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Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
Drucker chapter 3
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Drucker chapter 3

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  • 1. CHAPTER 3 DISCUSSION QUESTIONS 1) Why does Starbucks exemplify what Drucker considered to be true innovation? 2) What are Drucker's 4 basic questions about innovation? 3) Pick a company that you think is innovative (other than Apple). Why do you consider the company innovative? What are the company's strengths? 4) What is systematic abandonment? 5) What are Drucker's 7 key sources of opportunities? 6) How do the companies, Kimberly-Clark & Peapod, exemplify Drucker's concept of systematic abandonment? 7) For the 7 key sources of opportunities, give an example of how a company exemplifies each opportunity.
  • 2. INNOVATION “ THE BEST WAY TO PREDICT THE FUTURE IS TO CREATE IT.” PETER DRUCKER -A CHANGE IN THE THOUGHT PROCESS FOR DOING SOMETHING, OR THE USEFUL APPLICATION OF NEW INVENTIONS OR DISCOVERIES.
  • 3. INNOVATION IS ABOUT: 1) PARADIGM CHANGE: CHANGING PEOPLE’S MINDSET. -PARADIGM: A STANDARD SERVING AS A MODEL. 2) BREAKING FREE FROM YESTERDAY AND CREATING TOMORROW. 3) MAKING A PRODUCT/SERVICE BETTER. 4) INCREASING VALUE.
  • 4. WHY DOES STARBUCKS EXEMPIFY WHAT DRUCKER CONSIDERS TO BE TRUE INNOVATION?
  • 5. PARADIGM CHANGE STARBUCKS CHANGED THE WAY WE THINK ABOUT THE FAST FOOD COFFEE INDUSTRY. BEFORE STARBUCKS: -COFFEE WAS SOMETHING WE GOT BETWEEN PLACES (HOME TO WORK, WORK TO KIDS’ SPORTS GAMES, ETC.) AFTER STARBUCKS: -COFFEE BECAME A GO-BETWEEN DESTINATION. PEOPLE STOPPED IN STARBUCKS & STAYED.
  • 6. JACK KEROUAC (ON THE ROAD) INTRODUCED THE PHRASE “BEAT GENERATION” IN 1948 TO CHARACTERIZE THE UNDERGROUND, ANTI-CONFORMIST YOUTH GATHERING IN NEW YORK AT THAT TIME. “ BEAT GENERATION” WAS TRANSFORMED TO “BEATNIK” BY THE MEDIA IN THE LATE 1950’S & EARLY ’60’S TO CHARACTERIZE THE ATTITUDE OF THE HIPPIE GENERATION.
  • 7.  
  • 8. STARBUCKS PROBLEMS
  • 9. 1) TOO MANY STORES 2) POOR EMPLOYEE TRAINING 3) HONEYMOON EFFECT 4) BETTER COFFEE COMPETITION 5) BRAND CONFUSION
  • 10. TOO MANY STORES
    • 11, 068 STORES IN U.S.
    • 6,400 DUNKIN DONUTS IN U.S.
  • 11. POOR EMPLOYEE TRAINING FEBRUARY 26, 2008 STARBUCKS NATIONWIDE EMPLOYEE TRAINING DAY “ I NEED MY STARBUCKS.” “ THEY DON’T SHUT DOWN MCDONALDS FOR TRAINING, OR EVEN, DUNKIN’ DONUTS. TRAINING IS DONE WHEN YOU FIRST START & THEN CONTINUOUSLY ONWARD.”
  • 12. HONEYMOON EFFECT
  • 13. INCREASED COMPETITION
  • 14. WWW.DUNKINBEATSTARBUCKS.COM -A&G RESEARCH, INC. CONDUCTED 2008 TASTE TEST. -54.2% PREFERRED DUNKIN DONUTS -39.3% PREFERRED STARBUCKS -6.3% EXPRESSED NO INTEREST
  • 15. BRAND CONFUSION
  • 16. MYSTARBUCKSIDEA.COM
  • 17. WHY IS IT IMPORTANT FOR COMPANIES TO INNOVATE? OTHER INNOVATIVE COMPANIES?
  • 18.
    • 4 BASIC INNOVATION QUESTIONS
    • WHAT DO YOU HAVE TO ABANDON TO CREATE ROOM FOR INNOVATION?
    • DO YOU SYSTEMATICALLY SEEK OPPORTUNITIES?
    • DO YOU USE A DISCIPLINED PROCESS FOR CONVERTING IDEAS INTO PRACTICAL SOLUTIONS?
    • DOES YOUR INNOVATION STRATEGY WORK WELL WITH YOUR BUSINESS STRATEGY?
  • 19. SYSTEMATIC ABANDONMENT -THE DELIBERATE PROCESS OF LETTING GO OF FAMILIAR PRODUCTS IN FAVOR OF THE NEW OR UNKNOWN.
