Peter Drucker's Seven Sources of Innovation



okay I want to share with you some wisdom from my favorite guru Peter Drucker so I'm going to share with you the seven sources of innovation from Drucker's great book innovation and entrepreneurship so number one is the unexpected so a great example of that is viagra so it was designed as a drug to solve a heart problem and all you know what it did so Lara went on to become one of the greatest drug success stories in the last 20 years but the success came from something that was completely unexpected second one is the incongruity so that's something where reality is different from what everyone to acknowledges so the one I like about that is the shipping container so the shipping container a really simple thing but it's being a key part of unlocking lower-cost international trade now the incongruity came because everyone assumed that the expensive part of shipping was when the boat was on the water reality is the key costs were putting stuff on the boat and taking stuff off the boat shipping container made that a whole lot easier whole lot easier to sort of mix goods and services and it all arose because someone spotted the incongruity third one is the process need so that's where there's a problem with the process and everyone's working around it so the classic for me is Dropbox so you remember when Dropbox came out that just recently been an explosion of devices and we're all getting caught with photos and music and documents in different spots you know some was on that phone someone's on our desktop Dropbox solve that problem in an easily and intuitively fourth one is industry or market structure so the classic for me in that is the Australian car manufacturing industry so for years we've been building large cars and the market shifted and wanted small cars and the Australian car industry just didn't adapt v 1.is demographics so that's about changes in the size or the makeup of a population so in the Western world we know that the population is aging so the proportion of older people is much greater than the proportion of younger people emerging world is it's exactly the opposite in the Western world that's got big implications on people's consuming patterns the sort of houses they want to live in where they want to live in and for government that's got a big impact on things such as health care six innovation is source of innovation is mood or meaning so that's where the mood of a population is changing so the classic for me is about food when I was a kid we celebrated the arrival of Kentucky Fried Chicken and McDonald's it was you know fantastic and now we've been through a number of waves of different thinking about food so firstly you know fat was evil now we're starting to think that carbs and sugar are evil all that's got implications for types of food people want to eat where they want to eat at the types of restaurants they want to go to so the market is changing the seventh and final source of innovation is new knowledge so that's that splitting of the atom you know that brand new piece of technology a lot of people think seem to think that that new knowledge is the only source of innovation but really as you can see it's it's only one of seven so even someone like Steve Jobs really didn't come up with a lot of new knowledge he was really good at packaging and existing technologies but he was quite good at understanding other things like it changes in mood or me so there you have it Drucker's seven sources of innovation what I'd like you to do is think about an innovation you're familiar with and see what is the source of

3 Comments

  1. Muhammad Zubair said:

    This helped me a lot!

    May 23, 2019
    Reply
  2. Anika Abel said:

    This was an awesome explanation of the 7 sources, thank you #2018

    May 23, 2019
    Reply
  3. Elijah Cheung said:

    Mr. Leunig you have enlightened my understanding to the 7 sources. Thank you so much

    May 23, 2019
    Reply

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