The Seven Sources of Innovation: How to Find and Solve Problems in Any Context (PDF)
7 Sources Of Innovation Pdf Download
Innovation is the process of creating something new, useful, and valuable that meets a need or solves a problem. Innovation is essential for any organization or individual that wants to survive and thrive in a competitive and dynamic environment. Innovation can lead to improved products, services, processes, business models, customer experiences, social impacts, and more.
7 Sources Of Innovation Pdf Download
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But where do innovations come from? How can we find opportunities for innovation and generate creative ideas? One way to answer these questions is to look at the seven sources of innovation proposed by Peter Drucker, one of the most influential management thinkers of all time. Drucker identified seven sources of innovation that can help us discover potential areas for improvement, change, or novelty. These sources are:
The Unexpected
The Incongruity
The Process Need
The Industry and Market Structure
The Demographics
The Changes in Perception
The New Knowledge
In this article, we will explore each of these sources in detail and provide examples of innovations that emerged from them. We will also provide some tips on how you can use these sources to find opportunities and solve problems in your own context. By the end of this article, you will have a better understanding of the different sources of innovation and how to apply them to your own challenges and goals.
The Unexpected
The unexpected source of innovation refers to the situations or events that surprise us or deviate from our expectations. These situations or events can reveal hidden problems, unmet needs, or new possibilities that we may not have noticed before. By paying attention to the unexpected, we can find opportunities for innovation that others may overlook or ignore.
Some examples of innovations that emerged from the unexpected are:
The Post-it note: In 1968, a scientist at 3M named Spencer Silver was trying to create a strong adhesive, but instead he accidentally created a weak adhesive that could be easily removed and reattached. He did not know what to do with his invention until another 3M employee, Art Fry, used it to mark the pages of his hymn book. Fry realized that the adhesive could be used to create a new type of paper product that could stick to any surface and be removed without leaving any residue. Thus, the Post-it note was born.
The microwave oven: In 1945, a engineer at Raytheon named Percy Spencer was working on a radar system when he noticed that a chocolate bar in his pocket had melted. He realized that the microwaves emitted by the radar had heated up the chocolate. He then experimented with other foods and found that microwaves could cook them faster and more evenly than conventional ovens. He patented his invention and Raytheon launched the first commercial microwave oven in 1954.
The pacemaker: In 1956, a engineer at Wilson Greatbatch Technologies named Wilson Greatbatch was working on a device to record heart sounds when he accidentally inserted the wrong resistor into his circuit. He noticed that the device produced electrical pulses that mimicked the rhythm of the human heart. He realized that his device could be used to regulate the heartbeat of people with cardiac problems. He refined his invention and implanted the first pacemaker into a human patient in 1960.
How can you use the unexpected source of innovation to find opportunities and solve problems? Here are some tips:
Be curious and observant: Pay attention to what is happening around you and look for anomalies, surprises, or deviations from the norm. Ask questions like: Why did this happen? What does this mean? How can this be useful?
Be open-minded and flexible: Don't dismiss or ignore the unexpected as irrelevant or insignificant. Instead, embrace it as a potential source of insight or inspiration. Be willing to experiment and learn from your mistakes.
Be proactive and opportunistic: Don't wait for the unexpected to happen to you. Instead, seek out new experiences, perspectives, or challenges that can expose you to new possibilities or problems. Look for gaps, needs, or trends that others may not see or address.
The Incongruity
The incongruity source of innovation refers to the situations or events that contradict our assumptions, expectations, or values. These situations or events can reveal hidden problems, unmet needs, or new possibilities that we may not have noticed before. By paying attention to the incongruity, we can find opportunities for innovation that others may overlook or ignore.
Some examples of innovations that emerged from the incongruity are:
The iPod: In 2001, Apple noticed an incongruity between the growing popularity of digital music and the poor quality and usability of existing MP3 players. Apple decided to create a new device that would offer a better user experience and integrate seamlessly with its iTunes software and online store. The result was the iPod, which revolutionized the music industry and became one of the most successful products in history.
The Airbnb: In 2007, two designers named Brian Chesky and Joe Gebbia noticed an incongruity between the high demand and low supply of affordable accommodation in San Francisco during a design conference. They decided to rent out their spare room and air mattresses to some of the attendees and make some extra money. They realized that their idea could be scaled up and applied to other cities and travelers. They launched Airbnb, which disrupted the hospitality industry and became one of the most successful platforms in history.
The Netflix: In 1997, a software engineer named Reed Hastings noticed an incongruity between his love for movies and his frustration with late fees from video rental stores. He decided to create a new service that would allow customers to rent DVDs by mail and keep them as long as they wanted for a flat monthly fee. He launched Netflix, which challenged the video rental industry and became one of the most successful companies in history.
