PROGRAMME : MARKETING MANAGEMENT

MODULE : ENTREPRENEURSHIP

LECTURER : L NDLOVU

MODULE CODE : COEN2206

PART : 2.2

GROUP PARCIPANTS

CHIEDZA PORTIA MOYO LO224956M

RUDO TOGARA L022

LOVENESS T MKANDLA L022

NATHALIE F DANIELS L022

NICOLE GUMPO L022

PROMISE NGWABI L022

GROUP ASSIGNMENT QUESTION:

USING PETER DRUCKER SOURCES OF INNOVATION DISCUSS WAYS OF

COMING UP WITH INNOVATIVE IDEAS.
Innovation is defined as the process of bringing about new ideas, methods, products, services, or
solutions that have a significant positive impact and value, Jain (2023). In other words this
involves transforming creative concepts into tangible outcomes that improve efficiency, and
effectiveness or address unmet needs. Having defined innovation this write up will discuss ways
of coming up with innovative ideas, using the Peter's Druckers sources of innovation. The seven
sources of innovation include new technologies/knowledge, unexpected success and failure,
incongruities, changes in the industry, demographics, changes in meaning and perception, and
innovation based on process and needs .
.

THE UNEXPECTED

The first source of innovation according to Drucker is the unexpected P Drucker (2009). This
refers to the unpredictable opportunities, failures, disruptions and ideas that can arise from
random events or chance encounters that often lead to innovative ideas. For example in
Zimbabwe, the use of mobile money transfer services like EcoCash and OneWallet started as an
unexpected innovation. These services were originally created as a way for people to send
money to family and friends, but they’ve grown into a major part of the country’s economy.
People now use these services to pay for goods and services, and they’ve even become a tool for
financial inclusion.

INCOGRUITIES

Incogruities occur when there is a discrepancy between what is and what should be, presenting
an opportunity for innovation. It’s a disruption in the logic or rhythm of a process. For example
identifying incongruities in customer expectactions and actusl product perfomace can lead to
innovative improvements.

PROCESS NEEDS

Identifying unmet or changing process needs within an organization can lead to innovative
solutions. This source of innovation involves understanding the needs of the organization and its
processes and finding ways to improve them through innovation
INDUSTRY AND MARKET CHANGES
The emergence of new, fast-growing segments provides scope for innovation. Innovators can
serve the needs of these segments. The success of the small floppy disk drive manufacturers had
much to do with the emergence of new customer segments who wanted smaller and lighter disk
drives. According to Drucker, “New opportunities rarely fit the way the industry has always
approached the market, defined it, or organized to serve it. Innovators therefore have a good
chance of being left alone for a long time.
DEMOGRAPHIC CHANGES

Demographic changes result in new wants and new lifestyles that call for new products. The
Japanese pioneered robotics because they anticipated the rising levels of education and the
consequent shortage of blue-collared workers. In recent years, the ageing of Japan and Europe
has put pressure on governments to control healthcare expenses. This has fuelled the rise of
generic drugs. Demographic changes provide innovation opportunities that are the most
rewarding and the least risky, as the trends are easier to predict.A growing middle class is a
demographic trend that's having a big impact on the market. For example, in many developing
countries, the middle class is growing rapidly. This is leading to increased demand for products
and services that cater to middle-income consumers. Examples include cars, smartphones,
appliances, and home furnishings. In developed countries, the middle class is also growing,
leading to increased demand for premium products and services.
CHANGES IN PERCEPTION
Peter F. Drucker observed that perception and mood are key factors in finding innovative
opportunities . One way to change your perceptions is to reframe the way you look at things.
“The glass is full”and “The glass is half empty” are descriptions of the same phenomenom but
have vastly different meaning. Changing a manager’s perception of a glass from half full to half
empty opens up innovative opportunities. A change in perception does alter facts. It changes
their meaning, though and very quickly. It took less than two years for the computer to change
from being perceieved as a threat and as something only big businesses would use to something
one buys for doing income tax. Economics do not necessarily dictate such a change; in fact, they
may be irrelevant. What determines whether people see a glass as half fullor half empty is mood
rather than fact, and a change in mood often defies quantification. But it can be exotic. It is
concrete. It can be defined. It can be tested. It Can be exploited for innovation opportunity.
Advancement in science, changes in perception, and new knowledge can lead to innovative
ideas. For instance, advancements in science can lead to the developmentof new technologies
and product that address emerging needs and challenges. With growth of technology , there are
significant changes in the way people perceive the world.
NEW KNOWLEDGE/ TECHNOLOGIES
Another source mentioned by Peter Drucker is New Technologies and Knowledge. This is
simply coming up with innovative ways or ideas using technology which is constantly changing
and advancing. Anorld (2015) says new technologies, knowledge and discoveries can completely
change an industry. New technology, helps companies to run effectively protecting them from
hackers, spam, fraud and others. This new technology has revolutionized the way the human
brain think. Take Artificial intelligence it has helped business to understand marketing online
and brick and mortar marketing, leading to high sales, market growth. Further more, new
technologies has helped companies to identify new demographics, market segments and
understand human perceptions. Web3 tech has helped companies to have direct control over their
data, offer freedom of information and further protecting the company system.
recent years, Artificial Intelligence has gained a great deal of prominence. Both are linked to the
Web 3.0 concept, a significant example being assistants such as Siri. Thanks to automatic natural
language processing, the intelligent assistant can analyse, speak and interact with users.