ENTREPRENEURIAL SKILLS ENT3001/3003/4003

LECTURE #3 INTRODUCTION TO ENTREPRENEURSHIP

INTRODUCTION TO ENTREPRENEURSHIP

Objectives Concept of Intrapreneurship

Creating Benefits

an Intrapreneurial Environment of Intrapreneurship

Rewarding Intrapreneurship
Creativity
The

and Business

creative process
2

Entrepreneurial rules to live by

CONCEPT OF

INTRAPRENEURSHIP

INTRAPRENEURSHIP
What

is

Intrapreneurship?

INTRAPRENEURSHIP
Also called Corporate

Entrepreneurship

Entrepreneurial activities that receive organizational sanction and resource commitments for the purpose of innovative results

INTRAPRENEURSHIP
Existing businesses have the financial resources, business skills, and marketing & distribution system to commercialize innovation successfully.

WHAT IS INTRAPRENEURSHIP?
Process involving the promotion of innovation and creativity within existing corporations Innovation and creativity re:

Ideas & products Processes Administrative procedures

DEVELOPMENTS STIMULATING INTRAPRENEURSHIP

Globalization

intense external competition from products & services from companies all over the world, forces companies to internal experimentation for growth & survival

Rapid

evolution of knowledge and technology

Forces businesses to change internally to retain relevance Younger more technology savvy employees available to drive new developments

DEVELOPMENTS STIMULATING INTRAPRENEURSHIP

Greater

access to funding-more start-ups emerging posing challenge to established businesses Emergence of smaller more flexible companies formal & informal eating away market share of established companies

PROFILE OF INTRAPRENEURS
They are the dreamers who do Take hands- on responsibility for creating innovation They figure out how to turn an idea into a profitable reality

PROFILE OF INTRAPRENEURS

Action-oriented and committed to goals of the companysee their future intertwined with that of the company

CREATING AN INTRAPRENEURIAL ENVIRONMENT

CREATING AN INTRAPRENEURIAL ENVIRONMENT

Tapping into the creative energies and talents of own workers Create culture which demonstrates that responsibility for creating innovation rests not only on firms management Recognition that innovation is a capability of the many

CREATING AND INTRAPRENEURIAL ENVIRONMENT Worker commitment necessary for Intrapreneurship Commitment comes when there is encouragement and a feeling of belonging by workers Approval and support of goals and vision by workers of company

CREATING AND INTRAPRENEURIAL ENVIRONMENT

Create

a system of feedback and positive reinforcement Emphasize individual responsibility Give rewards based on results

FOSTERING AN INTRAPRENEURSHIP CULTURE

Pre-Requistes for Intrapreneurship Organization sanction Flexible management Adequate budget for entrepreneurial activities/projects Setting explicit goals

FOSTERING AN INTRAPRENEURSHIP CULTURE

Operational Strategies Identify and motivate intrapreneurs/high achievers Tolerate failure resulting from entrepreneurial experimentation Use failure as a learning experience

FOSTERING AN INTRAPRENEURSHIP CULTURE

Operational Strategies Persist in getting ideas to market Put people in small project teams Reward innovative personnel

HEART Trust Incentive Scheme

Promote innovative personnel

FOSTERING AN INTRAPRENEURSHIP CULTURE

Operational Strategies Encourage action Reduce rigid procedure and bureaucratic red tape Encourage informal communication and meetings

FOSTERING AN INTRAPRENEURSHIP CULTURE

Flatten corporate structure Retrain manager as coach, teacher and mentor Encourage experimentation, without penalties Eliminate authoritarian management, replace with flexibility

BENEFITS OF

INTRAPRENEURSHIP

BENEFITS OF INTRAPRENEURSHIP
Increased ability of company to compete effectively in local and international markets Development of new products, services, processes and administrative processes Expansion and growth of company

BENEFITS OF INTRAPRENEURSHIP
Financial success Image & reputation that attracts the best people Development of a creative work force, able to withstand competition

BENEFITS OF INTRAPRENEURSHIP
Promotes climate conducive to high achievers Retention of best/motivated staff Low staff turnover

REWARDING
INTRAPRENEURSHIP

REWARDING INTRAPRENEURSHIP

Promote and give autonomy Give recognition and awards to intrapreneurial employees Create & give leadership responsibility for new divisions Offer ownership to best workers-stock options, profit-sharing etc.

