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Corporate Entrepreneurship ‘Small company soul inside a big company body’.

The competitive landscape in many industries today is marked by intense competition among existing players and the emergence of many focused competitors targeting specific segments of the market. In addition, the macro environment is characterised by rapid technological progress in many fields rendering current solutions to customer problems obsolete, explosive industrial growth in some sectors, and recession like conditions in others leading to industry wide restructuring. In this scenario, any company that is not continually developing, ac!uiring, and adapting to new technological advances and to the changing business environment, may be making the unintentional strategic decision to be out of business within a few years. These changes have highlighted the need for companies to become more entrepreneurial. "any companies have succeeded in their endeavour to foster entrepreneurship and have developed new approaches to innovate and to create new businesses and achieve profitable growth. #hange, innovation, and entrepreneurship describe what such successful companies do to compete. The essence of entrepreneurship is innovation. The motive for entrepreneurship lies in the urge to identify sources of existing and emerging customer dissatisfaction and developing solutions to eliminate them. $ithin the realm of existing firms, #% encompasses three types of phenomena that may or may not be interrelated .These are& • • • • The birth of new businesses within an existing firm The transformation of existing firms through the renewal or reshaping of the key Ideas on which they are built, and Innovation

'esearchers have used a variety of labels to describe the first two #% phenomena. The creation of new businesses by firms through this process has been called internal corporate venturing or intrapreneurship. The process of transformation of corporations through a renewal of their

.services and often lead their implementation. in association with an existing organisation. insulated from the restrictive approach of the rest of the organisation. Developing Corporate Entrepreneurship There are two ways in which #orporate %ntrepreneurship can be developed& • Focused Entrepreneurship. in some cases. including older people and organisations. while exploring new growth avenues. people attitudes. )rganisations that are *mature+ in a number of aspects such as product market strategy.ective or. Synthesi(ing these views. • Organisation wide Entrepreneurship )rganisations that wholeheartedly support entrepreneurial initiatives of any kind. They develop new products . They may have shown some of the attributes of entrepreneurship such as initiative. Such attempts are often accompanied by the use of steep financial incentives to match the potential rewards of independent entrepreneurship. that does not mean that a mature organisation cannot imbibe the spirit of entrepreneurship right across the organisation.key ideas has been called strategic renewal. "ost often such companies start driving entrepreneurial initiatives while the organisation is still young without the rigidities of a mature organisation. strategic change. minor such as a small improvement to products or processes to totally unrelated diversification ideas. by *in. the process whereby an individual or a group of individuals. innovativeness and change leadership. and structure and control systems would most often not like to upset their existing applecart in any way. create a new organisation or instigate renewal or innovation within that organisation. corporate entrepreneurship is defined as. they attempt to promote entrepreneurship by mandating it as a corporate ob. )f course. #ircumstances make everyone flexible.ecting+ it into the organisation by appointing one or more *proven+ independent entrepreneurs from within the organisation as a corporate entrepreneur team. Since their ability to identify and exploit opportunities has declined. revival and transformation or organization renewal.

