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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?
