SESSION 03 & 04

Entrepreneurship and Innovation Management

Program Title: Post Graduate Diploma in Management

Course Title: Entrepreneurship and Innovation
Management
Number of Sessions: 32
Session Duration: 75 minutes
Total Class Hours: 40 hours
Credit: 3
Part Unit Topic
I ENTREPRENEURSHIP AND YOU
Understanding Entrepreneurship: Concept of Entrepreneur and
I Entrepreneurship, Characteristics of entrepreneurs, Functions of
entrepreneurs, Types of entrepreneurs, Reasons for growth of
entrepreneurs, Reasons for entrepreneurial failure, Concept of
Intrapreneurs, Difference between Intrapreneurs and Entrepreneurs
II Doing Business in India: Problems to do the business in India, Types of
ownership, Regulations follow to do the business in India

III Entrepreneurs and Their World: Business eco-system, Entrepreneurial

environment, Importance of network, Entrepreneurial network
II BUILDING THE BUSINESS
IV Idea Generation and Creating the Concept Statement:
Sources for generating ideas for new ventures,
Innovations in business
V Making a Business Plan: What is business plan? Uses of
business plan, Steps in writing business plan, Kinds of
business plan
VI Entrepreneurial Strategies: Defy Competition and Enter
the Market: Product or service innovation, Process and
concept innovation, Risk associated with various
entrepreneurial strategies
VII Creating New Products and Services: Common reason
to fail the new product or service
III EXTERNAL ENVIRONMENT AND COMPETITIVE
LANDSCAPE
VIII Building a Strategy: Understand the Industry and Competition

IX The Market and Customer Groups

IV GROWTH AND EXIT STRATEGIES
X Growth: Diversification, Joint Ventures, Acquisitions, Mergers,
Franchising

XI Exit Strategies: Reason for exit

V Practical: The student can perform the following according to the
instruction of the faculty in charge: Do the idea generation exercise and
make a business plan and make group presentations in the class.
 ASSESSMENT PLAN:
Timing Mode Marks

During the 1. Startup Market Study Report 50 (15+10+25)

term Submission=15 marks (sub
tentatively 3rd week, Feb 2020)
2. Group Case Analysis written
submission=10 marks (sub
tentatively 1st week, Mar 2020)
3. Group Presentations on B-Plan for
MNCs =25 marks (sub tentatively 4th
week, Mar 2020)

End of the Written Test 50

term
Idea-Generation
 What is an IDEA???
• A thought or collection of thoughts that
generate in the mind. An idea is usually
generated with intent, but can also be
created unintentionally. Ideas often form
during brainstorming sessions or through
discussions.
Read more:
http://www.businessdictionary.com/definition/idea.html
 Why do we need ideas?

• Ideas to solve problems

• Ideas to grow the business

• Ideas for the business itself!!!

What makes the best ideas?

•Ideas based in a
deep customer
understanding!
 Hence more More creative you The Higher
idea you have are: creating new potential for
in your head What is an Idea?
combination and
connections between
Great ideas

ideas

This support
Creation of an Idea
environmental
By an Individual
scanning
Idea new to
this individual
C
C
B =
+
A

A
 Processes should allow for these
idea sharing to occur interaction to
occur (some other term this
diffusion)

Ultimate successful idea or concept Creation of an Idea

may be a combination idea from By an Individual
many individuals
KABOOM!!! Better idea
D
D Nice D =
C +
Creation of an Idea
By an Individual New
idea

C
C
B
=
+ Nice
A
SCAMPER Technique

Idea Generation Tool

- Reduced size of truck
 List down ideas for how to get
employee to show to work on time??

