Intrapreneurship:

Developing Corporate Entrepreneurship

205 : Mandar Ghayal 207 : Sanket Ghugare 210 : Ronak Gupta 212 : Harshal Vyawahare 229 : Lokesh Singh 249 : Ronal Patil

INTRAPRENUERSHIP
DEVLOPING SPIRIT OF ENTREPRENUERSHIP

WITHIN ESTABLISHED ORGANIZATION. ALLOWING EMPLOYEES TO INTRODUCE AND IMPLEMENT INOVATION WITIN THE ORGANIZATION IDENTIFYING AND FOSTERING THE EMPLOYEES WHO ARE CONSIDERED TO HAVE THE INTRAPRENUERAL TRAITS.

Corporate Entrepreneurship
Due to: Rapid technological change, consumer demand for variety, quality, customization and convenience Short business cycles Move from physical to intellectual assets The increase in strategic alliances with small firms, outsourcing and downsizing Large firms are changing the way they structure their processes in order to be more responsive to market needs, competitors strategies, and the initiatives of small businesses

Need, Definition and Importance

Fast Changing Environment

Small firms developing rapidly

Typical Decision making by large organizations Organizational culture does not allow one to take

the risk Hence to face the competition Intrapreneurship needs to be promoted

 Innovative employees disrupt the organization in

a constructive way to instigate new products or services Eg. Shiv Nadar left DCM to start HCl Technologies Resistance to growth, diversification and Innovation can be overcome by developing a spirit of entrepreneurship in the organization

Intrapreneurial Activities
Corporate Venturing create new subsidiary

Organization Innovation create new products,

production processes,etc Self renewal Bharat Forge Pro Activeness by top executives - Wipro

Types of Corporate Entrepreneurship - Hans Schollhammer

Administrative Entrepreneurship R&D activities

Opportunistic Entrepreneurship Fund Managers

in Banks Acquisitive Entrepreneurship HUL acquiring Modern foods Imitative Entrepreneurship - Samsung Incubative Entrepreneurship TATA Motors

THE DIFFERENCES BETWEEN ENTREPRENEURS AND INTRAPRENEURS

Entrepreneur
1. Entrepreneurship is the process of searching out opportunities and arranging resources to exploit these opportunities for long term gains 2. Starting a new business

Intrapreneur
1. Intrapreneurship is Entrepreneurship practiced by people within established organizations 2. Developing a new product in an already existing business. 3. Finds a ready source of "free" resources within the organization

3. Searches resources from external environment

4. Sole risk taker

4. Risk is shared with the organization

5. Self or VC funded

5. Funded by the company

THE DIFFERENCES BETWEEN ENTREPRENEURS AND INTRAPRENEURS

Entrepreneur
6. Is his own boss

Intrapreneur
6. Works for an organization

7. Factors affecting entrepreneurship : - Profits/Losses - Funding

7. Factors affecting Intrapreneurship : - Rewards - Hierarchy

8. New methods for research and development

9. Freedom

8. Traditional methods for research and development

9. Restrictive policies

10. Approvals given and decisions taken are fast

10. Long, complex approval cycles

THE DIFFERENCES BETWEEN ENTREPRENEURS AND INTRAPRENEURS

Entrepreneur
11. No formal strategy.

Intrapreneur
11. As its an organizational process, things have to be strategized beforehand 12. No entrepreneur role model

12. Entrepreneur role models are present.

Interpreting INTRAPRENEURSHIP
CREATION OF NEW BUSINESS IN EXISTING

ORGANIZATION e.g.: ITC venturing into FMCG - snacks, Biscuits, and other segments
RENEWAL / TRANSFORMATION OF EXISTING BUSINESS

e.g.: Introduction of Electric vehicles "Etios" & "Prius" by Toyota

FRAME-BREAKING OR CHANGING THE RULES OF

COMPETITION IN THE INDUSTRY I.E. BEING A "GAME CHANGER" e.g.: Introduction of Assembly Lines by Ford Automobiles e.g.: TATA DOCOMO introducing 1 paisa / sec in the Indian market. e.g.: Introduction of sachets by Chic Shampoo

Famous Examples
Play Station
Intrapreneurs: Ken Katuragi Company: Sony

Year: 1994

Java Programming Language

Intrapreneurs: Patrick Naughton, James

Gosling, Bill Joy

Company: SUN MICROSYSTEMS
Year:

1995

Organizations
Kodak Inkjet Printer Division
Intrapreneur: Cheryl Pohlman Lesson: Exhaustive market research Lowered Cartridge prices by 50% causing a 17%

growth
Yahoo Sponsored Search Engine
Intrapreneur: Scott Gatz Lesson: Responsibility of Idea Not being In charge of your brainchild cant always be a

bad thing

Organizations
Toyota Scion17, Free Internet Radio Station
Intrapreneur: Jeri Yoshizu Lesson: Improvisation and Belief Used Social Networking sites Got tremendous response

Wal Mart In-Store Health Clinics

Intrapreneur: Alicia Ledlie Lesson: Responsibility of someone elses Ideas

Execution Positive response and acceptance

Developing Organization Culture for Intrapreneurship

Requirements by Employees
Self-Awareness

Determining their own personal brand

Network-Strategic Alliances Create an expanded job that leverages your

strengths and adds greater value. Create a schedule and try and improve.

Requirements by Company
Empower people to make decision

Reward- monetary, recognition

Creating a learning culture- Ok to make mistakes Give employees ownership of their ideas-

opportunity to try them out Be transparent

Examples
Xerox- Xerox Technology Venture

Google- 20% of employee time

Play- Doh Joseph McVicker Intel Apple- Steve Jobs