7 Sources of Innovation

As described by Peter Drucker, the seven sources of innovation include:

1. The unexpected - the instance success, unforeseen issues that result in failures or the impact of outside events that significantly change a business' success or strategy

2. The incongruity - the difference between the reality of success and how it actually is

3. Process need - as a source of defining what innovations are pursued

4. Industry structure - changes in industry structure that can catch some people unaware and open opportunities for others that either anticipate the change or are able to pivot and react/respond

5. Demographic analysis - analysis on target populations age, job/careers, net income and disposable income...

6. Perception - changes in the mood and meaning of the innovation and how it relates to the (below)

7. New knowledge of the innovation and how it is perceived to others

Building off of a few comments that Professor Worthington discussed in class, I feel like all of these concepts are key components on "how to" create a successful innovation (no surprise there...). But, I think the 7 sources really serve as a foundation for not only getting and innovation up and moving (described in the #5 - Demographic and #6 - Perceptions sections) but it gave me a better understanding on create a better self assessment of my business plan idea.

My business plan idea is to develop a solar panel installation company that is built around a solar panel advancement innovation that I've come up with. For a quick argument, current solar panel technologies on the market can convert around 17-22% of the suns energy into electricity. I think I've found a way to substantially increase the efficiency of this conversion (up to 40% efficiency). The goal of my business plan model was to develop the application for RESIDENTIAL homes rather than large industrial applications for the government or big businesses. My selling point was that residential projects could get their money back at a rate that is substantially faster than if they installed regular solar panels on their roof, making their investment pay back quicker and allow them to actually make money off of selling the extra electricity to the electric companies.

This is where my "self assessment reflection" prompted by the 7 sources of innovation comes into play. The main reason why solar panel technology has taken of primarily for large industrial applications is because buying and installing the panels is expensive. I realize now that if residential homes are my target market, I have to convince people that taking out a $10,000-$100,000 (depending on the size of their home, electric bill...) personal loan to achieve self-sustainability is worth the investment. I've been so focused on developing the technology side (which is equally important in order to make the financial pay back argument)  of the solar panel that I never stopped to analyze my choice in target market and how much people are willing to invest in my technology.

I may have found a pivot point here... My first goal is to develop a demographic analysis and create a questioner and go around, from house to house, and ask people questions regarding the info I need to make my business plan a success.

Thoughts?

thanks,

-Brendan