1. CHAPTER 3 DISCUSSION QUESTIONS
1) Why does Starbucks exemplify what Drucker considered to be true
innovation?
2) What are Drucker's 4 basic questions about innovation?
3) What company (other than Apple) do you consider to be innovative?
Why?
4) What is systematic abandonment?
5) How did the companies, Kimberly-Clark & Peapod, use systematic
abandonment?
6) Drucker taught the first US business course on innovation at what
university & in what year?
7) What are Drucker's 7 key sources of opportunities?
8) What is Jaipur Foot's prosthetic priced at?
9) What was the critical innovation that morphed Scott lawn Care into a
successful company?
10) What company's mission is to "create a better everyday life for the
majority of people?"
11) What was the first fluoride toothpaste?
12) What was Colgate's breakthrough product?
13) Define: first owner of the space, space definer, niche players, last
buggy whip manufacturers.
2. “THE BEST WAY TO PREDICT THE FUTURE IS TO CREATE IT.”
PETER DRUCKER
INNOVATION
“A CHANGE IN THE THOUGHT PROCESS FOR DOING
SOMETHING, OR THE USEFUL APPLICATION OF NEW
INVENTIONS OR DISCOVERIES.”
INNOVATION IS ABOUT DOING ONE OF OR A COMBINATION
OF THE FOLLOWING:
7. WHY DOES STARBUCKS EXEMPLIFY WHAT DRUCKER
CONSIDERS TO BE TRUE INNOVATION?
8. PARADIGM CHANGE
STARBUCKS CHANGED OUR EXPECTATIONS ABOUT THE FAST
FOOD COFFEE INDUSTRY.
BEFORE STARBUCKS:
-COFFEE WAS SOMETHING WE GOT BETWEEN PLACES (HOME
TO WORK, WORK TO KIDS’ SPORTS GAMES, ETC.)
AFTER STARBUCKS:
-COFFEE BECAME A GO-BETWEEN DESTINATION. PEOPLE
STOPPED IN STARBUCKS & STAYED.
9. JACK KEROUAC (ON THE ROAD)
INTRODUCED THE PHRASE “BEAT
GENERATION” IN 1948 TO
CHARACTERIZE THE UNDERGROUND,
ANTI-CONFORMIST YOUTH
GATHERING IN NEW YORK AT THAT
TIME.
“BEAT GENERATION”
WAS TRANSFORMED
TO “BEATNIK” BY THE
MEDIA IN THE LATE
1950’S & EARLY ’60’S
TO CHARACTERIZE
THE ATTITUDE OF THE
HIPPIE GENERATION.
12. 1) TOO MANY STORES
2) POOR EMPLOYEE TRAINING
3) HONEYMOON EFFECT
4) BETTER COFFEE COMPETITION
5) BRAND CONFUSION
13. 1) TOO MANY STORES
•12,500 STORES IN U.S.
•$10.7 BILLION IN SALES.
•6,772 DUNKIN DONUTS IN U.S.
•$6 BILLION IN SALES.
14. 2) POOR EMPLOYEE TRAINING
FEBRUARY 26, 2008
STARBUCKS NATIONWIDE EMPLOYEE TRAINING DAY
“I NEED MY STARBUCKS.”
“THEY DON’T SHUT DOWN MCDONALDS FOR
TRAINING, OR EVEN, DUNKIN’ DONUTS. TRAINING IS
DONE WHEN YOU FIRST START & THEN
CONTINUOUSLY ONWARD.” ANONYMOUS
20. NIKE FREE
-ALLOWS THE MUSCLES IN THE FOOT TO GAIN STRENGTH BY PROVIDING LESS CONSTRICTION.
-INTRODUCED IN 2004 AFTER NIKE REPRESENTITIVES OBSERVED NIKE SPONSORED TRACK
ATHLETES TRAINING BAREFOOT.
-NUMBERING SYSTEM INDICATES THE CUSHIONING OF THE SHOE.
-FREE 3.0 IS LEAST CUSHIONED MODEL & FREE 7.0 IS MOST CUSHIONED.
NIKE PLUS
-A COLLABORATION BETWEEN NIKE & APPLE.
-LAUNCHED MAY 2006.
-A DEVICE WHICH MEASURES & RECORDS THE DISTANCE , PACE, CALORIES BURNED OF A
WALK/RUN.
22. -FOR OVER 100 YEARS K-C WAS MAINLY A PAPER
MANUFACTURER.
-DARWIN SMITH (NEW CEO) SAW MAKING PAPER AS
BECOMING A MEDIOCRE BUSINESS.
-ABANDONED INVESTMENT IN PAPER MAKING TO PUT
MORE RESOURCES INTO 2 K-C OWNED BRANDS: KLEENEX
& HUGGIES.
