Entrepreneurial Skills ENT3001 Lecture 3 PDF

ENTREPRENEURIAL SKILLS ENT3001 1 LECTURE # 3 INTRODUCTION TO ENTREPRENEURSHIP  INTRODUCTION TO ENTREPRENEURSHIP Objectives  Concept of Intrapreneurship Creating an Intrapreneurial Environment Benefits of Intrapreneurship Rewarding I...

ENTREPRENEURIAL SKILLS ENT3001 1 LECTURE # 3 INTRODUCTION TO ENTREPRENEURSHIP  INTRODUCTION TO ENTREPRENEURSHIP Objectives  Concept of Intrapreneurship Creating an Intrapreneurial Environment Benefits of Intrapreneurship Rewarding Intrapreneurship  Creativity and Business The creative process Entrepreneurial rules to live by 2  CONCEPT OF INTRAPRENEURSH IP INTRAPRENEURSHIP What is Intrapreneurship? INTRAPRENEURSHIP derived from a combination of "intra" or internal, and "entrepreneurship.“ Practice of entrepreneurship in an established firm The act of behaving like an entrepreneur while working within a large organization. 5 WHAT IS INTRAPRENEURSHIP?  Process involving the promotion of innovation and creativity within existing corporations  Innovation and creativity re:  Ideas& products  Processes  Administrative procedures  INTRAPRENEURSHIP Also called Corporate Entrepreneurship  Entrepreneurial activities that receive organizational sanction and resource commitments for the purpose of innovative results INTRAPRENEURSHIP Growth from Intrapreneurship Decline Start-up Establishe Intrapreneurs Phase d firm hip Phase INTRAPRENEURSHIP intrapreneurship applies the 'start up' style of management (characterized by flexibility, innovation, and risk taking) to a secure and stable firm. The objective is to fast track product development (by circumventing the bureaucracy) to take advantage of a new opportunity or to assess feasibility of a new process or design. http://www.businessdictionary.com/definition/intrapreneurship.html#ixzz2UDklQ4Ch 9 INTRAPRENEURSHIP Intrapreneurs Advantage: Existing businesses have the financial resources, business skills, and marketing & distribution system to commercialize innovation successfully. 10 DEVELOPMENTS STIMULATING INTRAPRENEURSHIP  Globalization  intense external competition from products & services from companies all over the world, forces companies towards internal experimentation for growth & survival  Rapidevolution of knowledge and technology  Forces businesses to change internally to retain relevance  Younger more technology savvy employees available to drive new developments DEVELOPMENTS STIMULATING INTRAPRENEURSHIP  Greater access to funding-more start-ups emerging – posing challenge to established businesses  Emergence of smaller more flexible companies formal & informal eating away market share of established companies PROFILE OF INTRAPRENEURS  They are the “dreamers who do”  Take hands- on responsibility for creating innovation  They figure out how to turn an idea into a profitable reality PROFILE OF INTRAPRENEURS  Action-oriented and committed to goals of the company- see their future intertwined with that of the company  CREATING AN INTRAPRENEURIAL ENVIRONMENT CREATING AN INTRAPRENEURIAL ENVIRONMENT Tapping into the creative energies and talents of own workers  Create culture which demonstrates that responsibility for creating innovation rests not only on firm’s management  Recognition that innovation is a capability of the many CREATING AND INTRAPRENEURIAL ENVIRONMENT Worker commitment necessary for Intrapreneurship  Commitment comes when there is encouragement and a feeling of belonging by workers  Approval and support of goals and vision by workers of company CREATING AND INTRAPRENEURIAL ENVIRONMENT  Create a system of feedback and positive reinforcement  Emphasize individual responsibility  Give rewards based on results FOSTERING AN INTRAPRENEURSHIP CULTURE Pre-requistes for Intrapreneurship  Organization sanction/support  Flexible management  Adequate budget for entrepreneurial activities/projects  Setting explicit goals FOSTERING AN INTRAPRENEURSHIP CULTURE Operational Strategies  Identify and motivate intrapreneurs/high achievers  Tolerate failure resulting from entrepreneurial experimentation  Use failure as a learning experience FOSTERING AN INTRAPRENEURSHIP CULTURE Operational Strategies  Persist in getting ideas to market  Put people in small project teams  Reward innovative personnel  HEART Trust Incentive Scheme  Promote innovative personnel FOSTERING AN INTRAPRENEURSHIP CULTURE Operational Strategies  Encourage action  Reduce rigid procedure and bureaucratic red tape  Encourage informal