corporate entrepreneurship: how?
DESCRIPTION
Entrepreneurial Management Article PresentationTRANSCRIPT
Corporate Entrepreneurship
: How?
Content
What is Corporate Entrepreneurship
2 Types of CE: Focused and Organization Wide
Possible Transition?
What is Corporate Entrepreneurship?
The process by which individuals inside organizations pursue opportunities without regard to the resources they currently control
CE
Internal Corp.
Venturing
Strategic Renewal
Innovation
Expected Results• Improve competitive
positioning
• Transform companies, markets, and industries
• Improve organization’s growth and profitability
Organization Wide
Focused
How to develop Corporate Entrepreneurship?
• Mature organizations that do not take risks – “not upsetting the apple cart”
• Promote entrepreneurship by mandating it as a corporate objective
Focused Entrepreneurship – What is it?
Focused Entrepreneurship – How to Develop?
Company
InternalAppointments
ExternalEntrepreneurs
Strict compliance to financial
and classical management
controls
Difficult to change
chemistry and culture of organization
Managers =/=
entrepreneurs
Focused Entrepreneurship – Limitations
Results: Less than sustainable innovation and entrepreneurship
Org. Wide Entrepreneurship – What is it?
Opportunities are perceived and pursued by entrepreneurs
Money is not a motivator
Failure is considered normal
Risk-taking philosophy
Org. Wide Entrepreneurship – How to Develop?
RightEnvironment
• Right tone for innovation
• Select and rotate talented managers
• High level of Trust• Appreciate views
of individuals
• Multi stage resource allocation
• Draw the line between responsible and irresponsible
• Control the process
• Learn from past experiences
Discipline of parsimony
(kiam siap)
Risk containme
nt (Process)
Case Study: Wipro
Indian
Information Technology
(IT) Service
Consulting Services
Outsourcing services
Org. Wide Entrepreneurship – Case in Point
Azim Hasham Premji
Top 30 all time great entrepreneurs in the
world (Business week, July 2007)
Vegetable oil (1945-1970’s)
Azim Hasham Premji
Top 30 all time great entrepreneurs in the
world (Business week, July 2007)
(IT) services (late 70’s)
Vegetable oil (1945-1970’s)
Azim Hasham Premji
Top 30 all time great entrepreneurs in the
world (Business week, July 2007)
Lab on Hire (1991)
(IT) services (late 70’s)
Vegetable oil (1945-1970’s)
Azim Hasham Premji
Top 30 all time great entrepreneurs in the
world (Business week, July 2007)
Extended Offshore (main form of revenue)
Lab on Hire (1991)
(IT) services (late 70’s)
Vegetable oil (1945-1970’s)
Azim Hasham Premji
Top 30 all time great entrepreneurs in the
world (Business week, July 2007)
Quality Consulting Practice (2002)
Extended Offshore (main form of revenue)
Lab on Hire (1991)
(IT) services (late 70’s)
Vegetable oil (1945-1970’s)
Azim Hasham Premji
Top 30 all time great entrepreneurs in the
world (Business week, July 2007)
Great presentation bro.
High-five!
Org. Wide Entrepreneurship – Why the Success?
Right Environment
Discipline of parsimony
(kiam siap)
Risk containment
Structured Innovation Program
Free Space for Innovation Six Sigma
Same Same, but different?Ideas from HBR Article: Meeting the Challenge of Corporate Entrepreneurship
Similarities (Focused Entrepreneurship)
HBR• Diffused
Responsibilities Fizzled Out
• Centralization Isolates
CE – How?Limited success of “injecting” Entrepreneurship and Parallel Organizations
Insight: Established systems ensures success of existing businesses
but hinders building entrepreneurial culture
Similarities (Org. Wide Entrepreneurship)
HBRBalancing Strategy, Operations and Organization
CE – How?Right Environment, Operational discipline and Focus on Process
Insight: Enables companies to build, blend and maintain an entrepreneurial culture to be competitive and grow
Is it possible to shift from Focused Entrepreneurship and do well with Organization Wide Entrepreneurship?Ideas from HBR Article: Meeting the Challenge of Corporate Entrepreneurship
From “Focused” to “Org. Wide”
Entrepreneurship…The
Way
Pre 1999…
Previous “Focused Entrepreneurship” Culture and Systems
Unsuccessful Corporate
Venture Funds
Applied approach of
leading established
businesses to “new business opportunities”
Potential Businesses like “Life Sciences” cancelled
Post 1999…Emerging Business Opportunity (EBO)
Building the “Org. Wide Entrepreneurship” Culture and Systems
Operational
Experience with
Invention
Organization: Identity
with Integration
Experiment with Rigor and
Discipline
Strategy Dev: • Engagement with
market place through in market experiments.
• Reviews based on plan targets.
• EBO meetings with learning encouraged
Leadership: Leaders selected based on experience, skill and knack for entrepreneurship
Monitoring and Evaluation: Which can be integrated into existing business divisions?Scoring based on “clear strategy”, “executable model” and “winning in the marketplace”.
• 25 businesses launched in 5 years, 3 failed
• Revenue contributed $31 billion in 2002-2004
• Integrated successful businesses with corporate system
Results
• Incorporate entrepreneurship through leadership decisions
• Refrain from force-fitting entrepreneurship
• Dealing with the challenge of integration of new business with existing structures and systems
Lessons Learnt
Without the “change agent” leader, do you think that organization wide entrepreneurship can be sustained?
Is there a more influential driver to develop/hinder corporate entrepreneurship? (external)
“The process by which individuals inside organizations pursue opportunities without regard to the resources they currently control” Agree?
Questions for Discussion