1.

State the first set of sources that are within the industry and the second set of
sources which involves changes outside the Enterprise or industry.

- The first step in deliberate, systematic innovation, according to Drucker, is to analyze

the opportunities, which he categorizes as "Seven Sources of Innovative Opportunity."
The first four are related to a company or industry. They are essentially "symptoms,"
but they are dependable markers of changes that have already occurred or may be
induced with minimal effort. Peter Drucker classified the second set of sources for
innovative opportunity as involving changes outside the business or industry.

Sources Within the Business or Changes Outside the Enterprise

Industry or Industry
Unexpected Successes and
Changes in Demographics
Unexpected Failures
Incongruities Changes in Meaning and Perception
Process Needs New Knowledge
Changes in Industry and Market
Structure

2. Explain and give example on the unexpected success, the unexpected failure and
unexpected outside event that happens in a certain Enterprise or industry on their
successful innovations that exploit changes.

- Unexpected success means that something that goes beyond of what is expected.
A success that was not being imagine, or expected to happen for example, the
online selling or online business, it was unexpected to invade the business
industry due to the current Pandemic.
- Unexpected failure is something that on its peak of success that nobody could
never think that it will fail. For example, business that are related to tourism,
nobody or no one would ever think that it would but because of the covid-19
almost all business that are related to tourism were failed.
- Unexpected outside event is the innovative area that offers the large enterprise
the greatest opportunity along with the lowest risk. It may be the area that is
particularly suited for innovation by the large and established enterprise. But
 being big and established does not guarantee that an enterprise will perceive the
unexpected event and successfully organize itself to exploit it.

3. Explain the statements “an incongruity between the economic realities of an

industry” (or of a public service area).

- An incongruity between the economic realities of an industry means that a certain

business location is not fit/or appropriate to the business itself, meaning that the
target market is not fitted to the kind of business. The possibility of success is
very slim. The business does not match the location.

4. According to Peter Drucker “Opportunity is the source of Innovation” and

“Necessity is the mother of Innovation” Explain.

- True to the word itself, an opportunity to expand or the opportunity to requires

innovation, Innovation and opportunity based on the necessity or demands. The
necessity, needs, or demands, gives opportunity, an opportunity to innovate, an
innovation that will cater the necessity, needs, or demands.