communication and meetings FOSTERING AN INTRAPRENEURSHIP CULTURE  Flatten corporate structure  Retrain manager as coach, teacher and mentor  Encourage experimentation, without penalties  Eliminate authoritarian management, replace with flexibility  BENEFITS OF INTRAPRENEURS HIP BENEFITS OF INTRAPRENEURSHIP  Increased ability of company to compete effectively in local and international markets  Development of new products, services, processes and administrative processes  Expansion and growth of company BENEFITS OF INTRAPRENEURSHIP  Financial success  Image & reputation that attracts the best people  Development of a creative work force, able to withstand competition BENEFITS OF INTRAPRENEURSHIP  Promotes climate conducive to high achievers  Retention of best/motivated staff  Low staff turnover  REWARDING INTRAPRENEURSHIP REWARDING INTRAPRENEURSHIP  Promote and give autonomy  Give recognition and awards to intrapreneurial employees  Create & give leadership responsibility for new divisions  Offer ownership to best workers-stock options, profit-sharing etc. LESSON EXERCISE Read the following cases/articles:  Studies in Entrepreneurship – 3M  Southwest Airlines: positively Outrageous Leadership REFLECTIONS ON THE LESSON Discuss: How did the company create an Intrapreneurial Environment What benefits did the company receive (for creating intrapreneuial culture) How did the company reward Intrapreneurship REFLECTIONS ON THE LESSON Discuss: 1. What steps would you take to further promote Intrapreneurship at your place of work or at an organization with which you are familiar? CREATIVITY AND BUSINESS ENTREPRENEURIAL SUCCESS Achieved by - creating value in the marketplace through the process of combining resources in new & different ways to achieve a competitive edge over rivals Applying creativity & innovation to solve problems & exploit opportunities is the secret for creating value in the marketplace CREATIVITY IN BUSINESS Isthe ability to develop new ideas & discover new ways of looking at problems & opportunities.  CREATIVITY – IMPORTANT INGREDIENT IN ENTREPRENEURSHIP  WHAT IS CREATIVITY  A way of thinking about everything  Openness to change  Willing to try new things  Persistence in seeking possibilities  Open to brainstorming ideas  Dedication to doing it better  Thinking about what you see and hear CREATIVITY Generating something from nothing – The light bulb Elaborating on the present – the keyboard Puttingold things together in new ways – The innovative vacuum cleaner or southern fried chicken Taking something away to create something simpler or better – the jitterbug cell phone for elderly people CREATIVITY – QUESTIONS TO SPUR THE IMAGINATION Is there a new way to do it? Can you adapt it? Can you give it a new twist? Can ideas be combined? Can we put it to other uses? What else could we make from this? Are there other markets for it? CREATIVITY – CONCEPTS Divergent vs. Convergent Thinking Divergent thinking: The ability to find as many possible answers to a particular problem e.g. Brainstorming, or from mathematics; partition and factorization Convergent thinking: The ability to find the best answer to a single problem e.g. Logical reasoning, or from Mathematics; addition, subtraction, multiplication and division CREATIVITY Paradigm A worldview, a mental model, a preconceived idea of what the world is, what it should be like and how it should operate. To improve within a paradigm – adjust the fringes of what’s known. To move between or change paradigms – change the foundations of knowledge and beliefs. Significant breakthroughs occur here! CREATIVITY Paradigm Can block creative thinking CREATIVITY Entrepreneurs must always guard against traditional assumptions and perspectives about how things ought to be. READ THE FOLLOWING ALOUD PARIS ONCE BIRD IN THE IN A IN THE THE SPRING A LIFETIME THE HAND TIME Past experience shapes the way we perceive the world around us. CREATIVITY – IMPORTANT INGREDIENT IN ENTREPRENEURSHIP What do you see? The goblet or the famous twins CREATIVITY – IMPORTANT INGREDIENT IN ENTREPRENEURSHIP Describe the lady you see in this drawing. How old is she, how attractive, what covering is on her head etc. CREATIVITY Entrepreneurs are able to throw off these shackles on creativity and see opportunities for creating viable businesses where most people see what they’ve always seen (or worse yet, they see nothing). Do you see Jesus in this picture? CREATIVITY – CAN IT BE LEARNT Research shows that almost