CLASS ACTIVITY
Read the following cases/articles: Studies in Entrepreneurship 3M Southwest Airlines: positively Outrageous Leadership

REFLECTIONS ON THE LESSON

Discuss:
How did the company create an Intrapreneurial Environment

What benefits did the company receive (for creating intrapreneuial culture)

How did the company reward Intrapreneurship

REFLECTIONS ON THE LESSON

Discuss:
1.

What steps would you take to further promote Intrapreneurship at your place of work or at an organization with which you are familiar?

CREATIVITY
AND
BUSINESS

ENTREPRENEURIAL SUCCESS
Achieved

by - creating value in the marketplace through the process of combining resources in new & different ways to achieve a competitive edge over rivals
Applying

creativity & innovation to solve problems & exploit opportunities is the secret for creating value in the marketplace

CREATIVITY IN BUSINESS
Is

the ability to develop new ideas & discover new ways of looking at problems & opportunities.

CREATIVITY IMPORTANT INGREDIENT IN ENTREPRENEURSHIP

WHAT IS CREATIVITY

A way of thinking about everything Openness to change Willing to try new things Persistence in seeking possibilities Open to brainstorming ideas Dedication to doing it better

Thinking about what you see and hear

CREATIVITY

Generating

something from nothing The light bulb

Elaborating

the keyboard
Putting

on the present

old things together in new ways The

innovative vacuum cleaner or southern fried chicken

Taking

something away to create something simpler or better the jitterbug cell phone for elderly
people

CREATIVITY QUESTIONS TO SPUR THE IMAGINATION

Is

there a new way to do it? Can you adapt it? Can you give it a new twist? Can ideas be combined? Can we put it to other uses? What else could we make from this? Are there other markets for it?

CREATIVITY CONCEPTS
Divergent
Divergent

vs. Convergent Thinking

thinking:

The ability to find as many possible answers to a particular problem e.g. Brainstorming, or from mathematics; partition and factorization
Convergent

thinking: The ability to find the best answer to a single problem e.g. Logical reasoning, or from Mathematics; addition, subtraction, multiplication and division

CREATIVITY
Paradigm
A

worldview, a mental model, a preconceived idea of what the world is, what it should be like and how it should operate.
improve within a paradigm adjust the fringes of whats known.
To

move between or change paradigms change the foundations of knowledge and beliefs. Significant breakthroughs occur here!
To

CREATIVITY

Paradigm
Can

block creative thinking

CREATIVITY
Entrepreneurs

must always guard against traditional assumptions and perspectives about how things ought to be.

READ THE FOLLOWING ALOUD

PARIS IN THE THE SPRING TIME

ONCE IN A A LIFETIME

BIRD IN THE THE HAND

Past

experience shapes the way we perceive the world around us.

CREATIVITY IMPORTANT INGREDIENT IN ENTREPRENEURSHIP

What do you see?

The goblet or the famous twins

CREATIVITY IMPORTANT INGREDIENT IN ENTREPRENEURSHIP

Describe the lady you see in this drawing. How old is she, how attractive, what covering is on her head etc.

CREATIVITY
Entrepreneurs

are able to throw off these shackles on creativity and see opportunities for creating viable businesses where most people see what theyve always seen (or worse yet, they see nothing).

Do you see Jesus in this picture?

CREATIVITY CAN IT BE LEARNT

Research

shows that almost anyone can learn to be creative

The

brain has two hemispheres

The

Left hemisphere

Responsible

for logical thinking

The

right hemisphere for creative thinking

Responsible

CREATIVITY
The

right brain hemisphere

for creative thinking

Responsible

Right

brain thinking asks is there a better way custom routine & tradition

Always

Challenges Is

reflective, often seen staring out windows deep in thought

Play

mental games- trying to see issues from a different perspective

CREATIVITY
The

right brain hemisphere

for creative thinking

Responsible

Right

brain thinking (contd) that there may be more than one right answer

Realize Uses

seemingly unrelated ideas to develop innovative solutions to problems

Has

the ability to rise above the daily routine to see an issue from a broader perspective then come back to focus on a problem area needing change.

