Wednesday, May 18

Drucker and Innovation

Peter Drucker has discussed innovation countless times over the years. I particularly like the way he looks at innovation as "creating a new dimension of performance." Note how Drucker doesn't say "improve the performance of an existing dimension."

"Marketing and innovation are the two chief functions of business. You get paid for creating a customer, which is marketing. And you get paid for creating a new dimension of performance, which is innovation. Everything else is a cost center."

This pretty much sums up innovation in firms that seek to change the rules of the game.

Which firms have created a new dimension of performance (as opposed to improving the performance of an existing dimension)? I'll post an answer to that later.

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