EM Entrepreneurial Mindset

EC Entrepreneurial Culture
EL Entrepreneurial Leadership

Presented by :
Andika Dyah Paramita - 1406513224 | Angela Jessica Stephanie - 1406513256
Annisa Ayuningtyas - 1406588654 | Anugrah Adeputra - 1406588686
Arsya Chairunnisa - 1406513312 | Arieta Aryanti - 1406513294
Ayu Meriany Savitri - 1406513331 | Camelia Indah - 1406513376
 Content Coverage
Entrepreneurship &
Entrepreneurial Mind Set
Strategic
Entrepreneurship
Corporate
Entrepreneurship
The Innovator’s DNA
5 skills of Disruptive Innovators
Entrepreneurial Strategy
Generating and Exploiting New Entries
The DNA For The World’s
Most Innovative Companies
Entrepreneurship &
Entrepreneurial Mind Set
The Nature of Entrepreneurship
• Entrepreneurial opportunities

• Entrepreneurial action

Knowledge: Knowledge
Prior knowledge assessment Entrepreneurial
Third person action First
opportunity person
Motivation: Motivation: opportunity
Personal Desirability
strategy assessment

• Entrepreneurial thinking
How Entrepreneurs Think
• Think structurally
1.Superficial similarities
2.Structural similarities

• Engage in bricolage

• Effectuate
1.Causal process
2.Effectuation process

• Cognitive adaptive
Entrepreneurial Entrepreneur Role model
Intentions background and support system
characteristics
The motivational • Role model
factors that influence • Education • Support system
individuals to pursue • Age o Moral-support
entrepreneurial network
• Work history
outcome o Professional-
support network
1. Entrepreneurial
self-efficacy
 Feasibility
2. Perceived
desirability 
Desirability
Sustainable Entrepreneur who’s
focused on preserving nature,
entrepreneurship life support, and community
sustainability in the pursuit of
perceived opportunities to
bring future products, process,
and service into existence for
gain where gain
(entrepreneurial action) is
broadly construed to include
economic and non economic
to individuals, the economy,
and development of society.
What me worry?
The Power of Paranoia
How to being smart paranoia
entrepreneur?
Paranoia is one of the key trait
1. Pick you paranoia : paying
in entrepreneurial success attention to the fine points
(the most important things in
you business)
2. Paranoia parameters:
Paranoia avoid you for being worrying obsessively,
complacency misplaced paranoia, consider
the degree of severance
3. Practical paranoia: critical
evaluate everything
4. Advice to an entrepreneur
 question 4 things
Corporate
Entrepreneurship
Corporate Entrepreneurship
• Why
Individual tends to search responsibility and strong need for individual
expression and freedom in work environment

• Corporate Entrepreneurship
stimulating, capitalizing on, individuals in an organization who think that
something can be done differently and better

• Key Elements
- New business venturing  new business
- Innovativeness  technology innovation
- Self-renewal organizational change
- Proactiveness  initiative and risk taking
Entrepreneur vs Traditional Management
Entrepreneur Management Traditional Management
Strategic orientation Resources do not constraint the Use the resources efficiently
strategic thinking
Commitment to opportunity Entrepreneurial orientation toward Place considerable emphasis on
opportunity information from data collection
and analysis

Commitment to resources Minimize the resources that would Commit large scale resource to an
required in a pursuit of opportunity
opportunity

Control of resources Less concerned about the

ownership and more about having
access to others’ resources
Entrepreneur vs Traditional Management
Entrepreneur Management
Management structure Organic – few layers of
bureaucracy
Reward philosophy Compensate based on their
contribution toward opportunity
Growth orientation Desire to growth at rapid pace
Entrepreneurial culture Encourage creative ideas and
outputs
Unlikely to have purely entrepreneurially managed or purely traditionally managed,
most firms fall somewhere in between
Traditional Management
Formalized bureaucracy
Compensate based on their
responsibilities
Prefer at a steady and well manage
growth
Interested in ideas that revolve
around controlled resources
Characteristics of an
Entrepreneurial Environment

