67
" Few public-service institutions define their objectives in such absolute terms. But even company personnel departments and manufacturing service staffs tend to see their mission as ‘doing good’, and therefore as being moral and absolute instead of being economic and relative. This means that public-service institutions are out to maximize rather than to optimize. ‘Our mission will not be completed,’ asserts the head of the Crusade Against Hunger, ‘as long as there is one child on the earth going to bed hungry.’ If he were to say, ‘Our mission will be completed if the largest possible number of children that can be reached through existing distribution channels get enough to eat not to be stunted’, he would be booted out of office. But if the goal is maximization, it can never be attained. Indeed, the closer one comes towards attaining one’s objective, the more efforts are called for. For, once optimization has been reached (and the optimum in most efforts lies between 75 and 80 per cent of theoretical maximum), additional costs go up exponentially while additional results fall off exponentially. The closer a public-service institution comes to attaining its objectives, therefore, the more frustrated it will be and the harder it will work on what it is already doing. "
― Peter F. Drucker , Innovation and Entrepreneurship: Practice and Principles
68
" From the time she opened her doors to the modern world in 1867, Japan has been consistently underrated by westerners, despite her successful defeats of China and then Russia in 1894 and 1905, respectively; despite Pearl Harbor; and despite her sudden emergence as an economic superpower and the toughest competitor in the world market of the 1970s and 1980s. A major reason, perhaps the major one, is the prevailing belief that innovation has to do with things and is based on science or technology. And the Japanese, so the common belief has held (in Japan as well as in the West, by the way), are not innovators but imitators. For the Japanese have not, by and large, produced outstanding technical or scientific innovations. Their success is based on social innovation. "
― Peter F. Drucker , Innovation and Entrepreneurship: Practice and Principles
70
" Specifically, 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. They are therefore visible primarily to people within that industry or service sector. They are basically symptoms. But they are highly reliable indicators of changes that have already happened or can be made to happen with little effort. These four source areas are: • The unexpected – the unexpected success, the unexpected failure, the unexpected outside event; • The incongruity – between reality as it actually is and reality as it is assumed to be or as it ‘ought to be’; • Innovation based on process need; • Changes in industry structure or market structure that catch everyone unawares. The second set of sources for innovative opportunity, a set of three, involves changes outside the enterprise or industry: • Demographics (population changes); • Changes in perception, mood, and meaning; • New knowledge, both scientific and nonscientific. "
― Peter F. Drucker , Innovation and Entrepreneurship: Practice and Principles
75
" The next step is, then, for each member of the group, beginning with the founder, to ask: ‘What are the activities that I am doing well? And what are the activities that each of my key associates in this business is actually doing well?’ Again, there is going to be agreement on most of the people and on most of their strengths. But, again, any disagreement should be taken seriously. Next, one asks: ‘Which of the key activities should each of us, therefore, take on as his or her first and major responsibility because they fit the individual’s strengths? Which individual fits which key activity?’ Then the work on building a team can begin. The founder starts to discipline himself (or herself) not to handle people and their problems, if this is not the key activity that fits him best. Perhaps this individual’s key strength is new products and new technology. Perhaps this individual’s key activity is operations, manufacturing, physical distribution, service. Or perhaps it is money and finance and someone else had better handle people. But all key activities need to be covered by someone who has proven ability in performance. "
― Peter F. Drucker , Innovation and Entrepreneurship: Practice and Principles
80
" Fifty years later, in the 1920s, the American DuPont Company independently set up a similar unit and called it a Developmental Department. This department gathers innovative ideas from all over the company, studies them, thinks them through, analyses them. Then it proposes to top management which ones should be tackled as major innovative projects. From the beginning, it brings to bear on the innovation all the resources needed: research, development, manufacturing, marketing, finance, and so on. It is in charge until the new product or service has been on the market for a few years. "
― Peter F. Drucker , Innovation and Entrepreneurship: Practice and Principles