Description
This is a presentation that covers topics like entrepreneur process diagram, innovation & entrepreneurship, Schumpeter’s Model, sources of innovation within enterprise and outside enterprise, barriers of innovation.
INNOVATION AND ENTREPRENEURSHIP
4. FINDING THE REQUIRED RESOURCE
5. USING NETWORKS EXTENSIVELY
3. 1. MOTIVATION TO
MAKE A DIFFERENCE
GROWING ENTERPRISE
SPOTTING AND
OVERCOMING
8. CONTROLLING
THE BUSINESS
2. CREATIVITY AND INNOVATION
EXPLOITING OPPORTUNITIES OBSTACLES
9. PUTTING THE CUSTOMER FIRST
THAT SUCCEEDS
10. FINANCIAL, SOCIAL, AESTHETIC, CAPITAL
RECOGNITION OF VALUE
6. SHOWING
DETERMINATION
IN THE FACE OF ADVERSITY
7. MANAGING RISK
THE ENTREPRENEUR PROCESS DIAGRAM
INNOVATION AND ENTREPRENEURSHIP
• Schumpeter, for the first time , in 1934,assigned a crucial role of ‘innovation’ to the entrepreneur in his magnum opus ‘theory of economic development’ • He considered economic development as a discrete dynamic change brought by instituting new combinations of the factors of production i.e., ‘innovation’
Innovation and Entrepreneurship
• ‘Innovation is defined as a process by which varying degrees of measurable value enhancement is planned and achieved, in any commercial activity. This process may be breakthrough or incremental, and it may occur systematically in a company or sporadically; it may be achieved by: • - introducing new or improved goods or services and/or • - implementing new or improved operational processes and/or • - implementing new or improved organizational/ managerial processes
INNOVATION AND ENTREPRENEURSHIP
• Innovation and competitiveness have a dynamic, mutual relationship. Innovation thrives in a competitive environment and in turn , plays a key role in the achievement of such an environment. Innovation generates economic value, new jobs in the economy and cultures of entrepreneurship.
INNOVATION
• Schumpeter distinguishes between invention and innovation: • Inventor produces ideas ,while the innovator utilizes the inventions and discoveries to make new combinations and thus produce new and better goods which yield more profit and give more satisfaction. • Inventor produces ideas ,entrepreneur implements them. • Big innovation yields a surplus for reinvestment ,helps entrepreneur to invade various economic field with spectacular success.
Innovation and Entrepreneurship
•What is Innovation ?
•Innovation refers to a change in the economic or social environment, a change in the behavior of people as consumers, producers or as citizens. •Innovation is investing of resources to create new wealth or investing of wealth to create new resources. • It is measured by assessing its impact on environment, and therefore, innovation should always be Market Focused. •It begins with a conscious search for opportunities. Finding those opportunities and exploiting them with focused, practical solutions.
Innovation and Entrepreneurship
•Innovation and Entrepreneurship - The link
•Innovation is the specific function of entrepreneurship. • Means by which the entrepreneur either creates new wealth producing resources or endows existing resources with enhanced potential for creating wealth. •Innovation is crucial in entrepreneurship as its focus is on increasing economic or social potential of an enterprise. •The NKC survey shows innovation as key enabler for India’s growth and competitiveness
•What is Innovative Strategy ?
• • To optimize what already exists. The ruling assumption of an innovative strategy is whatever exists is aging.
INNOVATION
•The motto of a strategy for the on going business is “ Better and More “, however, the motto of innovation is “ New and Different “. •Innovative strategy is planned out by systematically getting rid of the old, the dying and obsolete, because abandoning yesterday alone will free resources for tomorrow.