The Process Need
The process need source of innovation refers to the situations or events that require a change or improvement in a process or system. These situations or events can reveal hidden problems, unmet needs, or new possibilities that we may not have noticed before. By paying attention to the process need, we can find opportunities for innovation that others may overlook or ignore.
Some examples of innovations that emerged from the process need are:
The assembly line: In 1913, Ford noticed a process need to increase the efficiency and productivity of its automobile manufacturing. Ford decided to create a new system that would divide the work into simple and standardized tasks and move the cars along a conveyor belt from one station to another. The result was the assembly line, which reduced the production time and cost of each car and enabled mass production and consumption.
The barcode: In 1948, a grocery store owner named Bernard Silver noticed a process need to speed up the checkout and inventory management of his products. He decided to create a new system that would use a machine-readable code to identify and track each product. He partnered with a engineer named Norman Woodland to develop the barcode, which simplified and automated the retail and logistics operations.
The Google search engine: In 1996, two Stanford students named Larry Page and Sergey Brin noticed a process need to improve the quality and relevance of web search results. They decided to create a new system that would use a mathematical algorithm to rank web pages based on their popularity and authority. They launched Google, which transformed the web search industry and became one of the most successful companies in history.
How can you use the process need source of innovation to find opportunities and solve problems? Here are some tips:
Be analytical and critical: Pay attention to how things are done and look for inefficiencies, errors, wastes, or bottlenecks. Ask questions like: How can this be done faster, better, cheaper, or easier? What are the root causes of this problem? How can this be eliminated or minimized?
Be creative and experimental: Don't settle for the existing methods or solutions. Instead, explore different ways to do things and test them out. Try to combine, modify, simplify, or automate existing processes or systems.
Be collaborative and customer-oriented: Don't work in isolation or assume that you know what is best. Instead, involve other stakeholders and get feedback from them. Try to understand their needs, expectations, and preferences. Try to deliver value and satisfaction to them.
The Industry and Market Structure
The industry and market structure source of innovation refers to the situations or events that affect the structure or dynamics of an industry or market. These situations or events can reveal hidden problems, unmet needs, or new possibilities that we may not have noticed before. By paying attention to the industry and market structure, we can find opportunities for innovation that others may overlook or ignore.
Some examples of innovations that emerged from the industry and market structure are:
The Starbucks coffee shop: In 1987, Howard Schultz noticed an industry and market structure change in the coffee industry. He observed that coffee consumption was declining in the US due to the low quality and convenience of existing coffee products. He decided to create a new type of coffee shop that would offer high-quality coffee drinks and a comfortable and inviting atmosphere. He acquired Starbucks, which redefined the coffee industry and became one of the most successful brands in history.
The Uber ride-hailing service: In 2009, Travis Kalanick and Garrett Camp noticed an industry and market structure change in the transportation industry. They observed that taxi services were expensive, unreliable, and inconvenient for many customers. They decided to create a new type of service that would use a smartphone app to connect drivers and riders directly. They launched Uber, which disrupted the transportation industry and became one of the most successful platforms in history.
The Spotify music streaming service: In 2006, Daniel Ek and Martin Lorentzon noticed an industry and market structure change in the music industry. They observed that music piracy was rampant due to the high cost and inconvenience of buying CDs or downloading songs. They decided to create a new type of service that would offer unlimited access to millions of songs for a low monthly fee or free with ads. They launched Spotify, which challenged the music industry and became one of the most successful services in history.
How can you use the industry and market structure source of innovation to find opportunities and solve problems? Here are some tips:
Be aware and informed: Pay attention to what is happening in your industry or market and look for changes, trends, or shifts. Ask questions like: What is driving this change? How is this affecting the customers, competitors, suppliers, or regulators? What are the opportunities or threats?
Be strategic and competitive: Don't follow the crowd or stick to the status quo. Instead, look for ways to differentiate yourself and gain an advantage. Try to create, capture, or deliver value in a unique or superior way.
Be innovative and disruptive: Don't be afraid to challenge the existing rules or norms. Instead, look for ways to redefine or reshape the industry or market. Try to create new products, services, processes, business models, customer experiences, or social impacts.
The Demographics
The demographics source of innovation refers to the situations or events that relate to the characteristics or changes of a population. These situations or events can reveal hidden problems, unmet needs, or new possibilities that we may not have noticed before. By paying attention to the demographics, we can find opportunities for innovation that others may overlook or ignore.
Some examples of innovations that emerged from the demographics are:
The Baby Boomer generation: In the post-World War II era, there was a significant increase in the birth rate in many countries, creating a large cohort of people born between 1946 and 1964. This cohort had a significant impact on various aspects of society and economy, such as education, health care, consumerism, social movements, and culture. Many innovations emerged to cater to the needs, preferences, and values of this generation, such as rock music, fast food, personal computers, civil rights, environmentalism, and more.
