Seven Sources of Innovative Opportunity An unexpected external event. Sources of innovative ideas

INNOVATIVE MANAGEMENT.

Management and innovation are needed everywhere - in the economy and in education, in healthcare and municipal government. And they are necessary precisely because they do not mean a “radical change”, grandiose transformations. An entrepreneurial society takes a great many different steps simultaneously at every moment: a new product here, a new service there, a new form of leisure somewhere else. Only such a structure is able to satisfy the most diverse and almost always local needs of a very complex society, and even more so to develop these needs. Therefore, innovation is defined as the end result of intellectual (scientific and technical) activity, which has been embodied in the form of a new or improved product or service introduced on the market.

Concepts should be distinguished innovations and innovation. Innovation - this is a formalized result of fundamental, applied research, development or experimental work in any field of activity to increase its effectiveness. Innovations can take the form of: a discovery, invention, patent, trademark, rationalization proposal, documentation for a new or improved product, technology, management or production process, standard, etc.

The main thing is to introduce innovation, to turn innovation into a form of innovation, i.e. complete the innovation activity and get a positive result.

Innovation- the end result of the introduction of innovation in order to change the object of management and obtain an economic, social, environmental, scientific, technical or other type of effect.

Seven sources innovative opportunities.

Innovation does not have to be technical or something material in general. It is believed that the Japanese are not innovators, but imitators. Indeed, they showed little technical and scientific innovation. Their success was based on social innovation.

The Japanese made the deliberate decision a hundred years ago to focus on social innovation and imitate, import, and adapt technical innovations with overwhelming success.

What is sometimes referred to as creative imitation is a very respectable and often very successful entrepreneurial strategy.

Innovation is more of an economic and social term than a technical one.

Systematic innovation consists in a purposeful, organized search for change and in a systematic analysis of the opportunities that these changes can provide for economic or social innovation.

Systematic innovation means monitoring the seven sources of innovation opportunities.

The first four sources lie within the enterprise (in the internal environment), so they are visible primarily to people working in this sector or industry. These are mostly symptoms. But they are highly reliable indicators of changes that have already happened or that can be made to happen with little effort.

These four sources are:

- unexpected event: unexpected success, unexpected failure, unexpected external event.

- mismatch, mismatch: between reality as it is and its reflection in our opinions and assessments.

- Innovation based on the needs of the production process.

- Changes in industry or market structure that take everyone by surprise.

The second set of sources, of three elements, includes changes outside the enterprise or industry, namely, in the social, political, intellectual environment (external environment):

- Demographic changes.

- Changes in consumer perception and sentiment.

- New knowledge, scientific and non-scientific.

All these sources overlap, but the order in which they are listed is not arbitrary. They are listed in descending order of reliability and predictability. Contrary to almost universal belief, new knowledge - especially scientific knowledge - is the least reliable and least predictable source of successful innovation. For example, the analysis of such things as an unexpected event will greatly reduce risk and uncertainty. The innovations that emerge from it are, as a rule, of the smallest importance between the beginning of an enterprise and its measurable results - success or failure.

Competitive advantage is always associated with the implementation of certain changes that affect all members of the organization. At the same time, changes, to one degree or another, are always associated with innovation.
For the first time, the term “innovation” appeared in the scientific studies of culturologists back in the 19th century and literally meant the introduction of some elements of one culture into another.
Only at the beginning of the 20th century began to study the patterns of technical innovations. In 1911, the Austrian economist Schumpeter J. in his work “Theory economic development” distinguished two aspects of economic life:
static (routine circulation is associated with constant repetition and resumption of production - the organizations participating in it know the principles of their behavior from their experience, it is easy for them to foresee the results of their actions and it is easy to make decisions, because the situation is clear);
· dynamic (innovative circulation means development - a special, distinguishable in practice and in the minds of people, a state that acts on them as an external force and does not occur in a situation of economic circulation).
Innovations in the economy are introduced, as a rule, not after the consumer spontaneously has new needs and reorientation of production takes place, but when the production itself accustoms the consumer to new needs.
To produce means to combine the resources available to the organization, and to produce something new means to create new combinations of changes in the development of production and the market. Schumpeter J. identified five typical changes:
1. changes due to the use of new technology, new technological processes and new market support for production;
2. changes due to the use of products with new properties;
3. changes due to the use of new raw materials;
4. changes in the organization of production and methods of its logistics;
5. changes due to the emergence of new markets.
In the 30s of the 20th century, Schumpeter J. first used the concept of “innovation”, meaning by this change with the aim of introducing and using new types of consumer goods, new production means, markets and forms of organization in industry. At the same time, Schumpeter J. assigned the main role of the driving force of the economic development of society not to the nature of the struggle between capital and the proletariat (according to Marx K.), but to the introduction of innovations in the economy of the state.
In the course of the research, it also became clear that not only a change in prices and savings on current costs, but also a radical renewal and change in products can become a source of profit. The ability to ensure the competitiveness of the organization by changing prices or reducing costs is always short-term and has a marginal character. The innovative approach turns out to be more preferable, since the process of searching, accumulating and transforming scientific knowledge into physical reality is, in fact, unlimited.

Sources of innovative ideas

Drucker P. identifies seven sources of innovative ideas:
1. unexpected event for an organization or industry - unexpected success, unexpected failure, unexpected external event
2. non-congruence - a discrepancy between reality (as it really is) and our ideas about it (as it should be)
3. innovations based on the needs of the process (under the need of the process one should mean those of its shortcomings and weaknesses that can and should be eliminated)
4. sudden changes in industry or market structure
5. demographic changes
6. changes in perceptions, moods and values
7. new knowledge (both scientific and non-scientific).
According to Drucker P., a systematic innovation process consists in a purposeful and organized search for changes and in a systematic analysis of these changes as a source of social and economic innovation. He refers to the first 4 sources of innovative ideas (areas of change) as internal, since they are within the organization, within the industry or service sector (such sources are available to those working in this organization or in this industry). The last three sources are external because they originate outside the organization or industry. However, there are no clear boundaries between all sources, and they can intersect mutually.
When choosing an innovative idea and deciding on the implementation of any innovation, you need to find out some points:
§ if we are talking about product innovation - does this or that product have a good chance in the market
§ if we are talking about any innovative project - getting a real profit (the profit from the project should be much higher than the costs of its implementation) and assessing the real risk (the risk associated with the project should be in the maximum allowable ratio with the profit from its implementation).
Thus, in order to achieve the intended goals and obtain monopoly excess profits from innovation, the organization must comply with certain conditions and meet certain requirements:
§ it is necessary to clearly represent the volume of demand of potential consumers for innovation, its economically expressed advantages over existing methods of satisfying this need
§ it is necessary to identify resource constraints that arise during the creation, production and marketing of innovations, i.e. it is important to correctly make a comprehensive forecast of the economic potential of innovation
§ for the successful development of an innovative organization, a prerequisite is the compliance of the organization's personnel with certain requirements
§ With limited material and financial resources and market uncertainty, the quality of organization and management plays a significant role in the success of innovative organizations.
In connection with the foregoing, it is small innovative organizations that are most effective, since they are characterized by the absence of strictly formalized management structures, which ensures speed and flexibility in decision-making.

