SUBJECT INTRODUCTION

INNOVATION & ENTREPRENEURSHIP -

WHAT, WHY & HOW?

Krithika Randhawa
21227 Innovation & Entrepreneurship
 WHO AM I?

Krithika Randhawa
(Krit)
Krithika.Randhawa@uts.edu.au

• Lecturer and Researcher in Innovation

• PhD in Open Innovation & Crowdsourcing
• Management Researcher at UTS since 2009
• Global management projects in collaboration with the London School of
Economics, Stanford University & McKinsey 2009-2012
• MBA graduate from MGSM, Macquarie University 2007-2008
• Management experience in the luxury hotel industry 1998-2007

Krithika Randhawa | Innovation & Entrepreneurship

 WHO ELSE IS IN YOUR TEACHING TEAM?

Loic Pedras
Victor Libdy

• Passionate educators and innovators

• Experience in teaching, researching and
practicing innovation and entrepreneurship

Krithika Randhawa | Innovation & Entrepreneurship

 WHAT CAN YOU EXPECT FROM THIS SUBJECT?
An opportunity to:

• Learn the ‘what, why & how’ of innovation & entrepreneurship

o What are the different types of innovation & entrepreneurship?
o Why is innovation & entrepreneurship important?
o How can innovation & entrepreneurship be organized and managed?
• Understand the fundamental theories and practices of innovation
• Recognise classical and contemporary forms of innovation
• Assess innovation strategies, structures and processes
• Create and pitch your own entrepreneurial idea

Krithika Randhawa | Innovation & Entrepreneurship

 SUBJECT STRUCTURE & ASSESSMENT

Let’s jump on UTS Online… it’s all there!

Krithika Randhawa | Innovation & Entrepreneurship

 WHAT WE EXPECT FROM YOU?

Have fun…lots of it!

• Check UTS Online regularly

• Be abreast with the updated weekly planner
• Keep up with the weekly pre-learning activities
• Be engaged in the lecture and tutorials
• Read your assignment brief
• Work every week on your projects / assignments

Krithika Randhawa | Innovation & Entrepreneurship

 WHAT IS INNOVATION?

• Write down one word or

phrase of what innovation
means to you
• Name one business or
organization you consider to
be innovative

Krithika Randhawa | Innovation & Entrepreneurship

 WHAT IS INNOVATION?

• Innovation = Invention * Commercialisation

• Both invention and commercialisation are necessary
for innovation to occur
• Innovation balances (market) value creation &
(commercial) value capture

Krithika Randhawa | Innovation & Entrepreneurship

 INNOVATION DEFINED

Joseph Schumpeter considered

5 different aspects:
• 1- Introduction of a good which is new to consumers, or
one of increased quality than was available in the past
• 2- Methods of production which are new to a particular
branch of industry (might have been used in other industry
sectors)
• 3- The opening of new markets
• 4- The use of new sources of supply
• 5- New form of competition, which lead to re-structuring of
an industry
Krithika Randhawa | Innovation & Entrepreneurship
 INNOVATION DEFINED

Michael Porter: improvements in technology and better ways of

doing things. Can be manifested in:
• Product changes
• Process changes
• New approaches to marketing
• New forms of distribution
• New concepts of scope

Krithika Randhawa | Innovation & Entrepreneurship

 INNOVATION DEFINED

Everett Rogers: Idea, practice or

object that is perceived as new by
the individual or other unit of
adoption.

Perception of new is more important

rather than originality

Krithika Randhawa | Innovation & Entrepreneurship

 COMMON ELEMENTS IN ALL DEFINITIONS

• What is changed – product or

process or business model
• How much is changed – completely
new or perceived as such
• Source of the change – e.g.
technology
• Influence of the change – its social
or commercial value
Krithika Randhawa | Innovation & Entrepreneurship
 WHAT ARE THE DIFFERENT TYPES OF INNOVATION?

• Product Innovation = Innovating WHAT we make/do

• Process Innovation = Innovating HOW we make/do it
• Business Model Innovation = Innovating HOW we
create and capture value from it

Krithika Randhawa | Innovation & Entrepreneurship

WHAT ARE THE DIFFERENT DEGREES OF INNOVATION?

• Radical or Disruptive Innovation = New-to-the-world;

Game changer for market or industry
• Incremental Innovation = What we already do, but
better or different; Rules of the game remain the same

Krithika Randhawa | Innovation & Entrepreneurship

HOW CAN INNOVATION BE ORGANIZED AND MANAGED?
It depends on the type and degree of innovation:
Radical
Product

Incremental

Radical
Process

Incremental

Radical
Business Model

Incremental
Krithika Randhawa | Innovation & Entrepreneurship
ENTREPRENEURSHIP DEFINED
A dynamic process of vision, change and creation
that requires an application of energy and passion
towards the creation and implementation of
new ideas and creative solutions.
Kuratko et al (2014)

Krithika Randhawa | Innovation & Entrepreneurship

 ENTREPRENEUR DEFINED

An innovator or developer who

recognizes and seizes opportunities;
converts those opportunities into
workable/marketable ideas; adds value
through time, effort, money or skills; and
assumes the risks of the competitive
marketplace to implement these ideas
(…) the entrepreneur…works creatively
to establish new resources or endow old
ones with a new capacity
Kuratko et al (2014)
Krithika Randhawa | Innovation & Entrepreneurship
 ENTREPRENEURIAL OPPORTUNITY

Israel Kirzner’s theory of alertness:

Entrepreneurs are more alert to new opportunities than
other people
An entrepreneurial opportunity occurs when an entrepreneur
recognizes and substantiates the potential within an idea for a
new enterprise to provide a social or business product and/or
service that solves a real problem or adds value for customers

Krithika Randhawa | Innovation & Entrepreneurship

 WHAT ARE THE DIFFERENT TYPES OF
ENTREPRENEURSHIP?

