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The Unexpected Success - Notes on an excerpt of Peter Drucker's work

The Unexpected Success - Notes on an excerpt of Peter Drucker's work

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From a summary of Innovation and Entrepreneurship
by Peter Drucker

The Unexpected Success

Mitchell Phoenix are market leaders in providing innovative, results driven, leadership and management training programs across four continents.

An essay on the key areas every business should pay attention to.

www.mitchellphoenix.com
From a summary of Innovation and Entrepreneurship
by Peter Drucker

The Unexpected Success

Mitchell Phoenix are market leaders in providing innovative, results driven, leadership and management training programs across four continents.

An essay on the key areas every business should pay attention to.

www.mitchellphoenix.com

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Categories:Types, Research
Published by: James Donnelly - Mitchell Phoenix on Apr 03, 2009
Copyright:Attribution Non-commercial

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05/10/2014

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 www.mitchellphoenix.com 1
From a summary of
Innovation and Entrepreneurship
 by Peter DruckerThe Unexpected Success
 Drucker writes that this is the most fertile area for successful innovation, and yetmanagements often miss or actively reject the opportunity an unexpected successpresents.Example:A major clinical instrument producer developed a new line of machines for performingbiological and clinical tests in hospitals. The line sold steadily. Then, unexpectedly, thecompany received a number of orders from industrial and university laboratories. Thecompany did not seize upon this unexpected success. This new market – separate fromthe hospital market for which the products had been developed – was not exploited.Salesmen did not target the new opportunity, and relationships were not forged withthe new customers. A few years later a competitor took over the university and industrymarkets, and because they proved to be very lucrative, it then invaded the hospitalmarket - in which the original company had previously had the largest share.Reasons why unexpected successes are often missed:
 
Existing reporting systems often do not report them – especially if the success isqualitative rather than quantitative (eg a new kind of customer for a product, asin the example above)
 
Anything which we have become used to in the business world is taken to be aconstant – an immutable law – and therefore anything which contradicts thisimmutable law is deemed to be unsound, abnormal or simply wrong
 
Top management may have spent their careers managing specific products orservices in a specific way, and are sometimes unwilling to change what hasalways worked in the past
 
An unexpected success places a question mark next to the management’s judgement, and they may answer with a question of their own: “if this reallydoes present an opportunity, surely we would have thought of it before?”An unexpected success is often an indication that our Vision is not equal to Reality.There is something about Reality – market conditions, consumer decision making – ofwhich we are not fully aware.The hospital equipment manufacturer mentioned in the example had not realised thatusers of scientific equipment no longer existed in distinct, discrete groups: hospital,university and industrial. Now they were all part of a single market – users of scientificinstruments. The change produced two outcomes. First, a line of equipment designedfor use in hospitals could now be sold to other customers. Second, the market niche thecompany had previously occupied had been swept away: they were now in competitionwith a number of other manufacturers of scientific instruments. By the time the

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Darren Lim added this note
nice unexpected success

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