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Intrapreneruship -
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1
History of Intrapreneurship
Word was coined in 1976 by Gifford and
Elizabeth Pinchot

Based on their concept of an intra-corporate

entrepreneur

Began a school for intraprenuers in Sweden

in 1985

The American Heritage Dictionary made the

word mainstream by adding it in 1992

I have found an example of Intrapreneurship

dating back centuries earlier
 Intrapreneur
ØA person within a large
corporation who takes direct
responsibility for turning an idea
into a profitable finished product
through assertive risk taking and
innovation.


ØIntrapreneurs have
entrepreneurial skills blended
with managerial skills but
operate within the confines of an
organization.
Entrepreneur vs Intrapreneur
ØFunding
◦ company/organization often has capital to
fund the project
ØManpower
◦ intrapreneurs do not have to worry about
finding the talent to get tasks performed
ØBranding
◦ intrapreneurs can use the branding of the
company/organization to get their ideas
to take root

Defined as…
Ø Intrapreneurs are “dreamers who do”,
those who take hands-on
responsibility for creating innovation
of any kind within an organization.

- Gifford Pinchot


Ø The intrapreneur is an essential

ingredient in every innovation. - Dr.
William Souder
C a u se s fo r in te re st in
In tra p re n e u rsh ip
Individuals who believe strongly in their
own talents frequently desire to create
something of their own
They want responsibility & have a strong

need for individual expression & more

freedom in their present ORG structure
No freedom– frustration at work & become

less productive– leave ORG to achieve

self-actualization elsewhere
 Causes for interest in
Intrapreneruship
T h e re sista n ce a g a in st flexib ility , g ro w th
a n d d ive rsifica tio n ca n , in p a rt, b e
o ve rco m e b y d e ve lo p in g a sp irit o f
e n tre p re n e u rsh ip w ith in th e existin g
O R G , ca lle d in tra p re n e u rsh ip


In tra p re n e u rsh ip in cre a se d d u e to H yp e r

co m p e titio n , b o th a t h o m e a n d a b ro a d ---
to in cre a se in te re st in su ch a re a s a s n e w
p ro d u ct d e ve lo p m e n t, d ive rsifica tio n
a n d in cre a se d p ro d u ctivity

Why should organizations
embrace intrapreneurs?

Ø C o rp o ra te E n tre p re n e u rsh ip
Ø C re a tin g th e a p p ro p ria te cu ltu re
Ø C o rp o ra te ve n tu rin g
Ø V e n tu re ca p ita lsu p p o rt
Ø S p o n so rin g in d e p e n d e n t
e n tre p re n e u rs
Ø M a n a g e m e n t a s ch a m p io n s o f
in n o va tio n
Intrapreneurial Activity
Spotting ways to improve service

Save time, money, or make life easier

Visualizing variations of current products
/ services
Realizing new communication avenues
with customers
Enhancing the quality
New ways to get the job done quicker or
smarter
How does Business benefit?
Firms create competitive advantages by
discovering new and better ways to
compete in an industry and bringing
them to market

An enterprise that does not daily

innovate inevitably ages and declines

Even in a successful business the

disease of bureaucracy and
complacency is dangerous
How do Intrapreneurs
benefit?
Flexibility

Less restrictions but supportive

environment

Recognition

Their ideas are vehicles towards

advancement

Increased value to organization -

increased PAYCHECK
Implementing the
Intrapreneurship Culture
Encourage employees to be creative
and to look for new ways to improve
your current way of doing business

Grant intrapreneurs something akin to

ownership rights in the internal
intraprises they create

Encourage company wide involvement

by insisting on truth and honesty in
marketing and marketplace feedback
Implementing the
Intrapreneurship Culture
Treat intrapreneurial teams as profit
centers rather than as cost centers

Allow team members a variety of
options in jobs, in innovation efforts,
alliances, and exchanges

Encourage employees to develop

through training programs
Companies that get it
3M


 Post-It Notes
Apple


 Ipod
Google


 Orkut
 Google News
 3M
Formerly known as the Minnesota
Mining and Manufacturing
Company, is an American
multinational conglomerate
corporation based in Maplewood,
Minnesota, a suburb of St. Paul.


With over 76,000 employees, they

produce over 55,000 products,
including: adhesives, abrasives,
laminates, passive fire protection,
dental products, electronic
 Example:- (Post it
Notes)
3M scientist Spencer Silver
invented a not so sticky
adhesive in 1968.
Spencer shared his idea through
seminars in which he shared
the features (and benefits) of
this semi-adhesive to fellow 3M
employees.
But no one really caught the
vision of his product for five
long years. Finally, a co-worker,
Art Frey, recognized the need
CONTD..
In1974, a 3M Corporation employee Art
Fry couldn't keep his hymns marked
properly in his church choir book.


Afterattempting various methods, he

decided he'd try using some non-
permanent adhesive that was available
at his workplace.


By placing this adhesive on the back of

his markers, he found he could keep
them secured in place and then easily
peel them off when he was done.
 Contd..
The man took his new discovery to the
management at 3M, a company that
encourages employees to spend no
less than 15 percent of their time at
work developing their own ideas and
projects.


With the company's support, the

resourceful man researched and
developed a new product.


Twenty-five
years later, Post-It
Notes¨ continue to be one of 3M's
 Conclusion
You don't have to own a large
corporation to foster
intrapreneurship.


Allyou need is the ability to

encourage employees to develop
new ideas, and then give them the
time, space and resources needed
to turn those ideas into reality.