The
Katipunan Forum
The Industry-Academe Forum on
Linkage, University Technology Transfer and Technology SME Development
Opinion
Peter Drucker’s Seven Sources of Innovation
by Dennis Posadas
“There is nothing more powerful, than an idea whose time has come.” - Victor Hugo
Perhaps one of the most commonly asked questions in business is whether
something in the world has changed and can be a source of a new business idea
or transformation. If we go back to the early 1980’s, the predominant view was
that PC’s were nothing more than toys and were not really useful for serious
computing, but a wave of newly minted MBA’s changed all that when they started
taking their PC’s to work because of a software program called a “spreadsheet”,
which was at that time a program called “Visicalc”.
Peter Drucker, renowned management guru, has drawn up seven sources of
innovation1. According to him, if these areas are monitored
carefully, one can spot possible areas for innovation. From the Philippine
perspective, here are some examples of how these can be utilized.
The Unexpected
Are people starting to behave differently ? New trends like coffee
drinking by teens didn’t exist in large numbers a few years ago. Are
multinational companies now subcontracting processes they have traditionally
held close to their
chests ? These are new developments that were previously unheard of.
September 11 is now forcing people and companies to act differently than how
they used to, prior to the tragedy.
Incongruities / Dissatisfaction
Are customers now demanding 24 hour by 7 day a week customer service ? If
a machine used to be operated standalone, is it now in vogue to operate it connected
to a network ? These are things that used to be taken for granted as problems,
but are now unacceptable.
Process Needs
In industry for example, there is always a need to do things “faster”, “better”
and “cheaper”. Have you discovered something that will speed up or make a
process faster or more efficient ?
Industry and Market Structures
Watch out for deregulation of industries. Are their monopolies being
formed or broken ? Are industries transforming
from aggrupations of large companies to one that is composed mostly of
smaller, nimbler companies ? Are these
real competitors or allies in hiding ? If the recent proposed buyout of
a large Philippine telecom by a competitor had proceeded, what would have been
the effect ?
Demographics
The baby boomers (people born after WWII), for example, are starting to
retire from industry. In their place, the
people from the “flower power” generation are taking over. Are they
looking for more “sixties/seventies” type of
entertainment or programming ?
Changes in Perception
Is the Philippines now being perceived as a center of innovation by
Western markets ? Are they now willing to come
here to subcontract some of their higher value added activities ?
You might be surprised by what Sept 11 did to the psyche of the West. A
lot of activities going on right now are altruistic (for common good), and not
necessarily for profit.
New Knowledge
This one is purely
technology. Have you discovered a totally new technology that will cure cancer,
or run a car
100 miles per gallon ?
Take note of these
things. Watch and ACT on it.
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1 Peter
Drucker, “Innovation and Entrepreneurship : Practice and Principles”, Harper
and Row Publishers, 1985