• Operates on frontiers of technology

• Trial and error encouraged
• New ideas encourage
• No opportunity parameters
• Failures allowed
• Multidiscipline teamwork approach
• Resources available and accessible
• Volunteer program
• Long term horizon
• Sponsors and champions available
• Appropriate reward system
• Support of top management
Leadership Characteristics of
Corporate Entrepreneurs

• Understands the environment

• Creates management options • Is visionary and flexible
• Encourages open discussion • Encourages teamwork
• Persists • Builds a coalition of supporters
Entrepreneurial Strategy
Generating and Exploiting New Entries
The set of decisions, actions, and reaction that first generate and then exploit over time,
a new entry in a way that maximizes the benefits of newness and minimizes its costs

Stage 3 : Feedback loop of resources

Entry strategy
Knowledge
Assessment of Firm
Resources new entry Risk reduction performance
bundle opportunity strategy
Other
resources
Organization

Stage 1 : New entry generation Stage 2 : New entry exploitation

 GENERATION OF
A NEW ENTRY OPPORTUNITY

Knowledge : Entrepreneurial
Market knowledge Resources
Resources bundle :
Technological knowledge
Valuable the ability to
Rare obtain and then
Inimitable recombine,
resources into a
bundle that is
valuable, rare
and inimitable
Resources

Stage 1 : New entry generation

 A NEW ENTRY EXPLOITATION

• Develop a cost advantage

Entry strategy • Face less competitive rivalry
• Can secure important channels
• Better positioned to satisfy customers
• Gain expertise through participation

Assessment of
new entry
opportunity • Market scope : A narrow-scope
Risk reduction strategy & broad-scope strategy
strategy • Imitation strategy : franchising

• Liabilities of newness : • Assets of newness :

Organization cost in learning new task, increased ability to
increased conflict learn new knowledge

Stage 2 : New entry exploitation

Strategic
Entrepreneurship
Strategic Entrepreneurship
“simultaneous opportunity-seeking and advantage-seeking behaviors to create wealth”

Entrepreneurial
Mindset

Managerial Applying
Resources Creativity and Competitive Wealth
Strategically Developing Advantage Creation
Innovation

Entrepreneurial
Culture
&
Entrepreneurial
Leadership
 A way of thinking about business that focuses
on and captures the benefit of uncertainty

Key Components
• Entrepreneurial opportunities  new goods,
services, raw material, method (price > cost)
• Entrepreneurial alertness  flashes of
superior insight (feasible / unexpectedly
valuable) – habitual entrepreneur
• “Real” options logic  enhance strategic
Entrepreneurial flexibility
Mindset • Entrepreneurial framework  setting goal,
opportunity register, timing – consistently
used across projects & time
 Entrepreneurial Culture
• New ideas and creativity are
expected
Entrepreneurial • Risk taking is encouraged
Mindset
• Failure is tolerated
• Learning is promoted
• Product, process, and
administrative innovations
are championed
Entrepreneurial • Continuous change is
Culture viewed as a conveyor of
& opportunities
Entrepreneurial
Leadership
Entrepreneurial Leadership
• Nourish on entrepreneurial
capability
• Protect innovations
threatening the current
business model
• Make senses of
opportunities
• Question the dominant logic
• Revisit the “deceptively
simple questions”
• Link entrepreneurship &
strategic management
 Resources :
• Financial Capital: all monetary resources
Entrepreneurial
Mindset • Human Capital: capability, knowledge, skill &
experience
• Social Capital: internal & external relationship
Managerial
Resources
3 Stages of Managing Resources Strategically
Strategically
• Structuring resource portfolio (acquiring,
accumulating, and divesting)
Entrepreneurial • Bundling resources (organize resource 
Culture
&
shape of firm capability & maintain
Entrepreneurial competitive advantage)
Leadership • Leveraging Capabilities (to maximize
opportunity recognition and exploitation
among firm functions )
 Creativity
• A continuous process, ability to
Entrepreneurial manage diverse matrices of
Mindset information, and recognize pattern
of opportunities
Managerial Applying • Bisociation : action that lead first
Creativity and
Resources
Developing
to creativity and subsequently to
Strategically innovation result from a process
Innovation
Innovation
Entrepreneurial
Culture • Disruptive innovation 
& revolutionary change  new
Entrepreneurial goods or services
Leadership
• Sustaining innovation 
incremental change  new
process
The Innovator’s DNA
5 skills of Disruptive Innovators
THE INNOVATOR’S DNA MODEL FOR
GENERATING INNOVATIVE IDEAS

