Innovation and Entrepreneurship by Peter Drucker
“Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.”
Drucker’s Innovation and Entrepreneurship was the first book to discussion business innovation and entrepreneurship in a systematic way. By examining where innovation and entrepreneurial activity happens, you’ll be able to create and manage a successful entrepreneurial business without undue risk.
Drucker discusses seven clear signs that indicate opportunity for business innovation: (1) unexpected success, (2) incongruity between reality and ideal, (3) identification of an unmet need, (4) changes in industry or market structure, (5) demographic shifts, (6) changes in public perception, and (7) discovery of new knowledge. By watching for these signs to identify an opportunity, then creating and acting on a systematic plan to deliver a valuable product, businesses can create new value.
Innovation and Entrepreneurship isn’t just for start-ups: existing businesses and public-service institutions can also learn a great deal from this book.
(The PMBA also recommends two other books by Peter Drucker: The Effective Executive and The Essential Drucker.)
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