Archive for Innovation

Principles of Innovation

There are a number of “dos” – things that have to be done. There are also a few “don’ts” – things that had better not be done. And then there is what Drucker calls “conditions.”

The Dos

1. Purposeful, systematic innovation begins with the analysis of the opportunities – organized and done on a regular systematic basis.

a. Organization’s own and competitors’ unexpected successes and failures.

b. Incongruities – process, production, distribution, customer behavior, etc.

i. –adjective: 1. out of keeping or place; inappropriate; unbecoming: an incongruous effect; incongruous behavior. 2. not harmonious in character; inconsonant; lacking harmony of parts: an incongruous mixture of architectural styles. 3. inconsistent: actions that were incongruous with their professed principles.

c. Process needs

d. Changes in industry and market structures

e. Changes in demographics

f. Changes in meaning and perception

g. New knowledge

2. Innovation is both conceptual and perceptual.

a. ..go out to look, to ask, to listen.

3. An innovation, to be effective, has to be simple and it has to be focused.

a. It should do only one thing; otherwise, it confuses.

4. Effective innovations start small.

a. Capable of being started small, requiring at first little money, few people, and only a small and limited market.

5. Successful innovation aims at leadership.

a. All strategies aimed at exploiting an innovation, must achieve leadership within a given environment. Otherwise, they will simply create an opportunity for the competition.

The Don’ts

1. Try not to be clever.

a. Anything too clever, whether in design or execution, is almost bound to fail

2. Don’t diversify; don’t splinter; don’t try to do too many things at once.

a. An innovation needs the concentrated energy of a unified effort behind it.

3. Don’t try to innovate for the future. Innovate for the present!

a. An innovation may have long-range impact; it may not reach its full maturity until twenty years later.

Three Conditions for a Successful Innovation

1. Innovation is work.

a. Innovation becomes hard, focused, purposeful work making very great demands on diligence, on persistence, and on commitment. If these are lacking, no amount of talent, ingenuity, or knowledge will avail.

2. To succeed, innovators must build on their strengths.

3. Innovation is an effect in economy and society.

a. Close to the market, focused on the market, indeed market-driven.

Successful innovators are conservative. They have to be. They are not “risk-focused”; they are “opportunity-focused.”

Principles Of Innovation – Drucker

Sources: http://www.amazon.com/Essential-Drucker-Druckers-Management-Essentials/dp/0061345016; pages 272-279 | http://dictionary.reference.com/browse/incongruous | Principles Of Innovation – Drucker