Demand-side innovation involves purposefully working toward a predetermined goal. Something demands a solution, and frequently this solution involves an innovation—something new and different, be it a product or a process to meet this demand. The goal results from a need evidenced by the situation. It could be a difficulty, a need in the market, a problem that requires solving, or something else. Drucker divided innovation goals for the typical business into five classes:
1. New products or services required to reach marketing objectives
2. New products or services needed because of technological developments making current products or services obsolete
3. Products improvements needed to reach marketing objectives ...