Intrapreneureship

Chapter 13

Intrapreneureship Definition
Practice of entrepreneurship in an established firm. 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.

Source: Business Dictionery.com

Intrapreneureship Spectrum

Caretaker Pfize

Developer SC Johnson

Innovators Altoids

Intrapreneureship Spectrum

Care Taker
While the care taker is not an intrapreneur, the category is included on the spectrum simply as a point of reference. This is the corporate employee who is the antithesis of the intrapreneur. All things entrepreneurial are anathema to him. He is most satisfied with inheriting and established product line that has a solid customer and employee base with the moderate growth.

Intrapreneureship Spectrum

Developer:
This is an Intrapreneur who takes a companies existing products or services and pursues high growth by targeting new customers and markets. While the product or services are not new, they have no brand equity in the new targeted markets.

Intrapreneureship Spectrum

Innovator:
This is the Intrapreneur that pursues high growth for the company through new product, services and new business models. The innovator is not the member of company's R&D department.

Intrapreneureship Models
Intrapreneurs whether they are developers or innovators, use different formal or informal models to bring their innovative ideas to fruition. Corporate Inrapreneurship expert Robert Wolcott and Research fellow Michael Lippitz has given the following models in their latest research paper.
The Opportunistic The Enabler The producer

Intrapreneureship Models

The opportunistic: The model suggests to employees Do whatever you want to do, because company does not have any formal system relative to corporate entrepreneurship. This is the model in which new products or services come through individual champions.

Intrapreneureship Models

The enabler: This model says to employees, anyone in the company can come up with the new service or product, but here is the process for developing it. In this model company communicates with employees regarding new ideas and provide funds to the best possible idea through a proper system. Google can be the good example of this model.

Intrapreneureship Models

The Producer: The model openly recognizes and supports the entrepreural activities in a corporate setting. The company creates a separate entity that has the specific task of creating new products or services outside of the present business. Several companies have embraced this model including Coca Cola and Xerox.

Traits of High-Growth Intrapreneur

There are few unique attributes of Intrapreneurs:

Risk Taker Hard worker Has a plan Good manager Visionary Profit focused Innovators Accepts Being Managed

Acts of Intrapreneureship
Acquisition of other companies and product lines. Introduction of new products outside of the traditional R&D process. Creation of new strategic partners Changes in Business Model.

Standard Operating proceedures

The ideal Intrapreneureship system should be made up of the following procedures:

System should be simple and user friendly. Reward employees for successful ideas. All ideas should be reviewed Every step in the review process should be transparent and well publicized. The review and approval process should be managed by more than one person. All Intrapreneural success stories should be publicized throughout the company to all employees. Employees expectations should be proactively managed.

Intrapreneureship Blunder
All the listed procedures will almost guarantee that a company does not duplicate one of the greatest Intrapreneural blunders in corporate history. In the mid 1970s, Steve Wozniak, a college dropout and self-thought electronic engineer, worked at Hawlett Packard(HP). He offered his ideal of developing a user friendly personal computer, but Hawlett Packard said no thank you. So with $1300 derived from selling his van and other assets, he left HP at the age of 26 and, with the help of his friend, Steve Jobs, developed the Apple I computer for their new entrepreneurial start-up, Apple Computer, Inc.