What a great book — and difficult to review in a “cut to the chase” manner. “Innovation and Entrepreneurship
“, by Peter F. Drucker, outlines a systematic approach for identifying innovation opportunities, and growing a culture of innovation within an organization. He provides a view of innovation as a style of working — a way of paying attention to, researching, and responding to key market changes.
The chapter on “Principles of Innovation” offers a nice list of Do’s and Dont’s, but this is just scratching the surface of the wisdom in this book:
Do’s:
- “Purposeful, systematic innovation begins with the analysis of the opportunities.”
- “Go out and look at the customers, the users, to see what their expectations, their values, their needs are.”
- “An innovation has to be simple, and it has to be focused. It should do only one things, otherwise, it confuses.”
- “Effective innovations start small.”
- “Successful innovation aims at leadership.”
Dont’s:
- “[Do] not try to be clever.”
- “Don’t diversify… don’t try to do too many things at once.”
- “Don’t try to innovate for the future. Innovate for the present!”
Here are some of the quotes I highlighted while reading:
- “The test of an innovation… lies in its success in the marketplace.”
- “Most of Silicon Valley are still inventors rather than innovators, still speculators rather than entrepreneurs.”
- “Entrepreneurship… is a behavior rather than [a] personality trait.”
- “The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”
- “Entrepreneurship is ‘risky’ mainly because so few of the so-called entrepreneurs know what they are doing.”
- “Anything truly new that looks big is indeed to be distrusted. The odds are heavily against its succeeding.”
- “The organization must be… willing to perceive change as an opportunity rather than a threat.”
- “Only when people with proven performance capacity have been assigned to a project, supplied with the tools, the money, and the information they need to do the work, and given clear and unambiguous deadlines — only then do we have a plan.“
- “To render an existing business entrepreneurial, management must take the lead in making obsolete its own products and services rather than waiting for a competitor to do so.”
- “The people responsible for an existing business will… always be tempted to postpone action on anything new, entrepreneurial, or innovative until it is too late.”
- “A business needs only a very small share of a small market to be successful.”
- “Failure to achieve objectives should be considered an indication that the objective is wrong, or at least defined wrongly.”
- “The probability of success… diminishes with each successive try.” (In reference to pursuing the same idea multiple times.)
- “One cannot do market research for something that is not yet on the market.”
- “The new venture needs to build in systematic practices to remind itself that a ‘product’ or a ’service’ is defined by the customer, not by the producer.”
- “Businesses are not paid to reform customers. They are paid to satisfy customers.“
- “The founder has to learn to become the leader of a team rather then a ’star’ with ‘helpers.’”
- “A product is not ‘quality’ because it is hard to make and costs a lot of money… Customers pay only for what is of use to them and gives them value. Nothing else constitutes ‘quality.’”
- “A ‘premium’ price is always an invitation to the competitor.”
- “Trying to satisfy everybody… always ends up satisfying nobody.”
- “Charge for what represents ‘value’ to the customer rather then what represents ‘cost’ to the supplier.”
If you’re interested in learning how to develop a professional practice of innovation and entrepreneurial management, this is a great book to read. Sure, it’s a little dated (as Drucker’s work is going to be), but it doesn’t get in the way or dilute the message — and offers insightful business history and lessons that are still relevant today.
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“Design thinking can be described as a discipline that uses the designer’s sensibility and methods to match people’s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity.”
(Via Design Thinking.)
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