23. ABANDONMENT IS NOT JUST ABOUT ABANDONING A
BUSINESS UNIT OR PRODUCT…..IT’S ABOUT
ABANDONING ASSUMPTIONS AND MAKING ROOM FOR
NEW IDEAS
24. -PIONEER IN GROCERY HOME DELIVERY.
-ABANDONED THE IDEA OF KEEPING ITS OWN
INVENTORY(GROCERIES).
-PARTNERED WITH STOP & SHOP & USED ITS
WAREHOUSES SO IT DIDN’T NEED TO SPEND A FORTUNE
ON INFRASTRUCTURE.
25. SEEKING OPPORTUNITIES
-ORGANIZATIONS NEED TO BE CONTINUALLY ON THE
OFFENSIVE (SEARCHING FOR NEW PRODUCTS/IDEAS).
INNOVATION TIME OFF: GOOGLE ENCOURAGES ITS
ENGINEERS TO SEPND 20% OF THEIR WORK TIME
BRAINSTORMING NEW IDEAS.
26. 7 KEY SOURCES OF OPPORTUNITIES
1) THE UNEXPECTED
2) INDUSTRY & MARKET DISPARITIES
3) PROCESS VULNERABILITIES
4) INCONGRUITIES
5) DEMOGRAPHIC SHIFTS
6) CHANGES IN PERCEPTION
7) NEW KNOWLEDGE
27. 1) THE UNEXPECTED
-UNEXPECTED OCCURRENCES (SUCCESSES & FAILURES)
SIGNAL THAT BUSINESS EXPECTATIONS ARE OUT OF
SYNC WITH REALITY.
-RECOGNIZING & UNDERSTANDING THE REASON FOR THIS
MISMATCH IS A POWERFUL TOOL FOR INNOVATION.
28. 2) INDUSTRY & MARKET DISPARITIES
-OCCURS WHEN THERE IS A MISMATCH BETWEEN SUPPLY &
DEMAND.
-THE COMPANY HAS STAYED CONSTANT WHILE ITS
INDUSTRY OR MARKET HAS CHANGED.
29. 3) INCONGRUITIES
-A CUSTOMER VALUE INCONGRUITY IS A DISCREPANCY
BETWEEN WHAT THE CUSTOMER WANTS & WHAT THE
COMPANY THINKS THE CUSTOMER WANTS.
30. 4) PROCESS VULNERABILITIES
-REFERS TO SOME PIECE OF THE WORKFLOW OR
OPERATION THAT IS MISSING, DIFFICULT, OR NOT
WORKING THAT PREVENTS USERS FROM EMBRACING THE
PRODUCT.
31. 5) DEMOGRAPHIC CHANGES
-CHANGES IN AGE POPULATIONS & THEIR DISPOSABLE
INCOME CREATE DEMAND & MISMATCHES WITH
HISTORICAL SUPPLIES OF SERVICES.
32. 6) PERCEPTION & PRIORITY CHANGES THAT SHIFT BUYING
HABITS
-CHANGES IN PERCEPTION DON’T CHANGE THE FACTS,
THEY JUST CHANGE THE CUSTOMERS’ INTERPRETATION
OF THE FACTS.
-PERCEPTION IS REPRESENTED BY BOTH VULNERABILITY &
CUSTOMER RECEPTIVITY.
34. THE ONLY WAY TO PREDICT THE FUTURE IS TO CREATE IT
-INNOVATION IS A TOOL THAT GIVES AN ORGANIZATION A
DEGREE OF CONTROL OVER THE FUTURE.
CATEGORIES OF SPACE OWNERSHIP
1) FIRST OWNER OF THE SPACE
2) SPACE DEFINER
3) NICHE PLAYERS
4) LAST BUGGY WHIP MANUFACTURERS
35. FIRST OWNER OF THE SPACE
-THE COMPANY THAT POPULATES THE NEW MARKET
FIRST WITH THE MOST INTEGRATED SOLUTION.
-TEMPORARY BECAUSE IMITATORS WILL FOLLOW.
37. NICHE PLAYERS
PURPOSEFULLY LET THEIR COMPETITORS DEFINE THE
OVERALL SPACE & THEN BECOME PROVIDERS TO THESE
LEADERS WITH PRODUCTS, COMPONENTS, OR SOLUTIONS
38. LAST BUGGY WHIP MANUFACTURERS
-THERE IS A RISK TO JUST
STICKING TO WHAT YOU ARE
GOOD AT.
-IF YOU DON’T
INNOVATE/DIVERSIFY THE
PRODUCT MAY DISAPPEAR &
SO MAY YOUR COMPANY.