Innovation process

Formation of the idea, preparation and gradual implementation of innovative changes is called the innovation process. The innovation process is a broader concept than innovation activity. It can be viewed from different perspectives and in varying degrees of detail:
Firstly, it can be viewed as a parallel-sequential implementation of research, scientific, technical, industrial activities and innovations;
Secondly, it can be considered as temporary stages of the innovation life cycle from the emergence of an idea to its development and implementation.
AT general view, the innovation process is a sequential chain of events during which an innovation is implemented from an idea to a specific product, technology or service and is distributed in economic practice. Moreover, the innovation process does not end with the so-called implementation, i.e. the first appearance on the market of a new product, service or bringing a new technology to its design capacity. The process is not interrupted because as it spreads in the economy, an innovation improves, becomes more efficient, acquires new consumer properties, which opens up new areas of application, new markets, and hence new consumers.
An important direction in the study of innovation processes is the identification of real factors that facilitate or hinder their implementation.

Table: Factors influencing the development of innovation processes

Group of factors Factors hindering innovation activity Factors facilitating innovation activity
Economic, technological Lack of funds to finance innovative projects Weakness of the material and scientific and technical base and outdated technology, lack of reserve capacities Dominance of the interests of current production Availability of a reserve of financial, material and technical resources, advanced technologies Availability of the necessary economic and scientific technical infrastructure financial incentives for innovative activities
Political, legal Restrictions from antimonopoly, tax, amortization, patent and licensing legislation Legislative measures (especially benefits) that encourage innovation State support for innovation
Organizational and managerial Established organizational structure, excessive centralization, authoritarian management style, predominance of vertical information flows Departmental isolation, difficulty in inter-industry and inter-organizational interactions Rigidity in planning Orientation to established markets Orientation to short-term payback Difficulty in coordinating the interests of participants in innovative processes Flexibility organizational structures, democratic style of management, dominance of horizontal information flows, self-planning, allowance for adjustments decentralization, autonomy, formation of target problem groups
Socio-psychological, cultural resistance to changes that can cause such consequences as a change in status, the need to look for a new job, the restructuring of established ways of activity, the violation of stereotypes of behavior, established traditions fear of uncertainty, fear of punishment for failure resistance to everything new that comes from the outside · moral encouragement, public recognition · provision of opportunities for self-realization, liberation of creative labor · normal psychological climate in the work team

The content of the innovation process covers the stages of creation, both innovation and innovation.
The innovation creation process includes (innovation life cycle):
1. Research stage
§ basic research and development theoretical approach to solving a problem (basic research is a theoretical or experimental activity aimed at obtaining new knowledge about the basic patterns and properties of social and natural phenomena, about cause-and-effect relationships with respect to their specific application. There are theoretical and exploratory fundamental research. Theoretical studies include research - the task of which is new discoveries, the creation of new theories and the substantiation of new concepts and ideas.The search includes fundamental research - the task of which is the discovery of new principles for creating products and technologies, new, previously unknown, properties of materials and their compounds, methods of analysis and synthesis In exploratory research, the goal of the intended work is usually known, more or less clear theoretical basis but directions are not specified. In the course of such research, theoretical proposals and ideas are confirmed, rejected or revised. The positive output of fundamental research in world science is 5%.);
§ applied research and experimental models (applied/original research is aimed primarily at achieving a specific goal or task, at identifying ways of practical application of previously discovered phenomena and processes; applied research work aims to solve a technical problem, clarify unclear theoretical questions, obtaining specific scientific results that will be further used in experimental developments);
§ experimental development, determination of technical parameters, product design, manufacturing, testing, refinement (product development is the final stage of scientific research, characterized by the transition from laboratory conditions and experimental production to industrial production. The purpose of product development is to create / modernize samples of new technology that can be transferred after appropriate tests to mass production or directly to the consumer.At this stage, the final verification of the results of theoretical studies is carried out, the corresponding technical documentation is developed, a technical prototype or an experimental technological process is manufactured and tested.A technical prototype is a real-life sample of a product, system or process, demonstrating the suitability and compliance of performance with specifications and production requirements);
2. Stage of production
§ initial development and preparation of production (at this stage, a description of possible production methods is made, indicating the main materials and technological processes, conditions for operational and environmental safety. The stage of determining industrial applicability and preparation for production is the period during which the product must be prepared for release to the market The result is a prototype, a full-scale working model designed and built to define the requirements for the production of a new product The prototype fully complies with the industrial design standards of the final product being mastered in mass production Technical analysis and information gathering data are the basis of the feasibility study containing a detailed assessment of the costs of creating and operating the production complex and the profit from selling the product on the market at competitive prices);
§ launch and management of mastered production (full-scale production is the period during which a new product is mastered in industrial production and the production process is optimized in accordance with market requirements);
3. Stage of consumption
§ delivery of products to the market and its consumption (at this stage, the strategy for promoting a new product to the market is specified, there is a direct consumption of new knowledge embodied in a new product. At the same time, the actual effectiveness of innovative activity is revealed.);
§ obsolescence of the product and the necessary elimination of obsolete production (this stage occurs when there is not only physical, but primarily moral depreciation of equipment caused by the rapid pace of development of new highly efficient models).
With regard to innovation, as a process of transferring innovation into the scope of application, the content of the life cycle is somewhat different and includes the following stages:
1. the birth of innovation - awareness of the need and the possibility of change, search and development of innovations;
2. development of innovation - implementation at the facility, experiment, implementation of production changes;
3. diffusion of innovation - distribution, replication and multiple repetition at other objects (dissemination of innovation is an information process, the form and speed of which depend on the power of communication channels, the characteristics of the perception of information by business entities, their ability to use this information in practice, etc. According to J. Schumpeter's theory, diffusion of innovation is the process of a cumulative increase in the number of imitators/followers who innovate after the innovator in anticipation of higher profits);
4. routinization of innovation - innovation is implemented in stable, constantly functioning elements of the corresponding objects.
An innovation, as a process, cannot be considered fully completed if it stops at one of these stages. In turn, the life cycle of an innovation can stop at the stage of consumption if it does not close with the innovation.
Thus, both life cycles are interconnected, interdependent and impossible one without the other. Both life cycles are covered by the general concept of the innovation process, and the main difference between them is that in one case there is a process of formation of new products, in the other - the process of its commercialization.

