INNOVATION, PRODUCT DEVELOPMENT

&
ENTREPRENEURSHIP
 TECHNOLOGICAL INNOVATION

Technologies are rules and ideas that direct the way goods and services are
produced (Kemeny, 2010:1544).

Technological Technological
inventions innovations

Used by
Entrepreneurs
 INVENTION to INNOVATION

Translating idea into useful application

Analytical Organizing Implementation Commercial

planning resources application

To identify: To obtain: To provide:

Product Design Materials To accomplish: Value to costumers
Market Strategy Technology Organization rewards for employees
Financial Need Human Resources Product Design revenues foe investors
Capital Manufacturing satisfaction for founders
Services
 CONCEPT of INNOVATION and ENTREPRENEUR
Innovation is:
It is a specific tool of entrepreneurs, the means for exploiting change as an
opportunity for a new venture.

It is capable of
- being presented as a discipline,
- being learned,
- being practiced.
Some important areas in which valuable innovation can be made are:
- new products , services , production techniques etc.

Entrepreneur
A technical conceptualization of innovation is depicted by entrepreneurs, as
innovators,
who create new combinations of these factors : raw materials, physical and
mental labor and capital(money)
and then present to the market for assessment by consumers.
 SOURCES OF INNOVATION

In his book innovation and entrepreneurship, Peter Drucker proposed that

those interested in starting an entrepreneurial venture-either within an
established company or as independent small business-should monitor
seven sources of innovative opportunity.:
1. The Unexpected
2. Incongruity
3. Innovation Based on Process Need
4. Changes in Industry or Market Structure
5. Demographics
6. Changes in Perception, Mood, and Meaning
7. New Knowledge
The first four exist within the industry itself, and the last three in the
social environment
 SOURCES OF INNOVATIVE OPPORTUNITY (Peter Drucker) - exist within the industry itself

1) THE UNEXPECTED
The product, process, etc. for which there were no great expectations yet it did
very well; the product process, etc. for which there was every reason to expect
success yet it failed; an unanticipated market opens up.

2) INCONGRUITY
When demand grows steadily but profitability does not; some portion of a
process that seems awkward; when producers, suppliers, etc. have arrogant
beliefs about what is needed or wanted.

3) PROCESS NEED
Task-focused; perfecting a process that already exist, replacing a link that is
weak, redesigning a process around new knowledge, making possible a process
by supplying the missing link.

4) INDUSTRY/MARKET STRUCTURE
Rapid growth of an industry; viability of the traditional market definition and
segmentation; convergence of technologies; the way business is done is
changing rapidly.
 SOURCES OF INNOVATIVE OPPORTUNITY (Drucker)
Exist in Social Environment

5) DEMOGRAPHICS
Changes in the population; its size, composition, employment, educational
status, age structure, income, etc.

6) PERCEPTION
When a change in perception takes place, the facts do not change, but their
meaning does.

7) NEW KNOWLEDGE
The super-star of entrepreneurship and innovation; the knowledge is not
necessarily scientific or technical; amongst history-making innovations,
knowledge-based innovations rank high.
 INNOVATION DIMENSIONS
(Kamm)

FORM
Generation or adoption of:
- Technology
(product, process service)
- Market
(users, buyers, clients)
- Organization
(structure, function)

FUNCTION
Improves quality, Reduces cost, Performs new functions
Enhances current market attractiveness
Enters market not currently served
Enhances economies of scale
Permits production of better-quality offering
Enhances human growth and potential
 INNOVATION AND ENTREPRENEURSHIP

Schumpeter has firmly expressed his opinion that the function of

entrepreneurship is innovation.
Innovation of new product.
Innovation of new technology.
Innovation of new process of production methods.
Exploration of new markets.
Searching for the new sources and supply.
Innovation of industrial reconstruction method.