• SME Entrepreneurship = Small ventures in

local markets; may not be driven by an
innovation

• Innovation-driven Entrepreneurship =
Larger ventures; largely driven by
innovative concepts; targeting (global)
supra-regional markets
Krithika Randhawa | Innovation & Entrepreneurship
 THE LINK BETWEEN INNOVATION AND
ENTREPRENEURSHIP

How can entrepreneurship be promoted?

By fostering:
• Innovation
• Creative ideas
• Innovation is a key function of the entrepreneurship
• Innovation is the specific tool of the entrepreneur…the
process by which entrepreneurs convert opportunities
(ideas) into marketable solutions. It is the means by
which they become catalysts for change.
Krithika Randhawa | Innovation & Entrepreneurship
 ENTREPRENEURIAL TRAITS AND SKILLS
Based on the Harvard Business Review
article on ‘The Innovator’s DNA’, let’s
explore the following questions in
pairs/groups:
• What are the five "discovery skills" of
innovators?
• Are entrepreneurs/intrapreneurs born
or made?
• How can organizational managers
nurture entrepreneurial thinking and
creativity among employees?
Krithika Randhawa | Innovation & Entrepreneurship
 DISCOVERY SKILLS OF INNOVATORS
o Associating:
Connect unrelated issues and ideas to cultivate new insights
o Questioning:
Ask “why (not)?” and “what if?”; Imagine opposites; Embrace constraints
Break out of status quo; explore new possibilities
o Observing:
Paying attention to everyday behavior of customers and other stakeholders
Suggests new ways of doing things or solving problems
o Experimenting:
Active and relentless exploration to try new experiences
o Networking:
Interact with people with diverse perspectives to expand horizons
Dyer et al (2011)
Krithika Randhawa | Innovation & Entrepreneurship
 THE EARLY VIEW ON ENTREPRENEURS
• Entrepreneurs are born with certain cognitive or
psychological traits – entrepreneurial aptitude and
motivation:
o Determination and perseverance
o Drive to achieve/need to achieve
o Opportunity recognition/goal orientation
o Sense of individual agency
o Tolerance for ambiguity
o Calculated risk taking
o Tolerance for failure
o High energy level
o Creativity and innovativeness
o Vision
o Passion
Krithika Randhawa | Innovation & Entrepreneurship
 ARE ENTREPRENEURS BORN OR MADE?

Success of entrepreneurs is attributed to:

Cognitive or psychological traits (partly)
+
Behavioural or skill-based traits (mostly)
-------------------

These entrepreneurial traits:

come from genetics
+
can be learned, cultivated and practiced
Krithika Randhawa | Innovation & Entrepreneurship
 ARE ENTREPRENEURS BORN OR MADE?

• Entrepreneurs/intrapreneurs
do not have a genetic
propensity for success.
• Their success depends on
their learned behaviors not
DNA, and hence can be
fostered through the
development of necessary
skills.

Krithika Randhawa | Innovation & Entrepreneurship

 WAYS TO NURTURE ENTREPRENEURIAL
THINKING AND CREATIVITY

• Target the development of “discovery

skills”:
o Allowing opportunity for questioning
status quo
o Embedding ethnographic observations
as a way of life
o Institutionalizing frequent, small
experiments in the workplace
o Conducting meet-ups of people from
diverse functions
Dyer et al (2011)

Krithika Randhawa | Innovation & Entrepreneurship

 NEXT WEEK’S SEMINAR…

Product innovation vs. Service innovation

• Read through Week 2 items on the weekly planner

• Complete your pre-learning activities

Krithika Randhawa | Innovation & Entrepreneurship

 REFERENCES AND FURTHER READING
• Bessant, J. and Tidd, J. (2015). Innovation and Entrepreneurship. 3rd Edn.
John Wiley & Sons, Hoboken.
• Keeley, L., Pikkel, R., Quinn, B. and Walters, H. (2013). Ten Types of
Innovation: The Discipline of Building Breakthroughs. John Wiley & Sons,
New Jersey.
• Kuratko, DF 2014, Entrepreneurship: Theory, process, practice, 9 th edn.,
Cengage Learning, Mason.
• Dyer, J., Gregersen, H., & Christensen, C. M. (2011). The innovator's DNA:
Mastering the five skills of disruptive innovators. Harvard Business Press
• Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). Disruptive
innovation. Harvard Business Review, 93(12), 44-53.
• Chesbrough, H. (2010). Business Model Innovation: Opportunities And
Barriers. Long Range Planning, 43(2):354-363.
Krithika Randhawa | Innovation & Entrepreneurship