anyone can learn to be creative The brain has two hemispheres The Left hemisphere Responsible for logical thinking The right hemisphere Responsible for creative thinking CREATIVITY The right brain hemisphere Responsible for creative thinking Right brain thinking Always asks “is there a better way” Challenges custom routine & tradition Is reflective, often seen staring out windows deep in thought Play mental games- trying to see issues from a different perspective CREATIVITY The right brain hemisphere Responsible for creative thinking Right brain thinking (cont’d) Realize that there may be more than one “right answer” Uses seemingly unrelated ideas to develop innovative solutions to problems Has the ability to rise above the daily routine to see an issue from a broader perspective then come back to focus on a problem area needing change. LIMITERS OF INDIVIDUAL CREATIVITY Searching for & recognizing only one right answer to a problem Focusing on being logical all the time Blindly following the rules Constantly being practical Viewing play as a frivolous waste of time Becoming overly specialized Avoiding ambiguity Fearing looking foolish Fearing mistakes and failure  Believing that “I’m not creative” THE CREATIVE PROCESS Preparation Read widely, develop an open mind, ideas come from cross fertilization of concepts in diverse fields THE CREATIVE PROCESS Investigation Study the problem & understand its basic components THE CREATIVE PROCESS Transformation Analyze; break the problem apart, identify similarities & differences in data collected THE CREATIVE PROCESS Incubation Take time to reflect (away from the problem). Incubation occurs while you are involved in some unrelated activity THE CREATIVE PROCESS Illumination A spontaneous breakthrough occurs (a light bulb turns on) resulting in an innovative idea. THE CREATIVE PROCESS Verification Validate the idea by subjecting it to hard cold reality using a market test, prototyping, or experiment THE CREATIVE PROCESS Implementation Transform the idea into reality – the true mark of an entrepreneur. CREATIVITY With practice one can learn to shift from left brain thinking to right brain thinking thereby tapping into their creative pool Try something new and different something creative and innovative this week CREATIVITY & BUSINESS Lesson 2 - Activity 1 A major manufacturer of breakfast cereals is about to introduce a new multigrain cereal. Its principal selling point is that it features “three great tastes” in every bowlful; corn, rice and wheat. Seeing that a cereal’s name is and integral part of its marketing campaign, the company has asked you to come up with the right name for this new product. Form groups of 3 – 4 and in 10 minutes; list the name that you think would be appropriate, explaining why. CREATIVITY & BUSINESS Lesson 2 - Activity 2 Given the challenges in the national and international business environment at this time, identify and list five businesses or services, which you believe could take advantage of these circumstances and thrive. Decide which two of those you list have the best chance of success. Use as much creativity as possible in arriving at your suggestions and say why you believe these business/services would succeed.  Form groups of 3 – 4 and take 10 minutes do this exercise. ENTREPRENEURIAL RULES TO LIVE BY ENTREPRENEURIAL RULES TO LIVE BY Create, innovate, activate Put your innovations into practice ENTREPRENEURIAL RULES TO LIVE BY Always be on the lookout for new opportunities Or finding new ways to create opportunities ENTREPRENEURIAL RULES TO LIVE BY Keep it simple Often the best solutions are the simple ones ENTREPRENEURIAL RULES TO LIVE BY Try it, fix it, do it Be action oriented, work on your ideas immediately, find out what works, adjust what doesn't ENTREPRENEURIAL RULES TO LIVE BY Shoot for the top Dream big ENTREPRENEURIAL RULES TO LIVE BY Don’t be ashamed to start small Overnight success rarely ever happens ENTREPRENEURIAL RULES TO LIVE BY Don’t fear failure; learn from it Learn to fail intelligently  ENTREPRENEURIAL RULES TO LIVE BY Never give up Entrepreneurs are not quitters ENTREPRENEURIAL RULES TO LIVE BY Go for it You miss 100% of the shots you never take (Brazil football team cheerleading squad) RECAPITULATION What is intrapreneurship What are the benefits of intrapreneurship How is intrapreneurship rewarded What is the role of creativity in business List some obstacles to creativity What are the components of the Creative Process