Innovation and Entrepreneurship
America's foremost expert on management presents the first and only book to present entrepreneurship as a systematic discipline and to explain its great challenges and opportunities.

Innovation and Entrepreneurship Details

TitleInnovation and Entrepreneurship
Author
LanguageEnglish
ReleaseMar 17th, 2009
PublisherHarperCollins e-books
Rating
GenreBusiness, Entrepreneurship, Nonfiction, Management, Leadership, Economics

Innovation and Entrepreneurship Review

  • Herve
    January 1, 1970
    Far from my previous post about Perkins, Peter Drucker’s book Innovation and Entrepreneurship was a paradoxical reading. The first chapters were painful even if brilliant. I understood there that innovation is a process which will be successful if carefully planned and managed. Fortunately, chapter 9 completely changed my perception when the author dealt with knowledge-based innovation, which includes innovations based on science and technology. So let me summarize the main points of this chapte Far from my previous post about Perkins, Peter Drucker’s book Innovation and Entrepreneurship was a paradoxical reading. The first chapters were painful even if brilliant. I understood there that innovation is a process which will be successful if carefully planned and managed. Fortunately, chapter 9 completely changed my perception when the author dealt with knowledge-based innovation, which includes innovations based on science and technology. So let me summarize the main points of this chapter:1- the characteristics of knowledge-based innovation:a. the time span between the emergence of the technology and its application is long, 20 to 30 years,b. it is a convergence of several knowledge and until all the needed ones are available, this innovation can not succeed,2- the requirements:a. a careful analysis of the required factors, i.e. the available knowledge and the missing ones,b. a clear focus on the strategic position, i.e. you have to be right the first time or others will take your place,c. learn and practice entrepreneurial management, because most tech. innovators lack management skills ,3- the risks:a. first, even after a careful analysis, knowledge-based innovation remain unpredictable and turbulent (see also Moore’s books about the chasm and the tornado), and this is linked to its characteristics above; this has two important implication:i. time plays against innovators,ii. survival rate is low,b. there is a limited window where new ventures start, and when it closes, there is a general shakeout, where few survive; who survives is also unpredictable. The only chance of surviving is to have a strong management and resources,… and luck;c. there is also a receptivity gamble. Even market research does not work with these innovations and the reason why an innovation is accepted or not is also unpredictable.I have to admit this confirms an intuition I had since my VC years: you have to make a bet and then work hard. But there is no way, you can really plan the success of knowledge-based innovations.The end of the book is quite good, in particular its conclusion: “The first priority in talking about public policies is to define what will not work: Planning is actually incompatible with an entrepreneurial society and economy. Innovation has to be decentralized, ad hoc, autonomous, specific. It had better start small, tentative, flexible. […] It is popular today [1983!], especially in Europe, to believe that a country can have “high-tech entrepreneurship” by itself. But it is a delusion. In fact a policy which promotes high-tech and high-tech alone will not even produce high tech. All it can come with is another expensive flop, another Concorde. […] The French are right, economic and political strength requires high tech but there must be an economy full of innovators with vision and entrepreneurial values, with access to venture capital, and full of economic vigour.”
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  • Mohammad Shaker
    January 1, 1970
    As always, Peter Drucker is one of my favourites on the subject. A book from the 80s that still a great read today, on a very changing and challenging subject such as entrepreneurship, is a sole indicator of how great the book is.
  • David Garza
    January 1, 1970
    Even though this book is relatively old, its principles apply in every era. Drucker presents innovation as an ageless art form, in which all that changes is the approach. Any business owner, or out of the box thinker, should definitely read this book.
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  • Robert
    January 1, 1970
    Most people probably think that innovation and entrepreneurship is something that happens by chance or by magic. Reading this book by Peter Drucker should dispel this notion totally. Not only is innovation and entrepreneurship something that can be measured but it is something that can be learned.The book initially provides definitions of what innovation and entrepreneurship is, what the different types and aspects of each are and where they are most likely to occur. Drucker then continues on wi Most people probably think that innovation and entrepreneurship is something that happens by chance or by magic. Reading this book by Peter Drucker should dispel this notion totally. Not only is innovation and entrepreneurship something that can be measured but it is something that can be learned.The book initially provides definitions of what innovation and entrepreneurship is, what the different types and aspects of each are and where they are most likely to occur. Drucker then continues on with an analysis of how these factors can be fostered within any business.This is great book if you are looking to improve you business as it provides concrete analysis and steps you can take to encourage and promote innovation and entrepreneurship in your business.
