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Innovation and entrepreneurship, Peter Drucker on innovation and Entrepreneurship

This is a lecture for students of entrepreneurship elective at the Ateneo Graduate School of Business. It has been uploaded slideshare for the convenience and access of present and former students for the said elective.This will update the former students on the latest in entrepreneurship. The ppt also talks about a new revolution - the entrepreneurial revolution. This perhaps is in consonance with quote from Jefferson that every age needs a revolution.

The presentation is essentially Drucker, the management guru for the 20th century

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Innovation and entrepreneurship, Peter Drucker on innovation and Entrepreneurship

  1. 1. Innovation and Entrepreneurship Agsb entrepreneurship elective lecture
  2. 2. Book by Peter Drucker, management guru
  3. 3. Peter Drucker
  4. 4. Definitions <ul><li>Entrepreneurship – “shift of economic resources out of an area of lower to higher productivity of greater yield.” J. B. Say 1800 </li></ul><ul><li>Innovation – “creating value out of existing </li></ul><ul><li>resources.” A specific tool of entrepreneurship. </li></ul><ul><li>They go hand in hand! </li></ul>
  5. 5. Innovation & Entrepreneurship
  6. 6. Entrepreneurship
  7. 7. NEW VALUE FROM EXISTING <ul><li>Entrepreneurship – “destroying old order and creating something new.” Schumpeter </li></ul><ul><li>Innovation – innovare to make new </li></ul><ul><li>- creating value from existing things </li></ul><ul><li>processes </li></ul><ul><li>- not just new things; they have to be </li></ul><ul><li>NEW VALUE </li></ul>
  8. 8. Types of innovation <ul><li>Technical </li></ul><ul><li>Social </li></ul><ul><li>Economic </li></ul><ul><li>Most innovations are social and economic. </li></ul><ul><li>THEY HAVE THE MOST IMPACT! </li></ul>
  9. 9. Social innovations <ul><li>Textbooks </li></ul><ul><li>Hospitals </li></ul><ul><li>Management </li></ul><ul><li>Organizations </li></ul><ul><li>Universities </li></ul><ul><li>Night/adult schools </li></ul>
  10. 10. Technological Innovations
  11. 11. Review <ul><li>Creativity </li></ul><ul><li>Innovation </li></ul><ul><li>Inventor </li></ul><ul><li>Entrepreneur </li></ul><ul><li>Who was Edison? </li></ul>
  12. 12. Is innovation only for small businesses?
  13. 13. Characteristics of innovation <ul><li>It is hard work </li></ul><ul><li>It is systematic </li></ul><ul><li>It focuses on opportunities; not problems </li></ul><ul><li>It is focussed </li></ul><ul><li>It is customer-centric </li></ul><ul><li>Its effect is felt in the economy and society </li></ul>
  14. 14. Practices of innovative companies <ul><li>Responsibility for innovation </li></ul><ul><li>Rewarding innovators </li></ul><ul><li>“ Hiving off” – divisionalisation </li></ul><ul><li>Changing corporate rules to nurture </li></ul><ul><li>innovation </li></ul>
  15. 15. Skunk works at Lockheed
  16. 16. 3M
  17. 17. 3m products
  18. 18. R & D
  19. 19. Johnson & Johnson
  20. 20. R & D
  21. 21. R & D
  22. 22. Innovation Strategies
  23. 23. 1.“The Fustest with the Mostest ” Original innovations
  24. 24. At the Lead Pack..
  25. 25. Example companies
  26. 26. Original innovators
  27. 27. 2. Creative imitators “ Not the orig..”
  28. 28. “ Wheel suckers?”
  29. 29. Examples <ul><li>IBM </li></ul><ul><li>J &J </li></ul><ul><li>Seiko </li></ul><ul><li>National </li></ul><ul><li>Swatch </li></ul>
  30. 30. Battle of the watches
  31. 31. 3. Creating main value propositions Business model
  32. 32. How does a company earn? – business model
  33. 33. MVP <ul><li>Utility to the customer </li></ul><ul><li>Price </li></ul><ul><li>Customer’s reality </li></ul><ul><li>True value </li></ul>
  34. 34. Innovation policies in nations <ul><li>WHAT WILL NOT WORK: </li></ul><ul><li>CENTRAL PLANNING </li></ul><ul><li>RELYING ON TECHNOLOGICAL INNOVATION ONLY </li></ul>
  35. 35. Communist Party approving a central dev’t plan
  36. 36. What will work? <ul><li>CREATIVE DESTRUCTION OF THE OBSOLETE: </li></ul><ul><li>New tax laws that will favor sale of non – performing assets. </li></ul><ul><li>Sunset laws for obsolete gov’t agencies. </li></ul>
  37. 37. “ Every generation needs a revolution ” -Thomas Jefferson
  38. 38. French Revolution
  39. 39. Entrepreneurial Revolution?
  40. 40. Another revolution in Egypt –entrepreneurial revolution
  41. 41. Vernuft wind Unsinn,Wohltat Plage “Reason becomes nonsense, Boons afflictions” Goethe
  42. 42. Obsolescence
  43. 43. Old Manila
  44. 44. The new gets old
  45. 45. Thank you! [email_address]
  46. 46. acknowledgement <ul><li>The picture and photographs are from Google images; </li></ul><ul><li>The bulk of the presentation are interpretation of the work of Peter Drucker’s book on innovation and entrepreneurship. (creative innovation?) </li></ul>

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This is a lecture for students of entrepreneurship elective at the Ateneo Graduate School of Business. It has been uploaded slideshare for the convenience and access of present and former students for the said elective.This will update the former students on the latest in entrepreneurship. The ppt also talks about a new revolution - the entrepreneurial revolution. This perhaps is in consonance with quote from Jefferson that every age needs a revolution. The presentation is essentially Drucker, the management guru for the 20th century

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