Peter Drucker described systematic innovation as the process of monitoring seven sources for an innovative opportunity.
The first four sources are internal within the organization:
- The unexpected events – the unexpected success and the unexpected failure;
- Incongruity — between reality as it 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, especially those that catch everyone unawares in the organization.
The other three external sources involve changes outside the organization or industry:
- Demographics – population changes or some other macro factors;
- Changes in perception, mood, and meaning;
- New Knowledge – both scientific and nonscientific
Drucker observed, “Successful entrepreneurs do not wait until the “the Muse kisses them” and gives them a bright idea; they go to work.”