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  • Nicholas
    January 1, 1970
    Peter Drucker is awesome.He turns innovation into a discipline. I need to read more of this guy.Drucker lists the seven places where innovation takes place and then goes into detail for each one. The interesting thing is that few of them are what people normally think of as innovation.Quotes:"Entrepreneurs are a minority among new businesses. They create something new, something different; they change or transmute values.""Entrepreneurship is thus a distinct feature whether of an individual or o Peter Drucker is awesome.He turns innovation into a discipline. I need to read more of this guy.Drucker lists the seven places where innovation takes place and then goes into detail for each one. The interesting thing is that few of them are what people normally think of as innovation.Quotes:"Entrepreneurs are a minority among new businesses. They create something new, something different; they change or transmute values.""Entrepreneurship is thus a distinct feature whether of an individual or of an institution. It is not a personality trait; in thirty years I have seen people of the most diverse personalities and temperaments perform well in entrepreneurial challenges.""The essence of any decision is uncertainty.""The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.""Nothing could be as risky as optimizing resources in areas where the proper and profitable course is innovation.""Entrepreneurship is "risky" mainly because so few of the so-called entrepreneurs know what they are doing. They lack the methodology. They violate elementary and well-known rules. This is particularly true of high-tech entrepreneurs.""Innovation, then, is an economic or social rather than a technical term. It can be defined the way J.B. Say defined entrepreneurship, as changing the yield of resources. Or, as a modern economist would tend to do, it can be defined in demand terms rather than in supply terms, that is, as changing the value and satisfaction obtained from resources by the consumer.""Entrepreneurs will have to learn to practice systematic innovation. Successful entrepreneurs do not wait until "the Muses kisses them" and gives them a "bright idea"; they go to work. Altogether, they do not look for the "biggie," the innovation that will "revolutionize the industry," create a "billion-dollar business," or "make one rich overnight." Those entrepreneurs who start out with the idea that they'll make it big - and in a hurry - can be guaranteed failure.""Systematic innovation therefore consists in the purposeful and organized search for changes, and in the systematic analysis of the opportunities such changes might offer for economic or social innovation.""Within the enterprise: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.Outside the enterprise:Demographics (population changes);Changes in perception, mood, and meaning;New knowledge, both scientific and nonscientific.""For all the visibility, glamour, and importance of science-based innovation, it is actually the least reliable and least predictable one.""One reason why it is difficult for management to accept unexpected success is that all of us tend to believe that anything that has lasted a fair amount of time must be "normal" and go on "forever." Anything that contradicts what we have come to consider a law of nature is then rejected as unsound, unhealthy, and obviously abnormal.""It takes an effort to perceive in the "enemy one's own best opportunity.""The unexpected success is an opportunity, but it makes demands. It demands to be taken seriously.""But such opportunities require more than mere luck or intuition. They demand that the enterprise search for innovation, be organized around it, and be managed so as to exploit it.""The innovation that successfully exploits an incongruity between economic realities has to be simple rather than complicated, "obvious" rather than grandiose.""The reaction of the typical producer and supplier is then to complain that customers are "irrational" or "unwilling to pay for quality." Whenever such a complaint is heard, there is reason to assume that the values and expectations the producer or supplier holds to be real are incongruous with the actual values and expectations of customers and clients. Then there is reason to look for an opportunity for innovation that is highly specific, and carries a good chance of success.""Ten years later, by the time they are in their late twenties, Japanese do just as poorly on mathematics tests as do westerners.""Innovations that exploit changes in industry structure are particularly effective if the industry and its markets are dominated by one every large manufacture or supplier, or by a very few. Even if there is no true, monopoly, these large, dominant producers and suppliers, having been successful and unchallenged for many years, tend to be arrogant. At first they dismiss the newcomer as insignificant and, indeed, amateurish. But even when the newcomer takes a larger and larger share of their business, they find it hard to mobilize themselves for counteraction.""An innovation, to be effective, has to be simple and it has to be focused. It should do only one thing, otherwise, it confuses. If it is not simple, it won't work.""The first is simply not to try to be too clever. Innovations have to be handled by ordinary human beings, and if they are to attain any size and importance at all, by morons or near-morons. Incompetence, after all, is the only thing in abundant and never-failing supply.""Entrepreneurship is not "natural"; it is not "creative." It is work.""Everything takes longer than we hope or estimate; everything also requires more effort.""To render an existing business entrepreneurial, management must take the lead in making obsolete its own products and services rather than waiting for a competitor to do so.""The forces that impede entrepreneurship and innovation in a public-service institution are inherent in it, integral to it, inseparable from it.""In so many new ventures, especially