Innovative Entrepreneurship

Lecture No.1

The Nature of Innovations & Perspectives of Innovation

Management.

“Innovative entrepreneurship is the practice of

establishing creating new business ideas intending to
generate profit, assist their community and
accomplish company goals. Innovative entrepreneurs
develop business models to identify to meet the needs
of an organization and improve their competitiveness
in the market.”

Management Department | I. Makarchuk | 2022

 Innovative Entrepreneurship
Lecture No.1

1. Why Management Innovation Maters?

a. Global Tendencies and Benefits
b. Which are the most innovative countries and
companies.

2. What is Management Innovation?

a. Concept and Implications
b. Types of innovations
c. Modes of innovations

3. How to become a Manager Innovator?

a. The innovation Challenge
b. The innovation process

Management Department | I. Makarchuk | 2022

 Innovative Entrepreneurship
Lecture No.1

1. Why Management Innovation Maters?

a. Global Tendencies and Benefits
b. Which are the most innovative countries and
companies.

Management Department | I. Makarchuk | 2022

 Which are the most innovative countries?

Global Innovation Index (GII)

1 US
1 Policies
2 Germany
2 Human Capacity
3 Infrastructure 3 UK
4 Technological Sophistication
5 Markets and Capital 4 Japan

5 France

1 Knowledge 6 Switzerland
2 Competitiveness
3 Wealth 7 Singapore

Management Department | I. Makarchuk | 2022 8 Canada

 This countries are also the richest?

1 US

2 Germany YES or NOT?

3 UK

4 Japan

5 France

6 Switzerland

7 Singapore

8 Canada
Management Department | I. Makarchuk | 2022
 Which are the leading innovative
companies?

Most Innovative Most Known for

Business Week & BCG Companies Ranking itsInnovative…..
Ranking (04-07) 1 Apple Products (52%)

§ 2,950 senior executives 2 Google Customer

Experience (26%)
§ 3 yr stock returns 3 Toyota Motor Processes (36%)
§ revenue growth 4 General Electric Process (43%)
5 Microsoft Products (26%)
§ margin growth
6 Tata Group Products (58%)
7 Nintendo Products (63%)

Management Department | I. Makarchuk | 2022

 These companies are also the richest?

Most Innovative
Companies Ranking
YES or NOT?
1 Apple
2 Google
3 Toyota Motor §Business Week & BCG Ranking (04-07):
4 General Electric
19% increase their revenue.
5 Microsoft
§Innovaro: Sustainable growth in their price
6 Tata Group
per share in the last seven years
7 Nintendo

Management Department | I. Makarchuk | 2022

 Managing Innovation = Economic Growth

• The world economic progress has been led by key innovations and
inventions. Changed the way do business.

Joseph Schumpter,
The “Godfather of
• Entrepreneurship + innovation: capitalism and Innovation studies"

economic progress.

Management Department | I. Makarchuk | 2022

 What is Managing innovation?

Ø Successful exploitation of new ideas

Ø leading to the creation of a new

product and service.

Ø It is more that just generating good ideas

Ø it is the process of growing them into

practical use and bringing them to the
market.

Management Department | I. Makarchuk | 2022

 Managing Innovation: Change
Managing innovation in a company involves
organizational changes:

• traditional management principles, processes

and practices.
• alters the way the work of management is
performed:
§ setting goals
§ laying out plans
§ motivating and aligning efforts
§ coordinating activities, etc

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 Innovative Entrepreneurship 4 P’s

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 Types of Innovation

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 Types of Innovation
Clayton Christensen is the Kim B. Clark
Professor of Business Administration at the Harvard
Business School, where he teaches one of the most
popular elective classes for second year students,
Building and Sustaining a Successful Enterprise.

Management Department | I. Makarchuk | 2022

 Disruptive Innovations
Disruptive innovation, a term of art coined by Clayton Christensen,
describes a process by which a product or service takes root initially in
simple applications at the bottom of a market and then relentlessly moves
up market, eventually displacing established competitors.

