Entrepreneurial Behavior Problem Solving Strategies & Decision-Making (PDF)

ENTREPRENEURIAL BEHAVIOR Chapter IV Problem Solving Strategies and Decision-Making (Part 2) Problem Solving Strategies and Decision-Making Process The Steps of the Creative Problem-Solving Process Learning how to evaluate a problem requires one to train oneself to think like an entrepreneur. The...

ENTREPRENEURIAL BEHAVIOR Chapter IV Problem Solving Strategies and Decision-Making (Part 2) Problem Solving Strategies and Decision-Making Process The Steps of the Creative Problem-Solving Process Learning how to evaluate a problem requires one to train oneself to think like an entrepreneur. These are the processes one must learn: clarifying, ideating, developing, implementing, and evaluating. Step 1: Clarify To clarify, to acknowledge that a gap exists between the state that is currently existing and the state that is sought. This can also be thought of as having need awareness, which is when an entrepreneur recognizes a disparity between the needs of society or their customers and the conditions in which they find themselves. Clarifying the problem by meeting with clients and developing a clear description of the issue illuminates its particulars. If the specifics of a problem are not identified, the entrepreneur will be faced with the impossible challenge of solving what is known as a “ghost problem,” which refers to a problem that is completely unknown or unseen. The entrepreneur needs to clarify the problem by concentrating on finding a solution to the problem itself rather than a symptom of the problem to both establish and maintain credibility. Step 2: Ideate The process of generating and developing ideas is known as ideation, and it is a step in the creative problem-solving process. Ideation is performed by the entrepreneur. After compiling all of the information that is pertinent to the issue, the entrepreneur makes a list of as many potential causes of the issue as they can think of. At this stage, a wide range of different suggestions will be made available for consideration. As a potential solution to the issue, each suggestion needs to be assessed for its level of practicability and cost. Step 3: Develop  In the development stage of the process, the entrepreneur takes the list of ideas that were developed and investigates the viability of each benefit of each concept against the costs and difficulties associated with putting it into action. The entrepreneur needs to recognize and evaluate a variety of potential solutions before setting one that is both the most cost-effective and the most workable for the client. Step 4: Implement The step of putting the solution to the problem into action is the stage at which it is examined and judged. The entrepreneur takes the customer through each step of the planned implementation, if it is a service, and evaluates each component of the solution. If it is a developed good, the entrepreneur tests it completely. The entrepreneur puts the solution into action and then follows a predetermined protocol for doing follow-up checks to guarantee that the solution continues to be viable and productive. Step 5: Evaluate The last phase, “to evaluate,” involves determining how effective the overall approach was. This is a very critical phase in the process that business owners frequently skip through. Any error that may have occurred throughout the process of putting the product or service into action is reexamined, and new solutions are put into action. Using Creativity to Solve Problems When developing their ideas for filling gaps, entrepreneurs are faced with the challenge of finding solutions to several challenges. To broaden a company’s product offering or come up with a revolutionary service, innovation, and creativity in the workplace are required. Types of collaborative approaches used in entrepreneurial ventures: 1) Crowdsourcing. A model for online, decentralized problem-solving and production that is accessible anywhere. Crowdsourcing involves groups of individuals who do not have specialized knowledge working together to find a solution to a challenge. The goal is to  fulfill business-related tasks that a corporation would ordinarily either undertake themselves r outsource to a third-party service by tapping into the collective intellect of the public at large. 2) Brainstorming. The process of coming up with ideas to solve problems while doing so in an atmosphere free of criticism or disagreement. The purpose of the activity known as “brainstorming” is to encourage participants to rethink how they approach the resolution of problems. It is essential to maintain the environment of a brainstorming session as unstructured and intense as is humanly possible to ensure productive results. The group needs to steer clear of common constraints, any ideas may be submitted, listed, and given serious consideration at any time. When conducting a brainstorming session, the quantity of ideas generated is emphasized more than the quality of each idea as a potential solution. 3) Storyboarding. The demonstration of an idea through the use of a graphic format that is step-by-step. When an entrepreneur is trying to picture a way out of a predicament, these tools are helpful to have at their disposal. The steps that need to be taken to solve a problem are drafted and displayed graphically. Once the initial graphic has been set, further images of stages working toward a solution are continuously added, removed, and rearranged until the ultimate solution emerges in the ultimate graphic format. This process continues until the solution is complete. This method has been utilized by business owners for a significant amount of time to generate a pre-visual for a variety of media sequences. 