The entrepreneurial process

Slide 1: The entrepreneurial process Multiple Perspectives of Entrepreneurship, 14.9.2006, Jan Sten

Slide 2: The agenda for today Some major topics we will cover;  the challenge with innovations,  the entrepreneurial process in different contexts,  success and failure,  case report nr 1.

Slide 3: Entrepreneurship as a process The entrepreneurial process can be defined as all the activities that  take place when a business plan is constructed Opportunity Focus identification The entrepreneur t en Le d d n em ad ire an io ag ct n er ct tra ma sh io at d ip n an Resources Organization Wickham (2004)

Slide 4: Productive opportunities, basis for innovation We have three possible scenarios ”..a firm does not see opportunities for expansion, is unwilling to act upon them, or is unable to respond to them.” (Penrose, 1959)

Slide 5: See the opportunity We have a person, who visits a hospital and he sees how a part of the hospital develops artificial legs and feet. He understands that this could also be used on healthy people.

Slide 7: See the opportunity Professional skiers are used to train with ski sticks during their summer training period. Usually in steep uphills. Some one realised that why cannot ordinary people use the same approach during ordinary conditions.

Slide 9: See the opportunity Digitoday predicts that in Finland only, about 400.000 digicameras will be sold during 2005.

Slide 11: See the opportunity

Slide 13: Entrepreneurship in different contexts Development of new products and services in:  a start-up,  a franchising company,  an institution or organization,  a global company. Differences?

Slide 14: New and innovative companies Last year we got 26,000 new companies in Finland. How many of them are innovative?

Slide 17: Like to work for Sony? Sony set up a website to support hackers, who are interested in exploring and developing new types of games that could be played on the Sony Playstation. It quickly attracted 10.000 participants. (What is in it for me?)

Slide 19: Our basic innovation system? Presentation of ideas? (feed-back)   How can a person do that? Development of ideas? (go/no go)   Time, talent and resources? Implementation of ideas? (credits)   Timespan and involved actors? Openess during the process? (input)   How can we follow the process?

Slide 20: Liksa Funding decisions on applications selected for  presentation will be made in a financing meeting, to which the applicant is invited to present the project in person. Financing meetings are held approximately every month. A decision on each individual project will be  made immediately once the application has been discussed at the financing meeting. Tekes give at maximum 20.000 euros. 

Slide 21: What can a small company do? Star Wrek: In the Pirkinning 4,000,000 downloads A new type of people; Professional amateurs

Slide 22: Bases for new, innovative business concepts Thanks to new technology some things have changed in terms of:  time (when things can be done)  place (where things can be done)  actor (who can do what)  constellation (with whom it can be done).

Slide 23: Entrepreneurship as a process The entrepreneurial process can be defined as all the activities that  take place when a business plan is constructed Opportunity Focus identification The entrepreneur t en Le d d n em ad ire an io ag ct n er ct tra ma sh io at d ip n an Resources Organization Wickham (2004)

Slide 24: Some things to think about a camera which costs nowadays about  6,000 dollars was about 500,000 dollars some twenty years ago.  Youtube gets 35,000 new video clips each day,  There are about 18,000,000 video clips on the net.

Slide 25: New and creative distribution channels can be found if we just keep looking around.

Slide 26: TO DO? R STOP O TO DO

Slide 27: Winnovation principles Please keep in mind:  Watch what is happening around you,  Why? Why? Why?  Why not? Why not? Why not?  Write things down,  Willingness to share,  We fix it.

Slide 28: Reflexions over the first session  Opportunity identification is not easy,  Do not focus too much on resources you currently control,  Always try to rethink established relationships,  Look into new directions.

Slide 29: Further readings Gary Hamel (2000): Leading the revolution. Harvard  Business School Press. Eric von Hippel (2005): Democratizing Innovation. MIT  Press, Cambridge MA. W.Chan Kim & Renée Mauborgne (2005): Blue Ocean  Strategy. How to create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business School Press.

Slide 30: Case report nr 1 When has in your opinon an entrepreneur failed?

Slide 31: Case report nr 1 How are entrepreneurs, who have failed, treated in your country?

Slide 32: Case report nr 1 Other people than entrepreneurs do also fail, but how do organizations handle people who have failed?

Slide 33: You can identify success but it is the failure that counts… 5% 95%, which is needed for the top 5%

Slide 34: Greetings from 3M ”Management that is destructively critical when mistakes are made kills initiative. And it's essential that we have many people with initiative if we are to continue to grow." (McKnight, 1948)

Slide 35: Critical question for management How does management in your company deal with failures, in other words, in which ways does your company use failures as learning opportunities?

Slide 36: Lessons learnt about failures Share failures, because then others can avoid  them, Share failures, because it shows that you have  reflected (and learnt) on your own, Share failures, because others can have the  solutions, Share failures, because then it will more likely be  accepted to fail forward.

Slide 37: Further readings James A. Christiansen (2000): Building the  innovative organization. Management Systems that Encourage Innovation. St. Martin´s Press. New York. Tom Kelley with Jonathan Littman (2000): The  Art of Innovation. Random House. Inc Ricardo Semler (1993): Maverick. The Success  Story Behind the World´s Most Unusual Workplace. Warner Books.

Slide 38: The examination Cases Case report nr 2:  Focus on From research to business  Based on two articles, you find them on the web.  What do you consider to be the main weaknesses of the Scandinavian model for commercialization of academic research vis-à-vis the model applied in the US?  Why is the model applied in the US difficult to implement in the Scandinavian context?  What would in your opinion be the most important measures for improving the competitiveness of the Finnish universities? Assess the availability of crucial resources?  Dead-line Thursday 21.9 at 12.30

Slide 39: The examination Term paper Possible topics for the report:  Business idea resourcing  Individual entrepreneurship  Collective entrepreneurship  Research-based entrepreneurship  Intrapreneurship Report to choice to Jan.Sten@hanken.fi no later than Thursday 21.9. Use the format on the course pages.

Slide 40: Preparations for term paper Preliminary outline of our term paper:  What kind of material do you plan to use?  What kind of structure will your paper have?  What is the focus in the paper?  Do you plan to go out and meet people?  How will you divide the work in your team?