- The Unexpected
- Incongruities
- Process Needs
- Industry and Market Structure
- Demographics
- Changes in Perception
- New Knowledge
When I think of "The Unexpected" as a source of innovation, the first and likely most obvious example that comes to mind is the 3M post-it note story. For those who are unfamiliar, a chemist at 3M was tasked with developing a super-adhesive when he accidentally created the adhesive used in the ever so popular post-it notes. The rest is history.
The idea of "Incongruities" sort of leaves me seeking answers. It is interesting to think that new ideas for products or services can come from disagreements or opposing views; however, I am having trouble thinking of examples or applications of this source.
"Process Needs" to me seems like it would be the most common source of innovation. The idea is simple: There is a need to improve a process, develop a solution to meet the need. The entire Industrial Revolution centers around the idea of "Process Needs" as a source of innovation.
While the iPod can likely fit as an example to a few of the sources, it was the first example that came to mind when I thought of "Industry and market Structure." The music industry was shifting drastically with the advent of digital music sharing and peer to peer programs such as the late Napster. Apple found a way to capitalize on the shifting music industry and created what was arguably the biggest breakthrough in the history their company. Without the iPod, you don't get the iPhone.
"Demographics" was the most interesting of the seven sources for me. I considered many examples but the one that stuck out the most was the rap music industry. Over the last few decades, many rap artists have become entrepreneurs in their own right. Many used their own name as a brand in clothing, headphones, food and drink products, etc. These entrepreneurs were capitalizing on the lifestyles of their urban fan bases.
"Changes in Perception" was another interesting source to me. While certainly not "high-tech", a good example is when retro fashion trends become popular again. Smart companies take advantage of ever changing tastes in fashion and begin to develop clothing that suits the new perception of what may have been otherwise considered unfashionable just years ago.
Finally, "New Knowledge" is in my opinion right at the top of the list with "Process Needs" in terms of commonality. When I think of this source, the first thing that comes to mind is Moore's Law. As technology continue to advance at an exponential rate, the ability to develop innovative technology will also continue to advance.
Nice commentary on the 7 Sources, especially the demographics. I find it funny that "incongruities" keeps getting the shaft, not only here but in most places I looked at the 7 sources. The definition of incongruous (dictionary.com) is out place, inconsistent, disharmonious. When you look at the world and find incongruities there are opportunities to innovate, however, when next to "process needs" it may get down to splitting hairs. The Tata Nano is a good example of innovation, but was it seeking to correct an incongruity or process innovation? A family of four on a moped is a clear incongruity between family and transport, but the process of transportation needed innovation at the same time so the argument could get transfixed on details and minutia or it one can step back and focus on the fact that Tata's CEO innovated and India is better for it.
ReplyDeleteThe above is why I took my blog in the direction I did.
I agree, nice summary on the 7 sources of innovation. For Incongruities, Peter Drucker actually breaks this into 4 categories in his writing's which, I feel, clarifies in making sense of it. The basis for incongruities is perception versus reality or assumption version truth. He highlights the 4 categories as:
ReplyDeleteEconomic Realities
Realities and Assumptions
Customer Values and Expectations
Process
Here is a link to an article than summarizes them:
http://90daystolaunch.wordpress.com/2011/08/04/entrepreneurial-innovation-through-incongruities/
The economic realities is one area I feel companies do struggle and pose great challenges in which competitors can take advantage. I work with commodities and it can be seen greatly here where revenue and units sales are growing annually, but the bottom line stays stagnant. Everyone believes revenue and unit sales increase is a good thing, but if you are not increasing profits to match, what is the value? It also portrays a failing business model which will require some innovation to address.
Nice follow up research! Regarding volume and revenue, I work in retail, and we also sometimes cite "strong top line growth" but I always read that as our efforts to get feet in the door are working and downstream those feet should be more profitable.
ReplyDeleteWhat do you think.