Success is contingent on adopting appropriate reward and recognition strategies that mirror and nurture the values and culture of the #% driven organisation. ‘intrapreneur’. in essence./01 titled Intra-Corporate Entrepreneurship while attending Tarrytown School for %ntrepreneurs in 7ew 8ork. %li(abeth 3inchot./1? Newswee article. *The "acintosh team was what is commonly known as intrapreneurshipA only a few years before the term was coinedBa group of people going./1? by TIME maga(ine article =6ere come the Intrapreneurs= and then the same year in another ma. in an interview in the September .istory of Corporate Entrepreneurship The term ‘#orporate %ntrepreneurship’. at both the formal and informal level. . 4pple #omputer’s #hairman. The American Heritage Dictionary of the English Language included the term ./1: issue of The Economist. wrote in .//: %dition. but in a large company. author and co founder of the 5ainbridge 2raduate Institute. 6uman 'esource. The term =intrapreneurship= was used in the popular media first in >ebruary . 6e is credited with inventing the concept of intrapreneurship in a paper that he and his wife. )rgani(ations need to create work environments that reward innovation and keep entrepreneurs happy. measure and reward performance in such an environment.intrapreneur. 2ifford 3inchot is an 4merican entrepreneur. To make this happen. %!ually relevant is .or popular publication was in a !uote by Steve @obs. in its <rd . knowledge exchange and collaboration via intra and inter organisational relationship building among key stakeholders.ob and organisational design and finding a suitable balance between the =looseness= that underpins the #% spirit and the need to monitor./01 by 2ifford and %li(abeth 3inchot. back to the garage. where he shared. These include individual risk acceptance. .0. communication and compensation. and also credited 2ifford 3inchot III as the originator of the concept. 9ater the term was credited to 2ifford 3inchot III by 7orman "acrae in the 4pril . is the need to promote discretionary entrepreneurial behaviours and contributions.= !in"ing Corporate Entrepreneurship and uman #esource $anagement To make the organisation entrepreneurial the 6uman 'esource Cepartment plays a vital role. ‘intrapreneuring’ and ‘intrapreneurship’ was first coined in . senior managers must address key challenges in three areas& Corporate culture.

. #orporations provide a safety net. they get entrepreneurship in their blood and never want to change back. structure and platform for experimentation. but they need you. 4t 42 Interactive guests find workers dressed in T shirts working irregular hours. %ntrepreneurs who operate in the corporate structure never will achieve the multimillion dollar payoffs that come with breakthrough startups such as >acebook. #orporate entrepreneurs need to understand this. 8ou need them. Sometimes they need to stare out a window or go for a walk. )nce their teams experience a model of controlled freedom. 4bout 0D percent of 7orth 4merican startups fail within five years when entrepreneurs operate on their own. eating pi((a and sometimes playing table tennis. tackle challenges and make mistakes. #orporate ventures also fail.1 million online paid subscriptions in >ebruary :D. 4s a result. can help to explain the . "anagers who communicate this well can persuade many of their superstars to stay. 42 Interactive reported about <.. 3aychecks continue coming every two weeks for corporate entrepreneurs regardless of results. "anagers who invest in this type of corporate culture find they can never return to the old way of doing business. and among employees themselves. finance and accounting resources available within your organi(ation. #reation of personal relationships and the development of an open communication between owner managers and employees. but shareholders carry the bulk of the risk. but their chances for success rise dramatically when they tap into the marketing. • Communication% 4nother key to keeping corporate entrepreneurs happy is to communicate the benefits your organi(ation provides. The subsidiary operates within the corporate structure but rewards different types of behavior and outputs.• Corporate culture% The culture of an organisation should be such that coming to work needs to be fun for entrepreneurs. They need flexibility to explore ideas. innovation has flourished B along with market share.

This is the hardest thing for competitors to replicate. )n the noneconomic side managers might offer flexible hours. has *The Innovation #hallenge. . #reative and responsive managers consider economic and noneconomic rewards. not only for promoting #% activities. • Corporate entrepreneurship contests% #ompanies are contests to engage their own workforce and as external recruiting and branding tools. 3eople are the most important asset of any organi(ation.dynamics of entrepreneurial behaviors within small firms. %conomic rewards start with base salary but also might include stock options. >inding the right package can be tricky. %verything depends on the needs of each individual. many companies have initiated corporate entrepreneurship contests. you can make the world a better place through the innovation that results. Ernst ) *oung. For this purpose. generous vacation time. but also for creating the most appropriate work environment to carry out other resource management practices that stimulate entrepreneurial behaviors. performance pay and other bonus systems. &he 'ob of # not 'ust restricted to the above ( aspects . "anagers who take steps to keep their entrepreneurs happy give their organi(ations an edge. # has to go beyond the basics and attract employee to perform and use their entrepreneurial s"ills effectively. The openness in the communication is important. )ne benefit might include college tuition assistance for the entrepreneur’s family.ect autonomy. • Compensation% 4nother aspect of communication involves listening to the needs of your best employees when it comes to compensation. for instance.+ which is an internal competition where employees come up with new service offerings for their clients. or even preferred parking in the company lot. $orking together. support of various social initiatives. pro.

