Blue Ocean Strategy For Entrepreneurship Promotion Dr Dhameja


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The author has applied the latest management strategy Blue Ocean Strategy for promotion of entrepreneurship in Technical, Vocational Education and Training System (TVET).

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Blue Ocean Strategy For Entrepreneurship Promotion Dr Dhameja

  1. 1. Blue Ocean Strategy for Entrepreneurship Promotion Professor Suresh K Dhameja, Ph.D. [email_address]
  2. 2. Contents <ul><li>Introduction: Aim of Education and TVET </li></ul><ul><li>Vicious Cycle of Poverty </li></ul><ul><li>Concept and Philosophy of Entrepreneurship </li></ul><ul><li>Wage Employment, Self Employ./ Entrepreneurship </li></ul><ul><li>Benefits of Entrepreneurship </li></ul><ul><li>Entrepreneurship in TVET as Blue Ocean Strategy for Poverty Alleviation </li></ul><ul><li>Value Innovation : Corner Stone of Blue Ocean Strategy </li></ul><ul><li>The Four Action Framework </li></ul><ul><li>Organizational Hurdles to Strategy Execution </li></ul><ul><li>Conclusion </li></ul>
  3. 3. Introduction <ul><li>“ If education is the key to development, TVET is the master key which opens the doors to poverty alleviation and greater equity, justice and fairness particularly for the most vulnerable and marginalized groups in our societies”. </li></ul><ul><li>Dr Quisumbin g, </li></ul><ul><li>Bonn Declaration 2004 </li></ul>Education is acknowledged as a major vehicle for human empowerment and transformation
  4. 4. Continued <ul><li>Development in any country hinges primarily on the level of output from its productive population. </li></ul>One of the aims of education is to empower the youth, engage their interests and provide tools and experiences in order to improve their socio-economic condition. Y outh have always been at the forefront of social and economic activities and have been regarded as agents of change and innovation .
  5. 5. Cont inue d <ul><li>TVET sector aims to provide systematic and orderly transmission of knowledge, skills and values to develop a workforce that is able to enhance productivity and sustain competitiveness in the global economy. </li></ul>TVET should have the ability to accelerate economic growth, provide marketable labor supply, minimize unemployment, underemployment and overlapping of skills and infuse technical knowledge, and reduce poverty.
  6. 6. Poverty <ul><li>Poverty exists everywhere, and is an all-encompassing challenge </li></ul><ul><li>UN-MDG aims to “eradicate extreme poverty and hunger” with the specific target of halving the share of people in the world living on less than $1 per day between 1990 and 2015. </li></ul>
  7. 7. Vicious Cycle of Poverty Low saving and investment Low pace of capital formation Low average income Low productivity
  8. 8. Vicious Cycle of Poverty, Illiteracy, Low Technology & Rapid Population Growth Low level of skills Low level of literacy Low level of education Increase poverty Inadequate output and food Rapid growth of population Hurdles in the use of technology
  9. 9. Concept & Philosophy of Entrepreneurship <ul><li>Entrepreneur is an innovator who implements change within the markets through carrying out of new combinations. </li></ul><ul><li>- Schumpeter </li></ul><ul><li>According to him innovation may occur in the following form: </li></ul><ul><li>Introduction of new goods </li></ul><ul><li>The use of new methods of production </li></ul><ul><li>The opening of a new market </li></ul><ul><li>A new source of supply of raw </li></ul><ul><li>material </li></ul><ul><li>The reorganization of any industry. </li></ul>
  10. 10. Definition of an Entrepreneur <ul><li>“ I am often asked how to define an entrepreneur. My first answer is anyone who has five qualities: </li></ul><ul><li>First : Motivation beyond monetary incentives </li></ul><ul><li>Second : The ability to do work one doesn’t like as effectively as </li></ul><ul><li>work that one does; </li></ul><ul><li>Third : Needs little sleep and takes a few holidays; </li></ul><ul><li>Fourth : Never worries about a pension </li></ul><ul><li>Fifth : Is not afraid to lower one’s standard of living”. </li></ul><ul><li>- Lord Swaraj Paul </li></ul>
