Nature of Corp Entrepreneurship-2.pdf

NATURE OF CORPORATE ENTREPRENEURSHIP CORPORATE ENTREPRENEURSHIP Activities that receive organizational sanction and resource commitments for the purpose of innovative results. A process whereby an individual or a group of individuals, in association with an existing organization, creates a ne...

NATURE OF CORPORATE ENTREPRENEURSHIP CORPORATE ENTREPRENEURSHIP Activities that receive organizational sanction and resource commitments for the purpose of innovative results. A process whereby an individual or a group of individuals, in association with an existing organization, creates a new organization or instigates renewal or innovation within the organization. A process that can facilitate firms’ efforts to innovate constantly and cope effectively with the competitive realities that companies encounter when competing in international markets. CORPORATE ENTREPRENEURSHIP PROCESS Strategic Innovation Corporate Venturing Entrepreneurship Corporate Entrepreneurship STRATEGIC ENTREPRENEURSHIP Strategic Renewal - Process includes, evaluating customers, products and services by strategic importance, significance and profitability Sustained Regeneration – Introduction of new products or services or entering new markets continuously Domain Redefinition – Creation of new product-market arena that others have not recognized or actively utilized Organizational Rejuvenation – Sustaining or improving competitive standing and strategies Business Model Reconstruction – Redesigning core business models CORPORATE VENTURING Larger, more established company enters into a joint venture with one or more small , innovative start-ups to effectively leverage corporate assets to develop innovative products and/or services Can help established organizations to enter new markets, experiment with new technologies, new business models and create new revenue streams INTERNAL CORPORATE VENTURING Internal corporate ventures are entrepreneurial initiatives that originate within a corporate structure and are intended from their inception (Kuratko, Covin & Garrett, 2009) COOPERATIVE CORPORATE VENTURING A cooperative effort between two or more businesses to undertake a new venture Allows the pooling of resources and knowledge to create something new EXTERNAL CORPORATE VENTURING External corporate ventures are new business creation activities through organizational modes such as corporate venture capital, acquisitions, etc. Means to develop new distinctive capabilities and businesses by exploring business opportunities outside a firm’s existing boundaries ENTREPRENEURSHIP WITHIN THE CORPORATE ENVIRONMENT FACTORS IN THE EMERGENCE OF THE ENTREPRENEURIAL ECONOMY The rapid evolution of knowledge and technology promoted high-tech entrepreneurial start-ups. Demographic trends adding fuel to the proliferation of newly developing ventures. The venture capital market became an effective funding mechanism. Industries began to learn how to manage entrepreneurship. THE NEED FOR CORPORATE ENTREPRENEURSHIP Rapid growth in the number of new and sophisticated competitors Sense of distrust in the traditional methods of corporate management An exodus of some of the best and brightest people from corporations to become small business entrepreneurs International competition Downsizing of major corporations An overall desire to improve efficiency and productivity TYPES OF INNOVATION Incremental Innovation Radical Innovation Architectural Innovation Disruptive Innovation INCREMENTAL INNOVATION Most common form of innovation Utilizes existing technology and increases value to the customer within its existing market (design, features, etc) It may include adding new features or removing features Systematic evolution of a product or service into newer or larger markets DISRUPTIVE INNOVATION Involves applying new technology or processes to the company’s current market, usually small, inferior then the existing, but grows and becomes compounded until it disrupts the whole market and the competition Happens when an innovation builds a radically new value interface Serves the evolving needs of an existing market creating entirely new value streams and service offerings that did not exist before ARCHITECTURAL INNOVATION Modification of existing solutions for an entirely new market. Refers to changing the overall design of a product by putting existing components together in new ways Process that takes methodologies, technologies, or approaches from one field and applies them to a different area. RADICAL INNOVATION Require radical thinking and are often associated with breakthroughs in science and technology The launching of inaugural breakthroughs. These innovations take experimentation and determined vision, which are not necessarily managed but must be recognized and nurtured. NINE TYPES OF INNOVATIONS PRODUCT INNOVATION - generally consists of a more recent (improved) version of an existing product SERVICE INNOVATION - provides a way to improve interaction with customers PROCESS INNOVATION – introduction of an improved production or delivery method BUSINESS MODEL INNOVATION – introduction of new ways to create, deliver and capture value NINE TYPES OF INNOVATIONS ORGANIZATION INNOVATION – New ways in which people manage and share resource OUTCOME DRIVEN – the jobs the customer is trying to get done are used as input in the innovation process BREAKTHROUGH INNOVATION – innovations that generate a paradigm shift in technology or science INCREMENTAL INOVATION – small continuous improvements to existing products, services and processes DISRUPTIVE INNOVATION – innovations that displace established companies or industries