Professional & Enterprise

Development
CT024-3-1

Entrepreneurship
Corporate Entrepreneurship

Level 1

Prepared by: CDV First Prepared on: January 2013

Copyright 2013 Asia Pacific Institute of Information Technology
 Structure of the Lesson

Explore the importance of Corporate

Entrepreneurship, also known as

Intrapreneurship

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 Learning Outcomes

1. To define the term corporate entrepreneurship

2. To illustrate the need for corporate
entrepreneurship
3. To describe the corporate obstacles preventing
innovation from existing in corporations
4. To discuss the intrapreneurship considerations
involved in reengineering corporate thinking
5. To describe the specific elements of an
intrapreneurial strategy

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 Key Terms you Must Be Able to
Use
If you have mastered this topic, you
should be able to use the following
terms correctly in your assignments and
exams:

Intrapreneurship
Corporate Entrepreneurship
Radical Innovation
Incremental Innovation
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 The Entrepreneurial Economy

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.
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 Entrepreneurial Economics

A study of the entrepreneur &

entrepreneurship within the economy
Human creativity and productive
entrepreneurship are needed for
profitability
Institutional environment that encourages
free entrepreneurship becomes the
ultimate determinant of economic growth

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 Cont

The entrepreneur & entrepreneurship

should take center stage to explain
long-term economic development.
Early economic theory, however did
not lay proper attention to the
entrepreneur.

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 Who Are Intrapreneurs?

Intrapreneurs are sometimes captured by

the description as a dreamer who does.
They tend to be action oriented.
They can move quickly to get things done.
They are goal oriented, willing to do whatever
it takes to achieve their objectives.
They are also a combination of THINKER,
DOER, PLANNER AND WORKER. They
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combine VISION and ACTION.
Introduction
 Intrapreneur

The word entrepreneur is more than 150

years old, having come into English from
French in 1828.
Intrapreneur means "a person within a
large corporation who takes direct
responsibility for turning an idea into a
profitable finished product through
assertive risk-taking and innovation."

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 Recap on Entrepreneur

Exercises initiative by organizing a venture to

take benefit of an opportunity. As the decision
maker, decides what/how/how much of a
good/service will be produced.
Supplies risk capital as a risk taker and
monitors/controls the business activities
Usually is a sole proprietor or partner or the one
who owns the majority of shares in an
incorporated venture.
Not necessarily motivated by profit but regard it
as a standard for measuring success
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 The Nature of Intrapreneurship

Defining The Concept Corporate Entrepreneurship

- Activities that receive organizational sanction
and resource commitments for the purpose of
innovative results.
- A process whereby an individual/group of
individuals in association with an existing
organization, creates a new organization or
instigates renewal/innovation within the
organization.
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 Cont

A process that can facilitate firms

efforts to innovate constantly, cope
effectively with the competitive
realities that companies encounter
when competing internationally

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 Example
Example of intrapreneurship: A classic case
of intrapreneurs is that of the founders of
Adobe, John Warnock and Charles Geschke.
They both were employees of Xerox.
As employees of Xerox, they were frustrated
because their new product ideas were not
encouraged. They quit Xerox in the 1980s to
begin their own business.
Currently, Adobe has an annual turnover of
over $3 billion.
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 Successful Innovative Companies

Factors in large corporations of

successful innovators:
Atmosphere and vision
Orientation to the market
Small, flat organizations
Multiple approaches
Interactive learning
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 Innovative Philosophy
1. Encourage action.
2. Use informal meetings whenever possible.
3. Tolerate failure and use it as a learning experience.
4. Persist in getting an idea to market.
5. Reward innovation for innovations sake.
6. Plan the physical layout of the enterprise to encourage
informal communication.
7. Expect clever bootlegging of ideassecretly working on new
ideas on company time as well as personal time.
8. Put people on small teams for future-oriented projects.
9. Encourage personnel to circumvent rigid procedures and
bureaucratic red tape.
10. Reward and promote innovative personnel.
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 Encouraging an Intrapreneurial
Environment
Steps to restructure corporate thinking and
encourage an intrapreneurial environment:
1. Early identification of potential intrapreneurs
2. Top management sponsorship of intrapreneurial
projects
3. Creation of both diversity and order in strategic
activities
4. Promotion of intrapreneurship through
experimentation
5. Development of collaboration between
intrapreneurial participants and the organization
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 Benefits of an Entrepreneurial
Philosophy
Leads to the development of new products
and services and helps the organization
expand and grow.
Creates a work force that can help the
enterprise maintain its competitive
posture.
Promotes a climate conducive to high
achievers and helps the enterprise
motivate and keep its best people.
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 Types of Innovation

Radical Innovation
The launching of inaugural breakthroughs.
These innovations take experimentation and
determined vision, which are not necessarily
managed but must be recognized and nurtured.
Incremental Innovation
The systematic evolution of a product or service into
newer or larger markets.
Many times the incremental innovation will take
over after a radical innovation introduces a
breakthrough
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 Structuring for a Corporate
Entrepreneurial Environment
Reestablishing the drive to innovate:
Invest heavily in entrepreneurial activities that allow
new ideas to flourish in an innovative environment.
Provide nurturing and information-sharing activities.
Employee perception of an innovative environment
is critical.
Corporate Venturing
Institutionalizing* the process of embracing the goal
of growth through development of innovative
products, processes, and technologies with an
emphasis on long-term prosperity.
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 Facilitating Intrapreneurial
Behavior

Organizations foster intrapreneurial behavior by:

Encouragingnot mandatingintrapreneurial
activity
Proper control of HR policies related to
selected rotation
Sustaining a commitment to intrapreneurial
projects long enough for momentum to occur.
Bet on people, not on analysis.

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 Cont

Rewarding intrapreneuring:
1. Allow inventor to take charge of the
new venture
2. Grant discretionary time to work on
future projects
3. Make intracapital available for future
research ideas

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 Developing Venture Teams

Venture Team
A semiautonomous, self-directing, self-managing,
high-performing group of two or more people who
formally create and share the ownership of a new
organization.
The leader is called a product champion or an
intrapreneur.
Collective Entrepreneurship
Individual skills are integrated into a group; this
collective capacity to innovate becomes something
greater than the sum of its parts - synergy
322
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2007 Thomson/South-Western. All
Sustaining Corporate Entrepreneurship

Sustained Corporate Entrepreneurship Model

Based on theoretical foundations from previous
strategy and entrepreneurship research.
Considers the comparisons made at the individual
and organizational level on organizational
outcomes, both perceived and real, that influence
the continuation of the entrepreneurial activity.
Transformational trigger
Something external or internal to the company (e.g.,
corporate entrepreneurial activity) that causes a
change to take place) initiates the need for strategic
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adaptation or change. Introduction
 Corporate Entrepreneurship
Model

The Enabler
The Producer
The Opportunist
The Advocate

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 Corporate Entrepreneurship
Model

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 Question and Answer Session

Q&A

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 Next Session

Topic and Structure of next session

Organisation Structure

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