high-tech ventures, the techniques discussed in this chapter are spurned and even despised. The argument is that they constitute "management" and "We are entrepreneurs." But this is not informality; it is irresponsibility.""Above all, the entrepreneur who has succeeded in being "Fustest with the Mostest" has to make his product or his process obsolete before a competitor can do it. Work on the successor to the successful product or process has to start immediately, with the same concentration of effort and the same investment of resources that led to the initial success.""Creative imitation, these cases show, does not exploit the failure of the pioneers as failure is commonly understood. On the contrary, the pioneer must be successful...But the original innovators failed to understand their success...The creative innovator exploits the success of others. Creative imitation is not "innovation" in the sense in which the term is most commonly understood. The creative imitator does not invent a product or service; he perfects and positions it. In the form in which it has been introduced, it lacks something.""These cases show what the strategy of creative imitation requires: It requires a rapidly growing market. Creative imitators do not succeed by taking away customers from the pioneers who have first introduced a new product or service; they serve markets the pioneers have created but do not adequately service. Creative imitation satisfies a demand that already exists rather than creating one.""The first point, therefore, is that in the early stages of a new industry, a new market, or a new major trend, there is the opportunity to search systematically for the specialty skill opportunity - and then there is usually time to develop a unique skill. The second point is that the specialty skill niche does require a skill that is both unique and different...Thirdly, a business occupying a specialty skill niche must constantly work on improving its own skill...While the specialty skill niche has unique advantages, it also has severe limitations. One is that it inflicts tunnel-vision on its occupants...A second, serious limitation is that the occupant of a specialty skill niche is usually dependent on somebody else to bring his product or service to market. It becomes a component.""There is no high technology here, nothing patentable, nothing but a focus on the needs of the customer."[David Ricardo:] "Profits are not made by differential cleverness, but by differential stupidity. The strategies work, not because they are clever, but because most suppliers - of goods as well as of services, businesses as well as public-service institutions - do not think.""Anyone who asks the question, What does the customer really buy? will win the race.""Anyone who is willing to use marketing as the basis for strategy is likely to acquire leadership in an industry or a market fast and almost without risk.""Surely one "secret" of the Japanese is their officially encouraged "tax evasion" on capital formation. Legally a Japanese adult is allowed one medium-sized savings account the interest on which is tax-exempt. Actually Japan has five times as many such accounts as there are people in the country, children and minors included. his is, of course, a "scandal" against which newspapers and politicians rail regularly. But the Japanese are very careful not to do anything to "stop the abuse." As a result they have the worlds largest capital formation.""In an entrepreneurial society individuals face a tremendous challenge, a challenge they need to exploit as an opportunity: the need for continuous learning and relearning."
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  • Timothy Chklovski
    January 1, 1970
    This is the first book by Drucker that I've read, but definitely not the last.Drucker is erudite; he reaches back hundreds of years and across continents to identify first introduction of one thing or another. Although Drucker's seminal contributions have shaped how large corporations in the US and Japan are managed, this work looks at a full spectrum of companies from large to small, and describes the kinds of innovation that succeed.Drucker delights at debunking conventional wisdom or frequent This is the first book by Drucker that I've read, but definitely not the last.Drucker is erudite; he reaches back hundreds of years and across continents to identify first introduction of one thing or another. Although Drucker's seminal contributions have shaped how large corporations in the US and Japan are managed, this work looks at a full spectrum of companies from large to small, and describes the kinds of innovation that succeed.Drucker delights at debunking conventional wisdom or frequent mistakes -- for example, pointing out that technology driven innovation has the least chance of success for its initiator. Better to identify an inconsistency in a process, or a demographic trend that will help an innovator succeed while the incumbents will likely ignore it due to their setup and incentives.At some point, I had to give up highlighting areas that may be useful for an investor trying to understand which businesses succeed -- because I would wind up highlighting most of the text. Easier to mark just the less relevant passages.While driven by author's generalizations and examples rather than hard data, there are many mental models -- relating eg to demographics and the kinds of offering that can succeed with a swelling middle class who have more of discretional income than their parents did -- that one will delight in discovering in this book.Interestingly, some of the predictions made at the time of writing -- eg around demise or radical change of American schools -- did not come pass, it serves as an additional reminder to "keep it simple" in both innovation and analysis. I look forward to learning more from Drucker's other works as well as eventually re-reading this book as I apply its observations to a new set of companies I'm trying to understand.Highly recommended as both enjoyable and useful reading.