Figure: New product life cycle

STREAM The need for theoretical research The need for development in the development of applied research The need of the economy for the development of new equipment, technology and consumer goods
SCIENTIFIC Basic research Applied research Experimental development Diffusion of innovations into production and consumption
IDEAS Discoveries Inventions Scientific and technological advances/developments Innovation

Figure: Innovation process

Idea generation Feasibility testing Prototyping Comprehensive testing and performance improvement Market sounding Large-scale production organization Market expansion
Market needs analysis Large-scale marketing
First stage Second stage Third stage Fourth stage Fifth stage Sixth stage
Organization of the innovation process
Let's look at the process of implementing innovation from a financial point of view.

Figure: Dynamics of costs and benefits during implementation
innovative project (according to Mikkelson H.)

Profit W

Gross income

net income

Profit

Current costs associated
with production and
sales of products

It is obvious that the early stages of this process are notoriously expensive, and the costs increase sharply as the innovation approaches the market (time t1). The segment t0-t1 corresponds to the first four stages of the innovation process. With the onset of the fifth stage, the organization begins to receive income from sales, which grows further with the expansion of the scale of production and sales (curve W on the segment t1-t3). Naturally, this happens only with the successful development of the innovation process. Curve V on the same segment characterizes the receipt of net income, starting from time t1. It is formed as a result of subtracting from the gross income W the current costs Q associated with the production and sale of marketable products. From a certain point in time t2>t1, net income compensates for the costs in the early stages of the innovation process and the organization begins to receive net profit (curve P on the segment t2-t3).
Net profit grows as long as the new marketable product is competitive and in demand among buyers.
However, life shows that under conditions market economy this happy period for entrepreneurs does not last long. Many others follow in the footsteps of the innovator organization, also striving to establish themselves in a new market niche. Some of them acquire a license to use the innovation legally. Others act by piracy, using technology developed by the first organization or releasing a new product without complying with all legal requirements. Still others generally discredit innovations by organizing the underground production of low-quality and cheaper analogues under the brand name of the developer organization. Finally, the fourth - the most serious competitors in the market - independently improve the consumer or technological characteristics of the innovation, achieve significant results along this path, find loopholes in patent law and gradually fill new market niche spaces with their products.

Entrepreneurs are distinguished by an innovative type of thinking.

Innovation is a special tool for entrepreneurship. Entrepreneurship itself as an action is aimed at infusing new properties into existing resources in order to create wealth. Moreover, in the course of innovation, a resource is created. A resource as such does not exist until a person finds something useful in nature and endows it with economic value. Up to this point, for example, any plant Remains a shoot, something like a weed, and any mineral Remains just a rock. A little over a century ago, neither oil seeping from the earth, nor bauxite, nor aluminum ore were considered resources. On the contrary, they were considered a nuisance, as they violated the fertility of the soil. Mold fungi - penicilli were considered not a resource, but a pest. Bacteriologists have made tremendous efforts to find a way to protect their bacterial cultures from infection by them. So it was until, in the twenties of our century, a microbiologist from London, Alexander Fleming, as a result of research, discovered that natural penicillins are formed by many types of mold fungi - penicilli. This discovery allowed him in 1929 to isolate a complex of penicillins - valuable antibiotics. So the pest fungus turned into a useful resource.

The same pattern is true in relation to the social and economic spheres. In the economy, there is no more significant resource than "purchasing power", and it is created by an innovative entrepreneur.

The American farmer of the nineteenth century had little to no purchasing power and therefore could not acquire farm equipment. At that time, many grain harvesters and other agricultural machines were already being produced, but the farmer simply could not pay for any of them. Given this circumstance, one of the inventors of harvesting machines, Cyrus McCormick, introduced a system of selling these machines in installments. This made it possible for the farmer to pay for the cost of the purchased machine not from his savings, but from future earnings. Thus, the farmer unexpectedly acquired "purchasing power", which allowed him to buy agricultural equipment.

This suggests that an innovative approach to resources is an effective means of generating additional benefits.

The idea of ​​using containers used in road transport on cargo ships did not contain any purely technical innovations. This innovation, that is, the introduction of sea containers, had not a technological basis, but a new vision of the "cargo ship" as a handling device. The driving force behind this endeavor was the desire to maximize the speed of ship service in ports. Remarkably, this fairly straightforward implementation nearly quadrupled the efficiency of maritime freight transport, and may even have saved this mode of freight transport from ruin. Without this innovation, it is likely that there would not have been a huge increase in the volume of international trade that has characterized the past forty years. It should be borne in mind that it was international trade that was precisely the area economic activity which has received a truly unprecedented development.

Another "non-science-intensive" innovation, the textbook, has done much more for the spread of school education than the systematic training of school teachers in pedagogical educational institutions and pedagogical theory itself. (It is believed that the school textbook was invented by the great Czechoslovak educational reformer Jan Amos Comenius. He is credited with creating the first primer of the Latin language in the middle of the seventeenth century.) Without a textbook, even the best teacher would not be able to teach more than 1-2 students at once; with a textbook, even a mediocre teacher can put something into the heads of 30-35 students.

The examples given show that innovations do not necessarily have to be technical or "material". Few purely technical innovations can be compared in impact with social innovations such as the publication of modern newspapers and insurance. And the system of buying goods in installments produced a real economic revolution. Wherever this system is introduced, it transforms a supply-side economy into a demand-side economy almost regardless of the efficiency of the economy (this explains why installment buying is immediately banned in any country where a Marxist government comes to power, in Czechoslovakia in 1948, in Cuba in 1959). hospitals in their modern form is nothing more than a social innovation of the Enlightenment of the 19th century, which did more for the protection of health than many achievements in the field of medical science. Management can be considered an innovation of our century - “useful knowledge”, which allows you to combine efforts, “organize” the productive work of people who have different level knowledge and training. Management has transformed modern society into something completely new, and as yet we have neither a political nor a social theory that can explain this new thing. This new is the society of organizations.

