Entrepreneurship

1
Entrepreneurship

• SOM 497
• Session 23

2
Entrepreneurship

• What is Entrepreneurship?
• The process of identifying, evaluating, seizing
  an opportunity and bringing together the
  resources necessary for success
• What is NOT Entrepreneurship?
• Being mischievous, being sneaky, breaking
  rules, being un-ethical....
• In short, any one of a large collection of
  basically anti-social behaviors

3
Entrepreneurship

• What is an Entrepreneur?
• A person who is
• environmentally aware of opportunities and
  changes (Ch 2)
• knows what resources are available (Ch 3 4)
• is capable of creating a plan to coordinate those
  resources (Ch 5, 6, 8)
• can implement and follow through that plan (Ch 9,
  10 11)

4
Entrepreneurship

• What does it mean to take advantage of
  opportunities?
• To be capable to transform
• To be positively creative towards change
• To break the status quo
• In short
• To be Innovative

5
Entrepreneurship

• Types of Innovation
• Radical
• Disruptive
• Mostly because technological change
• Incremental
• Evolutionary
• Mostly because adaptation and improvements

6
Entrepreneurship

• Challenge of Innovation
• Seeds vs. Weeds
• Is it worth?
• Experience vs. Initiative
• Rank or Enthusiasm
• Internal vs. External Staffing
• Social Capital or Fresh eyes
• Building Capabilities vs. Collaborating
• To Buy or To Share
• Incremental vs. Preemptive Launch
• Milestones or Full engagement

7
Entrepreneurship

• How to Address Innovation?
• Define the Scope
• What to innovate
• How to innovate
• Cost
• Viable
• Manage the Pace
• How fast
• How much change
• Encourage Collaboration
• Dont work alone

8
Corporate Entrepreneurship

• What is Corporate Entrepreneurship (CE) Good for?
• To pursue new venture opportunities
• Related diversification
• Unrelated diversification
• Strategic Renewal
• Process
• Organizational Form
• Controls
• etc

9
Corporate Entrepreneurship

• CE Approaches
• Focus
• Institutionalized
• Formalized
• Dispersed
• Organic
• Spontaneous

10
Corporate Entrepreneurship

• CE Focus Approaches
• New Venture Groups (NVGs)
• Semi-autonomous units with little (none) formal
  structure
• Freedom to take risk to explore
• Business Incubators
• Support nurture new entrepreneurial ventures
• Funding, Physical Space, Business Services,
  Mentoring Networking

11
Corporate Entrepreneurship

• CE Dispersed Approaches
• Entrepreneurial Culture
• Search for new ventures permeates the whole
  organization
• Product Champions
• A new idea / product emerge in the course of
  business and is promoted to become official

12
Corporate Entrepreneurship

• Measuring Success of CE Activities
• Comparing Strategic Financial CE Goals
• Will the Market Accept the new Venture?
• Is the CE process creating synergies?
• Does the New Venture has a Competitive Advantage
  in itself?
• Exit Champions
• Dont be afraid to quit if needed

13
Corporate Entrepreneurship

• Is the Corporation Entrepreneurial?
• Autonomy
• Innovativeness
• Proactiveness
• Competitive Aggressiveness
• Risk Taking

14
In Class Team Activity

• Using
• All the Class Material
• Your Business Proposal one-pager
• Work on your Business Proposal
• External Environment
• Who is the costumer?
• General Environment 6-Elements
• Competitive Environment Porters 5 Forces
• Internal Environment
• Value Chain
• Resources Available Needed
• Financial Planning
• Organizations Structure
• Strategy
• Business Level
• Digital
• International
• A Plan to finish