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Intrapreneurship

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What is intrapreneurship? Who are the Intrapreneurs? Differences between Intrapreneurs and Entrepreneurs.Case Study.

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Intrapreneurship

  1. 1. INTRAPRENEURSHIP By Rahim Abdullayev ISHRM, 18/05/2014
  2. 2. AGENDA INTRAPRENEURSHIP - History - Definitions - Intrapreneurs vs Entrepreneurs - Models - Advantages and Challenges - Case Study - Q&A
  3. 3. HISTORY INTRAPRENEURSHIP Gifford and Elizabeth Pinchot - Coined the term (1978) - Began a school for intrapreneurs in Sweden - In 1985 published the book, “Intrapreneuring” based on their research and practical applications.
  4. 4. DEFINITIONS INTRAPRENEURSHIP "Pursuit of opportunity from within an organisation beyond the resources currently controlled" Stevenson, 2000 "Acting like an entrepreneur within a larger organization" Investopedia, 2014
  5. 5. OTHER TERMS INTRAPRENEURSHIP - Corporate entrepreneurship - Corporate venturing - Intrapreneuring - Internal corporate entrepreneurship - Internal entrepreneurship - Employee entrepreneurship
  6. 6. DEFINITION INTRAPRENEUR A person within a large corporation who takes direct personal responsibility for turning idea into a 1. Profitable 2. Finished Product Through 1. Assertive Risk Taking 2. Innovation
  7. 7. VS ENTREPRENEURS INTRAPRENEURS Entrepreneur Intrapreneur -Enters the business with his own money - more risks -Has Ownership to the business -Is entitled to returns/profits from the business -Gets resources from employer company - less risk -Only manages the business - no ownership -Is entitled to fixed salary + bonus (if any)
  8. 8. DIMENSIONS INTRAPRENEURSHIP COMMITMENT TO INNOVATION - Product innovation - Proactiveness - Risk Taking STRATEGIC RENEWAL - Mission Reformation - Reorganization - System-wide changes
  9. 9. An employee has an innovative idea and happens to get the support of a project champion with the power to say yes to funding and research. MODELS INTRAPRENEURSHIP 1 2 3 4 The organization hires entrepreneurially minded people and encourages all employees and teams to promote and pursue their ideas The company creates a core group of innovation experts to work throughout the company and help encourage new business ideas The company creates internal organizations with funding and a defined process for how new ideas will be developed if they don’t fit into the existing structure. Opportunist Enabler Advocate Producer
  10. 10. GOOGLE: INTRAPRENEURSHIP
  11. 11. ADVANTAGES INTRAPRENEURSHIP - Funding - Resource Availability - Branding
  12. 12. CHALLENGES INTRAPRENEURSHIP -“Corporate Immune System”: a)bureaucracy b)hierarchy c)rules - Fear of Failure - lack of rewards
  13. 13. SONY Playstation CASE STUDY End of 1970s 1980s Success in 1990s Ken Kutaragi was working in the sound labs at Sony Worked as an outside consultant for Nintendo Ken developed the “SPC7000″ for Nintendo Ken Kutaragi saw the market opportunity of gaming systems for Sony Chairman Ohga took a major chance and backed Kutaragi’s plan. Sony PlayStation, was released in 1994. It immediately outsold Nintendo’s Super NES Playstation reached $7 Billion Sales Growth in 1997
  14. 14. MORE EXAMPLES INTRAPRENEURSHIP -GM workers suggested 44,000 ideas in just one quarter and one plant saved $900K using employee suggestions -A scientist at 3M developed Post-it notes after discovering a new glue that was sticky, but not too sticky. It’s now one of their top products -NutraSweet, a billion-dollar product, was discovered accidentally by a scientist trying to develop an anti- ulcer drug for Searle Pharmaceutical Company
  15. 15. BENEFITS INTRAPRENEURSHIP - Learn different functions by working like a startup in a large corporation - Make a name for yourself within a company - Gain experience for your own entrepreneurial ventures - Companies are not as anxious as VCs for a quick return - Work like an entrepreneur but earn a steady paycheck
  16. 16. THEM! Businesses need
  17. 17. RESOURCES INTRAPRENEURSHIP Websites: http://www.intrapreneurshipinstitute.com/ http://www.intrapreneur.com/ https://blog.generalassemb.ly/ Articles: -Growth as a process an interview with Jeffrey R. Immelt, HBR, June 2006 -Levit, A. ‘Insider’ Entrepreneurs. The Wall Street Journal, April 4, 2009 -Wolcott, R., The Four Models of Corporate Entrepreneurship, MIT Sloan Management Review, Fall 2007, Vol. 49 No. 1, p. 74
  18. 18. THANK YOU! D O Y O U H A V E A N Y Q U E S T I O N S ?

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