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  • Maura
    January 1, 1970
    I sure wish there was a more recent version. This book would have earned another star if more of the examples had been drawn from the recent past. There were enough timeless examples from the past couple hundred years to make it a worthwhile read, though.Some useful points:*Look for the surprise successes and exploit them. *Don't turn your nose up at unexpected uses for your product if it's selling. It doesn't matter if your happy customers are not the ones you wanted/intended.*Company founders I sure wish there was a more recent version. This book would have earned another star if more of the examples had been drawn from the recent past. There were enough timeless examples from the past couple hundred years to make it a worthwhile read, though.Some useful points:*Look for the surprise successes and exploit them. *Don't turn your nose up at unexpected uses for your product if it's selling. It doesn't matter if your happy customers are not the ones you wanted/intended.*Company founders need to stick to roles they're good at*"Quality" is not the effort the supplier puts in. It's what the customer gets out and is willing to pay for.*"Premium" prices invite competitors. Strive to achieve high profit margins through low costs.4 Entrepreneurial strategies:1. Getting there first with most (e.g. vitamin company that acquired formulas, patents in the 1920s before vitamins were popular and became huge as vitamins did become popular)2. Hitting them where they aren't (e.g. Sony's licensing of Bell Labs transistor patent to nearly take over the worldwide radio market, before U.S. radio makers had time to react)3. Finding a specialized niche: developing something sufficiently specialized, with sufficiently high barrier to entry, that you won't develop competitors (e.g. special drug for cataract surgery no surgeon will operate without)4. Changing the economic characteristics of a product, market, or industry (e.g. the first family-focused banks in Germany)
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  • Adam McNamara
    January 1, 1970
    Innovation and Entrepreneurship is about how to find opportunities to innovate, how to manage entrepreneurship within an organization, and how to manage entrepreneurial strategy in the market.In each of these three major sections, Drucker presents frameworks that help organize your thoughts. For example, he proposes seven sources of innovation opportunities, like The Unexpected, Process Needs, and New Knowledge. He's quick to provide relevant case studies for each, helping to make the classifica Innovation and Entrepreneurship is about how to find opportunities to innovate, how to manage entrepreneurship within an organization, and how to manage entrepreneurial strategy in the market.In each of these three major sections, Drucker presents frameworks that help organize your thoughts. For example, he proposes seven sources of innovation opportunities, like The Unexpected, Process Needs, and New Knowledge. He's quick to provide relevant case studies for each, helping to make the classifications memorable. His ideas are important, and they've withstood the test of time. Drucker seems to be an authoritative source upon which later thinkers have built their ideas (and careers).That said, the book itself was not an enjoyable read. Drucker relies heavily on lists - three points for this, and five for that - that run on across paragraphs and pages. The reader often has to hunt among examples and anecdotes to piece together the actual bullets of the list.Similarly, Drucker often chooses folksy names for ideas, like "Fustest with the Mostest", where a more straightforward title like "First to Dominate" would serve everyone better.What this comes down to, I think, is interesting thinking paired with poor editing. If you want to understand innovation, read this book as many newer books build on top of its ideas. However, as with all business books, beware of academics prescribing ultimate theories.
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  • Ron Quartel
    January 1, 1970
    I found it dated. Lean Startup is a more modern view of the topic.
  • Krishna Kumar
    January 1, 1970
    Long before the Innovator's Dilemma was written, here is Drucker with the same insights about why innovation must be treated as a special child by management, and the challenges faced by it in existing corporations. This review was written after I read the book for the second time (I had read it previously a few years back), and it is incredible how the contents seem more meaningful and relevant on the second reading.
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  • Babak
    January 1, 1970
    This is a very authoritative introduction to the subject of innovation. It is very well-written, although a bit heavy at points. Drucker has made an important contribution, as usual. The part on sources of innovation is very good and also exists as an HBR article.
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  • Dmitri Pavlov
    January 1, 1970
    Honestly a bit boring, but nevertheless it is smart, some stories and examples are really make you interested. The material just need to be presented better.
