Technopreneurship

BSIT 4-1

Technopreneurship

Syllabus
Chapter 1:
• Technopreneur & Technopreneurship

Chapter 2
• Business Opportunities: Identification, Evaluation & Selection

Chapter 3
• Innovation and Technopreneurship

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Chapter 4
• Forms of Business Entities, Regulations and Business Support System

Chapter 5
• Business Plan

Chapter 6
• Management of a Small Business

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Chapter 7
• Marketing

Chapter 8
• Operations Management

Chapter 9
• Financial Plan

Chapter 10
• Issues on Technopreneurship
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References
i. UiTM Entrepreneurship Study Group (2004). “Fundamentals of Entrepreneurship.” Pearson Prentice Hall. ii. Peter F.Drucker (1993). “Innovation and Entrepreneurship”. HarperBusiness iii. W.Chan Kim, Renee Mauborgne (2005). “Blue Ocean Strategy”. Harvard Business School Publishing Corporation iv. David H.Bangs, Jr (2001). “The Business Planning Guide”, Advantage Quest Publications.
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Subject assignment
• Business proposal
– A group consists of max 6 students – Register group members
• CEO/manager

– Brain storming session
• Type of business • Type of product • Commercial value..

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How great we are?

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Are there any business opportunities from this scenery?
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How many business should be established to have all this stuffs inside your kitchen? Technopreneurship

How about this messy room?
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How about communication industry?
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How about airlines industry?
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Why do we need an entrepreneur?

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• Identify how many of
– Business items (we have to pay)…. – Non-business items (free of charge)… – Inside this lecture room???

• Percentage…???
% = Business items – non-business items x 100% Business items

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What Can You See, Looking Beyond ?

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Entrepreneur, Technopreneur, Intrapreneur, Innovator, Manager

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Earlier Viewpoints (1700-1950s)
• The word entrepreneur comes from French word „entreprendre‟
• “Entreprendre” – individuals who undertake (the risk of new ventures).

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Entrepeneur
• Entrepreneur invests, transforms and makes (profit or loss) [Richard Cantillon, French economist]
– In other words, goods are bought at a certain price, value is added by transforming (the least being to repack) the goods, and the goods are then sold at an uncertain price.
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• “The task of forming an organisation for commercial purposes” [Adam Smith 1977] • In his book, Wealth of Nations “The ability to foresee potential through changes in the economy, and to act on the demand thereby created”
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• “The entrepreneur was said to influence society by forming enterprises and was in turn influenced by society to recognise needs and to fulfil through skilful management of resources” [Jean Babtiste Say, 1903, French Economist]
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• “Entrepreneurs are economic agents who transform resources into goods and services, thereby creating an environment conducive to industrial growth” [Carl Menger, 1871, Principles of Economics]

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Priority 1

Delivered baked bread is highest value use

Priority 2

Bread at bakery for sale has high value

Menger‟s Model of Value-Added Transformation of Resources
Priority 3

Milled flour for baker has high value
steps in transformation

Intermediate

Priority 7

Bulk grain from farmer has low value

Source: David H.Holt. Entrepreneurship. New Venture Creation Englewood Cliffs, NJ: Prentice-Hall 1992, p.5

Priority 8

Grain in field has very low value

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• “Entrepreneurship is a creative destruction force that sees the destruction of usual ways of doing things by the introduction of new improved ways” [Joseph Schumpeter, 1934, Austrian]

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• Entrepreneurship is a process, and the entrepreneur is an innovator who uses processes to challenge existing norms via combinations of new resources and methods in commerce.

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Technopreneur
• They are entrepreneurs who used “technology” as their driven factor in transforming resources into goods and services, creating an environment conducive to industrial growth”…

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• Innovations are not confined to tangible products but also include services and processes.
– The continuous improvement in financial sector – City bank, Air Asia…

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• Entrepreneur seem to be the starters and managers the followers
– Initially, entrepreneurs also assume the role of manager, but later the managerial roles are delegated to the managers.

• Managers do not start businesses, they only manage them.

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• In the world of corporate business, intrapreneurs emerge as that breed who is a cross between managers and entrepreneurs.
– They work for the corporation but are given the task of starting new ventures.

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Any Questions?

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What Is Entrepreneurship?
Nature of Entrepreneurship
• It is a socio-economic phenomenon.


Engine of economic growth
Creator of wealth and employment.

What is Entrepreneurship?
• • • • It is a creative and innovative human act. Ability to create and build a vision from practically nothing. Vision requires willingness to take calculated risks. It is a discipline, hence it can be learned – Peter Drucker

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Definition of Entrepreneurship
“ Entrepreneurship is the ability to create and build a vision from practically nothing. Fundamentally, it is a human, creative act. It is the application of energy to initiating and building an enterprise or organization, rather than just watching or analyzing. This vision requires a willingness to take calculated risks – both personal and financial, and then to do everything possible to reduce the chances of failure. Entrepreneurship also includes the ability to build an entrepreneurial or venture team to complement your (the entrepreneur) own skills and talents. It is the knack for sensing an opportunity where others see chaos, contradiction, and confusion. It is possessing the knowhow to find, marshal and control resources, often owned by others.”
Technopreneurship Professor

Jeffrey Timmons (1990)

Entrepreneur Are Made and Not Born “The entrepreneurial mystique? It’s not magic, it’s not mysterious and it has nothing to do with the genes. It is a discipline. And like any discipline, it can be learned.”
…Peter Drucker
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Why People Become Entrepreneurs?
• Definition of an entrepreneur – French word “entreprende” meaning „go between‟ or „enter to undertake‟. A person who undertakes to organize, manage and assume risks of business • How people become entrepreneur ? – By Necessity and Opportunity, Design and Default • Triggered by „Social Disruption or Interruption” • Entrepreneurs are created in good and bad economic times. • Achievements and Financial Rewards for an Entrepreneur. Technopreneurship

Who Are The Entrepreneurs?
• • • • • • • Paradigm shifters, innovators and opportunists – creative destroyers Key change catalysts and agents Wealth and employment creators Economic engine drivers Key actors of the Malaysian Economy Entrepreneurs are made and not born – entrepreneurial propensity You can be the entrepreneur - if you have what it takes


People who like to be their own boss
People who has experienced a “social disruption”?

