INTRAPRENEURSHIP

AND

CORPORATE VENTURING
 Who Are Intrapreneurs?
• Intrapreneurs are those employees who exhibit
entrepreneurial initiatives for which management
encourage them with resources and rewards.
– They tend to be action oriented.
– They can move quickly to get things done.
– They are goal oriented, willing to do whatever it takes to
achieve their objectives.
– They are also a combination of thinker, doer, planner, and
worker.
 3M’s Innovation Rules
• Don’t kill a project
• Tolerate failure
• Keep divisions small
• Motivate the champions
• Stay close to the customer
• Share the wealth
 Barriers To
Intrapreneurship
• Inherent Nature of Large Organizations
• No Long-Term Commitment
• Lack Of Autonomy For Decision Making
• Lack of Intrapreneurial Talent
• Inappropriate Compensation Methods
• Constrained Environment
 Innovative Philosophy
1. Encourage action.
2. Use informal meetings whenever possible.
3. Tolerate failure and use it as a learning experience.
4. Persist in getting an idea to market.
5. Reward innovation for innovation’s sake.
6. Plan the physical layout of the enterprise to encourage informal
communication.
7. Expect clever bootlegging of ideas—secretly working on new ideas on
company time as well as personal time.
8. Put people on small teams for future-oriented projects.
9. Encourage personnel to circumvent rigid procedures and bureaucratic
red tape.
10. Reward and promote innovative personnel.
The Ten Commandments Of An Intrapreneur
 CORPORATE VENTURING
– Corporate Venturing
• Activities that receive organizational sanction
and resource commitments for the purpose of
innovative results.
– A process whereby an individual or a group of individuals, in
association with an existing organization, creates a new
organization or instigates renewal or innovation within the
organization
 Creating the right environment

• Separate entity for the new venture

• Conducive culture for success
• Autonomy & Freedom
• Suitable Reward tied to success
• Mindset to accept failures
• Creation of new venture group to monitor and assist
new ventures
• Hiring competent people internally as well as
externally
• Allow new ventures to draw resources from the
parent company
 The Need for Corporate Entrepreneurship
• Rapid growth in the number of new and sophisticated
competitors
• Sense of distrust in the traditional methods of corporate
management
• An exodus of some of the best and brightest people from
corporations to become small business entrepreneurs
• International competition
• It uncovers under exploited opportunities with in the core
business
• Freedom and flexibility to tailor individual business models to
specific competitive conditions
• It can create strategic value
• An overall desire to improve efficiency and productivity
 Misconceptions – Corporate Venturing
• Venturing is irrelevant to their business
• Venturing is too expensive
• Venturing is not for Brick & Mortar companies
• Venturing and R&D are substitutes
• Difficult to measure the value
• Affordable in a Bull market
• Too risky as most of the corporate venture fails