Innovation and Entrepreneurship – by Peter F. Drucker
How strongly I recommend it: 8/10
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I recommend to read all Drucker’s books, the content is completely focused on the topic and it covers it in a way that can’t be outdated even 30 years after the publication date.
Entrepreneurs innovate. Innovation is the specific instrument of entrepreneurship. It is the act that endows with a new capacity to create wealth. Innovation, indeed, creates a resource.
Entrepreneurs who start out with the idea that they’ll make it big—and in a hurry—can be guaranteed failure.
The unexpected success is not just an opportunity for innovation; it demands innovation.
An incongruity is a symptom of an opportunity to innovate. Like the unexpected event, whether success or failure, incongruity is a symptom of change, either change that has already occurred or change that can be made to happen.
To succeed in doing a job, any job, one has to believe in it and take it seriously. People who make cosmetics must believe in them; otherwise, they turn out shoddy products and soon lose their customers.
Knowledge-based innovation, and especially in those innovations based on scientific and technological knowledge, there is only a short time—the window—during which entry is possible at all. Here innovators do not get a second chance; they have to be right the first time. The environment is harsh and unforgiving. And once the window closes, the opportunity is gone forever. In some knowledge-based industries, however, a second window does in fact open some twenty to thirty years or so after the first one has shut down.
The shakeout sets in as soon as the window closes. And the majority of ventures started during the window period do not survive the shakeout.
An innovation, to be effective, has to be simple and it has to be focused.
Effective innovations start small.
A successful innovation aims at leadership.
A business that wants to be able to innovate, wants to have a chance to succeed and prosper in a time of rapid change, has to build entrepreneurial management into its own system.
If it’s not totally market-focused, if not market-driven, then it will succeed only in creating an opportunity for a competitor.
The people who are running a new venture need to spend time outside: in the marketplace, with customers and with their own salesmen, looking and listening. The new venture needs to build in systematic practices to remind itself that a product or a service is defined by the customer, not by the producer.
Is under cash pressure when the opportunities are greatest.
Entrepreneurial strategy has more chance of success the more it starts out with the users—their utilities, their values, their realities. An innovation is a change in market or society. It produces a greater yield for the user, greater wealth-producing capacity for society,higher value or greater satisfaction. The test of an innovation is always what it does for the user. Hence, entrepreneur ship always needs to be market-focused, indeed, market-driven.