In books on economic theory you will find mention of August Borsig as the man who created the first steam locomotives in Germany. Undoubtedly more important, however, were his organizational innovations, which overcame the fierce resistance of the craft guilds, teachers and government bureaucrats and still form the system of factory organization and the basis of Germany's industrial power. It was Borsig who came up with the idea of ​​the Master as a highly qualified and respected production worker, managing the affairs of the factory floor with a certain degree of autonomy. In addition, Borsig introduced a system of vocational training that combined practical training on the job with mastering the basics of the profession in the classroom. Examples can be cited from a more distant past, such as the development of a secular approach to the problem of the state in Machiavelli's The Prince (1513) and the foundations of the modern nation-state, made sixty years later by his closest follower Jean Bodin. Both of these related innovations have had a more tangible impact on human civilization than many technological inventions.

A typical example in terms of social innovation and its importance in the modern world is Japan.

Starting around 1867, that is, from the time when Japan "opened up" modern world, Western states underestimated her, despite the fact that she was able to inflict a military defeat on China in 1894 and Russia in 1905. The same trend remained after the events in Pearl Harbor and even after the establishment of Japan as a "superpower" and a fierce competitor on the world market in the seventies and eighties. It is likely that the main reason for this situation lies in the dominant belief that innovation must necessarily be related to material things and be based on science and technology. Thus, according to those who hold such beliefs (not only in the West, but also in Japan itself), the Japanese are not innovators, but imitators. This is supported by the argument that, by and large, outstanding scientific and technological achievements (innovations) did not originate in Japan.

When, as a result of the Meiji Revolution, Japan very reluctantly and with great restraint opened its doors to the outside world, it did so in order to avoid the fate of India and China (19th century), which were conquered, colonized and drawn into the orbit of Western interests (“Westernized”). . The main goal of Japan (here it is appropriate to recall the principles of judo wrestling) was to use the achievements of the West to contain it and preserve the Japanese spirit.

The foregoing confirms the idea that social innovations (^ seemed to be more significant than the introduction of steam locomotives or the telegraph. It was much more difficult to implement social innovations to develop institutions such as schools and universities, government agencies, banks and labor relations, it was much more difficult than build steam locomotives or put telegraph service in operation.A locomotive that could pull a train from London to Liverpool could just as well move a train from Tokyo to Osaka without any special adaptation.Social institutions had to be quintessentially "Japanese" and at the same time "advanced". They had to be managed by the Japanese in a Japanese way and at the same time be in the sphere of a "western", highly industrialized economy. Technology can be imported at a fairly low cost and with minimal risk to the culture of the importing country. Institutions, in Unlike technology, for its development and prosperity, deep its cultural roots. One hundred years ago, Japan made a conscious decision to focus attention and resources on social innovation, imitation, import and adaptation of technical innovations. As you know, all this was done with amazing success. Moreover, this policy remains relevant for Japan to this day. As will be discussed in Chapter 17, what is inappropriately called creative imitation is actually a very solid and often highly effective entrepreneurial strategy.

If Japan now finds it necessary to go beyond imitating, importing and adapting technology from other countries and learning how to create its own new technical ideas, then still creative imitation is unlikely to be relegated to the background and forgotten. Scientific research itself is a fairly new "social innovation", and the Japanese have always and in every field demonstrated great potential in such innovation. The most important thing can be considered that they managed to comprehend the secrets of entrepreneurial strategies.

It can be concluded that innovation (innovation) is rather economic or social concept than technical. Say's definition of entrepreneurship is quite applicable to this concept. Thus, it turns out that the goal of an innovative solution is to increase the return on invested resources. In the refraction of modern economic thought, innovation is defined as a phenomenon that lies in the sphere of demand, not supply, that is, it changes the value and utility that the consumer extracts from resources.

It seems that the advantage of using one of these definitions depends on the particular case rather than on the theoretical model. Moving from full-cycle plants to so-called "mini-mills" using scrap metal instead of iron ore and producing a certain end product (for example, round bars, wire rod, etc., and not just steel that still needs to be processed) , is best viewed and analyzed from the perspective of supply-side economics. With this technical solution, the end product, end use cases and consumers remain the same as in the first case, and costs are significantly reduced. It is quite possible that the use of containers in maritime transport can also be interpreted from the point of view of supply-side economics. As for the introduction of audio or video cassettes, which is the same, if not more "technical" innovation, it is best described or analyzed from the perspective of consumer values ​​and satisfactions (utilities). The same applies to such social innovations as the publication of Time, Life and Fortune magazines, which was initiated in the twenties by Henry Luce, or the creation of a fund money market in the seventies and early eighties of our century.

We are not yet able to offer a theory of innovation. But we already know quite a lot about when, where and how to systematically look for innovative opportunities and how to determine their chances in terms of success or failure. We have the necessary knowledge to develop (at least in the most general form) the practice of innovation.

Technological historians constantly remind us that one of the greatest achievements of the nineteenth century was the "invention of inventions." Despite the fact that this thesis has acquired the character of a cliché, it remains true. Until about 1880, the invention was viewed as something mysterious; in the books of the nineteenth century we find the definition of invention as "the spark of God" or "the illumination of genius." The inventor himself was seen as a semi-romantic, semi-absurd figure doing who knows what all alone in his attic. Only by 1914, that is, by the beginning of the First World War, did they begin to look at the invention as research - a systematic, purposeful activity, planned and organized with a high degree of predictability of the intended and probable results.

It is very likely that innovation activity in its development can go through similar milestones. Dered entrepreneurs, however, are faced with the challenge of learning how to implement innovative solutions in a systematic manner.

Successful entrepreneurs don't wait for a "blow of inspiration" to hit them with a "brilliant idea"—they just roll up their sleeves and get to work. Such entrepreneurs are not looking for "great discoveries," innovations that can "turn the industry," help create a "multi-billion dollar business," or help "get rich in the blink of an eye." Entrepreneurs who start a business with the goal of expanding it as much as possible and as quickly as possible are doomed to failure. They are guided by wrong principles. An innovation that at first seems promising in terms of its practical application may turn out to be an absolutely unrealizable result of technical virtuosity. At the same time, innovations that are very modest in their intellectual content (for example, the opening of a chain of McDonald's restaurants) can result in a gigantic, highly profitable business. These observations hold true for innovations in non-commercial and non-industrial fields as well.

