Traits of entrepreneurship

Innovation & Entrepreneurship in
the Digital Age
Geoffrey M. Graybeal, Ph.D.
Assistant Professor
Jan. 21, 2014

What is innovation?

-the invention of a new device.
-the sequence of events from the generation of
an idea to its adoption.
-a novel new device, concept, or idea
-the adoption of a change that is new to the
organization, group, or society.
-anything that is new because it’s different from
the existing forms.

Henri Simula, “Concept of Innovation Revisited- a
framework for product innovation” (2007)

What is Entrepreneurship?

Textbook definition:
An activity that involves the discovery, evaluation and
exploitation of opportunities to introduce new goods and
services, ways of organizing, markets, processes, and raw
materials through organizing efforts that previously had not
existed.*

*(Venkatarman, 1997; Shane & Venkataraman, 2000)

Who are entreprenuers?

Opportunity recognition +
Opportunity exploitation
Entrepreneurs thought to be
unique, rare- can they be taught?
No. 1 reason to start a biz is don't
want to work for The Man

“To be The Man,
you gotta beat
The Man!”

Media E-ship

Definition: the creation and ownership of a small enterprise or
organization whose activity adds at least one voice or
innovation to the media marketplace. The individual media
entrepreneur or small partner entrepreneur groups are the
central characters in that organization’s formation, whether the
innovator(s) and/or the owner(s)*.

99 %
*(Hoag & Seo, 2005)

“An entrepreneurial state of mind”

6 traits of an entrepreneur that will serve you
well in school and in life (+1 more)

1. Novel
“Entrepreneurs innovate”
- Peter F. Drucker
One of the fundamental theories of
entrepreneurship is that it causes innovation
(Schumpeter, 1936).

What are some examples of media
innovation?
Ideas here…

Some recent media innovations

Social sharing (Twitter, Digg, Reddit, Facebook)
Content anywhere at anytime (Hulu, Netflix,
Amazon, “TV Everywhere” authentication
model)
User-generated content (YouTube, CNN
iReport)
New forms of advertising (search/SEO,
geolocation targeting)

McKinsey Global Initiative, Social Media
Economy report

Compaine & Hoag, 2012 (A Study of Media Entrepreneurs)

The Internet has made entirely new forms of
media possible.
For example, social media and user-generated
content (UGC) have created a communication
revolution.
Technological innovation made media business
ideas or entry feasible

2. Team player

Entrepreneurs are the ultimate team players.

Startup mentality
- Lean
- Fosters innovation
- Technology eliminates boundaries for teams
- Coffee shop mentality (can work anywhere)

Intrapraneurship
“For existing companies, however, disruptive
technologies like the Internet do not only
provide prospects to expand into new business
but also threaten existing business models.
Established firms may be thus more or less
compelled to behave entrepreneurially in
order to defend their position in the market.”
(Hass, 2011, JOMBS, p. 64)

3.Driven
Strong work ethic
Sacrifices
“Hustle”

Entrepreneurial mindset (Dare to be Driven)

Professional and personal life are
one and the same to an
entrepreneur
Many times the founder is the
driving force behind the company.
“The most beautiful time for
entrepreneurs is generally in their
twenties.”

4.Decisive
Four pillars of entrepreneurship:
1. How do I get funding?
2. How do I approach business
development/networking?
3. How do I save money?
4. Where do I find knowledge, mentoring and
practical information?

So you want to create a company?

Dr. Graybs’ 5 P’s: Considerations & steps:
 Product
 Partnership
 Paperwork
 Purse
 Promotion

Product- think like a journalist

*Who?
 Potential customers

*What?
 Differentiation; market segmentation

*Why?
 What value will you deliver?

*How?
 What method you’ll use to reach customers

When?
 Timeline

Where?

5 P’s: Partnership

What type of business do you want?
 LLC
 Corporation

Who will do what?
What percentages of ownership will you have?
Who will be part of your initial team?
Who will you work with or collaborate on the new
venture?

Graybs 5 P’s: Paperwork

NDA’s
Tax Documents
Articles of Incorporation
State & federal documents
Contracts and arrangements

5. Strategic
*Planning
Short term & long-range goals
Business Plan
• Responsive
• Audience/customer needs
• Failure (breeds success)
• “Pivot”

• Evaluative
• Benchmarks and assessments

Business model development

Business model development
 Key partners
 Key activities
 Key resources
 Channels
 Revenue streams

*Value proposition
*Customer relationships
*Customer segments
*Cost structure

6.Analytic
Audience/consumer insights (“actionable
insight”)
Market/competitor/SWOT analysis
Promotion and message testing and monitoring
(brand awareness, social media evaluation)
Follow the trends; Predict future trends

Big Data

Datafication is the backbone
of many of the Web’s social
media companies.

Why else should we care?

Big data

Refers to things one can do at a large scale that cannot be done
at a smaller one, to extract new insights or create new forms
of value, in ways that change markets, organizations, the
relationship between citizens and governments (p. 6, Big
Data book).
Overturns centuries of established practices and challenges our
most basic understanding of how to make decisions and
comprehend reality.
 Simple correlations, rather than causality (knowing what, not why)

Marks the beginning of a major transformation
 Paradigm shift?

Big Data in action

1/3rd of all Amazon sales result from recommendation and
personalization systems
3/4th of Netflix new orders come from recommendations
Target’s “pregnancy prediction”
NYC Con Edison manholes
The end of theory?
 “the data deluge makes the scientific method obsolete.”- Chris Anderson,

2008 Wired magazine post
 Big Data itself is founded on theory

Why do you need to be persuasive?

3-4%

Turn to the crowd in a digital/social age

Crowdfunding options
-Donation driven
-Investment-driven
(2012 JOBS Act)

Networking in a digital and social age

Virtual world of social networking allows you to
connect with people and potential clients
whom you might not otherwise meet.
Entrepreneurs interact with people in other states
and other countries.
Successful people have limited profiles
Combining online and offline networking is the
ideal strategy for today’s entrepreneur

Traits of entrepreneurship

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Editor's Notes