The Discipline of Innovation - Article Example

There has been always a lot of discussion between academics and business professionals alike, as to whether inspiration or hard work is the most important source of innovation. Perter Drucker argues that organizations,managers and individuals must learn to strike a balance between the two functions. As managers we must be able to take an active role in the process of improvement and innovations while allowing the flexibility, and liberty for individuals and organizations to take the necessary leaps of faith that lead to revolutionary ideas,concepts and processes.

Drucker has identified that a methodical approach to analyzing seven areas of opportunities drive all new innovation. The scope of analysts for these range from a business and technological advancements standpoint, to areas of opportunity focused more on a social or demographic nature. Innovative,astute managers will identify and apply all seven areas of opportunity to the organization,while being able to create an organization culture that values,molds and drives “functional inspiration”, which require a certain level of imagination and out of the box thinking associated with the unknown.

In society the concept of entrepreneurship is sometimes very narrowly defined. It is usually viewed as as new small businesses or individuals who strive to become one through new businesses or ideas. But in a broader sense,any enterprise that creates new products,ideas or processes is in fact an entrepreneur. The seven areas of innovation opportunity are:1)Unexpected Occurrences- In businesses just like life are extremely unpredictable in nature. Whether it is an individual entrepreneur or a business,we must learn to deal with changes and unexpected situations with a vision toward exposing and exploiting any new opportunities or systemic improvements that can arise from such situations.2)Incongruities- There are countless industries,jobs,situations and processes where the nature or flow of the work is interrupted or made less efficient because of certain steps or requirements for the successful completion of the project,process or job as whole.

Analyzing,assessing and improving the flow or efficiency of any product or process and eliminating this kinks or incongruities is a major source of meaningful innovation.3)Process improvements- Technological changes bring about numerous opportunities to not only fix old problems in any process or technological endeavor but actively improve the efficiency or effectiveness of any process through innovative and creative use of new technologies.4)Industry and Market changes-Market conditions is extremely variable and unpredictable,and it can greatly affect demand for certain products or services negatively or positively sometimes within a short period of time,it can make or destroy a business.

Similarly Industry changes whether driven by technology or market demand conditions provide great opportunities for creative and successful innovators to solve,adapt or improve products and processes to meet new market conditions more effectively and efficiently.5)Demographic changes- Of the outside sources of information,demographic factors are viewed as the most reliable sources of innovation. This is mainly to to its objective, easily measurable and predicted outcome of such changes or events.6) Changes in Perception- The human being and society as whole is in a constant state of flux,which drives and constantly changes consumer preferences,expectations and perceived needs for products or services.7)New Knowledge-Although new knowledge typically drive historic technological innovation and new technological advances,most are improvements or changes of existing products or processes but are just as important to society as a whole.