Successful entrepreneurs, whatever their personal motivation - money, power, curiosity, or the desire for fame - strive to create utility and make corresponding investments. Of course, these entrepreneurs look far away. They are not content just to improve or modify what already exists. They are trying to create new and different values ​​and utility, to turn "material" into a "resource" or to clothe existing resources in a new and more productive form.

Change paves the way for everything new and previously unknown. Thus, the systematic innovation process consists in a purposeful and organized search for changes and in a systematic analysis of the potential of these changes as a source of social and economic innovation.

As a rule, such changes include those that have already occurred or are about to occur. The vast majority of successful innovations are built around the use of change. Of course, there are innovations that, by their very nature, represent major changes. In this regard, first of all, some technical innovations should be mentioned, for example, the development of a new aircraft model by the Wright Brothers company. Such cases, however, belong to the category of exceptions, and, moreover, very rare ones. Most successful innovations are much more prosaic, and they are based on change. Thus, we can conclude that the discipline of innovation (which is also the knowledge base of entrepreneurship) is a diagnostic discipline or, in other words, a systematic study of those areas of change that are most likely to conceal entrepreneurial opportunities.

More specifically, there are seven areas of change analysis, that is, seven sources of innovative ideas.

The first four sources can be classified as internal, they are within the enterprise (industrial or non-industrial), within the industry or service sector. Such sources are visible to people working in a given enterprise or industry. In essence, they are symptoms. At the same time, they serve as highly reliable indicators of changes that have either taken place or can be brought about with very little effort. These sources include:

1) unexpected event(for an enterprise or industry) - unexpected success, unexpected failure, unexpected external event;
2) incongruity- a discrepancy between reality as it really is and our ideas about it (“as it should be”);
3) innovations based on process needs;
4) sudden changes in the structure of the industry or market;

The following three sources of innovation can rightly be called external, since they have their origin outside the given enterprise or given industry:
5) demographic changes;
6) changes in perceptions, moods and value settings X;
7) new knowledge (both scientific and non-scientific).

The boundaries between these seven sources of innovative ideas are blurred; moreover, these sources often overlap. They can be compared to seven windows, each of which is located on different sides of the same building. Some details of the landscape are viewed in the same way from all windows, but the view that opens in the center of each of them is specific and individual.

Since each of these sources has its own characteristics, they should be analyzed separately. There is no need to prove that all these sources are important and effective in their own way. Major innovations can be the result of both an analysis of the symptoms of change (for example, an unexpected success resulting from changes in a product or pricing that were considered minor), and the application of new knowledge as a consequence of a breakthrough in science.

At the same time, the proposed order of discussion of these sources is far from accidental. As you can see, these sources are given in descending order of reliability and predictability. Contrary to the almost universal belief that new knowledge, and especially scientific knowledge, is the most reliable and predictable source of successful innovation, it is not. For all its clarity and importance, for all its brilliance and attraction, this source is the least reliable and least predictable. At the same time, a serious analysis of symptoms of change, such as unexpected success or windfall, can lead to effective innovative solutions. That is why innovations, the source of which were unexpected events, are characterized, as a rule, by the shortest period from the moment the solution materializes to the receipt of measurable results, positive or negative.

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Drucker P. identifies seven sources of innovative ideas:

§ unexpected event for an organization or industry - unexpected success, unexpected failure, unexpected external event

§ incongruence - a discrepancy between reality (as it really is) and our ideas about it (what it should be)

§ innovations based on the needs of the process (under the need of the process one should mean those of its shortcomings and weaknesses that can and should be eliminated)

§ sudden changes in industry or market structure

§ demographic changes

§ changes in perceptions, moods and values

§ new knowledge (both scientific and non-scientific).

According to Drucker P., a systematic innovation process consists in a purposeful and organized search for changes and in a systematic analysis of these changes as a source of social and economic innovation. He refers to the first 4 sources of innovative ideas (areas of change) as internal, since they are within the organization, within the industry or service sector (such sources are available to those working in this organization or in this industry). The last three sources are external because they originate outside the organization or industry. However, there are no clear boundaries between all sources, and they can intersect mutually.

When choosing an innovative idea and deciding on the implementation of any innovation, you need to find out some points:

§ if we are talking about product innovation - does this or that product have a good chance in the market

§ if we are talking about any innovative project - getting a real profit (the profit from the project should be much higher than the costs of its implementation) and assessing the real risk (the risk associated with the project should be in the maximum allowable ratio with the profit from its implementation).

Thus, in order to achieve the intended goals and obtain monopoly excess profits from innovation, the organization must comply with certain conditions and meet certain requirements:

§ it is necessary to clearly represent the volume of demand of potential consumers for innovation, its economically expressed advantages over existing methods of satisfying this need

§ it is necessary to identify resource constraints that arise during the creation, production and marketing of innovations, i.e. it is important to correctly make a comprehensive forecast of the economic potential of innovation

§ for the successful development of an innovative organization, a prerequisite is the compliance of the organization's personnel with certain requirements

§ With limited material and financial resources and market uncertainty, the quality of organization and management plays a significant role in the success of innovative organizations.

In connection with the foregoing, it is small innovative organizations that are most effective, since they are characterized by the absence of strictly formalized management structures, which ensures speed and flexibility in decision-making.

Innovation process

Formation of the idea, preparation and gradual implementation of innovative changes is called the innovation process. The innovation process is a broader concept than innovation activity. It can be viewed from different perspectives and in varying degrees of detail:

Firstly, it can be viewed as a parallel-sequential implementation of research, scientific, technical, industrial activities and innovations;

Secondly, it can be considered as temporary stages of the innovation life cycle from the emergence of an idea to its development and implementation.

In general terms, the innovation process is a sequential chain of events during which innovation is implemented from an idea to a specific product, technology or service and is distributed in economic practice. Moreover, the innovation process does not end with the so-called implementation, i.e. the first appearance on the market of a new product, service or bringing a new technology to its design capacity. The process is not interrupted because as it spreads in the economy, an innovation improves, becomes more efficient, acquires new consumer properties, which opens up new areas of application, new markets, and hence new consumers.

