Discipline of Innovation by Peter Drucker

        Week 12 Assignment

     The article “Discipline of Innovation” by Peter Drucker is an extremely interesting article where he analyses innovation comes by giving different opportunities to a firm. Innovation does not comes naturally by inspiration which he argues in his article.  Changes are often unpredictable that can lead to positive or negative effects, such as there is a change in demand or supply in another industry can have an effect on a firm.  Inconsistencies can help a firm analyze where it lacks so it can help compete in the market. This can help us be more efficient that can results in lowering cost drastically. When production is done efficiently, it can lead to market changes that can result in innovation as well. There can opportunities created when there is a change in the environment, consumer taste or perspective or even technology changes can help to create opportunities that can lead to innovations.

In the next article “The knowledge-Creating Company” by Ikujiro Nonaka argues that to gain competitive advantage for a firm, it is important for them to value knowledge. It is not only the hard data that consist of facts or other historical data that consist of knowledge but it can include smaller things as well that be an important source to gain knowledge. They include things like a firm’s symbols and slogans that create awareness about a firm that helps us to get more knowledge. However, these are just a few little things but firms need continuous innovation to have a competitive edge over their competitors. For example, Japanese companies like Honda or Sharp are using knowledge to their benefits that are acting as a key leader in the market to follow.