Intrapreneurship

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Intrapreneurship

  1. 1. INTRAPRENEURSHIP Dr. Sanjay Manocha Asst. Professor BVIMR, New Delhi
  2. 2. Outline What Intrapreneurship is? Features? Examples? Why some corporation adopt it? Intrapreneurship vs. Entrepreneurship
  3. 3. Definition;  Intrapreneur is a term coined by Macrae (1982) and developed by Pinchot (1985)  According to Pinchot ‘Intrapreneurs are "dreamers who do," those who take hands-on responsibility for creating innovation of any kind within an organization’.  Entrepreneurship is the practice of embarking on a new business or reviving an existing business by pooling together a bunch of resources, in order to exploit new found opportunities.  What is Intrapreneurship?: Intrapreneurship is the practice of entrepreneurship by employees within an organization.  Entrepreneurship within an existing business.  An opportunity for corporate managers to take initiative & try new ideas.  An internal corporate venture (ICV)
  4. 4. Features of Intrapreneurship:  An intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the organization.  Intrapreneurship is a novel way of making organizations more profitable where imaginative employees entertain entrepreneurial thoughts.  It is in the interest of an organization to encourage intrapreneurs.  Intrapreneurship is a significant method for companies to reinvent themselves and improve performance.
  5. 5. Examples of Intrapreneurs:  Many companies are famous for setting up internal organizations whose purpose is to promote innovation within their ranks. One of the most well-known is the Skunk Work. This group formed in 1943 in Burbank, California to build P-80 fighter jets. Kelly Johnson, aircraft engineer and aeronautical innovator was the director of the project. Its largest current project is the F-35 Lightning II, which will be used in the air forces of several countries around the world.  Another example could be 3M, who encourage many projects within the company. They give certain freedom to employees to create their own projects, and they even give them funds to use for these projects.  Besides 3M, Intel also has a tradition of implementing Intrapreneurship.  Google is also known to be intrapreneur friendly, allowing their employees to spend up to 20% of their time to pursue projects of their choice.
  6. 6. Reasons  Intrapreneurship increases revenues and raises profits; short and long term. Intrapreneurs – once they are spotted and used the right way – will have an impact on core activities. They are, however, at their best when they are challenged with new ventures or radical innovation projects. Combine this matchmaking with solid execution strategies and you have revenues and profits.  Intrapreneurship improves the corporate image for recruiting purposes. The most important resource is talent. A committed focus on Intrapreneurship – perhaps even a new career track – improves the corporate image and makes it easier to attract – and keep – the top talent.  Danfoss, a leader in mechanical and electronic products and controls, uses their Man on the Moon program as an important element in the recruitment initiatives.
  7. 7. Danfoss Man on The Moon Program  It’s a business plan competition. The essence of it is to develop an idea, see its possibilities, and then figure out how to sell it to our group committee, which consists of the top 10 people at the company. The committee will ask the same questions that a bank would, but it will also include experts on supply chain management and a range of other business issues, and they’ll ask a lot of questions as well.  This forces whoever competes in the Man on the Moon program to cover all of their bases and assemble an effective team. That, in turn, makes it more likely that the idea will come to fruition.
  8. 8. Reasons  Intrapreneurship is contagious.  It begins with ventures and projects where there is a need for a new kind of talent.  But Intrapreneurship is not just about ventures and projects.  The core activities will also be embraced by the best of this new culture.  This helps the company stay alert and always search for opportunities that might otherwise be lost.
  9. 9. Entrepreneur Intrapreneur 1. Entrepreneur is employer 1. Intrapreneur is employee 2. Independent in operation 2. Depends on the organization to implement his ideas. 3. Bears all the risk involved in enterprise. 3. Does not bear all the risk. 4. Exhibits higher need for achievement. 4. May not have high need achievement 5. Profit is the reward. 5. Attractive salary, promotion & incentives are the reward. 6. May not have formal qualification. 6. Should have some professional or technical qualification. 7. Do not have any boundary for operations. 7. He has to operate within the organisational policies.
  10. 10. Freedom factors The right to appoint oneself as an intrapreneur. The right to stay with the venture The right to make decisions The right to appropriate corporate slack The right to start small
  11. 11. Freedom factors (contd.) The right to fail The right to take enough time to succeed The right to cross borders The right to recruit team members The right to choose

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