7 sources of innovation
In defining what innovation truly encapsulates, Wikipedia provides
the definition of “the development
of new customer value through solutions that meet new needs, unarticulated
needs, or old customer and market needs in new ways”. I feel the key word in
this definition is “VALUE”. Without value, there is no true innovation. The term
value encompasses many of things in which Peter Drucker defines in his book as
sources of innovation. Drucker highlights 7 sources of innovation which
include:
Unexpected – accidental
discovery/event or unforeseen result.
Incongruity – Perceived versus Reality
Process need – Task focused necessity
Changes in industry or
market structure – change in industry.
Demographics – population/people change needs.
Changes in perception, mood, and meaning – cultural/economic influences to
create opportunity.
New knowledge – scientific and nonscientific discoveries/inventions.
Much of these sources of innovation does overlap and influence others to
some certain degree. As an entrepreneur individual, it is critical to take into
consideration each of these sources of innovation when getting the “big idea”. With
the rapid pace of technology and world economic growth, industries and markets
are created or changed swiftly and head the opportunity for innovation. An
example of such is the social media industry which touched on many of the sources
of innovation. Providing a new way of communicating with people in which to
stay connected to hundred of friends and family, almost at any time and
instantly. I remember as a child mailing letters and pictures to my grandmother
in Portugal as phoning was expensive and you could only hear a voice. Today, I Skype
with family members and share photos to stay in touch. With the entrepreneur, innovation
continues to grow and move at faster paces to allow such new industries to be
created and add value to the people of the world.
Sometimes people discuss innovation and invention in the same sentence and relate
them as there is dependence for innovation from invention. The definition of invention can be thought of
as “the creation of a
product or introduction of a process for the first time”. This does not mean in
any way that an invention is innovative (does not provide value). It may become
innovative, but it may require tweaks, incremental changes, a business model in
order to provide any value. There are many examples of differentiating
innovation with invention with Steve Jobs being the most noted person. He did
not invent the graphical user interface for computers (Zerox), nor did he invent
the digital music player. He understood the value of each and created a
business model which provided tremendous value to people around the world. As
an entrepreneur individual, you must understand the
difference between invention (your big idea) and innovation (value), to which
the 7 sources of innovation by Peter Drucker should be applied in each way.
I liked the distinction regarding innovation and invention. With the iPhone 5 dropping today the "Apple-Haters" are out in force trying to claim that Apple is not innovative because it does not invent the products it sells, it simply refines other products. Such arguments are easily refuted by distinguishing between invention and innovation, so any time someone else makes that distinction I get a warm and fuzzy feeling.
ReplyDeleteNice use of graphics as well.
I liked your commentary on invention vs. innovation. Would have liked to see some more input on the 7 sources as opposed to just defining them. Nice graphic to go along with your commentary!
ReplyDelete