  • Ramy Khodeir
    January 1, 1970
    The necessary link between to essential disciplines required for the 21st century business enterprise
  • Oscar Romero
    January 1, 1970
    Although an old (by my own standards) book--still has many principles that continue to apply today...With Innovation just changing the way we go about creating something new or better.I personally think we do not have to be an entrepreneur in order to become more innovator--but I agree that if you want to start--innovation is a great way to do so. We already know how many started and where they are now--so, we do have much to choose from.Many business--some of them with more that 100 years of "e Although an old (by my own standards) book--still has many principles that continue to apply today...With Innovation just changing the way we go about creating something new or better.I personally think we do not have to be an entrepreneur in order to become more innovator--but I agree that if you want to start--innovation is a great way to do so. We already know how many started and where they are now--so, we do have much to choose from.Many business--some of them with more that 100 years of "experience" have disappeared--Somehow Montgomery Ward comes to mind--and also, quite interesting, now Sears seems to be dancing on the same rope for the last few years. In fact--some experts do not think they will be present next year--However, they too have been saying that for few years back already.Sears is an ideal company that should start innovating in all areas--and we can safely say they are not starters. Ironic that Amazon--which started just as Sears did--is now starting to build brick and mortar stores--just as Sears did more than 100 years ago too. History repeats itself.Excellent read for anyone--even if you are not starting a business.
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  • Rhonda Sue
    January 1, 1970
    This is one of those seminal landmark business books that need to be read and digested. Although the book is somewhat outdated in its examples, the principles are still relevant to today's entrepreneurs and innovators. Many of the companies cited in this 1986 book are either no longer with us and newer companies like Apple are barely mentioned. But, that said, Drucker spells out the principles of innovation and entrepreneurship and how to go about practicing it. Take notes.He also recommends oth This is one of those seminal landmark business books that need to be read and digested. Although the book is somewhat outdated in its examples, the principles are still relevant to today's entrepreneurs and innovators. Many of the companies cited in this 1986 book are either no longer with us and newer companies like Apple are barely mentioned. But, that said, Drucker spells out the principles of innovation and entrepreneurship and how to go about practicing it. Take notes.He also recommends other books to read-but note that we're still in the early 1980s before the advent of the smart phone in every household. I did like his analyses on an outdated tax code, obsolete laws and government agencies, his call for effective sunset laws, and the problem with an outmoded welfare state. His wisdom here should be heeded. It would certainly help our system if politicians and bureaucrats alike were to read his books. My guess is that we'd see marked improvements in the economy.
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  • RAHUL KHACHANE
    January 1, 1970
    Great Great book.Simple and based on principles.Peter Drucker is about principles. And it is very much exciting to hear from Peter Drucker, What he thinks about innovation and entrepreneurship.It is very helpful for managers and budding entrepreneurs to understand some basic principles.Book is little heavy as it is written by the father figure in management. But it serves the great purpose of educating one self with the basic knowledge of new ventures.Old, but good examples are cited by Drucker. Great Great book.Simple and based on principles.Peter Drucker is about principles. And it is very much exciting to hear from Peter Drucker, What he thinks about innovation and entrepreneurship.It is very helpful for managers and budding entrepreneurs to understand some basic principles.Book is little heavy as it is written by the father figure in management. But it serves the great purpose of educating one self with the basic knowledge of new ventures.Old, but good examples are cited by Drucker. It captures the gist and one can apply analogy to the current market.
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  • Jacob Mclaws
    January 1, 1970
    I picked this up with the intent to read it and have it under my belt so I could say I've read it just because it is a "classic". I expected a lot of out of date references and antiquated principles of innovation. I did find A LOT of out of date references to companies that are no longer the innovation powerhouses that they once were (which just highlights the transient nature of being an innovation factory), but the principles and practices seem as true as ever and I don't think it is too bold I picked this up with the intent to read it and have it under my belt so I could say I've read it just because it is a "classic". I expected a lot of out of date references and antiquated principles of innovation. I did find A LOT of out of date references to companies that are no longer the innovation powerhouses that they once were (which just highlights the transient nature of being an innovation factory), but the principles and practices seem as true as ever and I don't think it is too bold to say they are the roots of almost everything that has been written on innovation since. Below are some highlights:7 Sources for Innovative Opportunity:1. The unexpected - the unexpected success, the unexpected failure, the unexpected outside event;2. The incongruity - between reality as it actually is and reality as is assumed to be or as it "ought to be";3. Innovation based on process need;4. Changes in industry structure or market structure that catch everyone unawares;5. Demographics (population changes);6. Changes in perception, mood, and meaning;7. New knowledge, both scientific and nonscientific.