An important direction in the study of innovation processes is the identification of real factors that facilitate or hinder their implementation.

Table: Factors influencing the development of innovation processes

Group of factors	Factors hindering innovation activity	Factors contributing to innovation
Economic, technological	Lack of funds to finance innovative projects Weak material and scientific and technical base and outdated technology, lack of reserve capacity Dominance of the interests of current production	Availability of a reserve of financial, material and technical resources, progressive technologies Availability of the necessary economic and scientific and technical infrastructure Material incentives for innovative activities
Political, legal	Restrictions from antimonopoly, tax, depreciation, patent and licensing legislation	Legislative measures (especially benefits) that encourage innovation State support for innovation
Organizational and managerial	Established organizational structure, excessive centralization, authoritarian style of management, predominance of vertical information flows Departmental isolation, difficulty in intersectoral and interorganizational interactions Rigidity in planning Focus on established markets Focus on short-term payback Difficulty in reconciling the interests of participants in innovation processes	Flexibility of the organizational structure, democratic management style, the predominance of horizontal information flows, self-planning, allowance for adjustments Decentralization, autonomy, formation of target problem groups
Socio-psychological, cultural	resistance to change that can cause such consequences as a change in status, the need to look for a new job, the restructuring of established ways of activity, the violation of stereotypes of behavior, established traditions fear of uncertainty, fear of punishment for failure resistance to everything new that comes from outside	moral encouragement, social recognition providing opportunities for self-realization, the release of creative labor normal psychological climate in the workforce

The innovation creation process includes (innovation life cycle):

1. Research stage

§ fundamental research and the development of a theoretical approach to solving a problem (fundamental research is a theoretical or experimental activity aimed at obtaining new knowledge about the basic patterns and properties of social and natural phenomena, about cause-and-effect relationships with respect to their specific application. There are theoretical and search fundamental research.Theoretical research includes research - the task of which is new discoveries, the creation of new theories and the justification of new concepts and ideas.Exploratory research includes fundamental research - the task of which is the discovery of new principles for creating products and technologies, new, previously unknown, properties of materials and their compounds, methods of analysis and synthesis.In exploratory studies, the purpose of the intended work is usually known, the theoretical foundations are more or less clear, but directions are not specified. I or revised theoretical proposals and ideas. The positive output of fundamental research in world science is 5%.);

§ applied research and experimental models (applied/original research is aimed primarily at achieving a specific goal or task, at identifying ways of practical application of previously discovered phenomena and processes; applied research work aims to solve a technical problem, clarify unclear theoretical questions, obtaining specific scientific results that will be further used in experimental developments);

§ experimental development, determination of technical parameters, product design, manufacturing, testing, refinement (product development is the final stage of scientific research, characterized by the transition from laboratory conditions and experimental production to industrial production. The purpose of product development is to create / modernize samples of new technology that can be transferred after appropriate tests to mass production or directly to the consumer.At this stage, the final verification of the results of theoretical studies is carried out, the corresponding technical documentation is developed, a technical prototype or an experimental technological process is manufactured and tested.A technical prototype is a real-life sample of a product, system or process, demonstrating the suitability and compliance of performance with specifications and production requirements);

2. Stage of production

§ initial development and preparation of production (at this stage, a description of possible production methods is made, indicating the main materials and technological processes, conditions for operational and environmental safety. The stage of determining industrial applicability and preparation for production is the period during which the product must be prepared for release to the market The result is a prototype, a full-scale working model designed and built to define the requirements for the production of a new product The prototype fully complies with the industrial design standards of the final product being mastered in mass production Technical analysis and information gathering data are the basis of the feasibility study containing a detailed assessment of the costs of creating and operating the production complex and the profit from selling the product on the market at competitive prices);

§ launch and management of mastered production (full-scale production is the period during which a new product is mastered in industrial production and the production process is optimized in accordance with market requirements);

3. Stage of consumption

§ delivery of products to the market and its consumption (at this stage, the strategy for promoting a new product to the market is specified, there is a direct consumption of new knowledge embodied in a new product. At the same time, the actual effectiveness of innovative activity is revealed.);

§ obsolescence of the product and the necessary elimination of obsolete production (this stage occurs when there is not only physical, but primarily moral depreciation of equipment caused by the rapid pace of development of new highly efficient models).

With regard to innovation, as a process of transferring innovation into the scope of application, the content of the life cycle is somewhat different and includes the following stages:

1. birth of innovation- awareness of the need and the possibility of changes, search and development of innovations;

2. development of innovation- implementation at the facility, experiment, implementation of production changes;

3. innovation diffusion- distribution, replication and multiple repetition at other objects (dissemination of innovation is an information process, the form and speed of which depend on the power of communication channels, the characteristics of the perception of information by business entities, their abilities for the practical use of this information, etc. According to the theory of Schumpeter Y Diffusion of innovation is a process of cumulative increase in the number of imitators/followers who introduce an innovation after the innovator in anticipation of higher profits);

4. routinization of innovation- innovation is implemented in stable, permanently functioning elements of the relevant objects.

Thus, both life cycles are interconnected, interdependent and impossible one without the other. Both life cycles are covered by the general concept of the innovation process, and the main difference between them is that in one case there is a process of formation of new products, in the other - the process of its commercialization.

Figure: New product life cycle

P O T O K		Need for theoretical research	The need for development in the development of applied research	The need of the economy in the development of new equipment, technology and consumer goods
S A C H N Y X		Basic Research	Applied Research	Experimental developments	Diffusion of innovations into production and consumption
I D E Y		Discoveries	inventions	Scientific and technological achievements / developments	Innovation

Figure: Innovation process

First stage Second phase Third stage Fourth stage Fifth stage Sixth stage

Organization of the innovation process

Entrepreneurship is based on economic and social theories, according to which change is a completely normal and natural phenomenon. The main task of society, and especially the economy, is seen in obtaining something different, different from the previous one, and not in improving what already exists. Thus, the challenge for entrepreneurs is to learn how to implement innovative solutions in a systematic way.

Systematic innovation, therefore, consists in a purposeful, organized search for change and in a systematic analysis of the possibilities that these changes can provide for economic or social innovation.

