vivek ambastha
- 1. INTRAPRENEURSHIP Introduction: Most researchers agree that the term “intrapreneurship” refers to entrepreneurial activities that receive organizational sanction and resource commitments for the purpose of innovative results. The major thrust of intrapreneuring is to develop the entrepreneurial spirit within organizational boundaries, thus allowing an atmosphere of innovation to prosper. Defining the Concept: Operational definition of corporate entrepreneurship have evolved over the last 30 years through scholars’ work. “ After a thorough analysis of the entrepreneurship construct and its dimensions, recent research has defined corporate entrepreneurship as process whereby an individual or a group of individuals, in association with an existing organization, creates a new organization or instigates renewal or innovation within the organization.”
- 2. Under this definition, strategic renewal ( which is concerned with organizational renewal involving major strategic and/or structural changes), innovation( which is concerned with introducing something new to the market place), corporate venturing (corporate entrepreneurial efforts that lead to the creation of new business organizations within the organization) These all are important and legitimate parts of the corporate entrepreneurship process. The Need for Corporate Entrepreneuring The need for corporate entrepreneuring has risen in response to a number of pressing problems, including rapid growth in the number of new and sophisticated competitors, a sense of distrust in the traditional methods of corporate management, an exodus of some of the best and brightest people from corporations to become small- business
- 3. entrepreneurs, international competition, downsizing of major corporations, and overall desire to improve efficiency and productivity. The modern corporation, then, is forced into seeking avenues for developing in-house entrepreneuring. To do otherwise is to wait for stagnation, loss of personnel, and decline.This new “corporate revolution” represents an appreciation for and a desire to develop intraprenerurs within the corporate structure. Corporate Venturing Obstacles: The obstacles to corporate entrepreneurship usually reflect the ineffectiveness of traditional technique as applied to new-venture development. Understanding the obstacles it is critical to fostering corporate entrepreneurship as they are the foundation points for all other motivational efforts. To gain support and foster excitement for new-venture development, managers must remove obstacles and seek alternatives.
- 4. An expert in the innovation field found the following factors in large corporations that are successful innovators: Atmosphere and vision Orientation to market Small, flat organization Multiple approaches Interactive learning Skunk works Reengineering Corporate Thinking: Important steps for establishing this new thinking follow: Set explicit goals Create a system of feedback and positive reinforcement Emphasize individual responsibility Give rewards based on results Motivational approach to employees Art of retaining people
- 5. Specific Elements of A Corporate Intrapreneurial Strategy: The four critical steps of an intrapreneurial strategy are 1. Developing the Vision: The first step in planning an intrapreneurial strategy for the enterprise is sharing the vision of innovation that the corporate leaders wish to achieve. Since it is suggested that corporate entrepreneurship results from the creative talents of people within the organization, employees need to know and understand this vision. Shared vision is a critical element for a strategy that seeks high achievement. 2. Encouraging Innovation: Innovation is the specific tool of the entrepreneur . Therefore, corporations must understand and develop innovation as the key element in their strategy. Radical Innovation is the launching of inaugural breakthroughs. These innovations take determined vision which is not necessarily managed but must be recognized and nurtured.
- 6. Incremental Innovation refers to the systematic evolution of a product or service into newer or larger markets. 3. Structuring for an Intrapreneurial Climate: When reestablishing the drive to innovate in today’s corporations the most critical step is to invest heavily in entrepreneurial activities that allow new ideas to flourish in an innovative environment.This concept, when coupled with the other elements of an innovation strategy, can enhance the potential for employees to become venture developers. 4.Developing Venture Teams: Venture teams and the potential they hold for producing innovative results are recognized as productivity breakthrough for the new millennium. Companies that have committed to a venture team approach often label the change they have undergone a “transformation” or a “ revolution”. This also refers to “collective entrepreneurship.”
- 7. The Interactive Process of Intrapreneurship: Who are Intrapreneurs? Intrapreneurs are not necessarily the inventors of new products or services but are the persons who can turn ideas or prototypes into profitable realities. They are the people behind the product or service. They are team builders with a commitment and a strong drive or see their ideas become a reality. Perhaps most surprisingly, they are typically of average or slightly above average intelligence- they are not geniuses. The ten commandments of an intrapreneur 1. Come to work each day willing to be fired. 2. Circumvent any orders aimed at stopping your dream. 3. Do any job needed to make your project work, regardless of your job description. 4. Network with good people to assist you. 5. Build a spirited team: Choose and work with only best. 6. Be loyal and truthful to your sponsors.
- 8. 7. Work underground as long as you can-publicity triggers the corporate immune mechanism. 8. Remember it is easier to ask forgiveness than permission. 9. Be true to your goals, but be realistic about the ways to achieve them. 10. Keep vision strong. Intrapreneurial Myths – How to dispel them? Myth 1 The primary motivation of intrapreneurs is a desire for wealth; hence, money is prime objective. Fact: The primary motivation of intrapreneurs is the process of innovation: The freedom and ability to innovate are the prime motivators. Money is only a tool and a symbol of success. Myth 2 Intrapreneurs are high risk takers- they are gamblers who play for high stakes. Fact: Moderate risk taking is a more realistic description of intrapreneurs’ actions. Because of their insatiable desire to achieve, small, calculated, and analyzed
- 9. risks are the favorite stepping - stones of these individuals. Myth 3. Because intrapreneurs lack analytical skills, they”shoot from the hip”. This has led to a philosophy of “luck is all you need”. Fact: Intrapreneurs are extremely analytical.Although, it may appear they are lucky and shoot from hip, in truth, they are well prepared, understand innovation, and perceive market needs very well. Myth 4. Intrapreneurs lack morals or ethics due to their desire to succeed, just as long as they do succeed. Fact: In today’s demanding, educated, and critical society, intrapreneurs must be highly ethical and have moral convictions consistent with the society’s expectations. If they do not have these convictions, they do not survive. Myth 5. Intrapreneurs have a power-hungry attitude and are most interested in building an empire. They want the venture to grow big and quickly.
- 10. Fact: Most intrapreneurial enterprises are small and conservative. They are more interested in profit and growth than in empire building. The focus is on doing things right rather than doing them big. Presentation: Make presentation covering comparison of the following characteristics of 1. Traditional manager 2 .Entrepreneur and 3. Intrapreneur Characteristics: (i) Primary motives (ii) Time orientation (iii) Tendency to action (iv) Skills (v) Attitude towards courage and destiny (vi) Focus of attention (vii) Attitude towards risk (viii) Use of market research