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Part 1. Entrepreneurship in the twenty–first century. Chapter 3. Intrapreneurship: Developing corporate entrepreneurship. The ‘corporate revolution’ from the top. Many established companies have restructured their operations in fundamental and meaningful ways

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  1. Part1 Entrepreneurship in the twenty–first century

  2. Chapter 3 Intrapreneurship: Developing corporate entrepreneurship

  3. The ‘corporate revolution’ from the top • Many established companies have restructured their operations in fundamental and meaningful ways • Some of these companies bear little resemblance to their ancestors • Can you name companies today that bear little resemblance to their previous incarnations?

  4. Significant numbers of people are starting a business for their employers ¼ of new start-ups each year in USA come about through corporate entrepreneurship Bottom up too

  5. Huge interest since 1980s • Entrepreneurship as a major force in world business has increased desire for intrapreneurship • Wealth of literature on new ‘corporate revolution’ • Not just corporations—social enterprises and government too • Peter Drucker once observed: ‘Public service institutions . . . need to be entrepreneurial and innovative fully as much as any business’ • Yet some say ‘entrepreneurship and bureaucracies cannot coexist . . .’

  6. Defining the concept • We use corporate entrepreneurship and intrapreneurship interchangeably • Intrapreneurship, corporate entrepreneurship, innovation or corporate venturing • all mean 'the corporate revolution’ • Definitions of intrepreneurship • New venture creation withinexisting organisations and the transformation of organisations through strategic renewal • Formal or informal activities aimed at creating new businesses in established companies through product and process innovations and market developments

  7. Myths about intrapreneurs • Intrapreneurs only want wealth and to climb the corporate ladder • Intrapreneurs are high risk–takers—gamblers who play for high stakes • They ‘shoot from the hip’ • Intrapreneurs lack morals or ethics due to their strong desire to succeed • Intrapreneurs are power–hungry and want to build an empire

  8. Four kinds of corporate entrepreneurship • Sustained regeneration  new products/innovations in existing products • Organisation rejuvenation  improve strategies and increase the value of production chain • Strategic renewal  firm seeking to change how it competes • Domain redefinition  staking out new markets

  9. Sum-up definition intrapreneurship • Process whereby an individual or a group of individuals initiates renewal or innovation within an existing organisation (be it profit-making, non-profit, public, or non-governmental)

  10. Why companies must be entrepreneurial • Rapid growth of new and sophisticated competitors • Sense of distrust in the traditional methods of corporate management • Best and brightest people are leaving to become small-business entrepreneurs • International competition • Downsizing of major corporations • Overall desire to improve efficiency and productivity

  11. Obstacles to intrapreneurship

  12. Principles of successful innovative companies • Atmosphere and vision • Orientation to the market • Small, flat organisations • Multiple approaches • Interactive learning • Skunkworks

  13. Does your company encourage self-appointed intrapreneurs? Does your company provide ways for intrapreneurs to stay with their enterprises? Are people permitted to do the job in their own way, or are they constantly stopping to explain their actions and ask for permission? Has your company evolved quick and informal ways to access the resources to try new ideas? Has your company developed ways to manage many small and experimental products and businesses? Is your system set up to encourage risk–taking and to tolerate mistakes? Can your company decide to try something and stick with the experiment long enough to see if it will work, even when that may take years and several false starts? Are people in your company more concerned with new ideas or with defending their turf? How easy is it to form functionally complete, autonomous teams in your corporate environment? Do intrapreneurs in your company face monopolies, or are they free to use the resources of other divisions and outside vendors if they choose? Pinchot’s famous ten questions

  14. Common elements of an intrapreneurial strategy • Shared vision

  15. Common elements of an intrapreneurial strategy 2. Encouraging innovation

  16. Common elements of an intrapreneurial strategy 3.Structuring an Intrapreneurial Climate Intrapreneurship Training Program (ITP) Financial reward HR policies Commitment 4. Developing Venture Teams Self–directing Self–managing or high performing

  17. Successful and unsuccessful models of corporate venturing • Ecosystem venturing • Innovation venturing • Harvest venturing • New leg venturing • Private equity venturing

  18. Intrapreneurial strategies compared

  19. Who is an intrapreneur?

  20. Visit the authors’ website at www.ten3.biz/learning • Helps instructors teach entrepreneurship students • Provides a multi–mediated environment for students • Numerous custom–built video cases, e–clips/ interviews with entrepreneurs indexed by chapter, RSS feeds • Key features include blogs, wiki and podcasting • Discussion forum for textbook adopters

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