holds that innovators are usually scientists or technicians to extend the frontiers of knowledge. Drucker argues convincingly that many, many more business successes can be attributed to innovations in the business process then to a knowledge breakthrough at the product

level. There is a great deal of practical advice for NCR managers in this, the latest book from a man who is widely considered the father of modern management. While many of the ideas are not new, the structure into which Peter Drucker places them transforms them from a collection of interesting thoughts into an effective management tool. The responsibility that we all share for changing the shape of our business and delivering more value to our customers can no longer be denied or underestimated.

Sources of Innovation from P. Drucker. Peter Drucker, one of the greatest management thinkers from the last century, defined in his book “Innovation and Entrepreneurship” (1986) 7 classes of “OPPORTUNITIES”. He named these the "SOURCES OF INNOVATION", namely: THE UNEXPECTED: An example of the unexpected is the development of Nutrasweet. A chemist developed a new chemical. Accidentally he got some of it in his mouth. INCONGRUITIES: Incongruities or conflicts between opposing functions, requirements or values may be the start of an innovation. INDUSTRY AND MARKET STRUCTURE: Industry markets and market structure may offer opportunity’s for new types of services. Outsourcing of activities such as maintenance of the IT infrastructure is an example. CHANGES IN PERCEPTION: An example of changes in perception as source of innovation is the following. NEW KNOWLEDGE: Last but not least new knowledge has produced many opportunities for new products.

Date: 2015-12-11; view: 877