4) Team creativity. The process through which an entrepreneur collaborates with a group of people to develop an unanticipated answer to a problem or a challenge in the definition of entrepreneurship. Each of the phases of the creative problem-solving process that were outlined earlier is repeated by the teams as they work: clarify, ideate, develop, implement, and assess. The primary benefit of working creatively in a group is to increase the opportunity for collaboration and support among team members. Great teams have  synergy, are cohesive, trust each other, and feature people from a variety of backgrounds whom each bring a unique perspective to the table. The Entrepreneurial and Intrapreneurial Mind The Entrepreneurial Process Finding, assessing, and developing an opportunity while overcoming the powerful forces that work against the creation of anything new are all part of the entrepreneurial process. It is the course of action that an entrepreneur takes to establish a brand-new business. a) Phase 1: Identity and Evaluate the Opportunity 1. Opportunity Identification. The vast majority of potentially lucrative company chances are directly attributable to an entrepreneur’s ability to keep a vigilant awareness of the potential for new options. Opportunity identification is the process by which an entrepreneur comes up with the opportunity for a new venture. 2. Every possibility needs to be thoroughly investigated and appraised. The entrepreneurial process cannot proceed without this being the single most important step. 3. The major criteria that determine both risks and potential benefits are the size of the target market and the duration of the window of opportunity. 4. The opportunity presented to the entrepreneur needs to be suitable for their set of talents and objectives. 5. The opportunity itself should be the primary focus of an opportunity evaluation, which should also give the reason for making the decision which should include the following: i. A detailed explanation of the good or service in question. ii. A consideration of the possibilities presented. iii. Evaluation of the business owner and his or her team.  iv. Details on everything that has to be done, including the activities and resources. v. The origin of the funds that will be used to finance the new enterprise. b) Phase 2: Develop a Business Plan Business plan. The explanation of the course that the business will take in the future. i. A sound business strategy needs to be developed to make the most of the potential that has been described. ii. The development of the opportunity, the determination of the resources that will be necessary the acquisition of those resources, and the effective management of the enterprise are all dependent on the existence of this plan. c) Phase 3: Determine the Resources Required i. An evaluation of the entrepreneur’s current resources is the first step in determining the resources that will be required. ii. It is necessary to discern between any essential materials and those that are simply beneficial. iii. It is challenging to acquire the necessary resources while simultaneously ceding as little power as feasible. d) Phase 4: Manage the Enterprise i. The entrepreneur is obligated to make use of them to carry out the business plan. ii. To accomplish this, a management structure must be put into place and a control system must be determined. Managerial versus Entrepreneurial Decision Making a) There are five different business characteristics involved in the distinction between an ent4epreneurial style and a management style (the administrative domain). b) Strategic Orientation Administrative domain: The way managers make decisions  Entrepreneurial domain: The ways entrepreneurs make decisions i. How the entrepreneur understands the market opportunity influences the strategic orientation that they take. ii. The administrative sphere is the one that comes into play when the strategic focus is the utilization of planning systems. c) Commitment to Opportunity i. In the realm of entrepreneurship, there is constant pressure to take action, and there is very little window of time in which to commit to an opportunity. ii. Not only is it slow to act when an opportunity presents itself in the administrative domain, but the commitment is often for a longer period. d) Commitment of Resources i. An entrepreneur is used to receiving commitments of resources at regular intervals which are typically made based on the achievement of specified tasks or goals. ii. To acquire these resources the entrepreneur is required to make the most efficient use of the resources. iii. In the realm of administration the commitment of resources is made for the entire quality that is required. iv. People who are good at administration obtain personal rewards for themselves by efficiently administering the resources that are under their purview. e) Control of Resources i. The administrator is motivated to acquire or acquire as many resources as they possibly can since they will be paid for efficient management of the available resources. ii. The challenge of having few resources compels the entrepreneur to seek out opportunities to rent resources on an as-needed basis. f) Managerial Structure  i. The organizational structure of the administrative domain is highly formal and hierarchical in its very nature. ii. The organizational structure employed by the entrepreneur is relatively informal and uses a flat hierarchy. Intrapreneurship: Definition and Concept A mindset and attitude that are recognized and promoted in many businesses today is intrapreneurship or the ability to act like an entrepreneur within an organization. A person who runs a company with entrepreneurial flair and by the expectations