Corporate Entrepreneurship Innovation and Creativity

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					        Innovation Strategies
A workshop for the MEET U.S.

     Facilitator: Alex F. DeNoble, Ph.D.
              San Diego State University
A Mandate for Corporate Innovation and
New Business Creation!
     New business creation must be
     considered the most important task of
     the senior executive in the existing
     enterprise, especially the larger one.
     Without it the enterprise is unlikely to
     survive. Let alone do well in a period of
     rapid transition such as the one we live
     in and are likely to live in for the
     foreseeable future…
                                    Peter Drucker
                     MEET U.S.
Overview of the Workshop
  • The workshop is organized into four
       • Part I - Exploring the concept of
         Corporate Entrepreneurship
       • Part II - Introducing the concept of
         Entrepreneurial Intensity
       • Part III - Developing skills in creativity
       • Part IV - Strategies for
         entrepreneurship, innovation and

                       MEET U.S.
Corporate Entrepreneurship

            PART I

             MEET U.S.
What is Corporate Entrepreneurship?

  • A term used to describe entrepreneurial
    behavior inside established
    organizations which leads to the
    creation of new business initiatives
    – product and service innovation
    – process innovation and
    – market development

                     MEET U.S.
Why Should Companies Invest in
Innovative Activities?
 •   Use of Corporate name          • Use of top management
 •   Use of board of directors        as mentors
 •   Importance of strategic fit    • Use of corporate network
 •   Use of marketing clout         • Use of corporate
 •   Use of internal financing        infrastructure
 •   Use of technology              • Use of staff support
 •   Use of corporate assets        • Product/Service to
 •   Use of production and            market quickly
                                    • Win/win for corporation
                                      and employee

                             MEET U.S.
Challenges to Innovation Inside the
• Corporate Culture             • Punish risk-taking
• Hierarchical structure        • Lack of
• Bureaucratic                    motivation
  management style              • Inappropriate
• Difficulty in managing          reward systems
  mavericks                     • Turf wars

                    MEET U.S.
Gains from Innovative Investments

• Exposure to possible         • Efficiently utilize plant
  new markets                    space, time and people
• Add new products to          • Integrate activities of
  existing markets               multiple departments
• Develop antennae for         • A platform for management
  new technologies               development
• To generate capital          • Ownership position in new
  gains                          companies

                         MEET U.S.
Exercise I

     Identifying and
   Evaluating Innovative

             MEET U.S.
Entrepreneurial Intensity

            PART II

              MEET U.S.
Entrepreneurial Intensity

• Entrepreneurship is not an “either-or”
• There is some level of
  entrepreneurship in every organization!
• In determining how entrepreneurial
  and organization is we look to
        “Entrepreneurial Intensity”

                MEET U.S.
Entrepreneurial Intensity

  Entrepreneurial Intensity captures the
        Frequency and Degree of
         Entrepreneurial Initiative

                  MEET U.S.
To be Entrepreneurial…

                      Degree of

 Innovativeness       Risk-taking    Proactiveness

                       MEET U.S.
A Few Words About Innovation

     There's a way to do it
         better...find it

                          - Thomas Edison

              MEET U.S.
Product/Service Innovation
 • New-to-the-world products/services
 • New-to-the-market products/services
 • New product/service lines in a company
 • Additions to product/service lines

                                            Degree of innovation
 • Product improvements/revisions
 • New applications for existing
 • Repositioning of existing
 • Cost reduction for existing

                        MEET U.S.
Directions for Innovation
                      Existing            New
R               Existing Product/ Diversified Market
O                Market Space           Space
T              Diversified Product Diversified Product/
S                     Space           Market Space

                           MEET U.S.
Process Innovation

 • Major new process                             High

 • Minor new process
 • Significant revision of existing

                                      Degree of innovation
 • Modest improvement of existing

                  MEET U.S.
Process Innovation
           Where can innovation happen?
 •   Administrative systems
 •   Service delivery systems
 •   Production methods
 •   Financing methods
 •   Marketing or sales approaches
 •   Procurement techniques
 •   Compensation methods
 •   Supply chain management
 •   And more ….

 The bottom line is that Innovation can happen anywhere!!

                         MEET U.S.
  • A decision-making under
    conditions of uncertainty with the
    possibility of incurring significant
  • Two perspectives on risk:
    – Sinking the boat risk
    – Missing the boat risk

                   MEET U.S.
Sinking the Boat Risks
  • What happens if the company
    pursues a concept and it does not
    work out?
  • Could result from:
    –   Poor thought-out concept
    –   Bad timing
    –   Insufficient market research
    –   Inadequate marketing mix (4P’s)
    –   Undercapitalization

                       MEET U.S.
Missing the Boat Risks
  • What is the impact of not pursuing an
    opportunity that would have become
  • Could result from:
    –   Delays in acting on a concept
    –   Preempted by competitors
    –   Changing customer needs
    –   Overemphasis on market research, financial
        data or input from consultants…

                        MEET U.S.
Always remember

   There's as much risk in doing
   nothing as in doing something.
                          - Trammell Crow

              MEET U.S.

 • Involves
   – Action
   – Perseverance
   – Adaptability
   – Willingness to assume
     responsibility for failure

                   MEET U.S.
Entrepreneurial Intensity

   If you always do what you have
   always done, you will always get
   what you have always gotten….
                             Tom Peters

                MEET U.S.
Exercise II

   How effective is your
   company’s Innovative

              MEET U.S.
Developing Skills in Creativity

           PART III

              MEET U.S.
• Applying a person’s mental ability and
  curiosity to discover something new
• Relating previously unrelated things
• Connecting things together in new and
  different ways
 "Being creative is seeing the same thing
      as everybody else but thinking of
            something different"

                 MEET U.S.
Exercise III

   What’s wrong with today’s
      Laptop Computers

               MEET U.S.
Exercise IV

    Let’s reinvent the Laptop

              MEET U.S.
Strategies for Entrepreneurship,
Innovation and Creativity

              PART IV

                MEET U.S.
Setting the Environment….

   It's the job of a manager not to
   light the fire of motivation, but
   to create an environment to let
   each person's personal spark
   of motivation blaze.

                       - Frederick Herzberg

                MEET U.S.
Setting an Innovative Environment

  •   Envision the future
  •   Create a sense of urgency
  •   Expect calculated risk-taking
  •   Encourage experimentation
  •   Develop incentives
  •   Focus on customer needs
  •   Seek feedback from stakeholders

                   MEET U.S.
But Beware of the Pitfalls…

  • Barriers to an innovative culture
    – Too much focus on the present
    – Not understanding innovation
    – Fear of and resistance to change
    – Punishing failure
    – Top-down management
                   MEET U.S.
And finally…..

    The person who says it cannot
     be done should not interrupt
     the person doing it.

                             - Chinese Proverb

                 MEET U.S.
Thank You!

   MEET U.S.