  12. 12. Employer Employee Status 7 Growing& generate Surplus Fixed Earning 6 Generates Wealth Consumes Wealth Contribution 5 Through pursuing Thru’ compliance Satisfaction 4 <ul><li>Creative </li></ul><ul><li>Innovative </li></ul><ul><li>Problem solving </li></ul><ul><li>Independent </li></ul><ul><li>Routine Type </li></ul><ul><li>Status quo </li></ul><ul><li>Problem Avoiding </li></ul><ul><li>Dependent </li></ul>Orientation 3 Unlimited Limited Scope 2 Self-generating Self-saturating Nature 1 Self Employment Wage Employment Characteristic SN
  13. 13. Indirectly influencing entrepreneurship (individual support system and environment ) Directly influencing entrepreneurship through individual and support system Factors influencing entrepreneurship
  14. 14. Youth Unemployment and Underemployment <ul><li>Unemployment rate for 2005 was 6.3% </li></ul><ul><li>Almost 191.8 million people were unemployed around the world in 2005, an increase of 2.2 million since 2004 (ILO 2006) </li></ul><ul><li>Jobless youth in Asia and the Pacific make up more than 50 %, or some 33 million young people </li></ul>
  15. 15. Continued <ul><li>Youth unemployment tends to be 3-4 times higher than non-youth unemployment </li></ul><ul><li>Unemployment rates are generally higher for the more educated than those who are less educated - UN ESCAP </li></ul><ul><li>Role of TVET sector : enhancing relevance and providing employable skills </li></ul>
  16. 16. Cont inue d <ul><li>TVET systems need to be enhanced from time to time. </li></ul><ul><li>Need for a strategy which could lessen the cut throat competition and keep this sector attractive, productive , relevant and entrepreneurial. </li></ul>
  17. 17. Cont inued <ul><li>Blue Ocean Strategy is one possible solution </li></ul>
  18. 18. Value Innovation
  19. 19. Which factors should be created to improve the self- employability of TVET graduates and increase the system’s outreach? Which factors should be raised to improve the professional competence of graduates? Which factors should be reduced to improve the efficiency of TVET for promoting entrepreneurship? Which of the factors should be eliminated to improve system’s effectiveness in producing entrepreneurs? Four Actions Framework
  20. 20. Four Actions Framework
  21. 21. Create - Raise - Reduce - Eliminate - Grid CREATE REDUCE <ul><li>Multi-Tiered Strategy for Entrepreneurship Promotion </li></ul><ul><li>Science and Technology Entrepreneurship Parks </li></ul><ul><li>Awareness about New Entrepreneurial Opportunities </li></ul><ul><li>Intrapreneurs </li></ul><ul><li>New Customers for Poverty Alleviation </li></ul>Overlapping of roles RAISE ELIMINATE Professional competence Private Sector Participation Obsolescence
  22. 22. Step I: Stimulating Entrepreneurship Strategy 1:Create: 1. Multi Tiered Strategy for Promotion of Entrepreneurship Experts from various agencies, institutions and industry Faculty Entrepreneurship as a career Qualities of an entrepreneur Government policies for SMEs Opportunity identification and product selection Various facilities and incentives by support agencies Managerial aspects of a SME Business plan preparation Interaction with successful entrepreneurs Contents 40-60 student per batch Batch Size 3 days( total of 24 hours) Duration To create entrepreneurial awareness in all students Objective
  23. 23. Suggested Model - contd. Step II: Achievement Motivation Training (AMT) Experts, entrepreneurship trainer motivators Faculty Sharing expectations and unfreezing Who am I? Ring-Toss Game TAT Story-writing Role playing Interaction with successful entrepreneurs Block-building exercise, business game Contents Maximum 30 students per batch Batch size 20 hours (3/4 days) Duration Application/Test/Interview Selection Process To identify those students who possess minimum entrepreneurial traits and provide them motivational training Objective
