Description
A corporate social entrepreneur (CSE) is defined as "an employee of the firm who operates in a socially entrepreneurial manner; identifying opportunities for and/ or championing socially responsible activity; in addition to helping the firm achieve its business targets.
Corporate Entrepreneurship and Innovation
Ch13-1
Strategic Inputs
Chapter 2 External Environment Strategic Intent Chapter 3 Internal Environment Strategic Mission
The Strategic Management Process
Strategy Implementation
Chapter 10 Corporate Governance
Chapter 12 Strategic Leadership Chapter 11 Structure & Control Chapter 13
Entrepreneurship
Strategy Formulation
Chapter 4 Business-Level Strategy Chapter 5 Competitive Dynamics Chapter 8 International Strategy Chapter 6 Corporate-Level Strategy Chapter 9 Cooperative Strategies
Strategic Actions
Chapter 7 Acquisitions & Restructuring
& Innovation
Outcomes
Strategic
Feedback
Strategic Competitiveness Above Average Returns
Ch13-2
Defining Entrepreneurship
Corporate Entrepreneurship
Firm’s capabilities to develop new goods or services and manage the innovation process
Invention
Creating or developing a new product or process idea
Innovation
Creating a commercializable product from invention
Imitation
Adoption of innovation by a population of similar firms
Ch13-3
Successful Entrepreneurship
The key to success with entrepreneurship and innovation is moving from the invention of ideas to effective commercialization and acceptance in the marketplace
Ch13-4
Innovation and Competitive Advantage
Difficult for competitors to imitate Commercially exploitable with present capabilities
Provides significant value to customers
Timely
Competitive Advantage
Ch13-5
Fostering Entrepreneurial Innovation
Three approaches:
Internal Corporate Venturing Cooperating to Produce Innovation Acquiring Innovative Capability
Create it!
Co-opt it! Buy it!
Ch13-6
Internal Corporate Venturing
Corporate Intrapreneurship can occur as either a bottom-up process or as a top-down process Autonomous strategic behavior is a bottom-up process through which Product Champions pursue new product ideas to commercialization
Product Champions are individuals who have an entrepreneurial vision for a new product and seek support for its commercialization
Ch13-7
Model of Internal Corporate Venturing
Concept of Corporate Strategy
Strategic Context
Structural Context
Autonomous Strategic Behavior
Induced Strategic Behavior
Ch13-8
Internal Corporate Venturing
Induced strategic behavior is a top-down process in which the current strategy and structure foster product innovations that are closely associated with the current strategy Environmental uncertainty makes developing entrepreneurship strategy highly complex
Requires a decision on which corporate resources to deploy for new technology development and which innovative ideas to bring to market
Ch13-9
Appropriating Value from Innovation
Barriers to Integration Different Time Orientation Interpersonal Orientation Different Goal Orientation Formality of Structure
Facilitators of Integration Shared Values Leaders’ Vision Budget Allocation Effective Communication
Ch13-10
Time to Market
CrossFunctional Integration/ Design Teams
Product Quality Creation of Customer Value
Value Appropriation from Innovation
Cooperating to Produce Innovation
Strategic alliances can help to foster innovation by combining the knowledge and resources of two or more partners
Firms must focus on building knowledge, identifying core competencies and developing strong human resources to manage these projects Firms can also give away their core competencies by outsourcing to alliance partners rather than developing their own capabilities over time
Ch13-11
Acquiring Innovative Capability
Many firms now use acquisitions of other firms as a substitute for developing innovations internally This can reduce risk and lower costly R&D investments The drawback is that firms can eventually lose their ability to generate innovations internally
Ch13-12
Small Firms and Innovation
Small firms created most of the new jobs in the U.S. in the 1990s and this will continue in the 21st century While large firms account for over 80% of the world’s R&D spending, individuals or small firms are granted more than half of U.S. patents Many small firms are created when employees leave large firms to start their own businesses, frequently continuing to interact with their former firms to develop innovations and new products
Ch13-13
doc_592451258.ppt
A corporate social entrepreneur (CSE) is defined as "an employee of the firm who operates in a socially entrepreneurial manner; identifying opportunities for and/ or championing socially responsible activity; in addition to helping the firm achieve its business targets.