.?D Icustomer touch.DDD. e commerce and cloud computing technology to build their infrastructures and businesses. runs the +wC +ower+itch.ervices has the *Start Fp #hallenge. This pertains to create value superior to its competitors by focusing its resources on sustainable business strategies and activities.s role in sustainable business development to create a product or process that under the guidelines of S5C creates a sustainable business strategy that makes the company uni!ue within its market.ects under way. The allocation of resources in the corporate environment is also important in the growth of S5C as highly sustainable practices can be expensive to the organisation but creates superior value in the future. #ole of Corporate Entrepreneur in sustainable business development Sustainable business development GS5CH is the art of the societal marketing philosophy which aims to create value for consumers in the long term by providing superior value to consumers and its stakeholders by the adoption of Six Sigma and the triple bottom line Genvironmental.DDD to implement their idea. social and economicH approach.3w#. Case study% Corporate Entrepreneurship at -ipro !td.+ which is a competition for start ups that use its $eb. The entrepreneur. which is an innovation contest where the winning team receives the sum of E. consulting company.DD. 3ri(es include a cash grant of E?D. Six Sigma pro. In the last two decades there were many cases where $ipro successfully deployed its competencies developed to support an existing business in creating new business opportunities. The most recent example of corporate entrepreneurship at work in $ipro was how the internal !uality initiatives were translated into a !uality consulting practice with over . . mentoring sessions and a potential investment offer from 4ma(on.mazon -eb .

5. Though the Juality #onsulting business of $ipro started in :DD: and was . 4part from spawning many such new businesses $ipro was an incubator for a large number very successful corporate spin outs such as "indree #onsulting started by "r. %xodus started by M.?D strong. $ithin the first 0 1 months of its operation. These included processes like software testing or Six Sigma.ects and processes. $ipro. this division had about <D <? engagements and fine tuned various processes for its clients. 9everaging the lessons from its internal !uality initiatives. In the process of catering to these occasional demands of their customers. Sridhar "itta. making a viable business in the process.The internal !uality measurements had set the benchmark for other companies and the company took a conscious decision to migrate the benefits to customers. >rom inception till date.ust a little over two years old. the company developed a copyrighted Six Sigma for software methodologies. #handrasekhar. some other ideas did not get blessings of the power that be . The company was offering !uality consulting in the manufacturing sectors in the FS and additionally to captive 53) centres in India.s revenues. eLe 9abs started by Cr. This initiative began when $ipro customers wanted help from them to improve their !uality. Subroto 5agchi among others. the division contributed E. 4shok Sood and "r. $ipro managers hit upon a very lucrative business opportunity that could leverage their existing competencies. but the division was fast emerging as a key contributor to the company. So far more than a do(en of customers received the expertise of the !uality consulting division. million. )f this nearly ?? KD people are purely for the !uality consulting business.The business transformation practice would engage in such pro.ects over double that number in the future combined with consultancy in other !uality models .s !uality team is nearly . 3rio started by 4shok 7arshiman and many others. $hile some of the ideas got the support of the top management and were taken to the market within the umbrage of $ipro. pro. $ipro Technologies was increasingly getting Juality #onsulting assignments where it was drawing out the blueprint for many of its customer organisations to improve their !uality standards. The owner driven meritocracy and a very open organi(ation completely devoid of politics in $ipro nurtured an entrepreneurial culture and allowed free space for innovation to take root and flourish.