  24. 24. Suggested Model Step III: In-plant Training-I Faculty/ Company Supervisor/Manager Supervision Process 2 months Duration Identified potential entrepreneurs Selection Process Appraisal, interaction and understanding SME environment and processes Objective
  25. 25. Suggested Model Step IV: Subject on Entrepreneurship Development Experts from various agencies, organizations, institutes and successful entrepreneurs Faculty Opportunity Identification (10 hours) Marketing (10 hours) Finance and Accounting (10 hours) Technological Dimensions (10 hours) Behavioral Skills (HRD/Communication,10 hours) Project Formulation (15 hours) Rules and Regulations (15 hours) Content 80 hours Duration To give inputs for launching and managing an enterprise Objective
  26. 26. Proposed Evaluation Criteria 30% End term examination 6 30% Business Plan Preparation and Presentation of seminar 5 10% Study of the managerial aspects, industrial legislations, taxation procedures etc. 4. 10% Detailed survey of financial and other support organizations 3 10% Market survey of product and marketability aspects 2 10% Identification of the product/service 1 Weightage Activity Sr.No
  27. 27. Suggested Model Step V: In-plant Training- II Faculty/company supervisor/manager Supervision Process Identified potential entrepreneurs Selection Process One semester Duration To enable students to design and make prototype product or to undergo field services in case the student is interested in the servicing field and also to learn all the intricacies of industry/business. Objective
  28. 28. Model for Promoting Entrepreneurship in Curriculum of TVET In-Plant Training - II Subject on Entrepreneurship Development In-Plant Training - I Achievement Motivation Training Stimulating Entrepreneurship VIII Semester VII Semester VI Semester V Semester IV Semester III Semester II Semester I Semester Nurturing Phase Fourth Year Third Year Second Year First Year
  29. 29. STEP Strategy 1:Create : STEP Science Science Technology Technology Enterprise Enterprise
  30. 30. STEP – Mechanism for industry and TVET institute linkage Financial Institutions Industrial Promotion Agencies STEP TVET Institutions Industry <ul><li>Improve Quality for R & D </li></ul><ul><li>Rapid Transfer of Technology </li></ul><ul><li>Improve Curriculum and Provide Training in Entrepreneurship </li></ul><ul><li>Consultancy Services </li></ul><ul><li>Technical Education to Industrial Employment </li></ul><ul><li>Creation of an Industrial Environment </li></ul><ul><li>New Generation of Techno-Entrepreneurs </li></ul><ul><li>New Directions for Employment </li></ul><ul><li>New Skills </li></ul><ul><li>New Technology </li></ul><ul><li>Growth of Small Scale </li></ul><ul><li>Industry </li></ul><ul><li>Software Development </li></ul><ul><li>New Technology </li></ul><ul><li>Problem Solving Facility </li></ul><ul><li>Trained Manpower Productivity </li></ul><ul><li>Value Addition </li></ul><ul><li>Product Reliability </li></ul><ul><li>Import Substitution </li></ul><ul><li>Export Market </li></ul><ul><li>Latest Design and Processes </li></ul><ul><li>Industrial Testing Facility </li></ul><ul><li>Quality Control </li></ul><ul><li>Software Park </li></ul>
  31. 31. STEP – Functions and Activities Database and Information Continuing Education And Skill Development Business Facilities Quality Assurance Entrepreneurship Research and Development Incubation Product and Prototype Development Technology Transfer S T E P Selection
  32. 32. Strategy 1:Create: 2. Awareness of New Opportunities <ul><li>In Future 70% of jobs will come from 6 Technologies </li></ul><ul><li>TVET sector can mainly focus on two areas of Information Technology and Environmental Technology as a part of their Blue Ocean Strategy </li></ul><ul><li>Lot of scope in Environmental Technology </li></ul>
  33. 33. Continued <ul><li>Environmental Conservation is the axis for economic well being and the peaceful existence of humanity on earth </li></ul>T VET sector has to play a very active role in conserving the environment. The measures could be through waste minimization techniques, Cleaner technologies, Green productivity, Non- conventional sources of technology etc.
