Thursday, April 24, 2008

Peter Drucker: Innovation

This is what Peter Drucker said about "innovation".

Innovation is an important function of a business. It has to innovate to provide for different needs of the customers.

It is not enough for a business to just provide a product or service. It has provide better and more cheaply. It is not necessary for a business to grow bigger, but it has to grow better.

Innovation may result in a lower price, but it may also result in a new and better product, a new convenience, or a new want.

Innovation results in a different product or service, and creates a new potential of satisfaction. It may be to find a new use for an old product.

Innovation is not invention.
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2 comments:

Anonymous said...

Innovation must result in better product in terms of enhancement and and at lower cost. Today many insurance products claim "innovation" and some even boldly claim "revolutionary" by having more features but with diluted benefits. Do you call this innovation? I call this marketing deception. Like ntuc products , Revosave and Vivolife , both have many features but the benefits are diluted that they become useless as planning vehicles. The consumers must not be fooled by this marketing ploy.These
products use external form or packaging to pass off as innovation but beneath them are hollow and empty to fool the unwary . Be careful of this kind of products.
They use aggressive marketing promotion and pushy insurance agents to peddle them.

April 24, 2008 11:41 PM
Anonymous said...

True, revosave and vivolife from ntuc are trying to be passed off as innovative products but they don't meet the criteria of innovation which entails improvement at lower cost.
Very often products like these will use heavy marketing to delude the consumers from seeing the truth of the products. You notice that revosave and vivolife use useless frills to wrap around and to hide the weaknesses like low protection, low annual bonus and return.Also used is an army of trained, heavily incentivized, emotion manipulators and glib tongue salesmen to hard push the products.
And anything goes.There is no rules and ethics is inevitably thrown to the wind.Today insurers are using such ploy to market their products and needs of consumers are never the central theme, only imaginary needs.

April 25, 2008 7:47 PM

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