unit 2 concepts in entrep lesson 3

7/30/2019 UNIT 2 Concepts in Entrep Lesson 3

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ENTREPRENEURIAL SKILLSENT3001/3003/4003

LECTURE #3

INTRODUCTION TO ENTREPRENEURSHIP

1



INTRODUCTION TO ENTREPRENEURSHIP

Objectives

Concept of Intrapreneurship

Creating an Intrapreneurial Environment

Benefits of Intrapreneurship

Rewarding Intrapreneurship

Creativity and BusinessThe creative process

Entrepreneurial rules to live by2



CONCEPT OF

INTRAPRENEURSHIP



INTRAPRENEURSHIPWhat is

Intrapreneurship?

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INTRAPRENEURSHIP

Also called Corporate Entrep reneursh ip

Entrepreneurial activities that receive organizational sanction

and resource commitments for the purpose of innovativeresults

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INTRAPRENEURSHIP

6

Existing businesses have the financialresources, business skills, and marketing & distribution system to commercializeinnovation successfully.



WHAT IS INTRAPRENEURSHIP?

Process involving the promotion of innovation and

creativity with in existing corporations

Innovation and creativity re:

Ideas & products

Processes

Administrative procedures



DEVELOPMENTS STIMULATING

INTRAPRENEURSHIP

Globalization intense external competition from products & services

from companies all over the world, forces companies to

internal experimentation for growth & survival

Rapid evolution of knowledge and

technology Forces businesses to change internally to retain

relevance

Younger more technology savvy employees available to

drive new developments



DEVELOPMENTS STIMULATING

INTRAPRENEURSHIP

Greater access to funding-more start-upsemerging – posing challenge to establishedbusinesses

Emergence of smaller more flexible companiesformal & informal eating away market share of established companies



PROFILE OF INTRAPRENEURS

They are the “dreamers who do”

Take hands- on responsibility for creating innovation

They figure out how to turn an idea into a profitablereality



PROFILE OF INTRAPRENEURS

Action-oriented and committed to goals of the company-see their future intertwined with that of the company



CREATING AN INTRAPRENEURIAL

ENVIRONMENT



CREATING AN INTRAPRENEURIAL

ENVIRONMENT

Tapping into the creative energies and talents of own

workers

Create culture which demonstrates that

responsibility for creating innovation rests not only

on firm’s management

Recognition that innovation is a capability of the

many



CREATING AND INTRAPRENEURIAL ENVIRONMENT

Worker commitment necessary for Intrapreneurship

Commitment comes when there isencouragement and a feeling of belonging byworkers

Approval and support of goals and vision byworkers of company



CREATING AND INTRAPRENEURIAL

ENVIRONMENT

Create a system of feedback and positivereinforcement

Emphasize individual responsibility

Give rewards based on results



FOSTERING AN INTRAPRENEURSHIP

CULTURE

Pre-Requistes for Intrapreneurship

Organization sanction

Flexible management

Adequate budget for entrepreneurialactivities/projects

Setting explicit goals



FOSTERING AN INTRAPRENEURSHIP CULTURE

Operational Strategies

Identify and motivate intrapreneurs/high achievers

Tolerate failure resulting from entrepreneurial

experimentation

Use failure as a learning experience




CULTURE


Persist in getting ideas to market

Put people in small project teams

Reward innovative personnel HEART Trust Incentive Scheme

Promote innovative personnel




CULTURE


Encourage action

Reduce rigid procedure and bureaucratic red tape

Encourage informal communication and meetings




CULTURE

Flatten corporate structure

Retrain manager as coach, teacher and mentor

Encourage experimentation, without penalties

Eliminate authoritarian management, replacewith flexibility



BENEFITS OF INTRAPRENEURSHIP




Increased ability of company to compete effectively inlocal and international markets

Development of new products, services, processes and

administrative processes

Expansion and growth of company




Financial success

Image & reputation that attracts the best people

Development of a creative work force, able to withstand

competition




Promotes climate conducive to high achievers

Retention of best/motivated staff

Low staff turnover



REWARDING

INTRAPRENEURSHIP



REWARDING INTRAPRENEURSHIP

Promote and give autonomy

Give recognition and awards tointrapreneurial employees

Create & give leadership responsibility for new divisions

Offer ownership to best workers-stockoptions, profit-sharing etc.



CLASS ACTIVITY

Read the fol low ing cases/art ic les:

Studies in Entrepreneurship – 3M

Southwest Air l ines: pos i t ively Outrageous

Leadership



REFLECTIONS ON THE LESSON

Discuss:

How did the company create an

Intrapreneurial EnvironmentWhat benefits did the company receive (for

creating intrapreneuial culture)

How did the company reward Intrapreneurship



REFLECTIONS ON THE LESSON

Discuss:

1. What steps would you take to further

promote Intrapreneurship at your place of work or at an organization with which youare familiar?



CREATIVITY

AND

BUSINESS



ENTREPRENEURIAL SUCCESS

Achieved by - creating value in the

marketplace through the process of

combining resources in new & different

ways to achieve a competitive edge over rivals

Applying creativity & innovation to solve

problems & exploit opportunities is the

secret for creating value in the

marketplace



CREATIVITY IN BUSINESS

Is the ability to develop new ideas & discover

new ways of looking at problems & opportunities.



CREATIVITY – IMPORTANT INGREDIENT IN

ENTREPRENEURSHIP

WHAT IS CREATIVITY

A way of thinking about everything

Openness to change

Willing to try new things

Persistence in seeking possibilities

Open to brainstorming ideas

Dedication to doing it better

Thinking about what you see and hear



CREATIVITY

Generating somethingfrom nothing – The light bulb

Elaborating on the present

– the keyboard

Putting old thingstogether in new ways – The

innovative vacuum cleaner or southern fried

chicken

Taking something away tocreate something simpler or better – the jitterbug cell phone for elderly

people



CREATIVITY – QUESTIONS TO SPUR THE IMAGINATION

Is there a new way to do it?Can you adapt it?