of the shareholders is known as an intrapreneur. A skill known as intrapreneurship is becoming increasingly valuable at all levels of enterprises and other types of organizations. The following are the five insights into Intrapreneurship: 1) Intrapreneurship describes a people-centric, bottom-up approach to developing radical innovations in-house. Intrapreneurship places people of an organization at the core of innovation and provides support for those individuals as they create new ideas, develop new ones, and scale up those they already have. 2) Intrapreneurship pays off many times in terms of company growth, culture, and talent. Intrapreneurship encourages proactivity and establishes firms as leaders in their fields by providing employees with the opportunity to exercise their creative faculties. Employees who have an entrepreneurial mindset see benefits ranging from cost savings, motivational boosts, and accelerated product and service launches to innovative offerings, increased skills and capabilities, and competitive advantages. 3) It’s not about creating intrapreneurs, it’s about finding and recognizing them. 4) Intrapreneurs know the rules and break them effectively. 5) Intrapreneurship requires a different management approach.  The skill set of an intrapreneur and the intrinsic incentives that drive them are very different from those of the typical employee as a result, intrapreneurs call a different management strategy. Entrepreneurship is different from intrapreneurship. Even though there may be some similarities, intrapreneurship presents unique difficulties that demand a different mentality than innovation. One of the qualities of intrapreneurs is their ability to make the most of scarce resources and their propensity for finding more economical solutions to issues. Intrapreneurs who are successful can infuse their work with a creativity that is beneficial to their firm while also retaining a strong feeling of excitement and living for their chosen career. An intrapreneur is someone with enthusiasm and drive who also knows how to operate the business’s “clockwork” so that a good idea can become a profitable reality. Strategies to Become an Intrapreneur 1) Understand your own company. Intrapreneurs are most valuable when they have a thorough awareness of the distinctive problems that their companies are facing. The first step in being more entrepreneurial is to devote enough time to researching a particular issue in your field of expertise so that you can understand what needs to be fixed. To attract partners, resources, and support for your ideas you need to develop your insider relationships and user knowledge. 2) Focus on evolving your organization from the inside out. The primary objective of an intrapreneur is to transform an organization from the inside out. This means approaching a particular challenge by first investigating possibilities that are present within one’s areas of competence. If an intrapreneur is successful in implementing change at this level their ideas may be expanded and scaled up across functional areas of the company thereby providing new opportunities for the entire organization.  3) Don’t be afraid to experiment. If you want to be an entrepreneur you can’t let the possibility of failing stop you from trying new things. Another way that intrapreneurs and entrepreneurs are similar is their desire to try new things. 4) Build informal leadership as the resident problem solver. Businesses frequently hire outside analysts and consultants for assistance in solving their most difficult challenges. You can build an informal leadership role for yourself as a person who utilizes critical creativity to uncover answers that are beyond the norm if you make an effort regardless of the position you already hold. Invest some time in becoming familiar with the most pressing problems that your coworkers are experiencing. Your ability to empathize with a variety of company needs will be a significant contributor to success as an intrapreneur as it will enable you to provide scalable solutions. 5) Move away from command-and-control leadership. Many companies continue to advocate for the traditional leadership style known as “command and control”, which is predicated on obtaining and maintaining control over people as well as the processes that are followed inside an organization. Causes for Recent Interest in Intrapreneurship The practice of fostering an entrepreneurial mindset within an existing firm for the sake of driving innovation and business expansion is known as intrapreneurship. a) The rise of intrapreneurship as a topic of discussion can be attributed to developments on the social, cultural, and business levels. b) It is essential for a company to cultivate an entrepreneurial mindset among its employees if it wishes to innovate and expand. c) It is possible to overcome opposition to flexibility, expansion, and diversity by cultivating an entrepreneurial spirit, also known as intrapreneurship within the established business. d) There are pressures for intrapreneurs to come from the corporate world, society, and culture. e) Four essential components make up entrepreneurial activities. 1) New business venturing – the process of developing a new company within the framework of an existing firm. 2) The term organizational innovativeness refers to the process of developing new products and services while emphasizing the creation of new technological advances. 3) Self-renewal is a reflection of the transformation of organizations brought about by the renewal of the fundamental concepts on which they are constructed. 4) Being proactive involves taking the initiative and being willing to take risks, in addition to being competitively aggressive and brave.