Management Department | I. Makarchuk | 2022

 Disruptive Innovations
What Is Disruptive Innovation?
Disruptive innovation refers to the innovation that transforms
expensive or highly sophisticated products or services – previously
accessible to a high-end or more-skilled segment of consumers – to those
that are more affordable and accessible to a broader population. This
transformation disrupts the market by displacing long-standing,
established competitors.

Management Department | I. Makarchuk | 2022

 Disruptive Innovations

Management Department | I. Makarchuk | 2022

 How to Become an Innovative
Entrepreneur?

For being an innovative entrepreneur, you

should have some excellent skills and knowledge.
Well, the following tips can help you to become an
innovative entrepreneur.

Financial plan While creating a new business,

product, or service, you should consider many things,
but your financial status is the most important.
Creating a financial plan can help you know the
upcoming financial problems while building a
business. A financial plan might involve getting
investments, taking loans or using a company savings
account.

Management Department | I. Makarchuk | 2022

 How to Become an Innovative
Entrepreneur?

Knowledge of the market requirements

As we said above, before making any product or
before creating any service, we should know the
current market requirements and our competitors.
We should know what the public wants and how its
quality should be. Innovative entrepreneurs
understand market forces. They understand how the
business environment will impact the success of a
new business. They are skilled at assessing supply and
demand for their new product or service.
Network
An entrepreneur often networks with others in
the business to make personal connections in their
industry. This can help entrepreneurs expand their
knowledge of industry growth and learn new skills
from other professionals to create an innovative
product successfully.

Management Department | I. Makarchuk | 2022

 How to Become an Innovative
Entrepreneur?

Effective communication skills and active

listening
The innovative entrepreneur should have many
skills, and one of those skills is effective
communication. They should have good
communication skills to build new relationships, have
faster problem-solving skills, provide clear direction,
and increase productivity. Also, they are active
listeners to know when to listen and when to talk.

Teamwork and Professionalism

Teamwork means the ability to work with other
employees. All employees should collaborate easily.
They can do any work quickly and fast. And
professionalism means someone professional meets
the skills expected for their job role. This may include
factors beyond their tasks, such as wearing
appropriate attire. Employers may seek skilled
individuals to help represent their organization.

Management Department | I. Makarchuk | 2022

 How to Become an Innovative
Entrepreneur?

Time management
You should focus on getting more results in less
time. You should know how to manage your time
well. Innovative entrepreneurs understand time
management. They spend the right amount of time
on tasks to meet goals, and their ideas come to
fruition.

Leadership and motivation

Innovative entrepreneurs are great leaders, and
they know how to handle people. They have the skills
to motivate others to listen, believe and follow. They
lead with empathy, decisiveness, trustworthiness,
transparency, consistency and clarity. They do not shy
away from complex tasks or challenging
conversations. They are committed to the well-being
of the team. And this is why they inspire followers.

Management Department | I. Makarchuk | 2022

 How to Become an Innovative
Entrepreneur?

Decision making
While working in a company, you must choose
the correct option many times. This is an essential
trait for leaders who may have to make many
decisions. Decision making also helps employees
prioritize their tasks. A decision-making strength is
the capability to choose between options.

Negotiation
Negotiation, or the ability to reach an
agreement, is a valuable skill in roles where an
individual works with both a company and a
stakeholder. Helping businesses make compromises
can create positive relationships with clients. This
strength is essential in creating lasting solutions.

Management Department | I. Makarchuk | 2022

 How to Become an Innovative
Entrepreneur?

Problem-solving.
Having the ability to solve significant and
challenging problems is a critical skill in the
workplace. It demonstrates that you can use necessary
thinking skills and creativity. Companies look for
individuals who can help them fix their problems.

There are many film industries globally.

Every industry produces hundreds of movies, and the audience loves their movies. But we can see some
production companies have earned billions of dollars and audiences through their creative content. They always
produce new movies with new ideas, which takes their level of creativity to another level. People love them a lot.

Companies like Disney and Marvel are so innovative that their movies are ranked among the highest-
grossing movies worldwide. It is the best example that shows that creativity can take you to heights of success, so
yes, innovation is the future, and you should adopt innovative entrepreneurship.

Management Department | I. Makarchuk | 2022

 The Innovation Challenge & Innovation Process

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Management Department | I. Makarchuk | 2022