Tweet

The Dos and Don’ts of Innovation

Written by: Ben Nash

Article Overview: In his book Innovation and Entrepreneurship, Peter Drucker put forward a few simple “hard-core” Dos and Don’ts to help companies become more innovative. How does your organization stack up against Duckers checklist?

The Dos and Don’ts of Innovation

In his book Innovation and Entrepreneurship, Peter Drucker put forward a few simple “hard-core” Dos and Don’ts to help companies become more innovative. How does your organization stack up against Duckers checklist? DO’S

1. Search conceptually and systematically for opportunities — Think about the opportunities systematically. This should be an organized process and done on a regular basis.
2. Search Perceptually — Go out to look, to ask, to listen. Work out analytically what the innovation has to be to satisfy an opportunity.
3. Simple, focused — Even the innovation that creates new uses and new markets should be directed toward a specific, clear, designed application. It should be focused on a specific need that it satisfies. It should do only one thing.
4. Capable of being started small, require at first little money, few people, and only a small limited market.

DONT’S

1. Try to be clever — Innovations have to be handled by ordinary human beings.
2. Diversify, splinter, try to do too many things at once. Innovation needs the concentrated energy of a unified effort behind it.
3. Try to innovate for the future. Innovate for the PRESENT! Immediate application.

Related Articles
  The Dos And Donts in SEO
  TIDE Innovation Series-Self Innovation
  100 Ways to Succeed #93
  It's Not the Size that Counts
  The Tale of the Toothache

Article Tags: hard core, human beings, innovation and entrepreneurship, innovations, li li, many things, money, nbsp, rsquo, stack, unified effort



