Entrepreneurship Chapter 3

Preparation for Failure

"learning from failure" corporate entrepreneurship must practice managing grief when project fail. No one should ever be punished for failure

Describe "Encouraging Innovation"

*innovation is the specific tool of the entrepreneur*

What are the 5 critical steps of CE strategy?

1) *developing the vision* 2) encouraging innovation 3)structuring an entrepreneurial environment 4) prepping indiv. managers for corporate innovation 5) developing venture teams

What are the principles of successful innovation companies?

*atmosphere and vision.* *orientation to the market* *small and flat organizations* *multiple approaches* *interactive learning* *SkunkWorks*

Define *I-Team or innovation team*

composed of 2 or more people who formally create and share ownership of a new organization. -semiautonomous -has a budget and a project leader

What are obstacles of corporate entrepreneurship?

ineffectiveness of traditional management techniques as applied to innovation development.

Define *corporate entrepreneurship (aka CE)*

the process of profitably creating innovation within an organizational setting. It allows corps to tap the innovative talents their own workers and managers. Firms that exhibit CE are viewed as dynamic, flexible entities prepared to take advantage of new business opportunities when they arise.

Describe "Developing the Vision"

Belonging Relationships Structure Commitment shared vision requires identification of specific objects for corporate entrepreneuring strategies and of the programs needed to achieve those objectives

What two things are necessary for a firm to be competitive in a global environment?

Entrepreneurial attitudes and behaviors

Explain Control vs. Autonomy

Fostering entrepreneurial behaviors is healthy for businesses to expand and grow but there are also draw backs and potential chaos when there aren't proper control mechanisms put in place

Examine the methods of developing managers for top corporate entrepreneurship

Management support Autonomy/ work discretion Rewards/reinforcement Time availability organizational boundaries

What are the basics of the corporate innovation philosophy?

a *vision directed*, organization wide reliance on entrepreneurial behavior -- provide employees with freedom and encouragement to develop their ideas. -- provide rewards for innovative ideas -- do not punish failures --encourage entrepreneurial thinking -- find a way to manage small and experimental innovations

Define *champion*

a person with a vision and the ability to share it

Define *Skunk Works*

describes small groups that work on their ideas outside of normal organizational time and structure

Define *top management support*

effort provided by top mgmt of the corporation to develop and educate employees concerning innovation and entrepreneurship

What are 3 models to implement corporate venturing?

internal corporate venturing cooperative corporate venturing external corporate venturing

Define *interactive learning*

investigation of ideas; hands-on

How has CE evolved?

it has become a strategy that can facilitate firms' efforts to create innovation and cope effectively with the competitive realities in today's world markets.

Corporate entrepreneurship strategy

it is manifested through 3 elements: an entrepreneurial strategic vision, a pro entrepreneurship organizational architecture, and entrepreneurial processes and behavior exhibited across a hierarchy

What is misleading about the paradox of change and preservation?

it means recognizing that continuous renewal inside a firm is misleading because too much change will lead to chaos and long term chaos will lead to collapse

What models fall under strategic entrepreneurship?

strategic renewal sustained regeneration domain redefinition organization rejuvenation business model reconstruction

What is continuous innovation?

the ability to compete effectively in global markets

Define *corporate venturing*

the adding of new businesses (or portions of new businesses via equity investments) to the corporation.

What are the advantages of developing a corporate innovation philosophy?

the atmosphere often leads to the development of new products and services that in turn help the organization expand and grow. It also produces a climate for high achievers and high motivation among staff members

Define *strategic entrepreneurship*

the exhibition of large-scale or otherwise highly consequential innovations that are adopted in the firm's pursuit of competitive advantage. May or may not result in new businesses for the company

What is the entrepreneurial mindset in organizations?

the global economy is constantly changing so businesses must reexamine their purposes and select and follow up to date strategies

Define *radical innovation*

the launching of inaugural breakthroughs such as social networking. this take experimentation and determined vision that must be recognized and nurtured

Define *Incremental innovation*

the systematic evolution of a product or service into newer or larger markets. this will take over after a radical innovation

Define *intracapital*

used when investment money is needed for further research ideas

What do both types of innovation described above require?

vision and support

Preparing Management

The Corporate Innovation Training Program consists of 6 modules: 1) the Entrepreneurial experience 2)Innovative Thinking 3) Idea Acceleration Process 4) Barriers and Facilitators to Innovative Thinking 5) Sustaining Innovation Teams (I-Teams) 6) The Innovation Action Plan