TECHNOPRENEURSHIP(EM604)Session 9
TECHNOPRENEURIAL PROCESS
Dr. Winarno
New Definition of Entrepreneurship
Entrepreneurship is a way of thinking,
reasoning, and acting that is opportunity
obssesed, holistic in approach, and
leadership balanced.
Entrepreneurship Evolution
EntrePreneship
Old and New Companies
Small and Large
Companies
Fast and Slow Growth
Private / Non Profit / Public
All Geographic
Point
Skill Development
Competent UnconsciousCompetent
ConsiousCompetent
Uncompetent UnconsciousUncompetent
ConsciousUncompetent
Unconscious Conscious
Skill Maturity
AHLI TRAMPIL
BISATAHU
Entrepreneurship Results
Entrepreneurship
Value
Creation
Enhancement
Realization
Renewal
Owners
Participants
Stake Holder
Entrepreneurship Process
Opportunity
Entrepreneur Role
EP Role
Inject Imagi-nation
Motivation
Commitment
PassionTenacity
Integrity
Teamwork
Vision
Face Dilemmas&
Make Decision
Classic Entrepreneurship: The Startup
• Classic expression of EP is the raw startup company, an innovative idea that develops into a high growth company.
• Legend of Microsoft, Netscape, Amazone.com, Sun Microsystems, etc.
• Key Success Factors: Strong leadership, teamwork building, opportunity sensitivity; skill and ingenuity to find and control resources.
Entrepreneurship in Post Brontosaurus Capitalism: Beyond Startup
• IBM (vs Appe Computer, Microsoft)• DEC (vs Apple Computer, Compaq Computer)• AT&T (vs MCI, McCaw Communications, Inc.,
Cellular One)• Lost 900,000 jobs. Emerge New 4.3 million
jobs and $736 billion by venture capital investment.
People Don’t Want to Be Managed. They Want to Be Led.
• Perusahaan Besar cenderung hierarkhis dan birokratis Lambat menyikapi perubahan.
• Perusahaan Entrepreneurship lebih fleksibel, cepat menyikapi perubahan
Company Life Cycle
Mature
Old
DecayStart
Grow
EP
EP
EP
EP
EP
EP
SEED,NEW BUSINESS,DIVERSIFICATION
DIVERSIFICATION
INTI SARI
TOKO BUKU
PENERBIT
CETAK
KOMPAS
PENERBIT
LAIN2
HOTEL
TISSU
UMN
The Wind of Change
• Social• Politic• Economy (and Finance)• Culture • War (Defence)• International Affair• Technology
Wind of Change Example:KOMPAS
POLITIK (PKI, PEMBREDELAN)
TEKNOLOGI (SETTING, KOMPUTER, DTP,
INTERNET, CONVERGENCE)
SOCIAL (MONITOR CASE)
ECONOMY (MONETARY CRISIS)
CULTURE (TRADITIONAL, MODERN, INTERNET)
KOMPAS DIGITAL TRANSFORMATION
KOMPAS.COM
E-ZINE
E-BOOK
PARADOX OF ENTREPRENEURSHIP
• An opportunity with no or very low potential can be an enormously big opportunity. E.g. Steve Jobs and Steve Wozniak (Founder of Apple Computer Corp.) reveal an idea of Desktop PC.
• To make money you have to first lose money.• To create and build wealth one must
relinquish wealth.
PARADOX OF ENTREPRENEURSHIP
• To succeed, one first has to experience failure.
• Entrepreneurship requires considerable thought preparation, and planning, yet is basically an unplannable event.
• For creativity and innovativeness to prosper, rigor and discipline must accompany the process.
PARADOX OF ENTREPRENEURSHIP
• Entrepreneurship requires a bias toward action and a sense of urgency, but also demands patience and perseverance.
• The greater the organizatin, orderliness, discipline, and control, the less you will control your ultimate destiny.
PARADOX OF ENTREPRENEURSHIP
• Adhering to management best practice, especially staying close to the customer that created industry leaders in the 1980s, became a seed of self-destruction and loss of leadership to upstart competitors.
• To realize long-term equity value, you have to forgo the temptations of short-term profitability.
Think Big Enough
• Don’t set up too small business. Smaller means higher failure.– Contoh: Internet Café, Digital Printing di satu
tempat saja• Threshold Concept: At least 20-30 people,
with US$2 -3 million revenue• Think about growth and equity.
One Year Survival Rates By Firm Size
Firm Size (Employees) Survival Percentage
1 – 24 people 53.6 %
25 – 49 people 68.0 %
50 – 99 people 69 %
100 – 249 people 73.2 %
Time for New Technologies to Reach 25% of USA Population
Household electricity (1873) 46 years
Telephone (1875) 35 years
Automobile (1885) 55 years
Airplane Travel (1903) 54 years
Radio (1906) 22 years
Television (1925) 26 years
Video Cassette Rec (1952) 34 years
Personal Computer (1975) 15 years
Celular Phone (1990) 13 years
Internet (1994) 7 years
Timmons Model of the Entrepreneurial Process
TEAM
OPPORTUNITY
RESOURCES
COMMUNICATION
LEADERSHIPCREATIVITY
EXOGEN FORCES
CAPITAL MARKETCONTEXT
AMBIGUITY
UNCERTAINTY
BUSINESS PLAN
FITS & GAPS
FOUNDERSSUSTAINABILITY : FOR ENVIRONMENT, COMMUNITY AND SOCIETY
OPPORTUNITY(Market Segment)
• Market demand is a key ingredient to measure an opportunity:– Is customer payback less than one year?– Do market share and growth potential equal 20%
annual growth and is it durable?– Is the customer reachable?
OPPORTUNITY(Market Segment)
• Market structure and size help define an opportunity:– Emerging and/or fragmented?– $50 million or more, with a $1 billion potential?– Proprietary barriers to entry?
OPPORTUNITY(Market Segment)
• Margin analysis helps differentiate an opportunity from an idea– Low cost provider (40% gross margin)?– Low capital requirements vs the competetion?– Break even in 1 – 2 year?– Value added increase of overall corporate P/E
ratio?
RESOURCES
• Bootstrapping– Minimize and control vs maximize and Own
• Relationship– Unleashing Creativity
• Financial Resources• Assets• People• Your Business Plan• Think cash last
TEAMCritical Ingredient for Success
• An Entrepreneurial Leader– Learn and teach (faster is better)– Deal with adversity (resilient)– Exhibit integrity, dependability, honesty– Build entrepreneurial culture and organization
QUALITY OF THE TEAM
• Relevance experience and track record
• Motivation to excel• Commitment,
determination, and persistence
• Tolerance of risk, ambiguity and uncertainty
• Creativity
• Team locus of control• Adaptability• Opportunity obssesion• Leadership and courage• Communication