Why does one need to Innovate ? • to face competition
• to stand out in a clutter • to survive recession • to solve certain problems
INNOVATION
Innovations and Profits
The main function of an entrepreneur is to introduce innovations in the economy and profits are reward for his performing this function. Innovation can be divided into two categories • Those which reduce the cost of production i.e which change the production functions. •Eg. By the introduction of new machinery, new and cheaper technique or process of production, exploitation of a new source of raw material, a new and better method of organizing the firm etc. Those which increase the demand for the product I.e .which change the demand or utility function. Eg. By the introduction of a new product, a new variety or design of the product, a new and superior method of advertisement, discovery of new markets etc.
INNOVATION AND ENTREPRENEURSHIP
Role of an Innovator
. The entrepreneur is one who introduces something entirely new. The entrepreneur is motivated by the desire to be the founder of a private commercial kingdom, the will to conquer and prove his superiority and the joy of creating, of getting things done or simply of exercising one’s energy and integrity.
Role of Profit
An entrepreneur innovates to earn profits.
Innovation and Entrepreneurship
Breaking of the Circular Flow
Schumpeter’s Model Profits caused by a particular innovation tends to be competed away as other imitate and adapt that. But if the entrepreneur comes out with another innovation at that time when the favourable effects of the former innovation are dying out, he will make profits again. Therefore, as long as innovation exist, profits continue to arise out of them. According to Schumpeter, Innovation is the sole cause of Profit.
Innovation and Entrepreneurship
Instilling Attitude for Innovation
• Encourage creative conflict :encourage open and forceful differences. • Big ideas come from small teams • Learning happens away from the desk • Understand the Product’s user - empathize • Live in the future • Failure sometimes produces innovation • Brainstorming for Innovation
INNOVATION AND ENTREPRENEURSHIP
• Entrepreneur / Project Leaders Mantra
• Understand :By immersing team in a project , learn history of the product. Rip up competitors offerings. Visit the market. Research all applicable science. • Observe : the users • Visualize : by making prototypes . Encourage criticism. • Evaluate : evaluate and visualize over and over again till final design emerges • Implement :after final prototype is accepted as feasible and practical. • “ Team need leaders and mentors, they do not need bosses “: Hierarchy hampers innovation. • “ Fresh ideas occur in a fun workplace: as it enhances the productivity of workers
Innovation and Entrepreneurship
Sources of Innovation
As mentioned by Peter Drucker
Within an Enterprise • Unexpected occurrences • Incongruities and disagreements • Process needs • Industry and Market changes Outside the Enterprise • Demographic changes • Changes in perception :Glass is half full or half empty – changing managers perception from half full to half empty opens big innovation opportunities. • New knowledge : emergence of new technology and its convergence to usable technology .eg. Kinetic honda-first gearless scooter.
Innovation and Entrepreneurship
Principles of Innovation
“ Think and look beyond the obvious “
• Analysis of the sources of new opportunities • Innovation is both conceptual and perceptual • Right and Left side of Brains • Effective innovations start small
Barriers To Innovation
• A. EXTERNAL : i)Skill shortage due to the lack of emphasis on industrial Innovation , problem-solving, design, experimentation, etc. in the education curricula • ii) Lack of effective collaboration with research in universities and R&D institutions, excessive government regulation • iii) Insufficient pricing power to derive value from Innovations.
Barriers
• B. INTERNAL : • i) Lack of organizational focus on Innovation as a strategy for growth and competitiveness; • ii) Inefficient knowledge management systems within the company • iii) Poor understanding of customer needs and market dynamics. • iv) Skill shortages due to lack of effective inhouse training programs.
Types of Entrepreneurs
• Types of Entrepreneurs • (1) According to the types of business – • - Trading Entrepreneur • – Industrial Entrepreneur • – Agricultural Entrepreneur • – Service Entrepreneur (2) According to the use of technology – - Technical Entrepreneur • – Non-technical Entrepreneur
Types of Entrepreneurs
• • • • • • (3) According the Area – Urban Entrepreneur Rural Entrepreneur (4) According to gender – Men Entrepreneur Women Entrepreneur
THANK YOU
doc_503704956.pptx
This is a presentation that covers topics like entrepreneur process diagram, innovation & entrepreneurship, Schumpeter’s Model, sources of innovation within enterprise and outside enterprise, barriers of innovation.
