Peter F. Drucker on Innovation
2014-08-22 14:32:06
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Peter F Drucker on Innovation
Drucker’s Five Principles of Innovation
From Innovation and Entrepreneurship by Peter F Drucke
Peter F. Drucker on Innovation
Drucker’s Five Principles of Innovation
From Innovation and Entrepreneurship by Peter F. Drucker
1. “Purposeful, systematic innovation begins with the analysis of the opportunities. It begins with thinking
through…the sources of innovative opportunities.”
2. “Innovation is both conceptual and perceptual… Successful innovators…look at figures, and they look
at people. They work out analytically what the innovation has to be to satisfy an opportunity. And then
they go out and look at the customers, the users, to see what their expectations, their values, their
needs are.”
3. “An innovation, to be effective, has to be simple and it has to be focused. It should do only one thing,
otherwise, it confuses. All effective innovations are breathtakingly simple. Indeed, the greatest praise
an innovation can receive is for people to say: ‘This is obvious. Why didn’t I think of it?’”
4. “Effective innovations start small… They try to do one specific thing.”
5. “A successful innovation aims at leadership [within a given market or industry]… If an innovation
does not aim at leadership from the beginning, it is unlikely to be innovative enough, and therefore
unlikely to be capable of establishing itself.”
Drucker’s Seven Opportunities for Innovation
From Innovation and Entrepreneurship by Peter F. Drucker
1. “The unexpected—the unexpected success, the unexpected failure, the unexpected outside event”
2. “The incongruity—between reality as it actually is and reality as it is assumed to be or as it ‘ought to
be’”
3. “Innovation based on process need”—perfecting a process that already exists, replacing a link that is
weak, or supplying a link that’s missing
4. “Changes in industry structure or market structure that catch everyone unawares”
5. “Demographics”—changes in a population’s size, age, composition, educational level, employment
status, or income
6. “Changes in perception”—when the customer goes from seeing the glass as half empty to seeing it as
half full
7. “New knowledge”—and not just technical or scientific breakthroughs, but the innovative use of this
knowledge to create a new product or service
Drucker on Innovation in the Social Sector
“Innovation is change that creates a new dimension of performance. All nonprofit organizations must be
governed by performance, not merely good intentions… In the social sector, as in business and
government, performance is the ultimate test of an organization. Every nonprofit organization exists for the
sake of performance in changing people and society… In the years ahead, America 's nonprofits will
become even more important. As government retrenches, Americans will look increasingly to the
nonprofits to tackle the problems of a fast-changing society. These challenges will demand innovation.”
– Peter F. Drucker, remarks on the Peter F. Drucker Award for Nonprofit Innovation
