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The Practice of Innovation

Systematic Entrepreneurship Druckers Seven Sources for Innovative


Druckers Five Principles of Innovation

Day 04, June 09, 2010

Systematic Entrepreneurship
Who is enterpreneur?
J.B say defined in 1800:

the enterpreneaur shifts economic resouces out of an area of lower and into an area of higher productivity and greater yield But there is confusion over the definition for e.g in USA it is defined as one who starts his own new and small business So, not every new & small business is enterpreneural or represents enterpreneurship:

Continue..with a debate
E.g-1 opening a HOT n SPICY new Branch at NAWABSHA-Sindh
It is taking risk

They dont create new satisfaction neither creat

new consumer demand So they r not enterpreneurs even though there is a new venture.

E.g-2 How about McDonalds at Sea View

It didnt invent anything new but applied

management practices n techniques, created new market demand for same old burgerso

Entrepreneurs create something new, different, they change or transmute values.
An enterprise also does not need to be small

and new to be an entrepreneur.

What about large n old enterprises like G.E and

Marks n Spencer.

Finally it is not confined to economic institutions only.

E.g University as change agent.semester system

Modern Hospitals

Thus the entrepreneur always searches for change, responds to it, and exploit it as an opportunity. Entrepreneurship could be less risky:
E.g- IBM, E.g- Marks & Spencer, E.g- P &G,E.g- 3M

Thus enterpreneaurship need to be

systematic, it needs to be managed irrespective of size, growth and risk level. It needs to be based on purposeful Innovation.

Purposeful innovation and Seven Sources for Innovative Opportunities

1. The unexpected The unexpected: success, failure, outside event..t.v in japan by Matsushita co. the failure of Fords Edsel in 1957then thunderstorm for life style segment of society 2. The incongruity As is VS Ought to be

3. Innovation based on process need

4. Changes in industry or market structure

5. Demographics

Population changes

6. Changes in perception, mood and meaning

Coca Cola logo.when seen in mirror

Both scientific and non-scientific

7. New knowledge

Five Principles of Innovation

1. Begin with an analysis of the opportunity.

2. See peoples expected response 3. Be simple and clearly focused on a specific need

4. Start small
5. Aim at market leadership