COURAGE TO BEHAVIORAL SKILLS COGNITIVE SKILL TO

INNOVATE SYNTHESIZE NOVEL INPUTS

Questioning

Challenging
the status quo Observing
Innovative
Associational
Business
thinking
Taking risks Networking Idea

Experimenting
Discovering Skill #1
Associating

-The Innovator’s DNA

Associating
Innovator’s DNA Model
• Ability to make
surprising connections of Generating Idea
across areas of
knowledge, industries,
even geographies
Medici Effect
• Creative Explosion in Florence
when the Medici Family brought
together people from a wide
range of disciplines
• As these individuals connected,
new ideas blossomed in the
intersections of their respective
fields
• “Renaissance”
• Ideas Conferences
Innovators not only
frequented places like TED
Literally constructed TED in
their heads
Creating a “Personal Medici
Effect”
Best Predictor : “How often people engaged in
the other discovery skills ?”

“Why isn’t all enterprise software like

Facebook and Twitter?”

Schultz got the Starbucks Idea when he was

observing Espresso Bars in Italy

Lazaridis got the idea for Blackberry as he listened to someone

talking about Future Trends in Wireless Data Transfer
 Creating Odd Combinations
Dynamics behind Put together seemingly mismatched ideas to
the search of New compose surprisingly successful combinations
Associations

• Creating Odd
Combinations
• Zooming In and Out
• Lego Thinking Zooming In and Out
Innovative entrepreneurs often exhibit the capacity to
do two things at once:
• Dive deep into the details
• Fly high to see how the details fit into the bigger
picture
Lego Thinking

Absolute quantity of ideas does not always

translate into highly disruptive ideas.

WHY???
You cannot look in a new direction by looking
harder in the same direction
Lateral Thinking
Tips for Developing Associating Skills
• Force new associations
• Take on the persona of a different company
• Generate metaphors
• Build your own curiosity box
• SCAMPER!
Discovering Skill #2
Questioning

-The Innovator’s DNA

Questioning
• Tactic #1: Ask “What is?” Questions?
• Tactic #2: Ask “What caused?” Questions?
• Tactic #3: Ask “Why and Why Not” Questions?
• Tactic #4: Ask “What if?” Questions?
Tips for Developing Questioning Skills
Tip #1 Engage in QuestionStorming
Tip #2 Cultivate Question Thinking
Tip #3 Track your Q/A Ratio
Tip #4 Keep a Question Centered Notebook
Discovering Skill #3
Observing

-The Innovator’s DNA

 TATA NANO HOW Ratan Tata, chairman of
India’s Tata Group, gained a
The world’s cheapest car
powerful insight that inspired the
world’s cheapest car?

OBSERVING
 OBSERVING: UNDERSTANDING THE JOB TO BE DONE

Functional Social Emotional

INNOVATIVE SOLUTION
 How can someone get TIPS FOR DEVELOPING
better at observing? OBSERVATION SKILL

• Actively watch customer to see what • Observe customer

products they hire to do what jobs.
• Learn to look for surprises or
anomalies.
• Find opportunities to observe in a new
environment.
• Observe companies
• Observe whatever strikes your fancy
• Observe with all your senses.
Discovering Skill #4
Networking

-The Innovator’s DNA

“What a person does on his own, without being stimulated by
the thoughts and experiences of others, is even in the best of
cases rather paltry and monotonous.”
—Albert Einstein
Idea Networking
FIGURE 5-1 Networking differences between discovery- and delivery-driven executives