The implementation of entrepreneurial activity is always based on a specific idea. The entrepreneurial idea, which is based on the activity and decisive, thought out in all details, innovative initiative of the entrepreneur himself, can cover both the production process as a whole and one or more of its individual parts. If we focus on the fragmentary form of an entrepreneurial idea, then we can identify the main directions in the activities of an entrepreneur that are possible for the implementation of the idea, that is, the complete or partial renewal of the enterprise:

• - change in the production management system;
• - application of new equipment or technology;
• - the use of new, more economical or durable materials in the production of goods;
• - improvement of design, packaging of goods;
• - a fundamentally new scheme for organizing an advertising campaign for an enterprise, etc.

However, the innovative nature of the activity of an entrepreneurial firm can manifest itself not only in relation to the factors of production, the organization of the production process itself or the product itself, but also in relation to the arrangement of people participating in the production process. In this case, the entrepreneurial idea can be based on the following actions:

• - full or partial replacement of all those involved in the production process in order to “remove” low-skilled workers;
• - creating a "special spirit" in the team of workers through mobilizing formulations of target settings and incentives to move towards such goals;
• - taking measures for the productive use of their working time by each employee, etc.

Thus, an innovative idea can be defined as a real possibility of producing an original product, product, service or their improved versions or modifications, as well as new brands. For an entrepreneur, it is important to identify for himself the same information sources that will help him find some specific innovative idea. Such sources can be specific knowledge: about the market and its needs; about the emergence of new technologies, materials, methods of production; about existing structural or geographic gaps in the provision of a certain product. Specific sources of innovative ideas can be:

• - consumers, i.e. the study of consumer demand;
• - scientists, in the event that they are engaged in the invention or search for new materials, commercial properties that can lead to the creation of original or improved versions of commercial products, services;
• - competitors, in some cases their activities aimed at studying consumer demand can push the entrepreneur to form his own innovative idea;
• - sales agents, dealers and other intermediaries;
• - consultants to the entrepreneur on some specific elements of innovation;
• - direct employees of the enterprise.

Most actively in some firms, it is the personnel of the enterprise that is used as a source of innovative ideas, for which special methods are used to stimulate the activities of workers in the development of new products; at the same time, ordinary workers are involved in the process of generating innovative ideas.

When identifying the sources of innovative ideas, the classification of Peter Drucker is of interest, who identifies seven sources of innovative ideas:

• - an unexpected event (for an enterprise or industry - an unexpected success, an unexpected failure, an unexpected external event);
• - incongruence - a discrepancy between reality as it really is and our ideas about it ("as it should be");
• - innovations based on the needs of the process (under the need of the process one should mean those of its shortcomings and “weak points” that can and should be eliminated);
• - sudden changes in the structure of the industry or market;
• - demographic changes;
• - changes in perceptions, moods and values;
• - new knowledge (both scientific and non-scientific).

According to P. Drucker, a systematic innovation process consists in a purposeful and organized search for changes and in a systematic analysis of these changes as a source of social and economic innovations. He refers to the first four sources of innovative ideas (areas of change) as internal, since they are within the enterprise, within the industry or service sector; such sources are available to those working in a given enterprise or industry. The last three sources refer to external sources innovative ideas, since they have their origin outside the given enterprise or industry. However, there are no clear boundaries between all seven sources, and they can mutually intersect. It should be noted that although none of the areas is initially more important than others, they are arranged by P. Drucker in order of decreasing reliability of analysis and predictability.

Let us consider successively all of the above sources of innovative opportunities. At the same time, however, we must remember that the boundaries between these sources of innovative ideas are blurred; moreover, these sources often overlap. However, each of these sources has its own characteristics, so they should be analyzed separately.

An unexpected event.

Unexpected success. There is no field that offers richer opportunities for successful innovation than unexpected success. There is no area where innovation opportunities are less risky and innovation less labor intensive. However, unexpected success is most often neglected, even worse, management tends to vigorously push it away. The fact is that it is difficult for management to come to terms with unexpected success. It requires determination, the ability to face reality, concrete political action, and the humility to say, "We were wrong." Thus, unexpected success is a kind of test of leadership competence.

Unexpected success is not just an opportunity for innovation, it itself causes the need for these innovations.

Unexpected success should be explored to identify innovative opportunities resulting from it, asking the following questions: · What benefits will the use of unexpected success provide?

Where it leads?

What needs to be done to turn success into an innovative opportunity?

How to do it?

An unexpected failure. Failures, unlike successes, cannot be rejected and rarely go unnoticed. But as a source of innovative opportunities, they are perceived even less frequently. Of course, most failures are just the result of blunders, greed, incompetence in planning or execution. But if the project fails, despite careful planning and conscientious execution, such failure indicates the need for change, that is, hidden innovative opportunities.

The discrepancy between reality and its display.

Like unexpected events, inconsistencies are a sure sign of innovation, either one that has already happened or one that can be triggered.

A discrepancy is a discrepancy, a dissonance between what is and what “should be”. If we use the geological term, then we can say that the discrepancy speaks of a hidden “fault”. Such a “fault” speaks directly to the need to innovate. It creates instability in which very small efforts can move huge masses and reshape entire socio-economic structures. However, inconsistencies, as a rule, do not appear in the figures and reports received by managers, that is, they have more of a qualitative rather than a quantitative aspect.

Distinguish the following types of discrepancies: discrepancy between the economic realities of society; discrepancy between the real situation in the industry and plans; discrepancy between the orientation of the industry and the values ​​of consumers of its products; · internal discrepancy in the rhythm or in the logic of technological processes.

the needs of the production process.

“Opportunity is the source of innovation” - this is how the leitmotif of the two previous sections can be characterized.

In this case, innovation does not begin with an event, but with a task. That is, here “necessity is the reason for invention.” We are talking about improving an already existing process, about replacing a weak link, about restructuring an old process in accordance with new needs. Sometimes, for example, it is necessary to add only one link, but this cannot be done without new knowledge.

So, in order to implement innovative solutions based on the needs of the production process, five main criteria are required: an autonomous process; one “weak” or “missing” link in it; a clear definition of the goal; a specification of the solution; a broad understanding of the usefulness of the proposal.

There are also three main limiting factors without which such an innovation would not be possible:

it is necessary to understand the essence of the need, and not just intuitively feel it;

some new knowledge is needed in order not only to understand the process, but also to know how to act;

the solution must match the habits and orientation of potential consumers.

Branch and market structures.

When in market or industry structures, leading manufacturers neglect the fastest growing market segments. Opportunities for growth that arise in a new environment rarely fit into existing market policies. Therefore, innovative companies get a wide field of activity.

