Corporate Entrepreneurship

Gaurav Singh Bisen

MBA-Tech Program-Marketing

NMIMS University

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 Defining the concept

Corporate entrepreneurship is the process by which teams within an

established company conceive, foster, launch and manage a new
business that is distinct from the parent company but leverages the
parents assets, market position, capabilities or other resources.
The Corporate Entrepreneurship Process
 The Four Models of Corporate Entrepreneurship

Dedicated
THE ENABLER THE PRODUCER
Company provides funding & senior Company establishes & supports a full-
executive attention on prospective service group with a mandate for
projects corporate entrepreneurship

Resource
Authority
THE OPPORTUNIST THE ADVOCATE
Company has no deliberate approach for Company strongly evangelizes for
corporate entrepreneurship. Internal & corporate entrepreneurship, but
external networks drive concept selection business units provide primary funding
& resource allocation.

Ad-Hoc
Diffused Organizational Ownership Focussed
Innovation in Corporate
Entrepreneurship

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 To Survive

Employee
Engagement

WHY Increase
INNOVATION? Revenue

Attract New
Markets

Customer
Expectations
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 Types of Innovation in Corporate
Entrepreneurship

New to the entire world.

Radical Innovation - Google Glass
-Googles Self Driven Cars

New to the organization itself.

Incremental Innovation -Auto-complete, Voice Search, Universal
Search etc.

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 How they are different ?
Radical Innovation Incremental Innovation

Requires new competencies, skills & Utilizes existing competencies, skills

expertise & expertise

Risk is high Risk is low

Changes the business model Business model remains same

Helps in increasing the market Market Share remains the same

share

Explores new technologies Exploits the existing technologies

 Creating an Innovation Culture for
Corporate Entrepreneurship
The story of innovation has not changed. It has always been a small team of people who have a new idea,
typically not understood by people around them and their executives.- Eric Schimdt - Chairman Google

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 #5 Successful Innovation till 2015

Google Search Google Drones

Project Loon Google Self
Google Glass Driven Cars
Corporate
Entrepreneurship
Strategy
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 Conceptualizing Corporate Entrepreneurship Strategy

A vision-directed, organization-wide reliance on entrepreneurial behavior that

purposefully and continuously rejuvenates the organization and shapes the scope
of its operations through the recognition and exploitation of entrepreneurial
opportunity.
 Critical steps of a Corporate
Entrepreneurial Strategy

STEP 1 Developing the vision & mission

Encouraging Innovation
STEP 2

Structuring for Intrapreneurial climate

STEP 3

Developing individual manners for corporate

STEP 4 entrepreneurship

STEP 5 Developing Venture Teams

 An Integrative Model of Corporate
Entrepreneurship Strategy

Source: Duane Ireland, Jeffery G. Covin, and Donald F. Kuratko, Conceptualizing Corporate Entrepreneurship Strategy, Entrepreneurship Theory and Practice 33, no. 1
Corporate Venturing &
Identifying Intrapreneuers
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Corporate Venturing
Create new business within an existing business.

4 Key
Elements

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 Culture powering Corporate
entrepreneurship
Work on frontiers of cutting edge technology, and embrace new ideas.

Encourage experimentation, people learn from their mistakes.

Ensure no organizational obstacles are present that inhibit creativity.

Resources are available and easily accessible.

Multidisciplinary teamwork approach, and establish long time-horizon

Intrapreneurship through volunteer programs.

Appropriate reward system & Support from top management.

Identifying Intrapreneurs
Establishing Intrapreneurship
Secure commitment to corporate entrepreneurship by different
management.

Identify areas & the amount of risk money where top management is
interested.

Use technology to enable flexibility.

Appropriate training programs should be adopted.

Exploit current set of database and work with least set of resources.

Establish strong support system and proper evaluation mechanism.

Failures, Planning & Success
Mantra

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 Intraprenurial Failures
Emails
Google Wave
Maps

Social Networking

Instant Messaging

Media Sharing
 Reasons for Failure

Process Process
Uncertainty
Complexity Inadequacy
An individual An individual
doesn't have the chooses to
skills, conditions violate and a
or adequate prescribed
training the process or
perform the task practice
A competent Lack of clarity
A process individual about future
composed of adheres to events
many elements prescribed but and unplanned
tends to break faulty or situations
down incomplete
process
Lack of Ability
Deviance
 Keeps you
Is a more away from
thoughtful and resting on your
a practical laurels and
approach. strive harder.

Failure
Planning

Helps being Helps you move

more analytical on. Learn from
and objective your failures
by looking at and bounce
all possibilities. back stronger.
 Give People Ownership

Make Risk-Taking and Failure Acceptable

Create a Learning Culture

Support People With Ideas

Success Mantra Create a Safe Place for Innovation

Celebrate and Reward Intrapreneurial Behaviour

Encourage Cross-Discipline Projects

Encourage Knowledge Sharing

Create and Allocate a Funds

 Entrepreneurs VS Intrapreneurs
Entrepreneurs Intrapreneurs

Dependent on organization
Independent in Operations resources.

Fund raising & resources by

Self Fund Raising
organization

Operates from outside Operates within organization

Brings new ideas to an established

Begins with a new enterprise
organization.
Decide what you want to be?

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