Corporate Entrepreneurship and Innovation
Ch13-1
Strategic Inputs
Chapter 2 External Environment Strategic Intent Chapter 3 Internal Environment Strategic Mission
The Strategic Management Process
Strategy Implementation
Chapter 10 Corporate Governance
Chapter 12 Strategic Leadership Chapter 11 Structure & Control Chapter 13
Entrepreneurship
Strategy Formulation
Chapter 4 Business-Level Strategy Chapter 5 Competitive Dynamics Chapter 8 International Strategy Chapter 6 Corporate-Level Strategy Chapter 9 Cooperative Strategies
Strategic Actions
Chapter 7 Acquisitions & Restructuring
& Innovation
Outcomes
Strategic
Feedback
Strategic Competitiveness Above Average Returns
Ch13-2
Defining Entrepreneurship
Corporate Entrepreneurship
Firm’s capabilities to develop new goods or services and manage the innovation process
Invention
Creating or developing a new product or process idea
Innovation
Creating a commercializable product from invention
Imitation
Adoption of innovation by a population of similar firms
Ch13-3
Successful Entrepreneurship
The key to success with entrepreneurship and innovation is moving from the invention of ideas to effective commercialization and acceptance in the marketplace
Ch13-4
Innovation and Competitive Advantage
Difficult for competitors to imitate Commercially exploitable with present capabilities
Provides significant value to customers
Timely
Competitive Advantage
Ch13-5
Fostering Entrepreneurial Innovation
Three approaches:
Internal Corporate Venturing Cooperating to Produce Innovation Acquiring Innovative Capability
Create it!
Co-opt it! Buy it!
Ch13-6
Internal Corporate Venturing
Corporate Intrapreneurship can occur as either a bottom-up process or as a top-down process Autonomous strategic behavior is a bottom-up process through which Product Champions pursue new product ideas to commercialization
Product Champions are individuals who have an entrepreneurial vision for a new product and seek support for its commercialization
Ch13-7
Model of Internal Corporate Venturing
Concept of Corporate Strategy
Strategic Context
Structural Context
Autonomous Strategic Behavior
Induced Strategic Behavior
Ch13-8
Internal Corporate Venturing
Induced strategic behavior is a top-down process in which the current strategy and structure foster product innovations that are closely associated with the current strategy Environmental uncertainty makes developing entrepreneurship strategy highly complex
Requires a decision on which corporate resources to deploy for new technology development and which innovative ideas to bring to market
Ch13-9
Appropriating Value from Innovation
Barriers to Integration Different Time Orientation Interpersonal Orientation Different Goal Orientation Formality of Structure
Facilitators of Integration Shared Values Leaders’ Vision Budget Allocation Effective Communication
Ch13-10
Time to Market
CrossFunctional Integration/ Design Teams
Product Quality Creation of Customer Value
Value Appropriation from Innovation
Cooperating to Produce Innovation
Strategic alliances can help to foster innovation by combining the knowledge and resources of two or more partners
Firms must focus on building knowledge, identifying core competencies and developing strong human resources to manage these projects Firms can also give away their core competencies by outsourcing to alliance partners rather than developing their own capabilities over time
Ch13-11
Acquiring Innovative Capability
Many firms now use acquisitions of other firms as a substitute for developing innovations internally This can reduce risk and lower costly R&D investments The drawback is that firms can eventually lose their ability to generate innovations internally
Ch13-12
Small Firms and Innovation
Small firms created most of the new jobs in the U.S. in the 1990s and this will continue in the 21st century While large firms account for over 80% of the world’s R&D spending, individuals or small firms are granted more than half of U.S. patents Many small firms are created when employees leave large firms to start their own businesses, frequently continuing to interact with their former firms to develop innovations and new products
Ch13-13
doc_592451258.ppt