There are four reliable, well-marked indicators of upcoming changes in the industry structure: 1. Rapid growth of the industry. If an industry grows significantly faster than the population or the economy as a whole, then it can be predicted with high certainty that its structure will change dramatically - at the latest when the output of this industry doubles. The existing practice is still successful, so no one is inclined to part with it. However, it is subject to a process of rapid obsolescence and new trends need to be caught.

By the time a growing industry doubles its output, it usually no longer adequately understands and serves its market. The traditional division of the market into segments no longer reflects reality, it only reflects history. However, many see the industry as it has always been, without regard to time and ongoing changes. This is the explanation for the success of many innovators.

Another sign that almost certainly points to the approach of structural change is the convergence of technologies that were previously considered completely independent.

The industry is ready to start fundamental structural changes if the direction of activity in it changes intensively.

demographic factors.

Demographic change refers to changes in the size of the population, its age structure, composition, employment, level of education and income. Such changes are usually unambiguous and have easily predictable consequences.

The importance of demographic factors has always been recognized, but to this day they are rarely taken into account in daily activities. It is believed that they occur so slowly, stretch for such a long time, that they are of no practical importance. This is not true. Demographic indicators are very unstable, the characteristics of the population change very quickly and unexpectedly.

Thus, demographic changes represent a highly productive and highly reliable source of innovation for those who are ready to conduct independent practical research on real situations and analyze trends.

Such an analysis should always begin with an assessment of the composition of the population, that is, for example, its size or age structure, in which attention should be paid to shifts in the age group, which at the present time represents the largest and most rapidly growing part of the population. Also important is the level of education, professional level and income level.

Changes in values ​​and perceptions.

The phenomenon of perception can hardly be explained from a social or economic point of view. The change in perceptions remains a fact. Perceptions are almost impossible to quantify; by the time they can be quantified, they are no longer a source of innovation. At the same time, perceptions can be characterized, tested and used.

However, it should be noted that many of what at first glance seem like radical changes, in fact, turn out to be a passing fad, or even just a short-term fad.

The potential for innovation based on changes in perception is recognized in principle, but the practical nature of such innovation is often denied.

When carrying out such innovations, the time aspect is very important. It means that only accurate choice and timing make such innovative activities successful.

Thus, due to the uncertainty of this source of innovative ideas, due to the fact that it is very difficult to know in advance whether a new perception is the result of a radical change or just a temporary fad, and due to the low predictability of the consequences, an innovation based on this source should be introduced gradually and be highly specialized.

New knowledge.

Innovations based on new knowledge become the object of attention and bring large incomes. Knowledge does not have to be scientific or technical.

Such innovations differ from all others in all the main characteristics: time coverage, failure rate, predictability. Here are their main differences:

1. The flow time for such innovations is the longest.

Firstly, a lot of time passes between the emergence of new knowledge and its implementation in technology.

secondly, a new technology materializes in a new product, process or service only after a long period of time. And this applies not only to the field of science and technology. Innovations based on social knowledge also take a long time to make their way.

• 2. These innovations are built on the convergence (combination) of several types of knowledge, not necessarily related to the field of science and technology. Until all the necessary knowledge is brought together, any innovative activities based on new knowledge will be doomed to failure. The implementation of innovation becomes real only when all the necessary data are already available and there are precedents for their use.
• 3. The implementation of such innovations is characterized by a high degree of risk and unpredictability.

A variation of such innovations are innovations based on a brilliant idea. In quantitative terms, they exceed all other types of innovations combined. A brilliant idea is the most risky and least reliable source of innovative opportunities. It is never possible to tell in advance which of these innovations have a chance of success and which do not.

After the formation of innovative ideas, an entrepreneurial firm faces the task of selecting the most promising ideas. When choosing an innovative idea, an entrepreneur must take into account not only the need for this project, but also how realistic its implementation is, because if there are no funds, the necessary skills, or if there are insurmountable obstacles, then a good innovative idea may not be feasible. Before an entrepreneurial firm decides to introduce any innovation, it is necessary to clarify some points. First, you need to find out if this or that product has a good chance in the market (if we are talking about product innovation). Foreign economists for such an analysis suggest answering the following questions:

• - Were there any grounds for looking for a new product idea?
• - Is there a need to create a new product at all?
• - Is there a need to replace one product with another?
• - Is the new product a natural continuation of the previous product range?
• - Is the company able to implement the idea of ​​​​release of a new product or obtain such a product?
• - Will the firm be able to sell such a product?
• - Does the new product fill any niche in the market?
• - Can the new product be characterized as progressive or nostalgic, i.e. "retro"?
• - Has anyone implemented similar ideas before, if so, how successfully?
• - Can competitors have similar ideas for new products?
• - With which financial risk related new product idea?
• Can a new product idea be a publicity success?
• - Which market is better to target the idea of ​​a new product?
• - Does the idea of ​​a new product fit the internal production structure of the company?
• - What real market chances would the implementation of the idea of ​​a new product have?

Secondly, when making a final decision in connection with an innovative idea, including in connection with design and research work, it is necessary to answer two more important questions: about real profit and real risk, and the answers to these questions should be as follows:

A. The profit from the project must be significantly higher than the cost of its implementation.

B. The risk associated with the project must be in the maximum allowable ratio with the profit from its implementation.

In addition, even a very promising idea in itself does not guarantee automatic market success for an innovator. In order to achieve the intended goals and obtain monopoly excess profits from innovation, an entrepreneurial firm must comply with certain conditions and meet certain requirements.

• 1. It is necessary to clearly represent the volume of potential consumers' demand for innovation, its economically expressed advantages over existing methods of satisfying this need. In addition, it is necessary to identify resource constraints that arise during the creation, production and marketing of innovation, i.e. it is important to correctly make a comprehensive forecast of the economic potential of innovation.
• 2. For the successful development of an innovative enterprise, a prerequisite is the compliance of the enterprise's personnel with certain requirements. A significant role for success is played by the age of the founders of the company (on average 30--35 years) and their personal qualities: high efficiency, sociability, purposefulness, competence.
• 3. With limited material and financial resources and market uncertainty, the quality of organization and management plays a significant role in the success of innovative enterprises. In this regard, it is small innovative enterprises that are most effective, since they have a nature, but the absence of strictly formalized management structures, which ensures speed and flexibility in decision-making.