Related Forum Posts
Cash Comes from Creativity - These days, income from your 9 to 5 job can only get you so far. Gas is gold and it seems all are bemoaning the effects of economic recession. The question foremost on everyone’s mind is this: how on earth can we survive this financial crisis? Before, money-making is defined as having enough capital to start a business --- that or you make sure you are employed by the richest and most benevolent boss on earth! Those days are over though--- you don’t always have to rely on savings/ capital or the generosity of other people to have sustainable income. All you need is yourself---and your ideas! That’s right. The new model for business is innovation: the ability to successfully exploit great ideas. Innovation brings income; creativity brings cash. We live in a world where almost every good or service is readily available. If you search a product on the internet for example, say laundry detergent, you are likely to come up with several hundreds of brands and variations of the same product. And with consumers nowadays being so fickle from the many choices available to them, your market can change their minds about their preferences in a matter of seconds. If you want to survive in the global marketplace you need to be able to do two things: stand out and think on your feet. Ask yourself: what can you offer the world that others do not? What would make things easier, more convenient or more sensational for today’s busy people? What are your simple solutions to everyday problems that deserve to be replicated? What is an outrageous idea you have that may actually work? Your multi-million money-making opportunity may be lying in quirky little things you take for granted. That effective hangover-remedy you concocted? May just be an affordable alternative to what’s on the shelves these days. That extra-special way you pack your kids’ lunches? May be taught via a webinar alongside with your other Martha Stewart-ish ways. Just look closely at what makes you unique and effective---and think sales. That’s money from your ideas.
Young Entrepreneur Organization - All You Need To Know - The Young Entrepreneur Organization (YEO) is a global community of entrepreneurs. This non-profit organization aims to make its members successful in their business through networking and training programs. This article tells you all you need to know about the Young Entrepreneur Organization, and the opportunities it makes available to young entrepreneurs from across the world. Young Entrepreneur Organization: Facts. 1) The Young Entrepreneur Organization has 5,000 members in 35 countries across the world. 2) The organization was founded in 1987. Since then, it has helped many aspiring entrepreneurs with training facilities and getting in touch with the right people. 3) The average age of the members of Young Entrepreneur Organization is 34 years. 4) In order to be eligible for the membership of Young Entrepreneur Organization, you need to be under the age of 40; and be the founder or partner in a business that has annual sales of more than $1 million. World Entrepreneurs Organization: A part of the Young Entrepreneur Organization, the World Entrepreneur Organization and takes the message of Young Entrepreneur Organization to many additional places around the world. This organization is especially active in the area of education and training for entrepreneurs. Young Entrepreneur Organization: Objectives. 1) To foster entrepreneurship. 2) To support Young Entrepreneur Organization members by providing them the chance to network and grow. 3) To provide resources to its members so that they can benefit the economy through innovative business ideas. 4) According to Young Entrepreneur Organization, you get to share your story with those who have had similar experiences, and thus gain insight into the best principles of entrepreneurship. Young Entrepreneur Organization: Facilities. At the Young Entrepreneur Organization, you get to meet and share views with like-minded people and fellow entrepreneurs. In order to facilitate a free exchange of ideas and growth for its member, the Young Entrepreneur Organization provides the following facilities to members. 1) Forum: Join the forum of the Young Entrepreneur Organization and start networking with entrepreneurs from across the world. Each forum group has 12 members who come together regularly to share their experiences and discuss issues related to entrepreneurship. 2) Mentor: In conjunction with the World Presidents’ Organization, the Young Entrepreneur Organization guides and counsels young entrepreneurs through a mentor program by the best business leaders. 3) Social Innovation: The Social Innovators Program involves Young Entrepreneur Organization member who wish to do something for about social issues. It helps members become socially aware citizens and gives them the opportunity to do something for their community. 4) Marketplace: The marketplace allows members to post business offers and receive replies from other members. These are just some of the facilities you will get if you become part of the Young Entrepreneur Organization. Others, like meeting prospective clients through trade shows, and special tools to network and meet with the right people are also part of the YEO facilities.
the BDC - Hi Renee, the BDC is a great lender to many Canadian businesses. I've heard many horror stories from businesses that have had problems with the BDC, but I think it all depends on which account manager you deal with (that's the case with most lenders). Anyways, I have a great relationship with the BDC Toronto office, and was successful earlier this year in getting two service based companies loans under the BDC Innovation financing program ($100,000 and $150,000, both for marketing and growth initiatives). Here's an article I wrote about the BDC late last year for an Accounting Firm's newsletter: The Business Development Bank of Canada is a financial institution belonging to the Government of Canada, with the mandate: “to encourage innovation and stimulate the growth of small and medium-size Canadian companies.” The BDC usually looks for companies with a sound management team that possess solid growth potential. The BDC can provide working capital solutions to complement traditional bank financing. The BDC’s lending practices are somewhat different from the traditional chartered banks. With the BDC, borrowers receive a guaranteed term, meaning that financing cannot be recalled without due cause. As opposed to the chartered banks, where facilities are typically demand loans and can be recalled at any time. The BDC has very flexible repayment terms, including deferring principal payments, amortizing loans for up to an 8 year term, or offering seasonal and/or progressive payment options. This allows businesses to structure their cash flow accordingly. The BDC is willing to lend to companies that are more leveraged than traditional banks would consider. As well the BDC is willing to finance higher loan-to-value ratios than the chartered banks max out on. The BDC also offers subordinated debt, where they will postpone their claim to a chartered bank. Sub-debt can be very advantageous to many companies, because the BDC ties the repayment terms to the company’s cash flow projections. The pricing model can be setup as normal interest payments, royalties on sales, bonus interest based on milestones, warrants or some combination of these items. The BDC lends sub-debt to businesses based on historical cash flow, management and growth potential. The innovation financing program provides small businesses with funds to carry out marketing and/or growth plans, increase inventory, and/or develop new products. The BDC funds all types of businesses including start-ups, however will not fund any business that earns 50% or more of their profits from alcohol sales or gambling. The cost of borrowing from the BDC is generally higher than the chartered banks. The BDC’s base rate generally starts at two points above regular bank prime, and then the risk premium is applied to these rates based on each project's potential and the amount of risk involved. The BDC may not be ideal for all businesses, but as an alternative and/or complement to traditional bank financing, the BDC could be a very attractive solution.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The Biggest Domain Name Myth

The five pillars of internet marketing strategy

Environment and productivity at the office

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.