This trait of $ipro to continuously explore new ideas and seek change proactively helps company transform itself several times to face the future better by warding off any threats and capitali(ing on the emerging opportunities. There is also *financial measurement system+ to enable $ipro staff share the gains generated by their ideas.i has always put emphasis on making $ipro a dynamic. 6owever. the main point was $ipro always remained a grooming ground for entrepreneurs. It keenly follows the companies like 6industan 9ever.resulting in spin outs.ect managers who are immersed in the technical issues generate the creative long term ideas. 4(im 3rem. provide value to its customers. $ipro continuously compares itself with those considered best on various functions.ob is to choose the best ones and sponsor the same. there is greater need for bright innovative ideas to flow more fre!uently. 4s the company has been attempting to move up the value ladder. In the recent years after the exodus of some top professionals from $ipro in the pursuit of their entrepreneurial ambitions the company put together a more structured innovation programme and methodology to take most outstanding ideas to market on an ongoing basis. It formed the /0nnovation Council1 in late :DDD to build intellectual property. The innovation would go through various stages of approval and commitments of funds. There has been a constant focus on bench marking and upgrading in $ipro. based on its analysis of how the resulting technologies and components will. new products and services and take most outstanding ideas to market. Infosys and 2% and tries to adopt the best practices.ects develop intellectual property that can be licensed to customers and integrated into their products. a structured process that involves sifting through ideas. "r. . The Innovation #ouncil is made up of senior managers but the ideas are gathered /bottom4up1. $ipro’s approach to innovation is pragmatic. in turn. This being a very structured process leads to higher hit rates and cost effectiveness. $hat has been embedded in $ipro culture all these years is brought to surface in the form of a slogan 20nnovation is -ipro% -ipro is 0nnovation3 The Innovation #ouncil evaluates proposals and provides internal funding for the best ones. #ouncil’s . It is the engineers and pro. 4n idea has to meet certain goal sets before going through the next stage of support. identifying themes and setting clear goals. The resulting pro. evolving entity continuously innovating and actively seeking change.

• 4 work flow solution N >low 5rix was estimated to generate revenues in the range FSE 0?. • Innovation had spread across all sectors of the organi(ation and i Cesk was the first one to enable easy 6' management N by a collaborating workplace tool for workflow solutions for publishing.The outcomes of corporate entrepreneurship at $ipro • In 1 years. million. the company was focusing on consultancy services which would further enhance its image in the global software industry. #orporate entrepreneurship is one key element that plays a vital role in the process of making the organisation to swiftly adapt with the growing market trends. innovation became an integral part of product development process.ob. the *time to market+ was significantly decreased for new products and also the products used leading edge technology. Conclusion The recent market trends demand high level of competitiveness. by the end of :DD1. The concept of corporate entrepreneurship is uni!ue in itself as it allows employees at work place to contribute in the progress and growth of the company and also to go beyond their responsibilities towards their . innovation and risk taking for organisations to sustain in the market. In $ipro technologies. Since the cyclic process has been inculcated in the employees. also brought good revenue streams and helped in retain employee in the organisation. • 4ll these innovation initiatives have been fruitful and also helped the company attract prospective employees to fill :/O of vacancies in :DDK G5usiness week. :DDKH • 6ence it was certain that the innovation process enabled a strong product portfolio. .DDD N FSE .

"orris. @effrey 2 #ovin • uman #esource $anagement #eview. Muratko .html • Corporate Entrepreneurship ) 0nnovation "ichael 6.com .org-wiki-#orporatePentrepreneurship • 0ndian . 6o 8.chool of 5usiness www. $arch :.. Conald >. !C Hayton" 3romoting corporate entrepreneurship through human resource management practices& a review of empirical research.wikipedia.edu • 0ntrapreneurial 6ow www.writepass.isb.#eferences% • www. • Entrepreneurial $anagement ) 0nnovation at -0+#O www.intrapreneur.9. 7ol 89.com-"ain3ages-6istory-%conomist.