DISCOVERY-DRIVEN EXECUTIVES DELIVERY-DRIVEN EXECUTIVES

• Why they network: Ideas • Why they network: Resources

— Learn new, surprising things — Access resources
— Gain new perspectives — Sell themselves or their company
— Test ideas “in process” — Further careers

• Whom they target: • Whom they target:

— People who are not like them — People who are like them
— Experts and nonexperts with very different — People with substantial resources,
backgrounds and perspectives power, position, influence, etc
 Idea Networking
FIGURE 5-2 Bridging gaps in social networks to get new ideas
FIGURE 5-2 Comparison of idea networking skills for
different types of innovators and noninnovators Network Country
Network
Innovators score Medical Inductry

100 C
90
B
80
70
Innovative Network
60
entrepreneur Different Industry
50
40 Network
A
30 Different Country

20
10
0
Start-up Corporate Product Process Noninnovators Network in health & nutrition
Entrepreneur Entrepreneur Innovators Innovators
Percentile
 Effective idea #2: Start a
networkers also plan to “mealtime
networking”
find new ideas thru’ TIPS FOR plan #3: Plan to
DEVELOPING attend at least
two
IDEA NETWORKING conferences in
Tap Outside Experts SKILLS the next year
#1: Expand the
diversity of your
network
Attend Idea Networking #4: Start a
Events #6: Cross-train
creative
with experts
community

Form Personal Networking #5: Invite an

Group outsider
Discovering Skill #5
Experimenting

-The Innovator’s DNA

“I haven’t failed ...I’ve just found 10,000 ways
that do not work.”
—Thomas Edison
 Experimenting FIGURE 6-2 Three ways that innovators
experiment
FIGURE 6-2 Comparison of experimenting skills for
different types of innovators and noninnovators EXPERIMENTING

Innovators score
100 Try Out New Experiences
90
80
• Useful for generating new business ideas
70
60
50 Take Apart Products,
40 Processes, and Ideas
30
• Useful for generating new business ideas
20
10
0 Test New Ideas Through Pilots
Start-up
Entrepreneur
Corporate
Entrepreneur
Product
Innovators
Process
Innovators
Noninnovators
and Prototypes
Percentile • Useful for generating and testing new
Sample items: business ideas to see what works
1. Has a history of taking things apart to see how they work.
2. Frequently experiments to create new ways of doing things
 #2: Cross
intellectual
borders

#7: Go trend #3: Develop a

spotting new skill

TIPS FOR
#1: Cross
DEVELOPING physical borders
EXPERIMENTING
SKILLS #6: Regularly #4:
pilot new Disassemble
ideas a product

#5: Build
prototypes
The DNA For The World’s
Most Innovative Companies
Companies
Compromising many people
building the code for
Innovation
 Big Companies vs Innovative Companies

Innovation Premium
Businessweek Rank
Rank

• Rank #1 Apple • Rank #1 Amazon

• Rank #2 Google • Rank #2 Apple
• Rank #3 Microsoft • Rank #3 Google
• Rank #4 Toyota • Rank #4 P&G
• Rank #5 GE • Rank #5 Starbucks
Investor Insight
“Could you give us insight
into which companies that
you believe are most likely to
produce new service?”

Market Cash Innovation

Value Flows Premium
Inventive PEOPLE

Experimental
PROCESS

Institutional ‘Yes’
PHILOSOPHIES
 • Senior Executives lead the innovative charge &
excel at discovery
• Monitor & Maintain adequate proportion of
high discovery-quotient people in every level,
area & stage

People
• Process explicitly encourage • Philosophy 1: Innovation is
employees to associate, everyone’s job
question, observe, network & • Philosophy 2: Disruption is
experiment part of innovation portfolio
• Processes are design to hire, Forming • Philosophy 3: Deploy small,
train, reward & promote properly organized innovation
discovery-driven people
Organization project team
Culture • Philosophy 4: Take smart risks
Philosop in pursuit of innovation
Process
hies