The document discusses the concept of intrapreneurship and provides tools for practicing intrapreneurship using the principles of effectuation. It defines intrapreneurship as taking responsibility for innovation within a business. It encourages starting small projects based on available resources and forming partnerships to reduce risks. The document outlines the five principles of effectuation: 1) using available means, 2) focusing on affordable loss, 3) embracing surprises, 4) forming strategic partnerships, and 5) controlling controllable aspects. It emphasizes an iterative process of leveraging resources and surprises to jointly create new opportunities with low risks.

1. Intrapreneurship using
Effectuation
Ahimanikya Satapathy

2. What is Intrapreneurship?
● Dreamers who do.
● Those who take hands-on responsibility for creating
innovation (creating value) of any kind, within a business.
● A person within a corporation who takes direct
responsibility for turning an idea into a profitable finished
product through assertive risk-taking and innovation
Ref: https://en.wikipedia.org/wiki/Intrapreneurship

3. So, Why Intrapreneurship?
Intrapreneurship is as
necessary for your
company’s future as
swimming is for a shark —
if you don’t do it, you’ll die.

4. So, Why Should I care?
Why you think nokia died?

5. What is Innovation?
Innovation Create Value
Innovation = Invention * Commercialization
Disruptive vs Incremental vs Technology vs
Process vs Business Model Innovation

6. OK, So how do I get started?
Entrepreneurship doesn’t equal “small,” it equals value
creation, it is a way of creating value with new products,
new ways of running businesses…
You’re not building something entirely from scratch, nor
are you risking your own money…
So What’s stopping you to start today, now?

7. So, how do I really do it?
● Remove Inertia & Rigidity
● Take Small Steps
Incremental and Sustainable Innovation
● Read Book called “Little Bets”
How Breakthrough Ideas Emerge from Small Discoveries
● Know the world out there
● Be aware of antibodies
● Cross-pollinate - Learn a little bit from a lot of people.
Don’t care if it’s a cab driver or janitor, everyone you meet knows or does
something much better than you do.
● Improvise, test, iterate, and repeat.
● Know that, it’s OK to fail.

8. The playstation, ipod, post-it note, and
gmail are all products of intrapreneurship.

9. Tools
Effectuation Principles

10. #1: Bird In Hand Principle
To build a new venture/innovation - start with your means:
● Who I am — my traits, tastes, and abilities
● What I know — my education, training, expertise, and
experience
● Who I know — my social and professional networks.
Don’t wait for the perfect opportunity. Start taking action, based on what you have readily available

11. #2 Affordable Loss Principle
● Think about affordable loss rather than expected returns. When required bring other
stakeholders on board and leverage what they can afford to lose together.
● By allowing estimates of affordable loss to drive decisions about which venture to start,
entrepreneurs stop depending on prediction.
● Cultivating opportunities that have a low failure cost & that generate more options for the future.
● The combination enables cheap failure and learning that can be applied to the next iteration of
the opportunity.
● An estimate of affordable loss does not depend on the venture but on the person. It varies from
person to person
Set affordable loss. Evaluate opportunities based on whether the downside is acceptable, rather than
on the attractiveness of the predicted upside

12. #3: Lemonade Principle
If you come across lemons, make lemonade!
Invite the surprise factor.
Instead of making “what-if” scenarios to deal with worst-
case scenarios, interpret “bad” news and surprises as
potential clues to create new markets.
Leverage contingencies. Embrace surprises that arise from uncertain situations, remaining flexible
rather than tethered to existing goals.

13. #4: Crazy-Quilt Principle
● Start the process without assuming the existence of a predetermined market for your idea
● Take the product to the nearest potential customer.
● Obtain pre-commitments from key stakeholders, suppliers or customers to reduce uncertainty in
the early stages of creating an enterprise.
● The partnership principle goes well with the affordable loss principle to bring the entrepreneur’s
idea to market with very little cash expenditure.
● Don't wed to any particular market so that the expanding network of strategic partnerships
determines, to a great extent, which market or markets the company will eventually end up
entering or creating.
Form partnerships with people & organizations willing to make a real commitment to jointly creating the
future-product, firm, market-with you. Don’t worry about competitive analyses & strategic planning.

14. #5: Pilot in the Plane Principle
The four specific earlier principles represent different ways
entrepreneurs interact with the environment to shape the
environment.
Not everything can be shaped or controlled, but effectuation
encourages you, as the pilot of your venture, to focus on those
aspects of the environment which are, at least to a certain
degree, within your control.
Control the controllable. Be the pilot of your venture, to focus on those aspects of the environment
which are, at least to a certain degree, within your control.

15. Effectual Cycle Effectuation isn’t a static,
one-time exercise.

16. Who can use this tool?
It is a logic & process that can be used as the firm develops in the “0-60mph” (early product) phase of
growth
Existing business follow the process to gain early customers and committed partners who then create
new means and new goals as resources and viewpoints are added to the mix.
Thus, instead of having a stated goal and finding means to reach it, one can use the new means and
new goals to drive the creation of the venture in ways they hadn’t expected, leveraging surprises as
they present themselves.
Effectuators use the process to lower the risk of the venture (by getting customers and income early,
setting affordable loss, and spreading risk to others) and finding truly new and useful market
opportunities by leveraging constraints and new information.

17. “The best way to predict the future
is to invent it.” -- Alan Kay