LIMITERS OF INDIVIDUAL CREATIVITY

Searching

for & recognizing only one right answer to a

problem
Focusing Blindly

on being logical all the time

following the rules being practical

Constantly Viewing

play as a frivolous waste of time overly specialized

Becoming Avoiding Fearing Fearing

ambiguity

looking foolish mistakes and failure

Believing that Im not creative

THE CREATIVE PROCESS

Preparation
Read

widely, develop an open mind, ideas come from cross fertilization of concepts in diverse fields

THE CREATIVE PROCESS

Investigation
Study

the problem & understand its basic components

THE CREATIVE PROCESS

Transformation
Analyze;

break the problem apart, identify similarities & differences in data collected

THE CREATIVE PROCESS

Incubation
Take

time to reflect (away from the problem). Incubation occurs while you are involved in some unrelated activity

THE CREATIVE PROCESS

Illumination
A spontaneous

breakthrough occurs (a light bulb turns on) resulting in an innovative idea.

THE CREATIVE PROCESS

Verification
Validate

the idea by subjecting it to hard cold reality using a market test, prototyping, or experiment

THE CREATIVE PROCESS

Implementation

the idea into reality the true mark of an entrepreneur.

Transform

CREATIVITY
With

practice one can learn to shift from left brain thinking to right brain thinking thereby tapping into their creative pool
Try

something new and different something creative and innovative this week

CREATIVITY & BUSINESS

Lesson A

2 - Activity 1

major manufacturer of breakfast cereals is about to introduce a new multigrain cereal. Its principal selling point is that it features three great tastes in every bowlful; corn, rice and wheat.
Seeing

that a cereals name is and integral part of its marketing campaign, the company has asked you to come up with the right name for this new product. groups of 3 4 and in 10 minutes; list the name that you think would be appropriate, explaining why.
Form

CREATIVITY & BUSINESS

Lesson Given

2 - Activity 2

the challenges in the national and international business environment at this time, identify and list five businesses or services, which you believe could take advantage of these circumstances and thrive.
Decide

which two of those you list have the best chance of success.
Use

as much creativity as possible in arriving at your suggestions and say why you believe these business/services would succeed. Form groups of 3 4 and take 10 minutes do this exercise.

ENTREPRENEURIAL RULES TO LIVE BY

ENTREPRENEURIAL RULES TO LIVE BY

Create,
Put

innovate, activate

your innovations into practice

ENTREPRENEURIAL RULES TO LIVE BY

Always
Or

be on the lookout for new opportunities

finding new ways to create opportunities

ENTREPRENEURIAL RULES TO LIVE BY

Keep

it simple
the best solutions are the simple ones

Often

ENTREPRENEURIAL RULES TO LIVE BY

Try

it, fix it, do it

Be

action oriented, work on your ideas immediately, find out what works, adjust what doesn't

ENTREPRENEURIAL RULES TO LIVE BY

Shoot

for the top

big

Dream

ENTREPRENEURIAL RULES TO LIVE BY

Dont

be ashamed to start small

success rarely ever happens

Overnight

ENTREPRENEURIAL RULES TO LIVE BY

Dont

fear failure; learn from it

to fail intelligently

Learn

ENTREPRENEURIAL RULES TO LIVE BY

Never

give up
are not quitters

Entrepreneurs

ENTREPRENEURIAL RULES TO LIVE BY

Go

for it
miss 100% of the shots you never take

You

RECAPITULATION
What What

is intrapreneurship

are the benefits of intrapreneurship

How

is intrapreneurship rewarded

What

is the role of creativity in business

List

some obstacles to creativity

What

are the components of the Creative Process