INNOVATION AND ENTREPRENEURSHIP
4. FINDING THE REQUIRED RESOURCE
5. USING NETWORKS EXTENSIVELY
3. 1. MOTIVATION TO
MAKE A DIFFERENCE
GROWING ENTERPRISE
SPOTTING AND
OVERCOMING
8. CONTROLLING
THE BUSINESS
2. CREATIVITY AND INNOVATION
EXPLOITING OPPORTUNITIES OBSTACLES
9. PUTTING THE CUSTOMER FIRST
THAT SUCCEEDS
10. FINANCIAL, SOCIAL, AESTHETIC, CAPITAL
RECOGNITION OF VALUE
6. SHOWING
DETERMINATION
IN THE FACE OF ADVERSITY
7. MANAGING RISK
THE ENTREPRENEUR PROCESS DIAGRAM
INNOVATION AND ENTREPRENEURSHIP
• Schumpeter, for the first time , in 1934,assigned a crucial role of ‘innovation’ to the entrepreneur in his magnum opus ‘theory of economic development’ • He considered economic development as a discrete dynamic change brought by instituting new combinations of the factors of production i.e., ‘innovation’
Innovation and Entrepreneurship
• ‘Innovation is defined as a process by which varying degrees of measurable value enhancement is planned and achieved, in any commercial activity. This process may be breakthrough or incremental, and it may occur systematically in a company or sporadically; it may be achieved by: • - introducing new or improved goods or services and/or • - implementing new or improved operational processes and/or • - implementing new or improved organizational/ managerial processes
INNOVATION AND ENTREPRENEURSHIP
• Innovation and competitiveness have a dynamic, mutual relationship. Innovation thrives in a competitive environment and in turn , plays a key role in the achievement of such an environment. Innovation generates economic value, new jobs in the economy and cultures of entrepreneurship.
INNOVATION
• Schumpeter distinguishes between invention and innovation: • Inventor produces ideas ,while the innovator utilizes the inventions and discoveries to make new combinations and thus produce new and better goods which yield more profit and give more satisfaction. • Inventor produces ideas ,entrepreneur implements them. • Big innovation yields a surplus for reinvestment ,helps entrepreneur to invade various economic field with spectacular success.
Innovation and Entrepreneurship
•What is Innovation ?
•Innovation refers to a change in the economic or social environment, a change in the behavior of people as consumers, producers or as citizens. •Innovation is investing of resources to create new wealth or investing of wealth to create new resources. • It is measured by assessing its impact on environment, and therefore, innovation should always be Market Focused. •It begins with a conscious search for opportunities. Finding those opportunities and exploiting them with focused, practical solutions.
Innovation and Entrepreneurship
•Innovation and Entrepreneurship - The link
•Innovation is the specific function of entrepreneurship. • Means by which the entrepreneur either creates new wealth producing resources or endows existing resources with enhanced potential for creating wealth. •Innovation is crucial in entrepreneurship as its focus is on increasing economic or social potential of an enterprise. •The NKC survey shows innovation as key enabler for India’s growth and competitiveness
•What is Innovative Strategy ?
• • To optimize what already exists. The ruling assumption of an innovative strategy is whatever exists is aging.
INNOVATION
•The motto of a strategy for the on going business is “ Better and More “, however, the motto of innovation is “ New and Different “. •Innovative strategy is planned out by systematically getting rid of the old, the dying and obsolete, because abandoning yesterday alone will free resources for tomorrow.
