Explain or Discuss:

The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.

- The entrepreneur always search for change, responds to it, and exploit it as an
opportunity because it is part of practice innovation as an entrepreneur and it is a specific
tool of entrepreneurs, the means by which they exploit change as an opportunity for
a different business or a different service. Entrepreneurs need to have an entrepreneur
mind to set his/her mind because that is their job to search properly or purposefully for
the sources of innovation, it can change successful innovation and opportunities. They
need to know and apply the principles of successful innovation. It also emphasizes that it
is important trait to entrepreneur to welcome the change, adapt to it and use it for a
favorable outcome or opportunities it tells us to improve and take advantage of it as the
opportunity because it can help us to include being self-motivated, fearless, optimistic
and future oriented. Entrepreneur always responds because it can help us to improve,
learn, and have a opportunity to have a different business or service. Exploit is that to be
able to explore about different business and to have a successful business someday.

Systematic innovation means monitoring seven sources for innovative opportunity.

- Systematic innovation means monitoring changes in existing business structures and

early entrepreneurs often take risks in entering a new business area. Therefore, the Seven
Sources of Innovative Opportunity, an innovation monitoring framework from Peter
Drucker is presented. Within this paper we investigate how this framework is related to
mass-customization and personalization. This tension provides a starting point for the
evaluation.
- Systematic innovation means monitoring seven sources for innovative opportunity. The
first four sources lie within the enterprise, whether business or public-service institution,
or within an industry or service sector.
- The lines between these seven source areas of innovative opportunities are blurred, and
there is considerable overlap between them. They can be likened to seven windows, each
on a different side of the same building. Each window shows some features that can also
be seen from the window on either side of it. But the view from the center of each is
distinct and different.
- Monitor the seven windows of innovative opportunity: the unexpected; the incongruity;
process need; changes in industry structure or market structure; changes in demographics;
changes in perception, mood, and meaning; and new knowledge.
 seven sources for innovative opportunity.

- There are, of course, innovations that spring from a flash of genius. Most innovations,
however, especially the successful ones, result from a conscious, purposeful search for
innovation opportunities, which are found only in a few situations. Four such areas of
opportunity exist within a company or industry: unexpected occurrences, incongruities,
process needs, and industry and market changes.

- Three additional sources of opportunity exist outside a company in its social and
intellectual environment: demographic changes, changes in perception, and new
knowledge.
- True, these sources overlap, different as they may be in the nature of their risk, difficulty,
and complexity, and the potential for innovation may well lie in more than one area at a
time. But together, they account for the great majority of all innovation opportunities.

1. The unexpected– The unexpected success, failure or 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

4. Changes in industry structure or market structure that catch everyone unawares.

The second set of sources for innovative opportunity involve changes outside the enterprise or
industry:

5. Demographics— population changes

6. Changes in perception, mood and meaning

7. New knowledge, both scientific and nonscientific.

“First source: The Unexpected. Look to see if a particular product or service has been in
greater or lesser demand than anticipated. If so, ask, Why? What would it mean to us if we
exploited the unexpected success? What would we have to do to convert it into an
opportunity? Set aside time to discuss unexpected success or failures. Do it for your clients,
too.

Second source: The Incongruity. A discrepancy between what is and what should be. An
example of this is given in Drucker’s trademark book noted above. In the early 1980s a mid
west securities firm did not assume that people invested to get rich and to play the market.
Small business people and successful professionals who had modest spending habits were
approached in respect to investment opportunities, to preserve their wealth not to trade. They
took the bait. Eventually, money market funds were invented for this type of investor.

Third source: Process Need. This one is task focused rather than situation focused. A
process is perfected or redesigned or a weak link replaced. For example, a motel that was
short on help and was having problems keeping up with the laundry simply installed the
washer and dryer in the room behind the receptionist desk. That way, in her or his spare time,
the reservations clerk could do the sheets and towels.

Fourth source: Industry and Market Structure Change. An obvious example is

deregulation. Watch for rapid growth of an industry. If an industry grows significantly faster
than the economy or population, structural problems will occur and changes are certain.
Also, when technologies converge, change is certain.

Fifth source: Demographics. Changes in population, age structure, educational status,

income. Discover these in the census findings at your public library or online.

Sixth source: Changes in Perception, Meaning, Mood. For example, today there is a trend
called “down aging.” No longer do we see people who are 50 as 50. We see them as 45. We
see those who are 70 as 65 or younger. Think of Raquel Welch. How old is she? The
cosmetic and medical industries have changed the way we regard age and the way we look.

Seventh source: New Knowledge. It has been said that in the information age, we will need
a college education every three years to keep pace with all the new knowledge. That, of
course, is impossible for all but bionic brains, but we can stay informed in our respective
areas of endeavors, and get together with associates and friends from differing backgrounds
to exchange ideas.”