Friday, September 14, 2012

7 Sources of Innovation

Innovations are sprouted from several sources of inspiration and the process by-which they evolve from a faint thought to an implemented action is quite diverse. Peter Drucker attempts to characterize the sources of innovation: The Unexpected, Incongruities, Process Needs, Industry and market structure, Demographics, Changes in Perception, New knowledge. I find that many innovators throughout history have a unique insight to a respective area of specialization and they are able to identify opportunities and develop them with significant vigor. I will cease the opportunity to broadcast what comes to my mind for each of Drucker's 7 sources of innovation.

Unexppected: Margarine was originally an experimental form of axil grease,
 yuck!
Incongruities: Subways, fast food does not always need to come from a deep frier.
Process needs:
Where there is a store shelf at a Walmart or an Apple store for that matter; best believe there is a factory worker at Foxconn working a 90 hr work week committed to filling it. 
Industry and market structure: The coffee market that was once dominated by Dunkin Donuts and Starbucks: McDonald's with the real-estate decided to created the McCafe to steal market share from the former coffee giants along with adding WiFi in every store. Unlike Starbucks, there is no outlets at McDonlds for costumer to use, I guess parking your computer for awhile will hinder McD's throughput.
Demographics:
Fazollies: the best Italian food chain that ever existed is huge hit in the United States and exists in most major cites and unlimited bread sticks. However, you will not find one in the North East, maybe they don't want to upset the mob?

http://fazolis.com/
Change in perception: Toyota's are awesome reliable cars with great fuel economy. However, kids don't want to drive their mom's beater Camry when they are picking up a girl he met at the skate park. Toyota, creates the Scion, re-branding at it's finest, and sales surge.
New knowledge:
"good artist create great artist steal..."
-Lianado Davinci, - Steve Jobs "Pirates of Silicon Valley"

(humor intended)

4 comments:

  1. Interesting examples, especially margarine. Could you please elaborate a bit more on how Fazollies is innovative by not coming to the Northeast? The other examples were rather clear and a couple were humorous but I am having trouble with Fazollies.

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  2. I guess I was trying to illustrate a counter-example to Demographic innovation. I do however think the market potential for Fazollies is tremendous in NE.

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  3. Margarine is actually basically one chemical bond away from being plastic! Thanks for bringing up Subway. I had still been struggling with the whole "incongruities" section but I think this example really brings it home.

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  4. Great examples, even if I really didn't want to know that about margarine. Bleh! There's an Italian restaurant on every corner in New England...could that be why Fazollies is taking it slow expanding here? Dunkin Donuts has the same issue expanding west. It's trying to go a bit more upscale with it's brand but that starts to bump against Starbucks.

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