the concept of corporate entrepreneurship - intrapreneurship

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Corporate EntrepreneurshipGaurav Singh BisenMBA-Tech Program-MarketingNMIMS University

Defining the concept

Corporate entrepreneurship is the process by which teams within an established company conceive, foster, launch and manage a new

business that is distinct from the parent company but leverages the parent’s assets, market position, capabilities or other resources.

The Corporate Entrepreneurship Process

The Four Models of Corporate Entrepreneurship

THEENABLER“Companyprovidesfunding&seniorexecutiveattentiononprospective

projects”

THEOPPORTUNIST“Companyhasnodeliberateapproachforcorporateentrepreneurship.Internal&externalnetworksdriveconceptselection

&resourceallocation.”

THEPRODUCER“Companyestablishes&supportsafull-

servicegroupwithamandateforcorporateentrepreneurship”

THEADVOCATE“Companystronglyevangelizesforcorporateentrepreneurship,but

businessunitsprovideprimaryfunding”

Dedicated

Ad-Hoc

ResourceAuthority

Diffused FocussedOrganizationalOwnership

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Innovation in Corporate Entrepreneurship

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WHY INNOVATION?

ToSurvive

EmployeeEngagement

IncreaseRevenue

AttractNewMarkets

CustomerExpectations

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Types of Innovation in Corporate Entrepreneurship

RadicalInnovation

IncrementalInnovation

“Newtotheentireworld.”-GoogleGlass

-Google’sSelfDrivenCars

“Newtotheorganizationitself.”-Auto-complete,VoiceSearch,Universal

Searchetc.

How they are different ?

RadicalInnovation IncrementalInnovation

Requiresnewcompetencies,skills&expertise

Riskishigh

Utilizesexistingcompetencies,skills&expertise

Riskislow

Changesthebusinessmodel Businessmodelremainssame

Helpsinincreasingthemarketshare

MarketShareremainsthesame

Exploresnewtechnologies Exploitstheexistingtechnologies

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Creating an Innovation Culture for Corporate Entrepreneurship

The story of innovation has not changed. It has always been a small team of people who have a new idea, typically not understood by people around them and their executives.- Eric Schimdt - Chairman Google

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#5 Successful Innovation till 2015

ProjectLoonGoogleSearch

GoogleGlass

GoogleDronesGoogleSelfDrivenCars

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Corporate Entrepreneurship Strategy

Conceptualizing Corporate Entrepreneurship Strategy

A vision-directed, organization-wide reliance on entrepreneurial behavior that purposefully and continuously rejuvenates the organization and shapes the scope

of its operations through the recognition and exploitation of entrepreneurial opportunity.

Critical steps of a Corporate Entrepreneurial Strategy

STEP1 Developingthevision&mission

EncouragingInnovation

StructuringforIntrapreneurialclimate

Developingindividualmannersforcorporateentrepreneurship

DevelopingVentureTeams

STEP2

STEP3

STEP4

STEP5

An Integrative Model of Corporate Entrepreneurship Strategy

Source: Duane Ireland, Jeffery G. Covin, and Donald F. Kuratko, “Conceptualizing Corporate Entrepreneurship Strategy,” Entrepreneurship Theory and Practice 33, no. 1

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Corporate Venturing & Identifying Intrapreneuers

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Corporate Venturing Create new business within an existing business.

4KeyElements

Culture powering Corporate entrepreneurship

Work on frontiers of cutting edge technology, and embrace new ideas.

Encourage experimentation, people learn from their mistakes.

Ensure no organizational obstacles are present that inhibit creativity.

Resources are available and easily accessible.

Multidisciplinary teamwork approach, and establish long time-horizon

Intrapreneurship through volunteer programs.

Appropriate reward system & Support from top management.

Identifying Intrapreneurs

Establishing Intrapreneurship

Secure commitment to corporate entrepreneurship by different

management.

Identify areas & the amount of risk money where top management is

interested.

Use technology to enable flexibility.

Appropriate training programs should be adopted.

Exploit current set of database and work with least set of resources.

Establish strong support system and proper evaluation mechanism.

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Failures, Planning & Success Mantra

Intraprenurial Failures

Google Wave• Emails

• Maps

• Social Networking

• Instant Messaging

• Media Sharing

Reasons for Failure

Process Complexity

Lack of Ability

Process Inadequacy Uncertainty

Deviance

A process composed of many elements tends to break down

An individual doesn't have the skills, conditions or adequate training the perform the task

A competent individual adheres to prescribed but faulty or incomplete process

An individual chooses to violate and a prescribed process or practice Lack of clarity

about future events and unplanned situations

FailurePlanning

Is a more thoughtful and a practical approach.

Helps being more analytical and objective by looking at all possibilities.

Helps you move on. Learn from your failures and bounce back stronger.

Keeps you away from resting on your laurels and strive harder.

Create a Learning Culture

Make Risk-Taking and Failure Acceptable

Give People Ownership

Support People With Ideas

Create a Safe Place for Innovation

Celebrate and Reward Intrapreneurial Behaviour

Encourage Cross-Discipline Projects

Encourage Knowledge Sharing

Create and Allocate a Funds

SuccessMantra

Entrepreneurs VS Intrapreneurs

Entrepreneurs Intrapreneurs

IndependentinOperations

SelfFundRaising

Dependentonorganizationresources.

Fundraising&resourcesbyorganization

Operatesfromoutside Operateswithinorganization

Beginswithanewenterprise Bringsnewideastoanestablishedorganization.

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Decide what you want to be?