(pg. 35)"Innovation- and this is a main thesis of this book- is organized, systematic, rational work... Intuition is not good enough... [it] requires a willingness to say: "I dont know enough to analyze, but I shall find out. I'll go out, look around, ask questions and listen."(pg. 50)"The incongruity within a process, its rhythm or its logic, is not a very subtle matter. Users are always aware of it. Every eye surgeon knew about the discomfort he felt when he had to cut eye muscle- and talked about it. What was lacking, however, was someone willing to listen, somebody who took seriously what everybody proclaims: That the purpose of a product or a service is to satisfy the customer. If this axiom is accepted and acted upon, using incongruity as an opportunity for innovation becomes fairly easy- and highly effective. There is, however, one serious limitation. The incongruity is usually available only to people within a given industry or service. It is not something that somebody from the outside is likely to spot, to understand, and hence is able to exploit."(pg. 68)The section starting on pg. 85 that begins with "Innovations that exploit changes in industry structure are particularly effective if the industry and its markets are dominated by one very large manufacturer or supplier, or by a very few..." is essentially the gist of Clayton Christensen's book The Innovator's Dilemma (written 12 years later). For a good list of DO's on innovation start on pg. 134..."Innovation is both conceptual and perceptual... the imperative of innovation is therefore to go out and look, to ask, to listen. This cannot be stressed too often."(pg. 135)"An innovation, to be effective, has to be simple and it has to be focused. It should do only one thing, otherwise, it confuses... the greatest praise an innovation can receive is for people to say: "That is obvious. Why didn't I think of it?"(pg. 135)"A successful innovation aims at leadership," not necessarily at becoming a big business, but "if an innovation does not aim at leadership from the beginning, it is unlikely to be innovative enough, and therefore unlikely to be capable of establishing itself."(pg. 136)Don'ts are simple:1. Don't try to be clever2. Don't diversify, don't splinter, don't try to do too many things at once3. Don't try to innovate for the future. Innovate for the present!(pg. 136)When it comes to why big companies usually suck at innovation the crux is this:"It is not size that is an impediment to entrepreneurship and innovation; it is the existing operation itself... The one thing that can be guaranteed in any kind of operation is the daily crisis. The daily crisis cannot be postponed, it has to be dealt with right away. An the existing operation demands high priority and deserves it. The new always looks so small, so puny, so unpromising next to the size and performance of maturity... It thus takes special effort for the existing business to become entrepreneurial and innovative."(pg. 148-149)"Entrepreneurial businesses treat entrepreneurship as a duty."(pg. 150)In order to make an existing business "greedy for new things" we need to "face up to the fact that all existing products, services, markets, distributive channels, processes, technologies, have limited- and usually short- health and life expectancies."(pg. 152)"The entrepreneurial, the new, has to be organized separately from the old and existing."(pg. 161)It is the duty of the founder or founders to build a management team as their new venture grows. He takes this really seriously. "In an entrepreneurial society individuals face a tremendous challenge, a challenge they need to exploit as an opportunity: the need for continuous learning and relearning... The correct assumption in an entrepreneurial society is that individuals will have to learn new things well after they have become adults- and maybe more than once. The correct assumption is that what individuals have learned by age twenty-one will begin to become obsolete five to ten years later and will have to be replaced- or at least refurbished- by new learning, new skills, new knowledge... The assumption from now on has to be that individuals on their own will have to find, determine, and develop a number of 'careers' during their working lives."(pg. 264)
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  • Sylv C
    January 1, 1970
    While one may no longer agree with everything in the book, Drucker's classic has withstood the passage of 30+ years since its initial publication incredibly well. A highly recommended read whether one works in a large organization or startup setting, as an owner or manager. Thought provoking and provides a good methodical framework for identifying and exploiting new markets.
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  • B
    January 1, 1970
    Fascinating, rigorous book. Very detailed and dense in a good way. In spite of this book being slightly old, there are numerous very useful insights on entrepreneurship and innovation here. I will definitely be going back to reference this book for many years into the future. Also looking forward to reading more of Drucker's work.
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  • Lance McNeill
    January 1, 1970
    Some things evergreen, some obsolete Overall this is still a must read for economic development professionals, as there is quite a bit of sage advice that’s still applicable decades later. There are some ideas and examples that are obsolete though.
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  • Gunjan Mehta
    January 1, 1970
    May be the first ever book to take the route of practicing entrepreneurship, making policies and putting innovation into the roots of the company...as it is needed in 21st Century...
  • Allan Laal
    January 1, 1970
    classic Drucker wisdom
  • Jozsef
    January 1, 1970
    Another great book from the prophet of management. A good read even with the benefit of hindsight, because you can contrast and compare old methods and theories with current practices.