  34. 34. Continued
  35. 35. Environment Related Opportunities <ul><li>Renewable energy sector </li></ul><ul><li>Waste utilization </li></ul><ul><li>Green Productivity </li></ul><ul><li>Clean Technologies </li></ul><ul><li>Disaster management </li></ul>
  36. 36. Entrepreneurial Ideas <ul><li>Resources based ideas </li></ul><ul><li>Linkage related ideas </li></ul><ul><li>Export/Import related ideas </li></ul><ul><li>Special product ideas </li></ul><ul><li>Service Sector ideas </li></ul><ul><li>Always Blue Ocean Areas </li></ul>
  37. 37. Tips for Identifying Innovative Business Opportunities <ul><li>New ideas can be generated by solving problems and meeting unmet needs of people </li></ul><ul><li>Your present job, business, profession or even hobbies could be fertile source of ideas. </li></ul><ul><li>Try to examine closely reasons of your frustration. Perhaps you will see an opportunity. </li></ul><ul><li>Examples of bad services </li></ul><ul><li>Everyday we experience that we want something that is not available. It flashes into our mind and quickly disappears. Such thoughts, if captured, could generate new venture ideas. </li></ul>
  38. 38. <ul><li>Intrapreneurship is a p rocess in which innovative product or processes are developed by creating an entrepreneurial culture within an existing organization. </li></ul>Strategy 1:Create: 3. Intrapreneurs Complete ownership and completely independent No ownership and not completely independent Use of personal wealth or support from outside sources Access to company’s funds, facilities and support Enemy is market Enemy is corporate culture Developmental - creates something out of nothing Restorates growth and innovation in slow growth company Individual entrepreneurship Corporate entrepreneurship Risks own time and investment Risks capital of parent company ENTREPRENEUR INTRAPRENEUR
  39. 39. <ul><li>Allow me to be good to you. </li></ul><ul><li>If not me, who else? </li></ul><ul><li>If not Now, when? </li></ul><ul><li>And if I won’t be good to you, </li></ul><ul><li>what will happen to us? </li></ul><ul><li>(Elisabeth Lukas) </li></ul>Strategy 1: Create : 4. New Customers Ageing Society
  40. 40. <ul><li>Social phenomenon without historical precedent </li></ul><ul><li>Older persons a re valuable human resources </li></ul><ul><li>Need to integrate them in constructive work </li></ul><ul><li>Need to expand employment and self employment opportunities </li></ul><ul><li>Re-training for the re-skilling of the “third age” persons </li></ul><ul><li>Entrepreneurial training for making techno-preneurs </li></ul>Ageing Society
  41. 41. <ul><li>Transition from high birth and high death rate to low birth and low death rate. </li></ul><ul><li>60 years or older estimated to be 629 million in 2002 and will be almost 2 billion by 2050. </li></ul><ul><li>54 per cent in Asia followed by 24 per cent in Europe </li></ul>Age ing Society
  42. 42. <ul><li>One of every 10 persons is now aged 60 years or older ( 1 of every 5 by 2050, 1 of every 3 by 2150) </li></ul><ul><li>Pace of ageing in rapid in developing countries </li></ul><ul><li>Dramatic improvements in longevity (life expectancy up by 20 years to current level of 66 years) </li></ul><ul><li>Majority of older persons are women (55%) </li></ul>Continued
  43. 43. <ul><li>Countries with high per capita income tend to have lower participation rates of older workers </li></ul><ul><li>Need for recognition of ageing population </li></ul><ul><li>&quot;Shrinking&quot; and &quot;Maturing&quot; world </li></ul><ul><li>Years after retirements - 18 years (men), 23 ( women) in OCED </li></ul>Continued
  44. 44. <ul><li>Work disincentives and employment barriers </li></ul><ul><li>Negative perceptions about capacities of aged workers to adapt to technological and organizational change </li></ul><ul><li>Both challenge and opportunity </li></ul>Continued
  45. 45. <ul><li>Age is not an accurate representation of one’s energy or ability to succeed. Recent studies conducted by the National Council on the Aging in USA found one-third of Americans in their 70s consider themselves only middle-aged . </li></ul>
  46. 46. <ul><li>&quot;When you have a job, even if it's a few hours a week, your mind and body wants to stay in the game longer.&quot; </li></ul><ul><li>Howard Stone, co-author of &quot;Too Young to Retire” </li></ul>
