How Scenario Thinking Can Support Innovation

This paper is based on Peter Drucker’s five principles of innovation (1985, republished 2007), and the support that scenario thinking can provide for implementing them in a range of organisations. The paper starts by defining scenario thinking – comparing it with forecasting - and discussing why innovation is important, and why it is difficult. Then it uses case studies from Malaysia, local government in the UK, global white goods manufacturer Electrolux, Global IT services company Fujitsu and global financial services organisation Man Group, to illustrate how scenario thinking can support the five principles of innovation.