Why does one need to Innovate ? • to face competition
• to stand out in a clutter • to survive recession • to solve certain problems
INNOVATION
Innovations and Profits
The main function of an entrepreneur is to introduce innovations in the economy and profits are reward for his performing this function. Innovation can be divided into two categories • Those which reduce the cost of production i.e which change the production functions. •Eg. By the introduction of new machinery, new and cheaper technique or process of production, exploitation of a new source of raw material, a new and better method of organizing the firm etc. Those which increase the demand for the product I.e .which change the demand or utility function. Eg. By the introduction of a new product, a new variety or design of the product, a new and superior method of advertisement, discovery of new markets etc.
INNOVATION AND ENTREPRENEURSHIP
Role of an Innovator
. The entrepreneur is one who introduces something entirely new. The entrepreneur is motivated by the desire to be the founder of a private commercial kingdom, the will to conquer and prove his superiority and the joy of creating, of getting things done or simply of exercising one’s energy and integrity.
Role of Profit
An entrepreneur innovates to earn profits.
Innovation and Entrepreneurship
Breaking of the Circular Flow
Schumpeter’s Model Profits caused by a particular innovation tends to be competed away as other imitate and adapt that. But if the entrepreneur comes out with another innovation at that time when the favourable effects of the former innovation are dying out, he will make profits again. Therefore, as long as innovation exist, profits continue to arise out of them. According to Schumpeter, Innovation is the sole cause of Profit.
Innovation and Entrepreneurship
Instilling Attitude for Innovation
• Encourage creative conflict :encourage open and forceful differences. • Big ideas come from small teams • Learning happens away from the desk • Understand the Product’s user - empathize • Live in the future • Failure sometimes produces innovation • Brainstorming for Innovation
INNOVATION AND ENTREPRENEURSHIP
• Entrepreneur / Project Leaders Mantra
• Understand :By immersing team in a project , learn history of the product. Rip up competitors offerings. Visit the market. Research all applicable science. • Observe : the users • Visualize : by making prototypes . Encourage criticism. • Evaluate : evaluate and visualize over and over again till final design emerges • Implement :after final prototype is accepted as feasible and practical. • “ Team need leaders and mentors, they do not need bosses “: Hierarchy hampers innovation. • “ Fresh ideas occur in a fun workplace: as it enhances the productivity of workers
Innovation and Entrepreneurship
Sources of Innovation
As mentioned by Peter Drucker
Within an Enterprise • Unexpected occurrences • Incongruities and disagreements • Process needs • Industry and Market changes Outside the Enterprise • Demographic changes • Changes in perception :Glass is half full or half empty – changing managers perception from half full to half empty opens big innovation opportunities. • New knowledge : emergence of new technology and its convergence to usable technology .eg. Kinetic honda-first gearless scooter.
Innovation and Entrepreneurship
Principles of Innovation
“ Think and look beyond the obvious “
• Analysis of the sources of new opportunities • Innovation is both conceptual and perceptual • Right and Left side of Brains • Effective innovations start small
Barriers To Innovation
• A. EXTERNAL : i)Skill shortage due to the lack of emphasis on industrial Innovation , problem-solving, design, experimentation, etc. in the education curricula • ii) Lack of effective collaboration with research in universities and R&D institutions, excessive government regulation • iii) Insufficient pricing power to derive value from Innovations.
Barriers
• B. INTERNAL : • i) Lack of organizational focus on Innovation as a strategy for growth and competitiveness; • ii) Inefficient knowledge management systems within the company • iii) Poor understanding of customer needs and market dynamics. • iv) Skill shortages due to lack of effective inhouse training programs.
Types of Entrepreneurs
• Types of Entrepreneurs • (1) According to the types of business – • - Trading Entrepreneur • – Industrial Entrepreneur • – Agricultural Entrepreneur • – Service Entrepreneur (2) According to the use of technology – - Technical Entrepreneur • – Non-technical Entrepreneur
Types of Entrepreneurs
• • • • • • (3) According the Area – Urban Entrepreneur Rural Entrepreneur (4) According to gender – Men Entrepreneur Women Entrepreneur
THANK YOU
doc_503704956.pptx