corporate entrepreneurship

1. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
PART 4
CREATIVITY AND
INNOVATION
CHAPTER 15
Encouraging Marketing
and Product Innovation

2. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Michael Dell
We learned the importance
of ignoring conventional
wisdom and doing things
our way....It’s fun to do
things that people don’t
think are possible or likely.
Its also exciting to achieve
the unexpected.

3. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Relationship v Transactional Marketing
Encourages repeat
sales
Transactional Marketing
Limited contact
Relationship Marketing
Encourages close,
frequent contact
Focus on service
Focus on value
Focus on quality of
total offering
Focus on long-term
Orientated toward
single purchase
Limited service
Focus on benefits
Focus on quality of
product
Focus on short-term

4. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Challenge Conventions
• Sectoral conventions – strategic rules that
guide market operations of majority of firms
• Performance conventions – set by other
firms
• Customer conventions – assumptions about
what customers want

5. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Entrepreneurial Marketing Planning
Determine future organisational performance objectives
Review conventional influences on performance
Can marketing conventions deliver performance goals?
CONVENTIONAL PLAN
ENTREPRENERIAL
PLAN
Yes No

6. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Entrepreneurial Marketing Planning
Map sector conventions
Assess scale of entrepreneurial activity
Assess entrepreneurial opportunity
Asses entrepreneurial capability
Define performance objectives
Define strategy
Develop detailed plan
Specify control systems
Launchearlytogain
marketexperience
Feedbackloops

7. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The Product Development Process
Product development
CONCEPT
PHASE
Commercialisation
LAUNCH
PHASE
Product launchGo/No-go decision point
Business analysisGo/No-go decision point
Idea generation
Screening
IDEA
PHASE
Feedback
loop
Market testingGo/No-go decision point
Feedback
loops

8. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Parallel Development of New products
Environmental
monitoring
system
Product
concept
development
Product
concept
testing Sales
analysis and
objectives
Search for
suppliers
Prototype
developmentProduct
specification:
unit cost
Ideas search
and
screening

9. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Structures to Support Product
Development
• New product division
• New product department within a division
• New product manager
• Product or brand manager
• New product committee
• Cross functional project teams
• Task force
• Venture team
• Outside suppliers
• Multiple organisational forms
Morris & Kuratko (2002)