Lecture reading:

Week 7 & 8 Notes

Entrepreneurship & Innovation:
Entrepreneurship is the pursuit of opportunity beyond resources controlled.

Innovation = Invention x Commercilazation

Types of Innovation:
the process by which an organization transfers labor, capital, materials, and information into
products and services of greater value.

Categories of Innovation:
 Disruptive
 İncremental
 Lateral
 Technology
 Process
 Business
 Model
 Position

Six Myths of Entrepreneurship:

1. smartest and high-achieving people in the room
2. individualists
3. born not made
4. Risk
5. Charisma
6. Undisciplined

Passion is divided into technology and idea.

Technology includes:
1. knowledge
2. capability
3. Connections
4. financial assets
5. name recognition
6. past work experience
7. Passion
8. commitment

What Makes a Bussiness?

Paying customer
- not a business plan.
- not a CEO.
- not a mission statement.
- not a product.
- not even some sort of market analysis of paying customers.
Types of Innovation:
 Product versus Process Innovation
 Competence-Enhancing versus Competence-Destroying Innovation
First-Mover Advantages:
 Brand loyalty and technological leadership
 Preemption of scarce assets
 Exploiting buyer switching costs
 Reaping increasing returns advantages.

First-Mover Disadvantages:
 High research and development expenses
 Undeveloped supply and distribution channels
 Immature enabling technologies and complements
 Uncertainty of customer requirements