  • 20. ABANDONMENT IS NOT JUST ABOUT ABANDONING A BUSINESS UNIT OR PRODUCT…..IT’S ABOUT ABANDONING ASSUMPTIONS AND MAKING ROOM FOR NEW IDEAS
  • 21. SEEKING OPPORTUNITIES -ORGANIZATIONS NEED TO BE CONTINUALLY ON THE OFFENSIVE (SEARCHING FOR NEW PRODUCTS/IDEAS). INNOVATION TIME OFF: GOOGLE ENCOURAGES ITS ENGINEERS TO SEPND 20% OF THEIR WORK TIME BRAINSTORMING NEW IDEAS.
  • 22.
    • 7 KEY SOURCES OF OPPORTUNITIES
    • THE UNEXPECTED
    • INDUSTRY & MARKET DISPARITIES
    • PROCESS VULNERABILITIES
    • INCONGRUITIES
    • DEMOGRAPHIC SHIFTS
    • CHANGES IN PERCEPTION
    • NEW KNOWLEDGE
  • 23.
    • THE UNEXPECTED
    • -UNEXPECTED OCCURRENCES (SUCCESSES & FAILURES) SIGNAL THAT BUSINESS EXPECTATIONS ARE OUT OF SYNC WITH REALITY.
    • -RECOGNIZING & UNDERSTANDING THE REASON FOR THIS MISMATCH IS A POWERFUL TOOL FOR INNOVATION.
  • 24. 2 ) INDUSTRY & MARKET DISPARITIES -OCCURS WHEN THERE IS A MISMATCH BETWEEN SUPPLY & DEMAND. -THE COMPANY HAS STAYED CONSTANT WHILE ITS INDUSTRY OR MARKET HAS CHANGED.
  • 25. 3) INCONGRUITIES -A CUSTOMER VALUE INCONGRUITY IS A DISCREPANCY BETWEEN WHAT THE CUSTOMER WANTS & WHAT THE COMPANY THINKS THE CUSTOMER WANTS.
  • 26. 4) PROCESS VULNERABILITIES -REFERS TO SOME PIECE OF THE WORKFLOW OR OPERATION THAT IS MISSING, DIFFICULT, OR NOT WORKING THAT PREVENTS USERS FROM EMBRACING THE PRODUCT.
  • 27. 5) DEMOGRAPHIC CHANGES -CHANGES IN AGE POPULATIONS & THEIR DISPOSABLE INCOME CREATE DEMAND & MISMATCHES WITH HISTORICAL SUPPLIES OF SERVICES.
  • 28. 6) PERCEPTION & PRIORITY CHANGES THAT SHIFT BUYING HABITS -CHANGES IN PERCEPTION DON’T CHANGE THE FACTS, THEY JUST CHANGE THE CUSTOMERS’ INTERPRETATION OF THE FACTS. -PERCEPTION IS REPRESENTED BY BOTH VULNERABILITY & CUSTOMER RECEPTIVITY.
  • 29. 7) NEW KNOWLEDGE -SCIENTIFIC BREAKTHROUGHS TEND TO HAVE LONG LEAD TIMES & ARE BOTH HIGH RISK & HIGH IMPACT
  • 30.
    • THE ONLY WAY TO PREDICT THE FUTURE IS TO CREATE IT
    • -INNOVATION IS A TOOL THAT GIVES AN ORGANIZATION A DEGREE OF CONTROL OVER THE FUTURE.
    • CATEGORIES OF SPACE OWNERSHIP
    • FIRST OWNER OF THE SPACE
    • SPACE DEFINER
    • NICHE PLAYERS
    • LAST BUGGY WHIP MANUFACTURERS
  • 31. FIRST OWNER OF THE SPACE -THE COMPANY THAT POPULATES THE NEW MARKET FIRST WITH THE MOST INTEGRATED SOLUTION. -TEMPORARY BECAUSE IMITATORS WILL FOLLOW.
  • 32. SPACE DEFINER -CREATES SOMETHING (PRODUCT OR IDEA) THAT DEFINES THE NEW SPACE IN SOME FASHION.
  • 33. NICHE PLAYERS PURPOSEFULLY LET THEIR COMPETITORS DEFINE THE OVERALL SPACE & THEN BECOME PROVIDERS TO THESE LEADERS WITH PRODUCTS, COMPONENTS, OR SOLUTIONS
  • 34. -THERE IS A RISK TO JUST STICKING TO WHAT YOU ARE GOOD AT. -IF YOU DON’T INNOVATE/DIVERSIFY THE PRODUCT MAY DISAPPEAR & SO MAY YOUR COMPANY. LAST BUGGY WHIP MANUFACTURERS

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