  • Mike Mott
    January 1, 1970
    This is an incredible book. The data and examples may be dated, but this is a must-read for anyone starting a business. A framework for entrepreneurship.
  • Marta Dominguez
    January 1, 1970
    It's the first management book I give a 5 stars to. I have been refusing innovation and entrepreneurship books just because of the same reasons Drucker sanctions them in his book: they are pretentious and of little practical use if you are to try replicating any of the ideas. Drucker got me on his side from that moment all the read through.The major achievement of this book is to present innovation as a management practice rather than any imposed threat to the business. It also solves the what ( It's the first management book I give a 5 stars to. I have been refusing innovation and entrepreneurship books just because of the same reasons Drucker sanctions them in his book: they are pretentious and of little practical use if you are to try replicating any of the ideas. Drucker got me on his side from that moment all the read through.The major achievement of this book is to present innovation as a management practice rather than any imposed threat to the business. It also solves the what (innovation sources to do a systematic research) as well as the how (business planning, "product obsolescence" planning, results measurement, team management, wise incentives).Citing Drucker: "The overwhelming majority of succesful innovations exploit change". Innovation that in themselves constitute a major change, like Wright Brothers' airplane "are exceptions and uncommon" as "most succesful innovations are more prosaic" (for instance McDonalds).I enjoyed the old stories about entrepreneur ventures, succesful innovations and flukes and flops of the nineteenth and the first half of the twentieth century. I could inmediately apply the same concepts we use today for market and industry creation, for high-tech booms, for customer product quality versus manufacturer perception of quality and so many more.I can promise the Novocain story of the German chemist trying to stop an unexpected customer segment because "he had not designed the product for that purpose" would rapidly resonate with you.This book was written in 1985 and its relevance today makes it a classic.
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  • Mckinley
    January 1, 1970
    Interesting look back at the mid to later 20th century business environment.
  • Van
    January 1, 1970
    Cuốn sách là một chứng minh hùng hồn cho khái niệm cơ bản : Khởi nghiệp là đổi mới, là mang lại một giải pháp hữu ích cho thị trường, cũng như, thay đổi là tất yếu, ai biết nắm bắt sự thay đổi sẽ gặt hái thành công. Khái niệm này có thể ai cũng biết hoặc nghe tới rồi, nhưng để phân tích hay và sâu như cuốn sách này thì quả thực khó và hiếm. Một nửa đầu cuốn sách đã được tác giả ưu ái sử dụng để đưa ra những chỉ dẫn rõ ràng về cách thức và nguồn gốc tìm kiếm cơ sở cho sự đổi mới - cho quá trình k Cuốn sách là một chứng minh hùng hồn cho khái niệm cơ bản : Khởi nghiệp là đổi mới, là mang lại một giải pháp hữu ích cho thị trường, cũng như, thay đổi là tất yếu, ai biết nắm bắt sự thay đổi sẽ gặt hái thành công. Khái niệm này có thể ai cũng biết hoặc nghe tới rồi, nhưng để phân tích hay và sâu như cuốn sách này thì quả thực khó và hiếm. Một nửa đầu cuốn sách đã được tác giả ưu ái sử dụng để đưa ra những chỉ dẫn rõ ràng về cách thức và nguồn gốc tìm kiếm cơ sở cho sự đổi mới - cho quá trình khởi nghiệp. Kết luận là : nếu không tính đến 10% những người khởi nghiệp đầy may mắn, đến 90% số công ty khởi nghiệp thành công còn lại đều phải dựa vào hiểu biết vững chắc về một ngành nghề lĩnh vực cụ thể, vào việc phân tích sâu sát các nguồn gốc đổi mới cũng như vào tính nhạy bén, uyển chuyển trong việc thoả mãn khách hàng. Thế mới thấy, câu nói của các cụ "Một nghề thì sống, đống nghề thì chết" là hoàn toàn có lý. Hơn nữa, đổi mới là một công việc, chứ không hoàn toàn mang tính trực giác, khó hiểu như người ngoài nhìn vào.Phần thứ hai là về những hoạt động để tiến hành khởi nghiệp - đổi mới trong ba môi trường với những đòi hỏi khác nhau. Thật sự cũng không cần thiết đọc hết cả ba phần này, mà hoàn toàn có thể lựa chọn môi trường phù hợp với mình nhất để đọc trước : đó có thể là môi trường trong doanh nghiệp đang hiện hành, trong doanh nghiệp mới thành lập hay trong tổ chức nhà nước. Trong số ba môi trường này, thì những hoạt động khởi nghiệp của doanh nghiệp non trẻ triển vọng có phần nghiêng nhiều về kỹ thuật quản lý hơn. Nhưng bốn điểm tác giả chỉ ra, hay có thể gọi là bí quyết khởi thuật thành công, rất sâu sắc và đáng giá.Nội dung cuối cùng trong sách chính là về chiến lược khởi thuật, giống như trong đánh trận cần có một chiến lược bày binh bố trận phù hợp địa thế và binh lực. Mỗi chiến lược khởi thuật được tác giả chỉ rõ những đòi hỏi, hạn chế và rủi ro rất tuyệt vời.Quyển sách được viết bằng một văn phong khúc chiết, hấp dẫn cộng với cách trình bày sáng sủa, rõ ràng. Nhiều kiến thức được viết ra từ khá lâu nên mặc dù không phủ nhận tính đắn của nó, nhưng không biết còn xác thực trong thời điểm hiện tại hay không. Dẫu sao, đây thực sự là cuốn sách suất sắc, là nền tảng cho nghiên cứu phát triển của tinh thần và nghiệp vụ khởi nghiệp. Với tôi, đây là một trong số ít những sách về đề tài khởi nghiệp được viết một cách vừa tổng quát, vừa cụ thể mà vẫn truyền cảm hứng đến như vậy. Cuốn sách thực sự xứng đáng được xếp vào dạng kinh điển cho những người muốn tìm kiếm cơ hội lập nghiệp riêng hay muốn toả sáng như người lãnh đạo trong công ty.
