Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

PART 4

CREATIVITY AND

INNOVATION

CHAPTER 15

Encouraging Marketing

and Product Innovation

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Michael Dell

We learned the importance of ignoring conventional wisdom and doing things

our way....It’s fun to do things that people don’t

think are possible or likely. Its also exciting to achieve

the unexpected.

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Relationship v Transactional Marketing

Encourages repeat

sales

Transactional Marketing

Limited contact

Relationship Marketing

Encourages close,

frequent contact

Focus on service

Focus on value

Focus on quality of

total offering

Focus on long-term

Orientated toward single purchase

Limited service

Focus on benefits

Focus on quality of product

Focus on short-term

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Challenge Conventions

• Sectoral conventions – strategic rules that

guide market operations of majority of firms

• Performance conventions – set by other

firms

• Customer conventions – assumptions about

what customers want

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Entrepreneurial Marketing Planning

Determine future organisational performance objectives

Review conventional influences on performance

Can marketing conventions deliver performance goals?

CONVENTIONAL PLANENTREPRENERIAL

PLAN

Yes No

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Entrepreneurial Marketing Planning

Map sector conventions

Assess scale of entrepreneurial activity

Assess entrepreneurial opportunity

Asses entrepreneurial capability

Define performance objectives

Define strategy

Develop detailed plan

Specify control systems

Lau

nch

earl

y t

o g

ain

mark

et

exp

eri

en

ce

Feed

back lo

op

s

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

The Product Development Process

Product developmentCONCEPT

PHASE

CommercialisationLAUNCH

PHASE

Product launchGo/No-go decision point

Business analysisGo/No-go decision point

Idea generation

Screening

IDEA

PHASE

Feedback

loop

Market testingGo/No-go decision point

Feedback

loops

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Parallel Development of New products

Environmental

monitoring

systemProduct

concept

development

Product

concept

testing Sales

analysis and

objectives

Search for

suppliers

Prototype

developmentProduct

specification:

unit cost

Ideas search

and

screening

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Structures to Support Product

Development

• New product division

• New product department within a division

• New product manager

• Product or brand manager

• New product committee

• Cross functional project teams

• Task force

• Venture team

• Outside suppliers

• Multiple organisational formsMorris & Kuratko (2002)