IN-CLASS EXERCISE
 6-3-5 Activity
Instructions:
• The moderator gives a topic to generate ides on to 6
participants who then quietly write down 3 ideas on
a piece of paper in five minutes. When they are done
writing their three ideas they then pass the paper to
the person to their rights. The next person continues
writing another three ideas up to five minutes then
they pass the paper again. This continues 6 times till
the original paper get back to the first writer. Then all
the ideas are listed out as a group, redundant ideas
are removed.
 Idea Screening
• Methods for ideas screening are
important because you want and
need to find the few ideas which will
make your business successful.
• Often managers become frustrated
when looking through large batches
of ideas.
Who is screening ideas?

– Group preference screening – Delphi

Method
– Expert Preference
– CEO Preference – Is bad but makes support
easier
– Customer preference – this is best but
hardly ever used by companies because it
takes time and money
 Sorting and Screening Methods

1. Personal Preference - An individual chooses the ideas which they

prefer
2. Voting (open or blind) – An individual can vote openly or in a
closed ballot. Voting can be weighted; an individual can give
multiple votes to a given idea.
3. Ranking or Forced Ranked – An individual must rank ideas (#1, 2,
3,…) – this makes the group consider minor differences in idea and
its characteristics – for force ranking there can only be one idea #1
idea, #2 idea, so on..
4. Checklist/Threshold– Individuals’ list of attributes for the idea and
those list of attributes must match the checklist/threshold in-order
to pass (Ex. to be implemented in 6 month, it should make at least
Rs. 5 lac & require no more than two employees)
Continued…
5. Points – An individual uses a scoring sheet to rate
a particular idea by its attributes (so an idea which
can be implemented in 6 months gets +5 points,
and one that can make more than Rs.50K get +10
points). The points are then added together and
the top ideas are rank-ordered by highest point
scores.
6. Rating Scale –An individual rates an idea on a
number of preset scales (for example an idea can
be rated on a 1 to 10 on the implementation time,
any idea that reaches at 9 or 10 is automatically
accepted)
 Creating the Concept Statement
• When you need to clearly and succinctly
explain an idea for a business, product, design
or program – or for anything else that doesn't
yet exist – then you need a concept
statement.
• A concept statement can range from one
sentence to one page in length, but no longer
than that.
Your concept statement should make four points:

• What the idea is

• Why the idea is important
• Who its customers are
• How customers benefit
Innovation in Business
 WHAT IS AN INNOVATION?

 It is an idea, practice or object that is perceived as new by

an individual or other unit of adoption.
 It is a use of new knowledge to offer a new product
or service that customers want. Thus, it is

Invention + Commercialization.

“Innovation is the search for and the

discovery, developed, improvement, adoption and
commercialization of new processes, new products and
new organization structures and procedures.”
 Difference between Innovation & Invention

Invention Innovation
1. It’s creation of new product, service 1. It is the introduction of new product,
or process. service or process into the
marketplace.

2. May not be commercialized 2. Results into commercialization

3. It can be autonomous or induced 3. Usually induced

4. Can be for economic or non- 4. Economic motive

economic motive

5. Usually restricted to R&D centre 5.Spread across the organization

6. May bring few changes in 6. Brings organizational change

organization

7. Precedes innovation 7.Succeeds invention

 TYPES OF INNOVATION

 Product & Process Innovation

 Open & Closed Innovation
 Incremental & Radical Innovation
Open & Closed Innovation
PROJECT CONCEPT MARKET
START FROZEN INTRODUCTION

Concept
Implementation
Development

Closed Model For Innovation

PROJECT CONCEPT
START FROZEN
MARKET
Concept
INTRODUCTION
Development

Implementation

Open Model For Innovation

INCREMENTAL INNOVATION

Improving Inherent
Processes/Inputs to achieve
Higher Output
RADICAL INNOVATION

Displacing Existing Technology

 INNOVATION PROCESS
 Recognizing or scanning the environment.
 Aligning the overall business strategy &
proposed innovation.
 Acquiring technology from outside.
 Generating technology in-house.
 Exploring & selecting the most suitable response to the
environment.
 Executing & implementing innovation.
 Learning lessons for improvement.
 Developing the organization.