  47. 47. Re-Training Re-Skilling Re-Training Curriculum Industry-Institution Linkages for OJT Government Agencies Older Workers SMEs Industries Job Models Business Models Job Placement Job Career Mgt. Entrepreneurship Employment TVET Institutions Hands-on Training Job Seekers Application Socio-Economic Stability Re-training for Qualification and Certification
  48. 48. Rural Community <ul><li>Increased f ocus on rural development </li></ul><ul><li>Unique role of TVET for benefit of rural community </li></ul><ul><li>Traditional t echnical and craft skills should be accompanied by relevant training to achieve mastery </li></ul>
  49. 49. Rural Community <ul><li>Self employment and entrepreneurial inputs should be embedded in the training </li></ul><ul><li>Need to focus in the areas of housing, sanitation, potable water supply, medical care, energy, education and communications. </li></ul><ul><li>E fforts should be made to utilize the local materials and cost-effective and appropriate technologies </li></ul><ul><li>TVET sector needs to involve rural masses in creation of 2/3 tier scattered cities with suitable infrastructure for reducing impact of massive and rapid urbanization </li></ul>
  50. 50. Persons with Disabilities <ul><li>A drive is needed to identify and productively utilize the abilities of the disabled persons </li></ul><ul><li>TVET sector can play the role of identifying and fine tuning of the abilities of the disabled persons </li></ul>
  51. 51. Correctional Role of TVET <ul><li>About 70% of the prisoners are physically and mentally capable of performing well in the technical activities </li></ul><ul><li>TVET sector should provide skill training to them </li></ul><ul><li>Advanced skill development courses for the under- employed people </li></ul><ul><li>Un-employed and school drop outs can also be given skill training </li></ul>
  52. 52. Strategy 2 : Raise : Professional Competence Interpersonal skills Enterprise, innovation creativity skills Work readiness & work habits Learning, thinking & adaptability skills Basic skills Using technology Practicality Business orientation Planning & organising activities Self-management Communication Team skills Customer service Cultural understanding Enterprise Entrepreneurship Creativity Innovation Learning Thinking Analytical capability & problem solving Systems thinking Adaptability <ul><ul><li>The interpersonal (or social) cluster with underpinning personal attributes & values e.g ., emotional intelligence, self- understanding </li></ul></ul><ul><ul><li>The cognitive cluster with underpinning personal attributes e.g., willingness to learn positive attitude to change & complexity mastery of mental models </li></ul></ul>
  53. 53. Strategy 2 : Raise : 1. Enhanced Status of TVET
  54. 54. Strategy 2 : Raise : Private Sector Participation
  55. 55. Strategy 3 : Reduce : Overlapping of Roles <ul><li>Overlapping of work of entrepreneurship Training organizations </li></ul><ul><li>Overlapping of work in TVET institutions – conduct SWOT analysis </li></ul><ul><li>S top benchmarking the nearby institutions. </li></ul>
  56. 56. Strategy 4 : Eliminate : Obsolescence <ul><li>TVET system must respond to the rapidly changing technological needs by continuously evaluating and updating curricula, introducing new courses and modernizing laboratories and workshops . </li></ul>
  57. 57. Strategy 4 : Eliminate : Obsolescence <ul><li>Active collaboration with Industry in program design, implementation and evaluation </li></ul><ul><li>Good Examples </li></ul><ul><li>Think on innovative lines and adopt unique strategies </li></ul>
  58. 59. Conclusion <ul><li>Inadequacy of entrepreneurship is inhibiting factor in accelerating the process of industrialization and economic development. </li></ul><ul><li>So far g reater emphasis on physical and related aspects in planning process </li></ul><ul><li>TVET system has not given concerted attention to training of potential entrepreneurs. </li></ul><ul><li>Need to inculcate entrepreneurial skills and competencies in students </li></ul><ul><li>Suggested BOS will promote technical entrepreneurship </li></ul>
  59. 60. THANK YOU !!!