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This is side a of tape 4, from day one, of Drucker’s Entrepreneurship and Innovation course. For a majority of the recording, Peter Drucker discusses the gross curves of industries (including computer, electrical, chemical, railroad, and commercial banking) that emerged in the last 150 years. According to Drucker, they follow a similar trajectory: approximately 30 years characterized by an enormous amount of startups, with a leadership group of about three at the top. He uses the computer industry as an example, noting the initial premium placed on startups and a shortage of people able to do it. But over time the knowledge spreads, and opportunities for newcomers shrink. Then a shakeout occurs in which three out of four newcomers fail. The next stage involves new consolidation, a return to large centralized systems with a symbiotic relationship with decentralized systems. Drucker argues that in order to innovate in existing institutions, one must learn three things. First, determining what innovation is, and how one looks for it. Second, how one organizes innovation so that it becomes doable. Third, how one implements innovation so that it becomes effective.
Drucker, Peter F. (Peter Ferdinand), 1909-2005 Small business - United States New business enterprises - United States Entrepreneurship Lectures and lecturing Decision making Innovation Learning Professional development Peter F. Drucker Graduate Management Center Productivity Organization structure