Innovation

The outcome
Entrepreneurship
The process
Innovation means create Value
Jump to the next curve
 NEW VALUE FROM EXISTING
• Entrepreneurship – “destroying old order and
creating something new.” Schumpeter
• Innovation – innovare to make new
- creating value from existing things
processes
- not just new things; they have to be

NEW VALUE
 Peter Drucker

Innovation is the specific instrument of entrepreneurship... the act that endows resources with a new capacity to create wealth.

, Innovation and
Peter Drucker

Entrepreneurship, 1985
Innovation & Entrepreneurship
 Innovation
• Doing something different rather something
better
• Innovation is about society and economics
• Innovation is a diagnostic discipline
• Organisations: Resources, Processes, Culture
• Increase the yield of resources
• A culture of innovation
• A process that supports innovation
 Entrepreurship
The purposeful and organised search
for changes and the systematic analysis
of the opportunities such changes
might offer for economic or social innovation
 Sources Of Innovation – Internal

• - internal External
• -
• - The Unexpected
The Incongruity Demographics
A Process Need Changes in Perception
Changes in Industry New Knowledge
Structure/Market Need
 To Succeed
• Technical Excellence
– Demonstrable track record
– Exemplar
– External approval
• Business Excellence
– Understand the stuff your not expected too
– Know your audience
– Selling
– Listen
• Execution Excellence
– Gets things done
– Tenacity
– Understand the organisation
 Conclusion
• Its an economic discipline
• Need to be explicit about innovation
• It takes time
• Easier and harder in large organisations
• Successful Innovation = Longevity
– Microsoft, IBM, Procter & Gamble, 3M
• Unsuccessful Innovation = Death
– British Leyland, Data General, Digital, Compaq
• “I think there is a world market for maybe
five
• computers.”
• Thomas Watson
• Chairman, IBM
• 1943
• “This telephone has too many shortcomings
• to be seriously considered as a means of
• communication. The device is inherently of
• no value to us.”
• Western Union internal memo
• 1876
• “There is no reason why anyone would want
a
• computer in their home.”
• Ken Olsen
• Founder, Digital Equipment Corp.
• 1977