• Necessity and opportunity entrepreneurs
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Entrepreneurial Traits (1)
Most Important for Success: • Innovative & Opportunistic • Willingness to take risk • Initiative

• Self reliance
• Perseverance (keep trying to achieve something)

• Need to achieve
• Self confidence
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Entrepreneurial Traits (2)
Important for Success: • • Leadership Competitiveness


• • •

Good physical health
Creative High level of energy Versatility
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Entrepreneurial Traits (3)
Least Important for Success: • • • Ability to get along Patience Well organized


• • •

Desire for money
Tolerate uncertainty Need for power Need for affiliation
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Difference Between Entrepreneurship And Small Business
Entrepreneurship • Innovation • Fast growth • Vision

Small Business

• Little innovation
• Static growth • Little vision • Family business • Earning a livelihood • Low or minimum
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• Employment creation
• Money making machine • Higher risk

risk

Entrepreneurship Statistics… Do You Know?
US Situation

 About 1 million businesses are formed each year in the US  Between 70 to 80% failed the first year of start-up  10% to 20% last through the next 5 years  Venture investment 1:10 success rate  Venture capitalists expects between 5 to 10 times return
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Entrepreneurship Statistics Do You Know?
 6 in a million with a high tech business idea eventually becomes a successful company that goes public / IPO.

 Fewer than 20% of the funded starts-up go public.
 Bankruptcies occur for 60% of the high tech companies that succeed in getting venture capital.  Venture capital investors own a large part of the start-up by the time it goes public: 70 % of hardware companies, 60% of software companies and 50% of internet companies. Source: US Statistics
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Malaysian Setting & Global Scenario

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Mewujudkan masyarakat saintifik dan progresif, masyarakat yang mempunyai daya perubahan tinggi dan memandang ke hadapan, yang bukan sahaja menjadi pengguna teknologi tetapi juga penyumbang kepada tamaddun saintifik dan teknologi Technopreneurship masa hadapan

Malaysia: Enterprising Culture And
Nation
 Economic Paradigm Shifts 1950s to 2000s.
    Wawasan 2020 Ministry for International Trade & Investment - SMIDEC Ministry for Entrepreneurs & Co-0perative Development. Multimedia Super Corridor – 7 Flagships.


  

MSC Status Privileges & Incentives.
Strong Economic Growth & Social Innovation Rapid Infrastructure Development. Industry Promotion of Entrepreneurship: Enterprise 50 Awards, Ernst & Young Malaysian Entrepreneur of the Year Award, Venture 2002, MSC-IHL Business Plan Competition, MAVCAP‟s Cradle Investment Programme
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MSC Flagship Applications

Smart Schools Telehealth

Multipurpose Card Electronic Government

Technopreneur Development E-Business

R&D Cluster

Borderless Marketing Technopreneurship Worldwide Centre Manufacturing Web

Malaysia Economic Transformation & Drivers
Source : Malaysia’s National Economic Action Council Knowledge-based KNOWLEDGE BASED / INTELLECTUAL CAPITAL HIGH TECHNOLOGY / SERVICES Medium-tech Manufacturing & Services Investment-driven Assembly-type Manufacturing Labour-driven Primary Commodities INDUSTRIAL / IMPORT SUBSTITUTION TECHNOLOGY / FOREIGN DIRECT INVT

Knowledge-driven

High-tech Manufacturing & Services Productivity-driven

Labour-driven

AGRICULTURE / PRIMARY COMMODITY
1996

1960

1970

1980 Technopreneurship

1995

2005

2020

• Value creation through knowledge products and industry • ICT as a sector • Information as commodity

Economic

• Competitive, dynamic, robust & resilient • Fair & equitable distribution of wealth • Knowledge economy

NITA Vision

2020

Now
• Connectivity of • Empowered citizens networks • Self-regulating • Equitable access to • Self-controlled information • Fostering creativity • Culture of learning • Inclusive society • Information literate Technopreneurship • Strong families

Social
• United • Developed & secure • Strong moral and ethical values • Democratic and liberal • Tolerant & Progressive

Strategic Framework
For balanced development through innovation, the ‘ICT4D Framework’ shown, which draws on the principles highlighted thus far, can be used as a guide.

K-economy Information & Communication Technology ICT as a SECTOR
Malaysia’s ICT4D program for Innovating towards a K-nation Innovation for WEALTH CREATION

Innovation for BALANCED SOCIETAL DEVELOPMENT Innovation for GOOD GOVERNANCE

K-society Technopreneurship

Govern -ment

ICT as an ENABLER

Society

Industry

Framing the Strategic ICT R&D Agenda: Strategic Intent
• Innovation for WEALTH CREATION
- All sectors of the Malaysian economy creating value and wealth through successful participation in the emerging knowledgedriven global economy - Key focus: Knowledge-driven economy

• Innovation for BALANCED SOCIETAL DEVELOPMENT
– Inclusive community development through provision of life changing ICT applications – Key focus: Knowledge society

• Innovation for GOOD GOVERNANCE

– Foster form of accountability and transparency in the process of governance that enhance the quality of life of Malaysians – Key focus: Participating in governance for quality of life
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Any Questions?

Technopreneurship

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