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  • Shai Sachs
    January 1, 1970
    It's a bit odd to read a book about innovation that's thirty years old, but Peter Drucker's definitive work holds up reasonably well. More than that, I think the main thrust of the book has not really been fully appreciated. The idea that entrepreneurship is a business activity that can be organized and managed in the same way as any other activity - accounting, say, or manufacturing - is still rather unorthodox today. Companies that systematically search for opportunities for change are few and It's a bit odd to read a book about innovation that's thirty years old, but Peter Drucker's definitive work holds up reasonably well. More than that, I think the main thrust of the book has not really been fully appreciated. The idea that entrepreneurship is a business activity that can be organized and managed in the same way as any other activity - accounting, say, or manufacturing - is still rather unorthodox today. Companies that systematically search for opportunities for change are few and far between, and those that practice well-disciplined entrepreneurial management and oversight rarer still. Actually, if anything, I think we're seeing more and more attention given, both in the business press and in managerial policies themselves, to capturing "the bright idea" and lionizing the geniuses who develop them. Whether that's a reflection of the American cult of individualism, or whether it's an indictment of Drucker's most important point, I don't actually know. I do think that there are a lot of interesting ideas to be considered here, though; they are hard to implement, but probably worth the effort.I would add that I found Drucker's political insights to be rather thin, nearly laughable - his assessment of Jesse Jackson's appeal, for instance, missed the mark in a lot of ways. Similarly, while Drucker makes pretenses at analyzing entrepreneurship in the public sector and for institutions of social good, and while he does seem to understand that not every institution can be run like a business, he seems to lack a fundamental understanding of why the constraints that face public service institutions make sense. At the end of the day, his prescriptions amount to little more than warmed-over neoliberal policies that exacerbate social inequality.
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  • George Mount
    January 1, 1970
    One of the best books on entrepreneurship I have read. Drucker was such a visionary. I cannot believe this book was written in the 1980s.
  • Abhi Yerra
    January 1, 1970
    Reading Drucker is like reading the source that every other business author seems to go to. He has basically distilled Innovation and Entrepreneurship to a management science. The effective strategies to use and the different types of innovations that are possible. Not all of them have to be high tech and not all of them have to be based on new knowledge. They can be boring like coming up a mechanism for a farmer to pay for a tractor in installments also known as an installment plan. In the book Reading Drucker is like reading the source that every other business author seems to go to. He has basically distilled Innovation and Entrepreneurship to a management science. The effective strategies to use and the different types of innovations that are possible. Not all of them have to be high tech and not all of them have to be based on new knowledge. They can be boring like coming up a mechanism for a farmer to pay for a tractor in installments also known as an installment plan. In the book Drucker uses multiple examples of innovation in both industry as well as governmental/nonprofits and recommends a practice which is basically akin to the Lean Startup/Toyota Method. Though it was first published in 1984 the book is great and should be read by anyone who is going to be an entrepreneur. I highly like his view that an entrepreneur is not a risk taker per se but who has managed the risk that they are going to be embarking upon.
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