The Millennial generation: In the late 20th and early 21st centuries, there was another significant increase in the birth rate in many countries, creating a large cohort of people born between 1981 and 1996. This cohort had a significant impact on various aspects of society and economy, such as technology, media, communication, education, work, and lifestyle. Many innovations emerged to cater to the needs, preferences, and values of this generation, such as social media, smartphones, online education, gig economy, wellness, and more.
, and social security. Many innovations emerged to cater to the needs, preferences, and values of this population, such as telemedicine, assistive devices, senior living, lifelong learning, and more.
How can you use the demographics source of innovation to find opportunities and solve problems? Here are some tips:
Be empathetic and respectful: Pay attention to the people you serve or interact with and look for their characteristics, needs, preferences, and values. Ask questions like: Who are they? What do they want? How do they behave? What do they care about?
Be inclusive and diverse: Don't exclude or ignore any group of people based on their age, gender, race, ethnicity, religion, or any other factor. Instead, embrace and celebrate their diversity and uniqueness. Try to understand and address their specific challenges and opportunities.
Be adaptive and responsive: Don't assume that people's needs, preferences, and values are static or homogeneous. Instead, recognize and anticipate their changes and variations. Try to adapt and respond to their evolving expectations and demands.
The Changes in Perception
The changes in perception source of innovation refers to the situations or events that affect the way people see themselves, others, or the world. These situations or events can reveal hidden problems, unmet needs, or new possibilities that we may not have noticed before. By paying attention to the changes in perception, we can find opportunities for innovation that others may overlook or ignore.
Some examples of innovations that emerged from the changes in perception are:
The organic food movement: In the late 20th and early 21st centuries, there was a significant change in the way people perceived food and health. People became more aware and concerned about the environmental and social impacts of conventional agriculture and food production. They also became more interested and informed about the nutritional and health benefits of organic food. This led to a growing demand and supply of organic food products and services.
The sharing economy movement: In the early 21st century, there was a significant change in the way people perceived ownership and consumption. People became more aware and concerned about the environmental and social impacts of overconsumption and waste. They also became more interested and willing to share their assets and resources with others. This led to a growing demand and supply of sharing economy platforms and services.
The mindfulness movement: In the early 21st century, there was a significant change in the way people perceived themselves and their well-being. People became more aware and concerned about the mental and emotional impacts of stress and anxiety. They also became more interested and open to practices that could help them cope and thrive. This led to a growing demand and supply of mindfulness products and services.
How can you use the changes in perception source of innovation to find opportunities and solve problems? Here are some tips:
Be attentive and curious: Pay attention to what people think and feel about themselves, others, or the world and look for changes, trends, or shifts. Ask questions like: What do they believe? How do they feel? What do they value?
Be relevant and meaningful: Don't offer products or services that are irrelevant or meaningless to people's perceptions or aspirations. Instead, offer products or services that are relevant or meaningful to their perceptions or aspirations. Try to create value that aligns with their beliefs, feelings, or values.
Be influential and inspiring: Don't be passive or indifferent to people's perceptions or aspirations. Instead, be active or involved in shaping or influencing their perceptions or aspirations. Try to create value that challenges or inspires their beliefs, feelings, or values.
The New Knowledge
The new knowledge source of innovation refers to the situations or events that involve new scientific or technological discoveries or developments. These situations or events can reveal hidden problems, unmet needs, or new possibilities that we may not have noticed before. By paying attention to the new knowledge, we can find opportunities for innovation that others may overlook or ignore.
Some examples of innovations that emerged from the new knowledge are:
The penicillin: In 1928, a scientist named Alexander Fleming discovered a new type of mold that could kill bacteria. He realized that his discovery could be used to create a new type of medicine that could treat infections. He developed penicillin, which revolutionized the field of medicine and saved millions of lives.
The transistor: In 1947, a team of scientists at Bell Labs discovered a new way to amplify and switch electrical signals using a small device made of semiconductors. They realized that their discovery could be used to create a new type of electronic component that could replace the bulky and fragile vacuum tubes. They developed the transistor, which revolutionized the fields of electronics and computing and enabled the development of radios, televisions, computers, and more.
The internet: In 1969, a team of researchers at DARPA created a new way to connect and communicate between different computers using a network of packet-switching nodes. They realized that their creation could be used to create a new type of global information system that could link people and resources across the world. They developed the internet, which revolutionized the fields of communication and information and enabled the development of email, web, social media, and more.
How can you use the new knowledge source of innovation to find opportunities and solve problems? Here are some tips:
Be knowledgeable and informed: Pay attention to what is happening in the fields of science and technology and look for discoveries, developments, or breakthroughs. Ask questions like: What is new? How does it work? What can it do?
Be creative and experimental: Don't limit yourself