Can you give it a new twist?

Can ideas be combined?

Can we put it to other uses?What else could we make fromthis?

Are there other markets for it?



CREATIVITY – CONCEPTS

Divergent vs. Convergent Thinking

Divergent thinking:

The ability to find as many possible answers to a

particular problem e.g. Brainstorming, or from

mathematics; partition and factorization

Convergent thinking:

The ability to find the best answer to a single problem e.g.

Logical reasoning, or from Mathematics; addition,

subtraction, multiplication and division



CREATIVITYParadigm

A worldview, a mental model, a preconceivedidea of what the world is, what it should be likeand how it should operate.

To improve within a paradigm – adjust the fringes of what’s known.

To move between or change paradigms – change the

foundations of knowledge and beliefs. Significantbreakthroughs occur here!



CREATIVITY

Paradigm

Can block creative thinking



CREATIVITY

Entrepreneurs must

always guard against

traditional assumptions

and perspectives about

how things ought to be.



READ THE FOLLOWING ALOUD

Past experience shapes the way we perceive theworld around us.

ONCE

IN A

A LIFETIME

BIRD

IN THE

THE HAND

PARIS

IN THE

THE SPRING TIME

CREATIVITY IMPORTANT INGREDIENT IN




ENTREPRENEURSHIP

What do you see?

The goblet or the famous twins

CREATIVITY IMPORTANT INGREDIENT IN




ENTREPRENEURSHIP

Describe the lady you see in this drawing. How old is she,how attractive, what covering is on her head etc.



CREATIVITY

Entrepreneurs are able to

throw off these shackles on

creativity and see

opportunities for creatingviable businesses where most

people see what they’ve

always seen (or worse yet,

they see nothing).

Do you see Jesus in this picture?



CREATIVITY – CAN IT BE LEARNT

Research shows that almost anyonecan learn to be creative

The brain has two hemispheres

The Left hemisphere

Responsible for logical thinking

The right hemisphere

Responsible for creative thinking



CREATIVITY

The right brain hemisphereResponsible for creative thinking

Right brain thinking

Always asks “is there a better way”

Challenges custom routine & tradition

Is reflective, often seen staring out windows deep in thoughtPlay mental games- trying to see issues from a different

perspective



CREATIVITY

The right brain hemisphereResponsible for creative thinking

Right brain thinking (cont’d)

Realize that there may be more than one “right answer”

Uses seemingly unrelated ideas to develop innovative

solutions to problemsHas the ability to rise above the daily routine to see an issue

from a broader perspective then come back to focus on a

problem area needing change.



LIMITERS OF INDIVIDUAL

CREATIVITY

Searching for & recognizing only one right answer to a

problem

Focusing on being logical all the time

Blindly following the rules

Constantly being practical

Viewing play as a frivolous waste of time

Becoming overly specialized

Avoiding ambiguity

Fearing looking foolish

Fearing mistakes and failure

Believing that “I’m not creative”



THE CREATIVE PROCESS

Preparation

Read widely, develop an open mind, ideas come from

cross fertilization of concepts in diverse fields




Investigation

Study the problem & understand its basic components




TransformationAnalyze; break the problem apart, identify similarities &

differences in data collected




Incubation

Take time to reflect (away from the problem). Incubation

occurs while you are involved in some unrelated activity




Illumination

A spontaneous breakthrough occurs (a light bulb turns

on) resulting in an innovative idea.




Verification

Validate the idea by subjecting it to hard cold reality using

a market test, prototyping, or experiment




Implementation

Transform the idea into reality – the true mark of an

entrepreneur.



CREATIVITYWith practice one can learn to

shift from left brain thinking to right

brain thinking thereby tapping into

their creative pool

Try something new and different

something creative and innovative

this week



CREATIVITY & BUSINESS

Lesson 2 - Activity 1

A major manufacturer of breakfast cereals is about to

introduce a new multigrain cereal. Its principal selling

point is that it features “three great tastes” in every

bowlful; corn, rice and wheat.

Seeing that a cereal’s name is and integral part of its

marketing campaign, the company has asked you to

come up with the right name for this new product.

Form groups of 3 – 4 and in 10 minutes; list the name

that you think would be appropriate, explaining why.





Lesson 2 - Activity 2

Given the challenges in the national and international

business environment at this time, identify and list five

businesses or services, which you believe could take

advantage of these circumstances and thrive.

Decide which two of those you list have the best

chance of success.

Use as much creativity as possible in arriving at your

suggestions and say why you believe thesebusiness/services would succeed.

Form groups of 3 – 4 and take 10 minutes do this

exercise.



ENTREPRENEURIAL RULESTO LIVE BY



ENTREPRENEURIAL RULES TO LIVE BY

Create, innovate, activatePut your innovations into practice




Always be on the lookout for new opportunitiesOr finding new ways to create opportunities




Keep it simpleOften the best solutions are the simple ones




Try it, fix it, do itBe action oriented, work on your ideas immediately, find out what works,

adjust what doesn't




Shoot for the topDream big




Don’t be ashamed to start small Overnight success rarely ever happens





Don’t fear failure; learn from it

Learn to fail intelligently




Never give upEntrepreneurs are not quitters




Go for it You miss 100% of the shots you never take



RECAPITULATION

What is intrapreneurship

What are the benefits of

intrapreneurship

How is intrapreneurship rewarded

What is the role of creativity in

business

List some obstacles to creativity

What are the components of the

Creative Process

unit 2 concepts in entrep lesson 3

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