Dr. H. J. Ghosh Roy Professor, Institute of Management Studies & Research M. D.

University, Rohtak

Defined simply, it is . . .

New Entry
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That is, entering new or established markets with new or existing goods and services. Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods".

Corporate Entrepreneurship Firms 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

Entrepreneurs make things happen. They are individuals who take a concept and convert it into a reality. A product, policy or institution. They become the champions of a new process, and they are engines of change. Individuals who carry out new combinations of means of production - Schumpeter

Engages in behaviour that is aimed at profitability and growth-Carland Establishes and manages a business for principal purpose of profit and growth Characterized by innovative behaviour Will employ strategic management practices in the business Business characterized by innovative strategic practices

Different researchers have given different factors. The factors can be classified as 1. Personality factors o Motivation and emotion gives the drive and purpose and self confidence o High need for achievement o Competitiveness main motivator o Need for independence o Behavioral characteristics- perseverance, determination, take calculated risks, creativity, honesty and integrity, initiative, taking responsibility

2. Environmental factors o Family background fathers ,career, inheritance o Education not important, start at early age o Work experience important 3. Action factors what entrepreneurs do o Are creative and innovative o Spot and exploit opportunities o Find resources to exploit opportunities o Manage risk, create capital o are good net workers, determined

Entrepreneurial Orientation mainly consists of 5 Dimensions` ` ` ` `

Innovativeness Risk Taking Proactiveness Competitive Aggressiveness Autonomy

willingness

to

support

creativity

and

experimentation in introducing new products/services, and novelty, technological leadership and R&D in developing new processes; key is using creative insights to achieve innovative solutions.

A tendency to take bold actions by venturing into the unknown and/or committing a large portion of resources to ventures with uncertain outcomes; key is to reduce uncertainty by effective risk assessment.

A response to opportunities; occurs when a firm has an opportunity-seeking, forward-looking perspective characterized by introducing new products or services ahead of the competition and acting in anticipation of future demand.

A response to threats; refers to the intensity of a firm's effort to outperform industry rivals, characterized by a strong offensive posture or an aggressive responses to competitor actions.

Independent action taken by entrepreneurial champions or teams aimed at bringing forth a new venture and carrying it through to completion.

The

key

to

success

with

entrepreneurship

and

innovation is moving from the invention of ideas to effective commercialization and acceptance in the marketplace

 Innovation is using new knowledge to transform organizational processes or create commercially viable products and services Innovation is the initial commercialization of invention by producing and selling a new product, service, or process Latest technology, results of experiments, creative insights, competitive information

There are five disciplines for creating what customers want Identify important customer needs Create solutions that fill those needs Build innovation teams Empower "innovation champions" who keep the effort on track Align the entire enterprise around creating value for customers

Product Innovation Efforts to create product designs Applications of technology to develop new products for end users More radical and common during early stages of an industrys life cycle Associated with differentiation strategies

Process Innovations Improving efficiency of an organizational process Manufacturing systems and operations More likely to occur in later stages of an industrys life cycle Associated with cost leader strategies

Radical Innovation Fundamental changes and breakthroughs Evoke major departures from existing practices Can be highly disruptive Can transform or revolutionize a whole industry

Incremental Innovation Enhance existing practices Small improvements in products and processes Evolutionary applications within existing paradigms

Sustaining Innovations extend sales in an existing market, usually by enabling new products or services to be sold at higher margins.

Disruptive Innovations overturn markets by providing an altogether new approach to meeting customer needs.

Innovation and Competitive Advantage

Difficult for competitors to imitate
Commercially exploitable with present capabilities

Competitive Advantage

Provides significant value to customers Timely

Fostering Entrepreneurial Innovation

Three approaches:
Internal Corporate Venturing ---- Create It Cooperating to Produce Innovation--- Co-Opt It Innovation--- CoAcquiring Innovative Capability--Capability--Buy It

Innovation is introduction of new ideas , goods, services and practices which can be exploited commercially.

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Is conversion of knowledge and ideas into a benefit Innovation is the tool employed by entrepreneurs Entrepreneurship is the process by which new ventures are created

THANK YOU