De Vera, Jenny Vhe F.

FIN100 1:00-3:00 PM
20-1264-916 Prof. Dante Narciso

Purposeful Innovation and the Seven Sources for

Innovative Opportunity

Innovation is the specific tool or an instrument of entrepreneurship. It creates

something new, something different, and entrepreneurs are willing to take the risk even
if the outcome will turn to be successful or a failure. Innovation is a key in all kinds of
businesses to have an opportunity against competitors to create a resource. Innovation
is how you turn products and services into creative one to meet the expectations and
satisfaction of the consumers.

Social Innovation is to meet the social needs of consumers. Example of social

innovation includes in terms of the development of institutions as schools and
universities, banks, and health. Social innovation was created to strengthen civil society.

Systematic innovation is the process of analyzing and solving problems with a

primary focus on identifying the correct problem to be solved and then generating
innovative solutions. Social innovation, therefore, consists of the purposeful and
organized search for changes and the systematic analysis of the opportunities such
changes might offer for economic or social innovation. The development of systematic
innovation capability requires a holistic and integrated approach to innovation across
the entire organization. This means managers get involved in innovation projects, and
innovation is prioritized in the business strategy, which is strongly aligned with
technology. Entrepreneurs need to search purposefully for the sources of innovation,
the changes and their symptoms that indicate opportunities for successful innovation.
And they need to know and to apply the principles of successful innovation

Innovation can occur as the occasional ‘lucky break’, but no business should rely
on such an approach. Systematic innovation capability is the ultimate competitive
weapon for organizations, as it has no ceiling on it, and can be applied in a broad range
of ways, from achieving cost reduction through innovation in process management, to
creating new streams of revenue.

Systematic innovation means monitoring seven sources for innovative

opportunity. The first four sources lie within the enterprise, whether business or public-
service institution. They are also highly reliable indicators of changes that have already
happened or can be made to happen with little effort. These sources are:
 The unexpected. unexpected success and unexpected failures are the sources
of new opportunities. The results became unexpected when things are just happened
unexpectedly. Success and failures are part of innovating products. But always keep in
mind that don’t give up on the day you failed. Solve the problem for your innovations
and always seek for a better solution.

The Incongruity. Incongruity is when reality doesn’t meet our expectations and
we can discover new insights and gain new perspectives. Incongruity can be a great
source of innovative ideas as we think that the impossible could turn into possible
situation.

Innovation based on process need. Innovation based on process needs

improves the process that already exists and redesign the things that already existing.

Changes in industry structure or market structure. As the business

landscape evolves, every organization has to adapt. Changes in industry shake-up the
businesses, and yet they can inspire people to create and explore new ideas. When
industry and market structure are changing, it can create great opportunities for
innovation in order to adapt and adjust quickly.

QUESTIONS:

1. Why practice systematic innovation is important to the entrepreneurs?

2. Why is innovation in the public-service institution so important?